Placer Development Ltd v The Commonwealth [1969] HCA 29

High Court of Australia Kitto, Taylor, Menzies, Windeyer and Owen JJ. Placer Development Ltd v The Commonwealth [1969] HCA 29

ORDER Questions 2, 3 and 4 (a) raised by the case stated answered as follows:—

2. No.

3. No.

4 (a). No.

Order that the plaintiff pay the defendant's costs of and incidental to the case stated.

Cur. adv. vult.

The following written judgments were delivered:—

June 27 Kitto J.

An Agreement made in 1952 between the Commonwealth and the plaintiff company, providing for the formation by the plaintiff of a company (referred to in the Agreement as the Timber Company) to produce plywood and other timber products in the Territory of Papua and New Guinea, contained a cl. 14 in these terms:

14. If customs duty is paid upon the importation into Australia of the plywood, veneers, logs and other products of the Timber Company, and is not remitted, the Commonwealth will pay to the Timber Company a subsidy upon the exportation of these products from the Territory for entry into Australia of an amount or at a rate determined by the Commonwealth from time to time, but the amount of subsidy paid shall not exceed the amount of customs duty paid and not remitted.

The timber company was duly formed. Between 1st July 1959 and 30th June 1963 it imported into Australia certain plywood which it had produced in the Territory, and paid in respect of the importation customs duty which was not remitted. The Commonwealth has not paid the timber company any subsidy upon the exportation of the plywood from the Territory in those years, nor has it determined any amount or rate of subsidy in respect thereof. In these circumstances the plaintiff sues the Commonwealth in this Court for a clarification of the meaning of cl. 14, and by a case stated the parties submit for decision certain questions which reflect the respective contentions of the parties.