The formal handover of a contested lands rights claim to Aboriginal hands has been welcomed by a Sydney Land Council and the state's peak land councils body.

In September 2025, the High Court of Australia ruled in favour of La Perouse Local Aboriginal Land Council, reinstating a 2021 decision by the then NSW Minister for Planning and Public Spaces of their claim for the site of the abandoned Paddington Bowling Club in Sydney's east.

The High Court ruled merely holding the lease of land wasn't enough to qualify for it being "lawfully used"; overturning a successful appeal made by former leaseholders of the land.

The site of the Bowling Club had gone unused for a decade.

After a four-year legal battle, La Perouse LALC held a handback ceremony in December, with the title officially transferred this week.

The land council's chief executive Chris Ingrey said he was "thrilled" by the formal return of the site after what was an "incredibly significant" decision in the courts.

"In 2021, the La Perouse Local Aboriginal Land Council and NSWALC were dragged into legal proceedings to defend the Government's decision to grant the land claim," Mr Ingrey said on Wednesday.

"Unfortunately, we had to take this case all the way to the High Court of Australia because we knew that this land was not lawfully used at the time of the original claim.

"The High Court's decision to overturn the NSW Court of Appeal's ruling is incredibly significant for Aboriginal communities across the State, including the eastern suburbs of Sydney and confirms how land claims have been determined in NSW for 40 years.

"We are thrilled to confirm that this land has been officially returned to La Perouse LALC and we will now take our time to consider future use options for the land."

The New South Wales Aboriginal Land Council supported La Perouse LALC in their claim.

At the time of September's decision, NSWALC chair Raymond Kelly executive said the ruling "holds the line in New South Wales and sends a message right across the country."

Mr Kelly also stated the decision "proves what we already knew" - that the Land Rights Act, as a decades-old framework, endures, and as a precedent would "help to speed up the 30,000 undetermined land claims across the State".

He added the legal proceedings had forced a "waste of money" for La Perouse LALC, despite the eventual success, and despite the positive news had been a frustrating lengthy battle.

The court's decision was "common sense" he said at the time and again on Wednesday.

"The High Court's ruling had the potential to change the way land rights are handled right across NSW," Mr Kelly said.

"It could have changed the way we operate, undoing years of hard work from the Land Rights Network.

"Instead, the High Court of Australia ruled with common sense in mind - upholding the original purpose of this longstanding legislation."

At the time of the decision, NSWALC warned, a loss for the land council threatened the future of land rights in the state.

Le Perouse LALC first made a claim for the land in 2016. They were initially successful in their efforts with the 2021 decision.

Quarry Street Pty Ltd, who had previously been transferred the lease of the site, were subsequently successful with an appeal.

My Kelly was "honoured" to witness a "pivotal moment for La Perouse LALC" with the handback ceremony.

"This case is a reminder of the struggles Aboriginal People across Australia face waiting for land claims to be processed. Claimants across the State are waiting years for their land to be returned," he said.

"The current land claim system needs urgent reform to reduce the lengthy delays Aboriginal people face when initiating these claims."

"New South Wales Aboriginal Land Council is committed to continuing to return the land to its rightful owners."