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Ballymun Developments Ltd/Tenants of Ballymun S.C. (newer tenancies) [1993] IECA 155 (3rd December, 1993)
Notification
No: CA/l098/92E - Ballymun Developments Limited/ Tenants of Ballymun Shopping
Centre (Newer tenancies)
Decision
No: 155
Introduction
1. Notification
was made by Ballymun Developments Limited on 30 September, l992 with a request
for a certificate under Section 4(4) of the Competition Act, l99l or, in the
event of a refusal by the Competition Authority to issue a certificate, a
licence under Section, 4(2) in respect of a standard lease between Ballymun
Developments Limited and its tenants.
The
Facts
(a) Subject
of the notification
2 The
notification concerns the standard lease relating to more recent tenancies
covering 10 of the shop units in the Ballymun Shopping Centre, Ballymun, Dublin
9 between Ballymun Developments Limited as landlord and the tenants.
(b) The
parties involved
3 Ballymun
Developments Limited is a limited liability company and it is the owner and
landlord of the Ballymun Shopping Centre. The other parties are the tenants of
the shop units who are involved in various trading and service activities at
the centre.
(c) The
notified arrangements
4. The
notified standard lease contains the following restricted user clauses viz.
(a) Under
clause l0 of the Tenant's Covenants the tenant covenants "To use the demised
premises for the purpose of
and not without the Landlord's consent in writing which shall not be
unreasonably withheld to use or permit or suffer the same or any part thereof
to be used for any other purpose."
(b) Under
clause l2 of the Tenant's Covenants the tenant covenants "Not to assign,
transfer or underlet or part with the possession or occupation of the demised
premises or any part thereof or suffer any person to occupy the Demised
Premises or any part thereof as a licensee But So That Notwithstanding the
foregoing the Landlord shall not unreasonably withhold its consent...."
In
addition, there are a number of other standard restrictive covenants and
obligations in the lease.
5. Ballymun
Developments have supplied details of the permitted user under clause 10
applying to each lease whereby the tenant is restricted to particular specified
trading or service activities.
Assessment
- The Applicability of Section 4(1)
6. The
Authority considers that Ballymun Developments Limited and the tenants are
undertakings and that the notified leases are agreements between undertakings.
The agreements have effect within the State.
7. The
Authority considers that the notified agreements, and their restricted and
exclusive user clauses and the other standard restrictive clauses and
obligations, do not have the object or effect of preventing, restricting or
distorting competition in trade in any goods or services in the State or in any
part of the State, for the reasons given in the Notice of the Authority of 2
September, l993 in respect of shopping centre leases (Iris Oifigiuil of l0
September,l993, pp.665-667). The Authority therefore considers that the
notified agreements between Ballymun Developments Limited and its tenants do
not offend against Section 4(1) of the Competition Act, l99l.
The
Certificate
8. The
Competition Authority has issued the following certificate:
The
Competition Authority certifies that in its opinion, on the basis of the facts
in its possession, the agreements between Ballymun Developments Limited and its
tenants in relation to the lease of the premises at Ballymun Shopping Centre,
Ballymun, Dublin 9 notified under Section 7 ,on 30 September 1992 (notification
no. CA/1098/92E), do not offend against Section 4(1) of the Competition Act,
l99l.
For
the Competition Authority
Des
Wall
Member
3
December 1993
© 1993 Irish Competition Authority
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URL: http://www.bailii.org/ie/cases/IECompA/1993/155.html