Minister for Supply and Development v Servicemen's Co-operative Joinery Manufacturers Ltd [1951] HCA 15

High Court of Australia Latham C.J. Williams and Webb JJ. Minister for Supply and Development v Servicemen's Co-operative Joinery Manufacturers Ltd [1951] HCA 15

ORDER Appeal allowed with costs. Judgment of Supreme Court set aside. In lieu thereof judgment for defendants with costs.

Cur. adv. vult.

The following written judgments were delivered:—

April 26 Latham C.J.

This is an appeal from a judgment of the Supreme Court of South Australia (Paine A.J.) in an action in which the respondents, the Servicemen's Co-operative Joinery Manufacturers Limited and G. T. Clarke, sued for the return of certain wood-working machinery or for damages for its conversion. The plaintiff Clarke is a trustee for debenture holders who have security over all chattels belonging to the plaintiff company. Judgment was given for the plaintiffs for £4,897 10s. 8d.

The machinery in question belonged to the Commonwealth. It was in buildings belonging to the Commonwealth at Salisbury, South Australia, which had been a large munitions plant during the recent war. The plaintiff company took a lease of portion of the premises known as the carpenters' shop. Most of the machinery in question was in that shop at the time when the agreement for the lease was made. Some of the machinery was in another building at Salisbury—a paint shop, of which the company also had a lease. The company wished to buy the machinery and negotiations took place with the Commonwealth for the purchase. A number of departmental documents transferred the responsibility for dealing with the machinery from the Explosives Factory, Salisbury, to the Machine Tools Pool, the selling agent for which was the Disposals Commission. These documents were interpreted by the learned trial judge as constituting, or providing evidence of, a contract between the Commonwealth and the company for the sale of the machinery. His Honour held that the machinery was sold to the plaintiff on or before 11th March 1946—i.e., when the company entered into possession of the carpenters' shop which contained most of the machinery. Examination of the documents shows, however, that these documents do not represent any dealing between the Commonwealth and the company. They were inter-departmental communications which were not brought to the knowledge of the plaintiff company. They merely record steps taken which ended in final approval being given to the transfer of the machinery to the books of the Disposals Commission.