The eviction of a Footscray renter has been quashed in the Supreme Court in a judgment lawyers believe could strengthen protections for tenants across the state.

Legal Aid lawyers acting for 49-year-old Mitra Jafarpourasr, an Iranian asylum seeker with physical disabilities and diagnosed mental health conditions, successfully argued that her landlord, Ivan Tancevski, failed to provide a proper reason for the eviction.

The notice to vacate served last November cited the two-bedroom flat was to be vacated so Mr Tancevski’s 21-year-old grandson could move in.

Under Victorian law, a 60-day notice to vacate can be issued if the property is to be occupied by either the landlord, a member of their immediate family or someone who is dependent on them and normally lives with them.

Earlier this year, the Victorian Civil and Administrative Tribunal upheld the eviction notice and granted a possession order.

But Ms Jafarpourasr’s lawyers told the Supreme Court that VCAT member Blair Ussher failed to consider whether the grandson normally lived with the landlord, and whether he was wholly or substantially dependent on the landlord.

Mr Tancevski, aged in his 80s, was represented throughout the proceedings by his real estate agent, Metka McDonald.

Ms McDonald told the tribunal the grandson was living with other family members at the time of the hearing. Asked whether the grandson was dependent on Mr Tancevski, she replied: “Yes, he’s a student.”

Associate Justice Melissa Daly on Tuesday found that Mr Ussher had not made the necessary inquiries to establish whether the grandson was wholly or substantially dependent on his grandfather.

Speaking outside court after the judgment, Ms Jafarpourasr said she was relieved with the decision.

“What my landlord did to me was unjust because I was a good tenant and I paid my rent on time,” she told Domain.

Ms Jafarpourasr shares the flat with her nephew, her only relative in Australia. She lives on $344 in social security payments each week, $275 of which is spent on rent. She is not eligible for public housing because she is on a safe haven enterprise visa.

She said she had struggled to find another home to rent that was within her budget, accessible in her motor scooter and close to her doctors.

Legal Aid managing lawyer Damian Stock said the Supreme Court decision had clarified landlords’ obligations to include sufficient reasons on a notice to vacate.

“We’re not denying a landlord’s right to evict, but there have to be safeguards in place,” Mr Stock said.

The landlord served Ms Jafarpourasr a second notice to vacate in June, which is due to be heard in a separate VCAT hearing later this month.

Proposed changes to the Residential Tenancies Act would remove the 120-day no reason eviction notice, requiring landlords to provide a legitimate reason in order to evict a tenant. The changes would not affect the provisions cited in this case.

The legislation continues to be debated by members of the upper house.