Lien Heng Asian Grocery

Adelaide City Council recognises that the Lien Heng Asian Grocery is a prominent tenancy in the Central Market, which is why Council attempted to find a resolution with the tenant on a number of occasions, including participating in mediation and making several offers of compromise in an effort to avoid legal proceedings.

A number of offers of a new Lease for the Shop were made, including the opportunity to expand the retail selling area of the Shop and the opportunity to increase the retail frontage of the western roadway.

“All attempts by Council to resolve the matter were rejected outright by the proprietor of the Shop, Mr Khuu, who was insistent that he would not take a new lease on the Shop unless he was offered a new licence in respect of the fruit and vegetable stand in the area adjacent to the Shop,” said Council CEO Peter Smith. 

Council did not renew the Stand licence for the 8.7sqm stand for a number of reasons, including:

• Effect on the adjoining shop
• Effect on the adjacent stalls
• Congestion in the western roadway (a major roadway)
• Access for services associated with cleaning and waste management
• Shopper safety and movement
• Equitable consideration of all Traders
• The well documented history of breaches of tenancy conditions by Lien Heng Asian Grocery in its operation of the business, particularly the stand and the impacts on the above matters.

“Council has at all times sought to act fairly and equitably in its dealings with Lien Heng Asian Grocery as it does with all traders in the Central Market,” Peter said.

“Instead of accepting the offer of a new lease for the Shop, and despite the Council making it clear that he could not expect Council to make a further offer, the tenant decided to take the matter to Court.”

Council’s position on this matter has been upheld by the Supreme Court at trial and subsequently by the Full Court. Mr Khuu then sought to appeal to the High Court; that application was rejected in May. Council has been awarded costs at every stage.

Council does not intend to make another offer and has issued Notices to Terminate to the Lien Heng Asian Grocery on Thursday 7th June, giving the owner 30 days to vacate the retail Shop, the Stand and the adjacent storage area.