According to their Lordships, the decisive fact which determined that the charge must fail was that the agreement was to carry out a course of conduct that could not in any way result in the offence alleged to be the subject of the agreement: the production of cocaine.
22 The applicant before this Court argues that the conspiracy alleged in the present case was to manufacture methylamphetamine by using certain chemicals that, as it so happened, could not produce that drug. Relying upon the authority of DPP v Nock, it is submitted on behalf of the applicant that the agreements, which are the subject of the two conspiracy charges, could not have resulted in the commission of a criminal offence and, therefore, are not themselves unlawful. It is further submitted that for this reason the prosecution of each of the second and third counts is doomed to failure and the proceedings should be stayed: Walton v Gardner (1993) 177 CLR 378; Ridgeway v The Queen (1995) 184 CLR 19.
23 There has been considerable doubt expressed by this Court as to whether DPP v Nock should be followed in this State, notwithstanding that it was approved in R v Kingswell [1984] 3 NSWLR 273. In Kapeliotis and Mari (1995) 82 A Crim R 300 the appellants appealed against their conviction for conspiracy to import cocaine. The appellants relied upon the reasoning in DPP v Nock to argue that the conspiracy could not have come to fruition because the "supplier" of the drug to be imported turned out to be an under-cover police officer. This Court held that the involvement of the police officer did not render the agreement one that was impossible to fulfil. In dismissing the appeal, the Court stated:
"The final, and related, argument is that, because the police officer never actually intended to provide heroin to the aspiring importers, their object was impossible of achievement and, therefore, they could not be convicted of conspiracy. Reliance was placed on DPP v Nock [1978] AC 979; (1978) 67 Cr App R 116. The Crown does not accept that the facts of the case are truly analogous with those in Nock . In any event, it has been pointed out that Nock has been trenchantly criticised, and not followed, in England: eg Shivpuri [1987] AC 1; (1986) 83 Cr App R 178. See also Sew Hoy [1994] 1 NZLR 257. A cognate decision, on the law of attempt, was not followed by this Court in Mai (1991) 26 NSWLR 371; 60 ACrimR 149. We do not consider that the present conspiracy was, when correctly characterised, a conspiracy to do something that was impossible. It is at least doubtful that Nock represents the present law in this State, but it is not necessary to decide that question.
24 The Court considered the status of DPP v Nock in more detail in Barbouttis. That was an appeal by the Crown against the determination of the trial judge to quash an indictment containing a single count alleging a conspiracy to receive stolen property, being cigarettes. As part of a large-scale police operation into persons dealing in stolen cigarettes, an undercover police officer sought out persons who might have been interested in purchasing cheap cigarettes that he represented as being stolen. The undercover officer made contact with the respondents and, after a number of meetings, they struck a deal as to the price to be paid for the cigarettes. The undercover officer had in his possession a truck with a large number of boxes of cigarettes and the respondents agreed to purchase fifty boxes after they had been inspected by one of the respondents. Contrary to the belief of the respondents, the cigarettes were not stolen but had been lent to the police for the purpose of the operation.
25 The Crown case was that the respondents had entered into an agreement to purchase fifty boxes of cigarettes from those that the police officer had in the truck. It was not suggested that there was any wider agreement beyond the purchase of the specific boxes that had been inspected. The question, which arose for the determination of this Court, was whether, in light of the very narrow factual basis relied upon by the Crown, it was open to it to charge the conspiracy alleged in the indictment.
26 Gleeson CJ, who dissented in the ultimate determination that the appeal should be dismissed, extensively reviewed the authorities since DPP v Nock was decided and the criticisms that had been made of the decision both by other courts and legal commentators. The Chief Justice reached the conclusion that the decision should no longer be followed because the line of reasoning upon which it was based had been discredited. This was because a decision of the House of Lords on attempt, R v Smith [1975] AC 476, which had been affirmed and applied in DPP v Nock had itself subsequently been overturned by their Lordships in R v Shivpuri [1987] 1 AC 1. R v Smith had been rejected in this State in R v Mai (1992) 26 NSWLR 371. The law in other jurisdictions is to similar effect, see R v Sew Hoy [1994] 1 NZLR 257, Maxwell v HM Advocate [1980] SLT 241, 16 Am Jur 2d "Conspiracy" s10, Howard Smith Paper Mills Ltd v The Queen (1957) 8 DLR 2d 449.
27 The members of the Court in Barbouttis who formed the majority and dismissed the Crown's appeal were Justices Smart and Dunford. Dunford J agreed with the Chief Justice that the status of DPP v Nock as persuasive authority had been undermined. However, his Honour differed from the Chief Justice as to how the agreement entered into by the respondents and the police officer should be characterised. This was a question of fact. The Chief Justice believed that it was an essential element of the agreement that the cigarettes were stolen and, therefore, it was an agreement to commit an unlawful act. Dunford J was of the view that the agreement was to commit the substantive offence of receiving, but that offence could only be made out if the property was in fact stolen. His Honour was of the view that the subject matter of the agreement under consideration was the cigarettes in the truck and the acquisition of that property could not be unlawful, regardless of the state of mind of the participants.
28 The third member of the Court, Smart J, was not persuaded that the law as determined in the attempt cases such as Shivpuri and Mai were necessarily determinative of the issue under the law of conspiracy, although he found them persuasive. But his Honour characterised the conspiracy in a similar manner as Dunford J: an agreement to purchase particular cigarettes that were in fact not stolen. Smart J concluded that, as the substantive offence could not have been committed, the agreement was not an unlawful one.
29 The reasoning in DPP v Nock was relied upon by the appellant in R v Murray [2001] NSWCCA 289 in relation to a conspiracy to commit an armed robbery. However, the Court found it unnecessary to resolve the apparent conflict between the authorities on this issue because it was held that on the facts of the case the issue did not arise.