Manmohan Singh's restaurant Rahi, on Ponsonby Rd, has been shuttered after a dispute with the building's landlords. Photo / Sylvie Whinray
A budding restaurant on Auckland’s Ponsonby Rd has closed its doors after a drawn-out dispute with its landlord resulted in its lease being terminated and locks changed.
The building’s owner Samson Corporation told the Herald the situation was “really unfortunate” and stressed it had tried to resolve the dispute through several channels before cancelling the lease.
Manmohan Singh, previously head chef at 1947 Eatery, opened Rahi on Ponsonby Rd with his former business partner in June last year, taking over the former Mr Spicer space by the Karangahape Rd intersection.
“One of the founders told me his goal was to create food in Auckland as good as that found in the fine hotels of India, and the dishes they serve here are a noticeable step up from anything you will find elsewhere in our city,” Viva‘s dining out editor Jesse Mulligan penned in his review of the establishment.
Rahi’s doors quietly closed in May to undergo renovations, originally planning to reopen in September. But come October, it remained shuttered and Samson handed Singh a termination of his lease. What happened in the months between?
Singh had delayed rent payments – due on the first of each month – over September and October, requesting leniency with the instalments as he tried to recoup renovation costs.
In August, he spent about $20,000 constructing a pergola in the open backyard, where the premises’ only washrooms are located, to secure it and protect customers from wet weather.
Having failed to receive building consent or fit-out approval beforehand, Samson suggested seeking validation of its compliance before applying for a certificate of approval from Auckland Council, or face it being removed at his own expense.
Singh subsequently removed the structure in September.
In emails seen by the Herald, Singh apologised for the error and said he wanted to reach a long-term solution with the landlords regarding the exposed backyard.
He cited recurring issues of theft and homeless people breaking into the washrooms as being harmful to business and deterring customers, and requested to meet Samson representatives in person several times to discuss a way forward.
Singh later returned to India at short notice to visit his dying mother, informing Samson of his intention to clear missed rental payments and reopen the restaurant when he returned.
He was issued a Property Law Notice while overseas, with a $10,964.47 payment required by October 20 to prevent termination of the lease.
Singh missed the deadline and the lease was cancelled on October 21.
Samson refused to take Singh’s payment the following day and gave him five working days to remove all items from the premises.
However, Singh alleged there was not ample time to do so and claimed the premises were locked every time he tried to collect the items.
“I didn’t understand what to do. I went crazy. I was requesting [more time], but they never gave me a proper answer; just remove, remove, remove,” Singh said.
Many items were later cleared from the premises by Samson and sold to recover funds.
Having invested around $200,000 in Rahi since opening, Singh said he’d lost his livelihood in the space of a few months and is no longer able to bring his family over from India as planned.
“I spent my entire life’s savings building this restaurant,” he said.
“I feel like I’m dead, because my whole life is finished. My children can’t come here now. I can’t do anything.”
While acknowledging Singh’s personal circumstances, Samson’s property and operations manager Callum Scott said Samson had done everything by the book.
“This is a really unfortunate situation. It sadly comes down to a business breakdown leading to a tenant not paying their contracted rent over several months.
“We’re never happy to be in this position, as we want our tenants to succeed and we do a number of things to try to help them to do so.
“In an effort to try to resolve this non-payment, we have been proactive in communicating with the tenant, extending time periods beyond usual dates, and even communicating to the tenant how he could access the property to remove items.
“Unfortunately, our communications went unanswered, so in accordance with the terms of the lease the locks were changed and items removed from the property.”
While he is still working out his next steps, Singh is adamant he wants Rahi to continue trading, and has extended an olive branch to Samson with the hope he can move back into the building.
“If they give me some time, I can pay the rent and I can run the restaurant, I can cover the money, everything.”
Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.
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