Strata Schemes (Leasehold Development) Act 1986 No 219
Current version for 1 January 2014 to date (accessed 20 December 2014 at 12:35)
Part 3Section 79

79   Variation of leasehold strata scheme consequent on damage to or destruction of building

(1973 Act, s 50)

(1)  Where a building is damaged or destroyed:
(a)  the lessor under the leasehold strata scheme concerned or any lessee of a lot the subject of the scheme,
(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,
may make an application to the Supreme Court for an order under subsection (4).
(2)  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 as the Supreme Court may direct.
(3)  The applicant and any person referred to in subsection (2) (whether or not served with notice of the application) shall be entitled to appear and be heard on the hearing of the application.
(4)  The Supreme Court may, on an application made under subsection (1), make an order for or with respect to the variation of the existing leasehold strata scheme or the substitution for the existing scheme of a new scheme.
(5)  An order made under subsection (4) shall take effect:
(a)  except as provided in paragraph (b), on such day as may be specified in the order, and
(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 80 (11), is treated as an application for an order under this section, or
(ii)  an application authorised by section 64,
on the day on which the resumption referred to in the order takes effect.
(6)  Without limiting the generality of subsection (4), an order made under that subsection may include directions for or with respect to any one or more of the following matters:
(a)  the substitution for the existing schedule of unit entitlement of a new schedule of unit entitlement,
(b)  the reinstatement in whole or in part of the building or, in the case of a stratum parcel, of the part of the building subject to the scheme,
(c)  the amendment of any strata development contract that relates to the parcel,
(d)  the transfer to or vesting in the body corporate, free from mortgages, charges, covenant charges and writs, of the interests of lessees of lots which have been wholly or partly destroyed,
(e)  the application of any insurance money received by the body corporate in respect of damage to or the destruction of the building or, in the case of a stratum parcel, the part of the building subject to the scheme,
(f)  the payment of money to or by the body corporate, the lessor under the scheme or the lessees or any one or more of them,
(g)  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,
(h)  where the order is made pursuant to an application made under section 61 which, under section 61 (7) or under sections 61 (7) and 80 (11), is treated as an application for an order under this section, any matter referred to in section 61 (4), and
(i)  where the application for the order is authorised by section 64, any matter referred to in section 61 (4) (a), (b) or (e).
(7)  An order made under subsection (4) shall have effect according to its tenor.
(8)  Where the Supreme Court is of the opinion that an order should not be made under subsection (4):
(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 80, and
(b)  where it makes such a direction:
(i)  the application the subject of the direction shall be deemed to be made under section 80 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 80, is entitled to appear and be heard on the hearing of the application.
(9)  The costs of any proceedings under this section pursuant to an application made under section 61 which, under section 61 (7) or under sections 61 (7) and 80 (11), is treated as an application for an order under this section shall be payable by the resuming authority, unless the Supreme Court otherwise orders.
(10)  The Supreme Court may, from time to time, vary any order made under subsection (4) on the application of any person entitled to appear and be heard on the hearing of the application for that order.
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