A lawsuit that could see the newly elected Independent Member for Nhulunbuy lose his seat, has been described as a landmark case by a Northern Territory legal academic.

Key points: Yingiya Mark Guyula elected to seat of Nhulunbuy in August NT election

Yingiya Mark Guyula elected to seat of Nhulunbuy in August NT election Electoral commission labels his win "wholly void" over membership to local authority

Electoral commission labels his win "wholly void" over membership to local authority Legal experts argue the clash is due to poor communication about law

Court documents lodged by the NT Electoral Commission (NTEC) allege Yingiya Mark Guyula's election earlier this year was "wholly void" because he was a member of a local authority in Arnhem Land and paid in that role.

"[Mr Guyula] was paid by the East Arnhem Regional Council (EARC) the sums of $119, $119, $121.28 and $123.05 respectively for his attendance at the meetings," an application filed in October by the Commission alleged.

In a reply lodged to the Court of Disputed Returns last week, Mr Guyula admitted he was paid to attend several meetings, but argued he did not attend as a member of the local authority.

"[Mr Guyula] denies that he attended or understood himself as attending those meetings as a member of the Milingimbi Local Authority, but rather as an interested and responsible community member and senior elder in customary Aboriginal law who was expected by his community and by Aboriginal customary law to participate in such gatherings on the community's behalf," the reply stated.

Darwin-based legal academic Dr Danial Kelly has studied the intersections of Australian law and Aboriginal customary law in Arnhem Land, and spoke to Mr Guyula about his case.

"This case is a classic example of Australian law clashing with Aboriginal law," Dr Kelly said.

"It's a scenario that's played out many, many times in Aboriginal communities throughout the Northern Territory."

But Dr Kelly said Mr Guyula's case was unique in the NT because of its application to electoral law.

"If it's land law matters, there's many. But this is a unique thing because it's electoral law," Dr Kelly said.

"There is a negligible, almost no effort, made by Australian governments to communicate to Aboriginal people what the Australia law is.

"For the many Aboriginal people in the Northern Territory who live in remote communities and traditional lifestyles, to some extent, they simply do not have the opportunity or means to even understand what the Australian law is."

East Arnhem residents confused by new local authority

Another section of Mr Guyula's reply to the Court alleged the establishment of the Milingimbi Local Authority in March 2014 left Mr Guyula and other residents "confused as to the nature, role, functions and powers (if any) of the then proposed Local Authority".

It further alleged Mr Guyula was not "validly appointed" to the authority and that, regardless if he was, his appointment expired before the Northern Territory election in August.

This challenged the Commission's allegation that Mr Guyula was initially appointed for a two-year period, which was later extended to four years.

"In his capacity as member of the Milingimbi Local Authority, the respondent attended its meetings on 15 October 2014, 19 December 2014, 16 December 2015 and 20 April 2016," the NTEC's court application stated.

"At those meetings, the respondent moved and/or seconded resolutions passed by the Milingimbi Local Authority."

The other candidates referred to in the NTEC's application are Labor's Lynne Walker, Independent Jackson Anni and Country Liberals candidate Charlie Yunupingu.

Ms Walker lost the seat to Mr Guyula by just eight votes on a two-candidate preferred basis.

If found to have been a member of the authority at the time of the election, the court could force a by-election in the seat of Nhulunbuy or declare Ms Walker the winner.

Ms Walker was in line to become the NT Deputy Chief Minister in the newly elected Gunner government.

East Arnhem Regional Council declined to comment.