Electric Light & Power Supply Corporation Ltd v Electricity Commission (NSW) [1956] HCA 22

High Court of Australia Dixon C.J. McTiernan, Williams, Webb, Fullagar, Kitto and Taylor JJ. Electric Light & Power Supply Corporation Ltd v Electricity Commission (NSW) [1956] HCA 22

ORDER Special leave to appeal granted. Order that the application be treated as the appeal. Appeal allowed, the respondent commission to pay the costs of the appeal. Order of the Supreme Court discharged. In lieu thereof rule nisi for mandamus made absolute, the respondent commission to pay the costs of the rule.

Cur. adv. vult.

The Court delivered the following written judgment:—

May 30 Dixon C.J., McTiernan, Williams, Webb, Fullagar, Kitto and Taylor JJ.

The Electric Light & Power Supply Corporation Ltd. is a company incorporated in New South Wales which owns all but four hundred and nineteen shares in the Parramatta & Granville Electric Supply Co. Ltd., a company also incorporated in that State. The statutory description of the former company is the Balmain Electric Light Co. In 1950 the legislature of New South Wales decided that the undertakings of the two companies should be acquired by the Electricity Commission of New South Wales. Effect was given to the plan of acquisition upon which the legislature determined by Act No. 40 of 1950 called the Electricity Commission (Balmain Electric Light Company Purchase) Act 1950. The plan may be briefly described. The commission acquires on an appointed day all the shares in the two companies and all the assets of the two companies which as at that day are dissolved. As to compensation, the course adopted is to refer to the Land and Valuation Court the determination of the value of the undertaking of the Balmain Electric Light Co. The valuation doubtless covers the shares held by that company in the Parramatta & Granville Electric Supply Co. Ltd. When the value of the undertaking is fixed the amount is to be distributed directly among the shareholders in the form of debentures of the Electricity Commission of New South Wales, that is to say debentures representing the amount of compensation fixed are to be divided among the shareholders in proportion to the number of shares held by them respectively. There is, however, provision for payment in money of small amounts. Evidently it was thought unnecessary to fix a separate value for the four hundred and nineteen shares in the Parramatta & Granville Electric Supply Co. Ltd. The holders of these shares receive the same amount per share in debentures as they would if they were shares in the Balmain Electric Light Co. It is evident that an essential point in carrying out this scheme is the fixing of the appointed day. It is to be fixed by proclamation but it is to be not earlier than the date on which the value is determined by the Land and Valuation Court and not later than six months thereafter. In the meantime, as from 1st November 1950, the Electricity Commission takes over control of the two companies which after that date are to declare no further dividends. Interest on the debentures is to be calculated from that date. The valuation of the undertaking is to be made as at 31st October 1950.