Breaching an encumbrance
Encumbrances may affect or limit your proposal or prevent it from proceeding. If the proposal contravenes any encumbrance, contact your council for advice on how to proceed.
- Section 61(4) of the Planning and Environment Act 1987 for example, prevents a council from granting a permit if it would result in a breach of a registered restrictive covenant.

Source
How to complete the Planning Permit Application Form by the
State of Victoria - Further, section 91 of the Planning and Environment Act 1987 requires that in order to be classed as a VicSmart application, that the granting of a permit does not breach any restrictive covenant.