New South Wales v Commonwealth (No 1) [1932] HCA 7

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46 C.L.R.] OF AUSTRALIA.

-— & & 42

=, =

ih (HIGH COURT OF AUSTRALIA.)

Li , THE STATE OF NEW SOUTH WALES . PLatnrirr ;

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"THE COMMONWEALTH AND OTHERS . . Derenpants. "

" [No, 1.]

"

Constitutional Law—State debts—Agreement between Commonwealth and States for 4. ©. ov A.

payment by Commonwealth—Payment of interest by Commonwealth—Refusal by 1932.

nl State to repay to Commonwealth interest paid on its behalf—Recoupment by all

y Commonwealth from State revenues—Validity of legislation authorizing such MELBOURNE,

recoupment—Whether @ law * for the carrying out by the parties thereto" of the March 17, 3

Financial Agreement between the Commonwealth and the States—The Constitution ~*~"

463 & G4 Vict. c. 12), sec. 105a—Constitution Alteration (State Debts) 1928 Sypwzy,

§ (No. 1 of 1929), sec. 2—Financial Agreement Act 1928 (No. 5 of 1928)— Financial April 6, 21. Agreement Validation Act 1929 (No. 4 of 1929)—Financial Agreements Enforce- anent Act 1982 (No. 3 of 1932), Part I1.—Financial Agreements (Commonwealth Liability) Act 1932 (No. 2 of 1932). Starke; Dixon,

fi : aaah MeTiernan JJ.

'The provisions of Part IL. of the Financial Agreements Enforcement Act

" 1932 are a valid exercise of the legislative powers of the Federal Parliament,

AGAINST.

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So held by Rich, Starke, Divon and McTiernan JJ. (Gavan Duffy C.J. and Byatt J. dissenting).

Moron for Injunction.

The State of New South Wales issued a writ against the Common- * wealth of Australia and the Honourable Joseph Aloysius Lyons and jpoitier Ministers of State and Assistant Ministers of State of the * Commonwealth of Australia, By the indorsement on the writ the _ Plaintift claimed (1) a declaration that the whole of the Financial ' "Agreements (Commonwealth Liability) Act 1932 and the whole of the

Financial Agreements Enforcement Act 1932 were ultra vires the Parliament of the Commonwealth and were invalid ; (2) an order to