New South Wales Consolidated Acts New South Wales Consolidated Acts(1973 Act, s 51)
(1) An application to the Supreme Court for an order under subsection (5) may be made by:(a) the lessor under the scheme or any lessee of a lot the subject of the leasehold strata scheme concerned,(b) where the lease of any such lot is subject to a mortgage or covenant charge-the mortgagee or covenant chargee, or(c) the body corporate.
(2) An application may be made by an authority having the benefit of a positive covenant only when the authority applies under section 88I of the Conveyancing Act 1919 for an order that the land the subject of the leasehold strata scheme concerned be transferred to the authority.
(3) Notice of the application shall be served, in accordance with the rules of court, on:(a) every person referred to in subsection (1), other than the applicant,(b) the local council,(c) the Registrar-General, and(d) such other persons (including creditors of the body corporate) as the Supreme Court may direct.
(4) The applicant and any person referred to in subsection (3) (whether or not served with notice of the application) shall be entitled to appear and be heard on the hearing of the application.
(5) The Supreme Court may, on an application made under subsection (1), make an order terminating the leasehold strata scheme concerned.
(6) An order made under subsection (5) shall take effect:(a) except as provided in paragraph (b), on such day as may be specified in the order, or(b) where it is made pursuant to:(i) an application made under section 61 which, under section 61 (7) or under sections 61 (7) and 79 (8), is treated as an application for an order under this section,(ii) an application under subsection (1) in relation to a proposed resumption of the leasehold estates or leasehold estates and reversion in all the lots and in all the common property the subject of a leasehold strata scheme, or(iii) an application authorised by section 64,on the day on which the resumption referred to in the order takes effect.
(7) An order made under subsection (5) shall include directions for or with respect to the following matters:(a) the sale or disposition of any property of the body corporate,(b) the discharge of the liabilities of the body corporate,(c) the termination of any development scheme that relates to the parcel and the cancellation of the strata development contract concerned,(c1) the termination or amendment of any strata management statement that relates to the parcel or the amendment of any other strata management statement that relates to the building concerned,(d) the persons liable to contribute money required for the discharge of the liabilities of the body corporate and the proportionate liability of each such person,(e) the distribution of the assets of the body corporate and the proportionate entitlement of each person under that distribution,(f) the administration and functions of the body corporate,(g) the voting power at meetings of the body corporate of persons referred to in paragraph (d) or (e),(h) any matter in respect of which it is, in the opinion of the Supreme Court, just and equitable, in the circumstances of the case, to make provision in the order, and(i) the winding up of the body corporate (including the appointment and functions of any person to carry out the winding up).
(8) Upon an order under this section taking effect:(a) the estate or interest of the former lessees in that part of the former parcel which consisted of common property vested in the body corporate as agent for the former lessees vests in the body corporate as principal, subject only to any estate or interest recorded in the folio of the Register, or on any registered sublease, evidencing the estate or interest of the body corporate in that common property or in the relevant folio of the Register created under section 25 (1),(b) the estates or interests of every lessee in that part of the former parcel which did not consist of common property vest in the body corporate as principal, subject only to any estate or interest recorded in:(i) the folio of the Register evidencing the estate or interest of the body corporate in the common property comprised in that former parcel, or(ii) the relevant folio of the Register created under section 25 (1),to the extent that the estate or interest so recorded was capable of affecting the lease of any former lot,(c) the persons who, immediately before the order took effect, were lessees of lots the subject of the leasehold strata scheme concerned cease to be lessees of lots subject to that scheme,(d) the persons whose estates or interests are divested by paragraph (b) have instead such rights and liabilities as are conferred or imposed upon them by the order, and(e) if the leases so provided or it is provided in any other agreement, the former lessor under the scheme is liable to pay to each former lessee such amount by way of compensation, determined in accordance with the formula set out in Schedule 2 or as otherwise agreed by the former lessor and former lessee, in respect of the value of the improvements comprised within the former parcel as is attributable to the lot leased by the former lessee.
(9) The provisions of an order made under this section shall have effect notwithstanding any provision of this Act, other than this section.
(10) An order made under subsection (5) shall have effect according to its tenor.
(11) Where the Supreme Court is of the opinion that an order should not be made under subsection (5):(a) it may, upon application made by any person entitled to appear and be heard on the hearing of the application made under subsection (1) or of its own motion, direct that the application be treated as an application for an order under section 79, and(b) where it makes such a direction:(i) the application the subject of the direction shall be deemed to be an application made under section 79 by a person entitled to make the application, and(ii) the applicant under subsection (1), as well as any other person entitled to appear and be heard under section 79, is entitled to appear and be heard on the hearing of the application.
(12) The costs of any proceedings under this section:(a) pursuant to an application made under section 61 which, under section 61 (7) or under sections 61 (7) and 79 (8), is treated as an application for an order under this section, or(b) pursuant to an application under subsection (1) in relation to a proposed resumption of the leasehold estate or the leasehold estate and reversion in all the lots and in all the common property the subject of a strata scheme,shall be payable by the resuming authority, unless the Supreme Court otherwise orders.
(13) The Supreme Court may, from time to time, vary any order made under subsection (5) on the application of any person who was entitled to appear and be heard on the hearing of the application for that order.
(14) Where, in relation to a former lot that was comprised in a leasehold strata scheme that has been terminated by an order made under subsection (5), a dispute arises as to the amount to be paid in respect of the value of improvements under subsection (8) (e) to the former lessee of that lot, that dispute shall be resolved:(a) if the lease of the lot so provided or the parties to the dispute otherwise agree, by reference to arbitration under the Commercial Arbitration Act 2010 , or(b) in any other case, by an order of the Supreme Court.
(15) An application for an order under subsection (14) (b) may be made by any party to the dispute concerned.
(16) Notice of an application for an order under subsection (14) shall be served, in accordance with rules of court, on such persons as the Supreme Court may direct.
(17) As far as practicable, all applications which relate to the same leasehold strata scheme shall be heard together.