Rural Bank of New South Wales v Hayes

Rural Bank of New South Wales v Hayes - [1951] HCA 58 - HCA 1951 case summary — Zoe

[19]

(A.) To the Savings Bank Department were to be carried moneys of two classes, namely (i) all moneys in the Treasury at credit of the Government Savings Bank Trust Fund, and (ii) all moneys held or deposited in a bank under the Government Savings Bank Act, 1902 N.S.W., or advanced to the Federal Government for the purposes of that Act: (s. 14). The moneys in the Treasury at the credit of the Government Savings Bank Trust Fund consisted of deposits which had been received into the Treasury under the Government Savings Bank Act, 1902. This Act had repealed earlier Acts under which a Government Savings Bank had operated, and it provided machinery whereby certain officers were empowered to receive deposits for remittance to the Treasury and to repay the same under such regulations as the Governor might prescribe: s. 4. Moneys deposited were made a charge upon the Consolidated Revenue Fund (s. 11 (1)). The Colonial Treasurer was also authorized to receive as a deposit under the Act moneys remaining in the hands of the trustees of any bank, commonly known as the Penny Savings Bank, who had determined to close such bank for the receipt of deposits; and the depositors were to be considered as depositors under the provisions of the Act (s. 17). Thus the first class of moneys which under the 1906 Act were to be carried to the Savings Bank Department were moneys deposited by and repayable to creditors of the Crown. The second class of such moneys were moneys owing to the Crown. The 1902 Act had provided, as to moneys deposited under the Act, that the Colonial Treasurer might deposit the same with such incorporated bank as the Governor might from time to time appoint: (s. 11 (2)); and it had also provided, as had an earlier Act (No. 79 of 1900), that the Governor might, by agreement with the Governor-General, make arrangements for the execution and performance by officers of the Postal Department of the Commonwealth of certain duties in respect of the administration of the Act: (s. 3), which included the repayment of deposits: (s. 4).

[20]

(B.) To the Advance Department were to be carried all moneys and securities for money, and all other property held by or on behalf of the Advances to Settlers Board or by the Treasurer or any person on his behalf under the Advances to Settlers Acts: (s. 16); and the commissioners were to collect and carry to the Advance Department all repayments made under the Advances to Settlers Acts and all interest on such advances: (s. 17). The Advances to Settlers Acts, which were the Acts No. 1 of 1899, No. 1 of 1902 and No. 106 of 1902, were repealed by the 1906 Act, subject to a proviso that subject to that Act they should continue in force in respect of advances made thereunder before the commencement of the 1906 Act until all such advances with interest thereon should be repaid or written off as bad debts: (s. 4). These Acts had provided for advances of Crown moneys to holders of freehold land or of certain holdings under the Crown Lands Acts: (Act No. 1 of 1899, s. 9 (1)). Every such advance with interest thereon was made a debt due by the person to whom the advance was made, recoverable by the Secretary for Lands and charged on the land in respect of which the advance was made: (s. 9 (2) (h)); and if any amount of principal or interest was unpaid for a period of three months the Secretary for Lands was given, in respect of freehold lands a power of sale, and in respect of Crown lands holdings a power of forfeiture: (s. 9 (2) (i)). The Government Savings Bank Act, 1906, provided that, notwithstanding the repeal of the Advances to Settlers Acts, advances made under those Acts should be repaid with interest to the Advance Department of the Bank, that the commissioners might take any proceeding which under those Acts might have been taken by the Secretary for Lands, except forfeiture of lands held under the Crown Lands Acts not being freehold lands, and in respect of the last-mentioned lands that any sums received by or on behalf of the Crown on account of improvements, to the extent of the amount owing to the Advance Department, should be payable to that department after deducting any moneys overdue at the date of forfeiture for rent or instalments: (s. 19).

[21]

These provisions having been made as to the vesting in the commissioners of (a) moneys held by the Crown to answer the claims of depositors under the Act of 1902, and (b) moneys to be recovered on account of the Crown in respect of deposits made by the Crown in an incorporated bank, advances made to the Federal Government for the purposes of the 1902 Act, or advances made by the Crown under the Advances to Settlers Acts, the 1906 Act proceeded to make provision for the carrying on of business by the bank. It provided that the bank should be administered, governed and managed by the commissioners: (s. 22); and that the business of the bank should be carried on in two distinct and separate departments, all transactions and accounts relating to each department being kept separate from those relating to the other department, no money belonging to one department being used for the purpose of the other department and no liability incurred in respect of one department affecting the other department or the funds thereof: (s. 23). The Act provided that the commissioners might, on behalf of the bank, purchase or lease lands and buildings to be used in the business of the bank, hold property as security, and sell, lease, convey, assign and assure "such lands, buildings, and property, or any property vested in them by this Act": (s. 24). The Act further empowered the commissioners to establish branches and agencies of the bank for the receipt of deposits and the payment of deposits and interest thereon and for receiving applications for advances under the Act: (ss. 27, 28). The repayment of all deposits in the bank and the payment of interest thereon were made payable out of the funds of the commissioners held under Part V. of the Act (which dealt with the Savings Bank Department), and was guaranteed by the Crown, any liability arising from the guarantee being made payable out of the Consolidated Revenue Fund: (s. 44). Provision was made by Part VI. for the lending of moneys by the commissioners from the Advance Department for purposes wider than those to which the Advances to Settlers Acts had been directed.

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Before

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Judgment (31 paragraphs)

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