Grannall v Marrickville Margarine Pty Ltd [1955] HCA 6

Grannall v Marrickville Margarine Pty Ltd [1955] HCA 6

Legislative restrictions upon the manufacture of goods do not infringe s. 92 of the Constitution, as manufacture does not of itself constitute inter-State trade and commerce. Section 22a of the Dairy Industry Act 1915-1951 (NSW) operates only upon manufacture and not trade or commerce among the States, therefore does not breach s. 92. The severability clause ensures that even if related provisions affecting inter-State trade are invalid, the manufacturing restrictions remain valid and enforceable.

Parties
Informant: Grannall; Defendant: Marrickville Margarine Proprietary Limited
Jurisdiction
Australia
Procedural Posture
Case Stated (prosecution) / High Court Full Bench, Decision on Stated Questions Under Judiciary Act S 18
Outcome
Section 22a of the Dairy Industry Act is valid; no infringement of s. 92; defendant's challenge fails; stated questions answered in the negative.
Legal Topics
Section 92 of the Constitution, Freedom of Inter State Trade and Commerce, Validity and Severability of State Legislation, Dairy Industry Act 1915 1951 (nsw)
Constitutional Law Section 92 of the Constitution Freedom of Inter State Trade and Commerce Validity and Severability of State Legislation Dairy Industry Act 1915 1951 (nsw)

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Parties

Grannall

Informant

Marrickville Margarine Proprietary Limited

Defendant

Procedural Posture

Case Stated (prosecution) / High Court Full Bench, Decision on Stated Questions Under Judiciary Act S 18

Legal Issues

  1. 1 Whether s. 22a(1)(b) of the Dairy Industry Act 1915-1951 (NSW) is invalid by reason of s. 92 of the Constitution
  2. 2 Whether a restriction on the manufacture of margarine by State legislation infringes the freedom of inter-State trade under s. 92
  3. 3 Whether State legislation limiting amounts of margarine produced is severable if partly invalid

Ratio Decidendi

Legislative restrictions upon the manufacture of goods do not infringe s. 92 of the Constitution, as manufacture does not of itself constitute inter-State trade and commerce. Section 22a of the Dairy Industry Act 1915-1951 (NSW) operates only upon manufacture and not trade or commerce among the States, therefore does not breach s. 92. The severability clause ensures that even if related provisions affecting inter-State trade are invalid, the manufacturing restrictions remain valid and enforceable.

Court Disposition

Section 22a of the Dairy Industry Act is valid; no infringement of s. 92; defendant's challenge fails; stated questions answered in the negative.

Orders

  • Question 1 in the case stated answered—No.
  • Question 2—No.