ChD 30 July 1986. Landlords sought declarations that because of breaches of covenant, the tenants(T) were not entitled to exercise an option to renew a lease of premises at Westcliff-on-sea,Essex. In 1982 T had taken a 15-year lease of a hotel from the landlord. An option entitled T to renew the lease for a term of 125 years and was conditional upon T having paid the rent and having "performed and observed the covenants...". In 1985 T served notice on the landlord to take up its option. The landlords would not accept the request. The matter went to court; the landlords claimed that T had not "performed and observed" covenants. One covenant provided that T should not apply for planning permission without landlords consent. On two occasions T had done so although both were refused. It was held that these applications were sufficient to show that T had not "performed and observed" the covenants and that these breaches had negated T right to exercise the option to renew . Judgment for la