Commercial lease – arrears of rent – forfeiture by peaceable re-entry – relief from forfeiture by order of the court – effect if the parties agree to 'relief' without an order of the court

Zestcrest Limited v County Hall Green Ventures Limited [2011] 50 EG 60 Lambeth County Court (District Judge Worthington)(2 August 2011)

Consider the scenario, you act for a landlord of commercial premises. There are arrears of rent. The lease contains a proviso for re-entry in fairly conventional form. You instruct bailiffs to effect a peaceable re-entry and the premises are secured and the locks changed. The tenant (or rather by now the former tenant) is locked out of the premises and is desperate to get back in to recover goods and possessions and to continue trading. The tenant raises funds to pay off the arrears of rent, interest and costs of the re-entry, pays them over and demands to be allowed back in as a matter of urgency. What should you do? Allow them back in as if the lease had not been forfeited, sign them up to a fresh lease or tell them to make an application to the court for relief from forfeiture, which application will not be opposed.