Wollongong Coal Ltd v Gujarat NRE India Pty Ltd [2019] NSWCA 135

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Wollongong Coal Ltd v Gujarat NRE India Pty Ltd [2019] NSWCA 135 Hearing dates: 8 and 9 April 2019 Decision date: 11 June 2019 Before: Bathurst CJ at [1]; Leeming JA at [15]; McCallum JA at [122] Decision: 1. Appeal allowed in part.

2. Set aside declaration 1 made on 28 September 2018.

3. Cross-appeal dismissed.

4. Direct the parties to file and serve, within 14 days of today, an agreed form of orders including orders as to costs, or, to the extent agreement is not reached, the orders for which each contends, and short submissions in support of those orders.

5. Direct the parties to file and serve, within 21 days of today, any submissions in reply as to the orders each seeks. Catchwords: CONTRACT – deed – guarantor's right of indemnity against primary obligor – whether enforceable – provision in multipartite deed by which guarantor "irrevocably waives and must not exercise any right of indemnity" – whether that provision enforceable by primary debtor – whether fact that guarantor and primary debtor were parties to deed sufficient to permit guarantor to enforce provision – whether "privity" entitled guarantor to rely on provision – whether sufficient that provision was clear and unambiguous – whether provision on true construction amounted to unilateral renunciation of right of indemnity

EQUITY – set-off in equity – requirement of impeachment – whether debt owed by parent company impeached appellant's debt to respondent – no error in conclusion by primary judge that impeachment not made out Legislation Cited: Corporations Act 2001 (Cth), ss 429, 588FE Conveyancing Act 1919 (NSW), s 38(3) Cases Cited: Accordent Pty Ltd & Portellos v Bresimark Nominees Pty Ltd (2008) 101 SASR 286; [2008] SASC 196 Agricultural and Rural Finance Pty Ltd v Gardiner (2008) 238 CLR 570; [2008] HCA 57 Banque Financiere de la Cite v Parc (Battersea) Ltd [1999] 1 AC 221 Bofinger v Kingsway Group Ltd (2009) 239 CLR 269; [2009] HCA 44 Brooks v Burns Philp Trustee Co Ltd (1969) 121 CLR 432; [1969] HCA 4 Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd [2019] NSWCA 87 Cherry v Steele-Park (2017) 96 NSWLR 548; [2017] NSWCA 295 Commonwealth v Verwayen (1990) 170 CLR 394; [1990] HCA 39 Competition and Consumer Commission v CG Berbatis Holdings Pty Ltd (2003) 214 CLR 51; [2003] HCA 18 Coulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR460; [1967] HCA 3 Fitness First Australia Pty Ltd v Fenshaw Pty Ltd (2016) 92 NSWLR 128; [2016] NSWCA 207 Forestview Nominees Pty Ltd v Perpetual Trustees WA Ltd (1998) 193 CLR 154; [198] HCA 15 Gardner v Lachlan (1836) 8 Sim 123; 59 ER 49 Gujarat NRE Coke Ltd v Wollongong Coal Ltd; Wollongong Coal Ltd v Gujarat NRE Coke Ltd [2017] NSWSC 383 Gujarat NRE India Pty Ltd v Wollongong Coal Ltd [2018] NSWSC 1459 Hawes v Dean [2014] NSWCA 380 Lavin v Toppi (2015) 254 CLR 459; [2015] HCA 4 Lord v Direct Acceptance Corporation Ltd (Receiver and Manager appointed) (in liq) (1993) 32 NSWLR 362 Mainteck Services Pty Ltd v Stein Heurtey SA (2014) 89 NSWLR 633; [2014] NSWCA 184 Mardorf Peach & Co Ltd v Attica Sea Carriers Corporation of Liberia [1977] AC 850 Moody v Condor Insurance Ltd [2006] 1 WLR 1847; [2006] EWHC 100 (Ch) Morgan v Pike (1854) 14 CB 473; 139 ER 195 Moss v the Legal and General Life Assurance Society of Australia (1875) 1 VLR (L) 315 Pyrmont Point Pty Ltd v Westacott (2016) 91 NSWLR 170; [2016] NSWCA 33 Rinehart v Hancock Prospecting Pty Ltd; Rinehart v Rinehart [2019] HCA 13 Rock Advertising Ltd v MWB Business Exchange Centres Ltd [2019] AC 119; [2018] UKSC 24 Salter v Kidgley (1689) Carth 76 Simic v New South Wales Land and Housing Corporation (2016) 260 CLR 85; [2016] HCA 47 Suttor v Gundowda Pty Ltd (1950) 81 CLR 418; [1950] HCA 35 Taouk v Assure (NSW) Pty Ltd [2017] NSWCA 227 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107; [1988] HCA 44 Victoria v Tatts Group Ltd [2016] HCA 5; (2016) 90 ALJR 392 Wickham v Hawker (1840) 7 M & W 63; 10 LJ Ex 153 Wily as Liquidator of Anglican Insurance Ltd [2009] NSWSC 696 WIN Corporation Pty Ltd v Nine Network Australia Pty Ltd (2016) 341 ALR 467; [2016] NSWCA 297 Woodside Petroleum Development Pty Ltd v H & R-E & W Pty Ltd (1999) 20 WAR 380 Texts Cited: R J Bullen, "The Rights of Strangers to Contracts under Seal" (1977) 6 Adel L Rev 119 J Carter, The Construction of Commercial Contracts (Hart Publishing, 2013) Encyclopaedia Britannica (Cambridge University Press, 11th ed, 1911) Vol 7 M Furmston and G Tolhurst, Privity of Contract (Oxford University Press, 2015) OW Holmes, "The Arrangement of the Law – Privity" (1872) 7 American Law Review 46 J D Heydon, Heydon on Contract: The General Part (2019, Thomson Reuters (Professional) Australia Ltd) D Ibbetson and E Schrage, "Ius quaesitum tertio: A Comparative and Historical Introduction to the Concept of Third Party Contracts" in E Schrage (ed), Ius quaestium tertio (Duncker & Humbolt, Berlin, 2008) D Ibbetson and W Swain, "Third Party Beneficiaries in English Law: From Dutton v Poole to Tweddle v Atkinson" in E Schrage (ed), Ius quaestium tertio (Duncker & Humbolt, Berlin, 2008) A Mason, "Privity – A Rule in Search of Decent Burial?" in P Kincaid (ed), Privity – Private justice or public regulation (Ashgate Dartmouth, 2001) V Palmer, The Paths to Privity (Austin & Winfield, 1992) N Seddon, Seddon on Deeds (Federation Press, 2015) AWB Simpson, A History of the Common Law of Contract (Clarendon Press, Oxford, 1975) S Wilken QC and K Ghaly, The Law of Waiver, Variation and Estoppel (Oxford University Press, 2012) Category: Principal judgment Parties: Wollongong Coal Limited (Appellant) Gujarat NRE India Pty Ltd (Respondent) Representation: Counsel: