source : the age
An inner-north beer garden’s unauthorised use of public land is at the centre of a Supreme Court challenge against Yarra City Council, as the pub also navigates financial issues and a fallout between owners.
The Fitzroy Beer Garden is fighting to preserve its long-term, but unsanctioned, use of two laneways that abut its site at 243–245 Gertrude Street and form part of the pub’s outdoor seating area.
The arrangement has been in place since the 1970s. External access to the laneways is blocked by fixed barriers and the venue has fitted out the space with additions that include stairs, concrete flooring, a glass ceiling, furniture, decor and plants.
Conflict over the use of the laneways culminated at a Yarra City Council meeting in June. All but two councillors supported a motion stating that the lanes are required for public use and all encroachments must therefore be removed – effectively voting to dismantle the beer garden.
Although property records indicate that the laneway land is owned by the beer garden’s building owners, X & G Pty Ltd, it’s listed on Yarra’s public road register, meaning the council is the superior authority.
A Yarra spokesperson said councillors had determined the two strips of land were still required as public roads.
“These laneways give neighbouring properties their only way in and out the back, and several of those properties still hold the legal right to use them,” they said.
During a public consultation period that took place in January, 62 of the 80 public submissions received wanted to see the lanes reopened for public use.
The council spokesperson said one neighbouring property owner had made a formal request in 2024 for their rear access be reinstated.
Venue owner Indy Weerakoon said reopening the lanes to the public would force his business to close, as the beer garden is the key part of its usable space. He called the council’s decision “very one-sided”.
“There wasn’t a proper investigation done. I’ve spoken to people about it. I think they chose a handful of neighbours to have a chat with,” Weerakoon said.
“You will kill a business that has been there for a very long time.”
Building owners X & G Pty Ltd are seeking to have the council’s decision overturned and launched proceedings with the Supreme Court in August.
The company’s originating motion argues the council has no proposal for any alternative use for the roads, and says the laneways would be “unlit, unsecured and unmanned” if they were opened to the public.
The motion also claims the laneways are not reasonably required for public use. A directions hearing for the matter is scheduled for September 9.
The Fitzroy Beer Garden business is also facing separate financial and legal challenges. A former co-owner resigned from the company on August 5, leaving Weerakoon as the sole director.
Documents filed with the corporate regulator reveal that an external administrator from Hall Chadwick was appointed as a restructure plan practitioner of the pub’s operating company, Montra Investment Holdings Pty Ltd, in May 2025, and again 12 months later.
The company owes $520,983 to four secured creditors and $764,407 to 14 unsecured creditors, according to an annual administration return lodged on May 29.
The former co-owners are also locked in a civil matter in the Supreme Court, where Weerakoon has launched proceedings relating to allegations of shareholder oppression.
This civil matter relates to instances where a company is being managed in a way which is oppressive or discriminatory towards its other shareholders.
The matter is due to go to court for a closed mediation session in late September.
Weerakoon said that the restructuring plan was an ATO matter and declined to comment on the ongoing shareholder oppression case.
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Gemma Grant is a city reporter at The Age. Contact her securely on Signal at gemmagrant.88Connect via email.
