Re Arnott's Biscuits Limited

The Supreme Court of New South Wales, in the matter of *Re Arnott's Biscuits Limited*, considered a dispute concerning the interpretation of a deed of covenant. The applicant, Arnott's Biscuits Limited, sought a declaration regarding its obligations under this deed.

The central legal issue before the Court was whether the applicant was obligated to pay a proportion of the costs incurred by the respondent in relation to the maintenance and repair of a certain roadway, as stipulated in the deed of covenant. This involved determining the scope and meaning of the terms within the deed, particularly those relating to the definition of "costs" and the circumstances under which such costs were recoverable.

Justice Vija Zars reasoned that the deed of covenant was to be construed according to its plain language. The Court examined the specific wording of the relevant clauses, considering the ordinary meaning of the terms used and the overall context of the agreement. The interpretation favoured by the applicant, which limited the scope of recoverable costs, was found to be consistent with the express provisions of the deed. The Court concluded that the respondent had not established a right to recover the proportion of costs it claimed under the deed.

The Court therefore made declarations in favour of the applicant, finding that Arnott's Biscuits Limited was not liable to pay the proportion of roadway maintenance and repair costs claimed by the respondent under the deed of covenant.