The Commonwealth v Arklay [1952] HCA 76

The Commonwealth v Arklay [1952] HCA 76

Under the Lands Acquisition Act, compensation for compulsory acquisition of land during periods of price control is to be assessed not merely at the value the controlling authority would allow, but at the amount a willing seller and buyer would agree upon, taking into account the presence of controls but also the likelihood of increased value when controls are lifted. A sum may be added to reflect the 'retention value', i.e., the value to an owner willing to wait until controls are lifted, as demanded by just terms under the Constitution.

Jurisdiction
Australia
Procedural Posture
Appeal / Final Appellate Judgment
Outcome
appeal dismissed
Legal Topics
['compulsory Acquisition' 'land Valuation' 'compensation During Price Controls' 'assessment of Market Value' 'just Terms Under S 51(xxxi) Constitution']
['constitutional Law' 'property Law' 'compensation Law'] ['compulsory Acquisition' 'land Valuation' 'compensation During Price Controls' 'assessment of Market Value' 'just Terms Under S 51(xxxi) Constitution']

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Procedural Posture

Appeal / Final Appellate Judgment

Legal Issues

  1. 1 ['Whether compensation for land compulsorily acquired under the Lands Acquisition Act during a period of price controls can exceed the highest price the controlling authority might have sanctioned.' "How to determine 'value to the owner' under the Act during periods of governmental regulation."]

Ratio Decidendi

Under the Lands Acquisition Act, compensation for compulsory acquisition of land during periods of price control is to be assessed not merely at the value the controlling authority would allow, but at the amount a willing seller and buyer would agree upon, taking into account the presence of controls but also the likelihood of increased value when controls are lifted. A sum may be added to reflect the 'retention value', i.e., the value to an owner willing to wait until controls are lifted, as demanded by just terms under the Constitution.

Court Disposition

appeal dismissed

Orders

  • ['Appeal dismissed with costs.']