A customer recently commenced proceedings in the Supreme Court of New South Wales against Murray Irrigation in relation to certain unspent Land and Water Management Plan (LWMP) funds. In response, Murray Irrigation commenced proceedings under section 63 of the Trustee Act 1925 (NSW) seeking judicial advice from the Court. This was done on an urgent basis because of certain deadlines that were set in the proceedings commenced by the customer. The Court’s judicial advice will cover a number of matters including:
• whether Murray Irrigation holds the unspent LWMP funds on trust for the current and former customers who contributed to them by the payment of LWMP fees;
• whether Murray Irrigation is justified in proceeding on the basis that the terms of any trust that may exist require Murray Irrigation to use the unspent LWMP funds to reimburse itself for the costs of implementing LWMPs;
• whether, if Murray Irrigation is no longer able to use the funds for that purpose, it must return them to the customers and former customers who contributed to them by the payment of LWMP fees; and
• whether Murray Irrigation is justified in defending the proceedings recently commenced against it by the customer.
Murray Irrigation notified the landholder associations and SRI of the judicial advice proceedings and invited them to participate.
The matter is now in the hands of the Court. The Court has set down 17 December 2021 as the date for the hearing.
The proceedings brought by the customer will be dealt with after the Court has handed down its judicial advice.
If you would like further information about the judicial advice proceedings, please send a request for information to email@example.com .