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Panavia Air Cargo Ltd v Southend-on-Sea BC

Language: English Series: Estates Gazette ; (8801) 9 January 1988, 60-64(3)Publication details: 1988Subject(s): Summary: ChD 30 July 1987. An originating summons by which tenants (P) sought a determination of the construction of the rent review provisions in a lease. At issue was the meaning of the construction of a provision which stated that if a rent review was not completed within 12 months of the commencement of a relevant period, the rent payable during that period would be the current rent increased by 25%. It was argued by P that as the review had not been completed in time, the automatic increase of 25% in the current rent came into effect. The landlords contended that this 25% provision was only an interim arrangement, and therefore, if a rent review was to be subsequently completed, the revised rent would take effect if it resulted in a figure over 125% of the rent payable for the previous period. On appeal, it was held that the increase of 25% did not operate automatically if the review was not completed within 12 months of the completion of the relevant period.

ChD 30 July 1987. An originating summons by which tenants (P) sought a determination of the construction of the rent review provisions in a lease. At issue was the meaning of the construction of a provision which stated that if a rent review was not completed within 12 months of the commencement of a relevant period, the rent payable during that period would be the current rent increased by 25%. It was argued by P that as the review had not been completed in time, the automatic increase of 25% in the current rent came into effect. The landlords contended that this 25% provision was only an interim arrangement, and therefore, if a rent review was to be subsequently completed, the revised rent would take effect if it resulted in a figure over 125% of the rent payable for the previous period. On appeal, it was held that the increase of 25% did not operate automatically if the review was not completed within 12 months of the completion of the relevant period.