Arbitration Award: Glendola Leisure Ltd v Mitchells & Butlers Retail (No.2) Ltd
Martin Dray has made an award under the Commercial Rent (Coronavirus) Act 2022 in the matter of Glendola Leisure Ltd v Mitchells & Butlers Retail (No.2) Ltd.
The parties disputed the existence of an alleged £163,247.23 protected rent debt. The applicant tenant asserted that in September 2020 the parties had agreed to an alternative rent, entailing that there were no arrears. The respondent landlord maintained that nothing more than a temporary concession on an interim basis had ever been agreed, and that the arrears claimed were due.
As a fallback, the tenant sought relief from payment. It proposed that £93,122.23 of the debt be paid over 24 months, with the remainder written off, and that any interest be waived. The landlord counter-proposed payment of the full debt over 24 months.
The substantive award determines that: (1) the debt is due: there was no binding agreement for a permanent rent reduction; (2) no part of the debt is to be written off; (3) however, the tenant is to be given relief and allowed to repay the full debt over 2 years; (4) any interest on the debt shall be extinguished, if the monthly repayments are paid on time.
The award can be viewed here.