Council for Defence v. Otonik Ordnance (1955) was a contract dispute in which the Council for Defence sought to stop Otonik Ordnance from selling the Kres-55 abroad.
Background
Otonik, a State-Chartered Private Corporation, planned foreign sales of the Kres-55 rifle. The Council argued that strategic arms exports fell entirely within Defence discretion.
Holding
The Inferior Tribunal ruled 10–1 for the Council. State-Chartered Private Corporations are subject to total Defence export discretion. A permanent export injunction issued; no damages to Otonik.
Legacy
The ruling confirmed the state’s arms-industry stranglehold over chartered defence contractors. Catalogue: Landmark Cases.