Bonython v The Commonwealth [1948] HCA 2

High Court of Australia Latham C.J. Rich, Starke, Dixon and McTiernan JJ. Bonython v The Commonwealth [1948] HCA 2

ORDER Questions in case answered as follows:—(a) No. (b) Unnecessary to answer. (c) No. (d) No. Case remitted to Chief Justice.

Cur. adv. vult.

The following written judgments were delivered:—

1948, May 31 Latham C.J.

This is a case stated in an action brought by Sir John Lavington Bonython and others who hold £80,400 Commonwealth Inscribed Stock 3.5% maturing 1st January 1945 against the Commonwealth of Australia.

This stock was acquired by the Australian Mutual Provident Society in March 1932, upon the surrender to the Commonwealth of certain Queensland Government debentures. It is agreed between the parties that the stock was issued to the A.M.P. Society "subject to the condition that the same conferred upon the registered holders thereof for the time being rights which conformed in all particulars with the rights conferred by the said Queensland Government Debentures."

The debentures were issued in pursuance of The Government Loan Act of 1894 Q.. That Act authorized the Governor in Council to raise a loan not exceeding £2,000,000. This money was raised in two portions, £1,250,000 in England and £750,000 in Australia. Of the latter amount the A.M.P. Society took up an amount of £250,000. The debentures were all in the following form, except that some debentures were for £500:— One Thousand Pounds Government Queensland Identical SI.TI Debenture Series S.1. No. 1 £1,000

Issued by the Governor in Council, by authority of the Parliament of Queensland under the Act 58 Victoria No. 32.

This Debenture entitles the Holder to the sum of One thousand pounds sterling, which, together with interest at the rate of Three pounds ten shillings per centum per annum is secured upon the Consolidated Revenue of Queensland.