INPEX Operations Australia Pty Ltd v JKC Australia LNG Pty Ltd

INPEX Operations Australia Pty Ltd sought judicial review of a decision made by an adjudicator under the Construction Contracts (Security of Payments) Act 2004 (NT). The dispute arose from a payment claim made by JKC Australia LNG Pty Ltd, a subcontractor, against INPEX, the head contractor. The adjudicator found in favour of JKC, ordering INPEX to make the disputed payment. INPEX argued that the adjudicator failed to comply with natural justice by not allowing INPEX an opportunity to address critical issues that had not been raised by JKC, thus depriving INPEX of a possibility of a successful outcome.

The court was required to decide whether the adjudicator's failure to allow INPEX to address certain issues constituted a jurisdictional error and whether the adjudicator's jurisdiction was limited to the specific type of payment dispute outlined in the application. Additionally, the court needed to determine if the adjudicator's failure to undertake a statutory task amounted to a jurisdictional error under the Act.

The court held that the adjudicator's failure to allow INPEX to address critical issues not raised by JKC was a substantial failure to comply with the requirements of natural justice, depriving INPEX of a reasonable opportunity to address matters that could have affected the outcome. The court found that this constituted a jurisdictional error. The court also found that the adjudicator's jurisdiction was not limited to the specific type of payment dispute outlined in the application, but rather to the overall payment claim. Furthermore, the court held that the adjudicator's failure to undertake a statutory task did not amount to a jurisdictional error.

INPEX's application for judicial review was dismissed, and the adjudicator's determination was upheld.