Leivest International v Top Ten Entertainment: Lease Renewal Dispute

In a dispute between Leivest International Pte Ltd and Top Ten Entertainment Pte Ltd, the High Court of Singapore addressed issues arising from a lease agreement and its attempted renewal. Top Ten had been leasing premises from Leivest since 1984. Disputes arose, leading to legal proceedings and a settlement agreement in 2003. Top Ten sought to exercise an option to renew the lease, but Leivest refused, alleging breaches of the settlement agreement and failure to properly exercise the renewal option. The court found that Leivest had waived any breaches of the settlement agreement and that Top Ten had validly exercised its option to renew the lease. The court allowed Top Ten's claim for specific performance and dismissed Leivest's counterclaim.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Top Ten's claim for specific performance is allowed, and Leivest's counterclaim is dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment reserved.

1.5 Jurisdiction

Singapore

1.6 Description

Leivest International and Top Ten Entertainment dispute lease renewal terms. The court found Top Ten had validly exercised its option to renew the lease.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Leivest International Pte LtdPlaintiff, RespondentCorporationClaims dismissedLostPang Xiang Zhong
Top Ten Entertainment Pte LtdDefendant, AppellantCorporationClaim for specific performance allowedWonB Mohan Singh

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Pang Xiang ZhongPeter Pang and Co
B Mohan SinghK K Yap and Partners

4. Facts

  1. Top Ten leased premises from Leivest since 1984.
  2. A settlement agreement was reached in October 2003 after disputes arose.
  3. Top Ten's cheque for payment of costs was dishonoured.
  4. Leivest accepted a late payment of costs from Top Ten.
  5. Leivest issued a rent invoice for December 2003 and accepted payment.
  6. Top Ten sent a letter to exercise the option to renew the lease.
  7. Leivest refused to grant the new lease, alleging breaches and non-compliance.

5. Formal Citations

  1. Leivest International Pte Ltd v Top Ten Entertainment Pte Ltd, OS 204/2004, Suit 809/2004, [2006] SGHC 1

6. Timeline

DateEvent
Top Ten leased premises from Premier Theatre Pte Ltd.
1985 lease was signed.
Lucky Red Investments Pte Ltd became the owner of the premises.
Leivest took over ownership of the premises.
Leivest commenced proceedings in Suit No 634 of 2002, claiming possession of the premises.
Parties reached a settlement before Justice Tay Yong Kwang.
Terms of settlement were set out in a letter.
Lease was executed by the parties and stamped.
Lease commenced.
Top Ten was to pay all arrears of MCST charges up to November 2003.
Top Ten was informed that its cheque was dishonoured.
Leivest's solicitors wrote to Top Ten giving notice to deliver up possession.
Top Ten made a second payment.
Top Ten paid the maintenance interest to the Management Corporation.
Leivest issued a rent invoice for December 2003.
Leivest commenced Originating Summons No 204 of 2004.
Top Ten filed Suit No 809 of 2004.
Top Ten sent a letter to Leivest to exercise the option to renew the lease.
Leivest responded that there was no lease.
Leivest accepted Top Ten's repudiation of the lease.
Judgment reserved.

7. Legal Issues

  1. Repudiation of Lease Agreement
    • Outcome: The court found that Top Ten had breached the terms of the settlement agreement, but Leivest had waived the breaches.
    • Category: Substantive
    • Sub-Issues:
      • Failure to make timely payment
      • Dishonoured cheque
  2. Exercise of Option to Renew Lease
    • Outcome: The court found that Top Ten had validly exercised its option to renew the lease.
    • Category: Substantive
    • Sub-Issues:
      • Validity of notice
      • Compliance with valuation requirements
  3. Waiver of Breach
    • Outcome: The court found that Leivest had waived the breaches by accepting late payment and demanding rent.
    • Category: Substantive

8. Remedies Sought

  1. Possession of premises
  2. Mesne profits or damages
  3. Specific performance of lease renewal

9. Cause of Actions

  • Breach of Contract
  • Specific Performance

10. Practice Areas

  • Commercial Litigation
  • Lease Agreements

11. Industries

  • Entertainment
  • Real Estate

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Central Estates (Bulgaria) Ltd v Woolgar (No 2)English Court of AppealYes[1972] 1 WLR 1048England and WalesCited for the principle that accepting rent with knowledge of a breach constitutes a waiver, regardless of intent.
Davenport v The QueenN/AYes(1877) 3 App Cas 115AustraliaCited for the principle that accepting money as rent under a lease cannot be countervailed by a protest that it is accepted conditionally and without prejudice to the right to insist upon a prior forfeiture.
Windmill Investments (London) Ltd v Milano Restaurant LtdN/AYes[1962] 2 QB 373England and WalesCited for the principle that it is a question of fact whether money tendered is tendered as, and accepted as, rent, and once it is decided as a fact that the money was tendered and accepted as rent, the question of its consequences as a waiver is a matter of law.
Riduan bin Yusof v Khng Thian Huat (No 2)Court of AppealYes[2005] 4 SLR 234SingaporeCited for the principle that a tenant has the right to remove tenant's fixtures and return the premises in the state they were in when possession was first given.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) s 18ASingapore
Civil Law Act (Cap 43, 1999 Rev Ed) s 28(4)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Lease
  • Repudiation
  • Waiver
  • Option to renew
  • Settlement agreement
  • Tenant's fixtures
  • Fair market rent

15.2 Keywords

  • lease
  • renewal
  • repudiation
  • waiver
  • settlement
  • tenant
  • landlord
  • fixtures
  • rent

16. Subjects

  • Landlord and Tenant Law
  • Contract Law
  • Lease Renewal
  • Waiver of Rights

17. Areas of Law

  • Landlord and Tenant
  • Contract Law
  • Civil Procedure