Maitland Main Collieries Pty Ltd v Hunter Valley Coal Corporation Pty Ltd

Maitland Main Collieries Pty Ltd (the appellant) sought to appeal a decision concerning a dispute with Hunter Valley Coal Corporation Pty Ltd (the respondent) regarding coal mining operations. The core of the dispute involved the appellant's obligations under a deed of release, specifically a covenant to refrain from objecting to "second working" applications for underground coal mining, provided the appellant was duly notified under the *Coal Mines Regulation Act 1982* (NSW). The appeal was heard by the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether a subsequent change in departmental practice regarding the granting of approval for "second workings" under the *Coal Mines Regulation Act 1982* affected the appellant's obligations under the deed of release. Specifically, the court had to determine if the respondent's compliance with the notification requirements of the Act was sufficient to trigger the appellant's covenant not to object, notwithstanding any changes in the substantive criteria or administrative approach adopted by the relevant government department in assessing such applications.

The Court of Appeal reasoned that the deed of release created a contractual obligation that was triggered by the respondent's compliance with the procedural notification requirements of the *Coal Mines Regulation Act 1982*. The court held that the appellant's covenant was to refrain from objecting if duly notified, and this obligation was not contingent on the respondent obtaining approval for its "second workings" applications, nor was it affected by any subsequent changes in departmental practice or policy concerning the granting of such approvals. The contractual terms of the deed were paramount, and the appellant had contractually agreed not to object if the notification procedure was followed.

Leave to appeal was granted, and the appeal was allowed.