Arthur Yates and Company Pty Ltd v Vegetable Seeds Committee [1945] HCA 55

Arthur Yates and Company Pty Ltd v Vegetable Seeds Committee [1945] HCA 55

Orders made by the Vegetable Seeds Committee under reg. 14a are administrative (not legislative) in character. If exercised solely to further the Committee's own trading and financial interests, and not for the regulatory purposes set out in reg. 4, the orders are beyond power and void. The allegations regarding the improper purpose are relevant and justiciable, and should not have been struck out at the interlocutory stage. The proper inquiry for such administrative powers is into the true purpose for which the power was exercised, not merely the validity on the face of the order.

Parties
Appellant: Arthur Yates & Co. Pty. Ltd.; Respondent: Vegetable Seeds Committee; Respondent: Commonwealth of Australia; Respondent: Attorney-General for the Commonwealth
Jurisdiction
Australia
Procedural Posture
Appeal / Appeal From Order Striking Out Statement of Claim – Full Court of the High Court
Outcome
Appeal allowed
Legal Topics
Control of Delegated Powers, Judicial Review of Administrative Action, Purpose Limited Statutory Powers, Judicial Review – Legislative Vs Administrative Acts

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Parties

Arthur Yates & Co. Pty. Ltd.

Appellant

Vegetable Seeds Committee

Respondent

Commonwealth of Australia

Respondent

Attorney-General for the Commonwealth

Respondent

Procedural Posture

Appeal / Appeal From Order Striking Out Statement of Claim – Full Court of the High Court

  1. 1 Whether orders made by the Vegetable Seeds Committee under reg. 14a of the National Security (Vegetable Seeds) Regulations could be challenged as made for an improper purpose or in bad faith;
  2. 2 Whether such orders are legislative or administrative in nature and whether the Court can inquire into the motives or purposes for which such powers are exercised;
  3. 3 Whether it is justiciable to challenge the validity of subordinate legislation or administrative action on grounds of improper purpose or mala fides.

Ratio Decidendi

Orders made by the Vegetable Seeds Committee under reg. 14a are administrative (not legislative) in character. If exercised solely to further the Committee's own trading and financial interests, and not for the regulatory purposes set out in reg. 4, the orders are beyond power and void. The allegations regarding the improper purpose are relevant and justiciable, and should not have been struck out at the interlocutory stage. The proper inquiry for such administrative powers is into the true purpose for which the power was exercised, not merely the validity on the face of the order.

Court Disposition

Appeal allowed

Orders

  • Order striking out paragraphs of statement of claim set aside.
  • Defendants to pay costs of appeal; costs of summons to be defendants’ costs in the action.