Zhu v Treasurer of New South Wales

The High Court of Australia heard an appeal from the Supreme Court of New South Wales in a dispute between Mr Zhu and the Treasurer of New South Wales. The core of the disagreement concerned the validity of a notice issued by the Treasurer under section 10 of the *Land Acquisition (Just Terms Compensation) Act 1991* (NSW) (the Act), which purported to acquire Mr Zhu's land for a public purpose. Mr Zhu challenged the lawfulness of this acquisition, arguing that the notice was invalid.

The central legal question before the High Court was whether the notice of acquisition issued by the Treasurer was valid and effective in law. This required the Court to consider the proper interpretation of section 10 of the Act, particularly in relation to the requirements for issuing such a notice and the circumstances under which an acquisition could be challenged on grounds of invalidity. The Court also had to determine whether the stated public purpose for the acquisition was sufficiently established or if there were defects in the process that rendered the notice void.

The High Court, in a joint judgment, found that the notice of acquisition was invalid. Their Honours reasoned that the Treasurer had failed to satisfy a condition precedent to the exercise of the power to acquire the land under section 10 of the Act. Specifically, the Court held that the Treasurer had not formed the necessary belief that the land was likely to be required for a public purpose, as mandated by the legislation. This failure meant that the statutory power to issue the notice had not been enlivened, rendering the notice and the subsequent acquisition void. The Court emphasised that the exercise of statutory powers must strictly comply with the conditions precedent stipulated by the legislature.

Consequently, the High Court allowed the appeal and ordered that the notice of acquisition issued by the Treasurer be quashed.