River Sand and Gravel Pty Ltd v Milk Board

River Sand and Gravel Pty Ltd (the applicant) sought a declaration that the Milk Board (the respondent) had no power to make a certain determination under the Milk Act 1931 (NSW). The applicant argued that the determination, which fixed the price of milk, was invalid because it was made without affording the applicant natural justice. The matter came before the High Court of Australia.

The central legal issue before the High Court was whether the Milk Board, in making its determination fixing the price of milk, was required to observe the principles of natural justice, specifically the right to be heard, in relation to the applicant. The applicant contended that the Board's failure to provide it with an opportunity to present its case before making the determination rendered the determination void.

The High Court, in a majority decision, held that the Milk Board, in exercising its power to fix milk prices, was not acting in a judicial or quasi-judicial capacity, but rather in a legislative or administrative capacity. Consequently, the principles of natural justice, in the sense of affording a right to a hearing, did not apply to the Board's decision-making process in this instance. The Court reasoned that the power to fix prices was a broad regulatory power intended to operate generally, and not directed at specific individuals in a manner that would necessitate a hearing.

The application for a declaration was dismissed.