Land clearing at Darwin's Binybara/Lee Point must stop until a legal challenge from senior Traditional Owner Tibby Quall is resolved, the Northern Territory Civil and Administrative Tribunal (NTCAT) has ruled.

The decision comes after the Tribunal found that the NT Heritage Council failed to properly consult Mr Quall—a Larrakia Danggalaba Elder—before granting Defence Housing Australia (DHA) permission to "disturb and remove" 10 Indigenous archaeological objects from the site.

Mr Quall launched legal action in January, arguing that the Council ignored his earlier warnings about sacred sites and cultural artefacts in the area, including a grindstone and stone tools.

DHA and the Heritage Council had attempted to dismiss the case, calling it "futile and improper" and claiming there was insufficient evidence that Mr Quall owned the objects.

However, under NT heritage law, the Tribunal found that as a Larrakia Elder, Mr Quall is an owner of the artefacts. It ordered DHA to halt all work on Lot 4873 Lee Point until the proceedings are concluded.

In its ruling, the Tribunal said there were "flaws" in the consultation process. They challenged the Heritage Council's earlier assessment that the artefacts were of "low archaeological significance," noting there was "no recognition that the Development Site is, in part, or whole, an Aboriginal heritage place".

Before approving the work, the Heritage Council was obliged to consider "the extent to which the application, if approved, would affect the heritage significance of the heritage place or object".

"There is no evidence that the [Heritage Council] paid proper regard to its responsibilities to assess the heritage significance of the heritage objects, and how the works would affect the significance of the objects," the Tribunal said.

The decision will be referred back to the Heritage Council, with specific conditions and directions.

Mr Quall welcomed the ruling as a powerful acknowledgement of Larrakia heritage.

"The old people would be very happy and very sympathetic to land rights and cultural rights. It's a big thing for Larrakia people to win a case about land, especially around our sacred areas," he said.

"Darriba Nunggalinya, he is our creator and the most powerful site. Old Man, he is our creator of everything, the land, the law, everything on the land, the people."

Environmental Justice Australia (EJA), which represented Mr Quall, said the ruling confirms his legal right to possess and control the cultural items and affirms the ownership of such artefacts by Larrakia people.

EJA senior lawyer Kip Frawley said the case centred on Traditional Owners being properly consulted on issues impacting their Country.

"They [the Heritage Council] failed to consult our client, they failed to recognise the area's significance, and they failed to consider other requirements under the Territory's heritage laws," Mr Frawley said.

"Our client has been clear since he first objected to this development in 2017: this is Larrakia Country and the sacred sites and cultural objects on Larrakia Country belong to them, and to the land."

The Environment Centre NT (ECNT) praised the outcome as a landmark decision, possibly the first time Traditional Owners have been legally recognised as owners of cultural artefacts under NT heritage legislation.

ECNT executive director Kirsty Howey said: "The people of Darwin who have stood behind Larrakia Traditional Owners in this fight for a really long time applaud this latest victory, which shows extraordinary leadership and courage by Tibby Quall and his family."

The DHA project aims to clear 132 hectares of old-growth coastal bushland to construct 800 homes for military families but has faced fierce opposition from Traditional Owners and environmental groups.

The land holds deep cultural and ecological value. It is part of the Kenbi Dreaming track and is also habitat for the endangered Gouldian finch.

Last year, DHA began clearing bushland without securing all necessary approvals and was issued a $18,780 fine by the federal Environment Department.

In 2023, the Larrakia Nation Aboriginal Corporation withdrew its support for the project. Protests have resulted in clashes with police, as community members defend the site.

Then-Environment Minister Tanya Plibersek rejected a cultural heritage protection application for the area in March 2023, saying she was "not satisfied" the area contained significant Aboriginal sites.

Last year, Independent Senator Lidia Thorpe tabled a petition in federal Parliament with over 16,000 signatures calling for the return of Lee Point to the Larrakia people.

She appeared with Larrakia artist and performer Laniyuk, who said at the time: "It is our language; it is our ceremony; it is our culture; it is our past, our present and our future."

In a statement on Tuesday, Ms Howey said: "We're calling for a halt to this development. Enough's enough. The community doesn't want this. Larrakia Traditional Owners do not want this, and we're actually calling on new Environment Minister Murray Watt to step in and stop this proposal once and for all."

The application is listed for directions on 15 August, with parties to submit their written submission by August 1.