Collins, R.N. v. The Repartraition Commission [1980] FCA 127
Federal Court of Australia
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JUDGES CHAMBERS
FEDERAL COURT OF AUSTRALIA
CATCHWORDS
War Pension - Partial physical incapavity - Inability
to earn a living wage - Obligation of Repatzialion Review
Tribunal to consider applicant's claim - Obligation to
state reasons for its decision and any findings of fact -
Failure to state all reasons.
Appeal - Appeal from Repatriation Review Tribunal ona
question of law - whether Tribunal entitled to decide in
accordance with"equity and good conscience" - meaning of
"Substantial justice and the m2i1its" - Wnether Tribunal
bound to comply with provisior of Repatriation Act -
Whether appeal lies where reasons for Tribunal''s decision
are not stated. Repatriation Act. 1920 ss.27, 35, 101, 107VG,
107VH, 107VK, 107VZZB, 107VZZG, 1O07VZ2H, Schedules 1 and 2.
RONALD NORMAN COLLINS v THE REPATRIATION COMMISSION
No. S.A. Gll of 19380
Coram: Fasher J.
Adelaide
17 September 1989
IN THE FEDERAL COURT OF AUSTRALIA
)
)
SOUTH AUSTRALIA DISTRICT REGISTRY ) No, G.i1 of 1290
SOUTH AvstRaui' '
)
GENERAL DIVISION
ON APPEAL FROM (HE REPATRIATION
REVIEW TRIBUNAL
BETWEEN:
RONALD NORMAN COLLINS
Applicant
- and -
THE REPATRIATION COMMISSION
Respondent
ORDER
JUDGE MAKING ORDER: FISHER J.
DATE OF ORDER: 17 SEPTEMBER 194')
WHERE MADE: ADELAIDE
THE COURT ORDERS THAT:
1. The appeal be allowed.
2. This matter be remitted to the Repatriation Review Tribunal
for further hearing in the light of this decision, with the
hearing of such evidence, 1f any, aS may be presented to the
Trabunal.
3. The respondent pay to the applicant his costs of this appeal.
IN THE FEDERAL COURT OF AUSTRALIA )
)
SOUTH AUSTRALIA DISTRICT REGISTRY ) No. Gll of 1989
)
GENERAL DIVISION )
REVIEW TRIBUNAL
ON APPEAL FROM 'IIHTE REPATRIATION
RONALD NORMAN COLLINS
Applicant
- and -
THE REPATRIATION COMMISSION
Respondent
REASONS FOR JUDGMENT
FISHER J.: Ronald Nomnan Collins ("the applicant") is a "Member of
the Forces" within the meaning of s.100 of the Repatriation Act
1920 ("the Act") having served on war service with the Royal
Australian Air Force during World War II from 25 May 1943 until
31 July 1945. During this period he hai active service outside of
Australia.
Since 1974 the applicant has been in receipt of a pension
under the Act and since 1977, until its cancellation, a pension
at what 1s called the Intermediate Rate, but which 1s nore
correctly defined as the rate prescribed by paragraph 6 of
Schedule 1 of the Act. Such pension is in respect of incapacity
from his accepted war-caused disabilities. On 7 August 1978
his entitlement was reviewed by a Repatriation Board and the
rate of his pension was re-assessed at 60% of the General Pension
Rates prescribed by Schedule 1 of the Act. His pension was in
consequence of this re~assessment reduced, as aforesaid, as
From 24 August 1972.
On 9 November 1978 the applicant lodged an appeal to an
Assessment Appeal Tribunal against this re-assessment by the
Repatriation Board. However pursuant to the provisions of s.48 of
the Repatriation Acts Amendment Act 1379, which section 1s one of
several transitional provisions, the appeal came before the newly
created Repatriation Review Tribinal ("the Tribunal") as if it
were an application ander s.107 Vb of the Act.
On 15 August 1979 that Tribunal concluded that it was:
"not satisfied, beyond reasonable doubt, that the decision
of 7/8/78 1s the decision that 1t would have made 1f 1t
had conducted the proceeding in which that decision was
made and therefore the Tribunal sets aside that decision
and substitutes for that decision the following decision:
'Incapacity from the service-related disabilities 1s
assessed at 80% of the General Rate as from 24/8/78'."
The applicant appealed to this court parsuant to s.107 VZ2ZiH
of the Act which authorises an appeal from the Tribunal ona
question of law. Essentially the appeal was launched because
of the applicant's contention that he was entitled tc have his
pension assessed at the Intermediate Rate, namely in accordance
with paragraph 6 of Schedule 1 of the Act, to which T refer
Subsequently. In other words the appeal relates to the assessment
of the appropriate rate of pension, and not to the entitlement of
the applicant to a pension,
Section 101 of the Act, which 1S contained 1n Division 6
thereof, imposes a liability on the Commonwealth to pay a pension
to the applicant and is in the following terms:
"101. (1) Upon the incapacity or death -
(a) of any member of the Forces who was employed on active
service, whose incapacity or death has resilted From
any occurrence that happened during the period from
the date of his enlistment to the date of the
termination of his service in respect of that enlist-
ment; or
{b) of any member of the Forces whose incapacity or death
has arisen out of or 18 attributable to his war service,
the Commonwealth shall, subject to this Act, bo Liable to
pay to the member, or his dependants, or both, as the case
may be, pensions in accordance with Division Ll:
Provided that..."
Thas 1t 1S apparent that the obligation of the Commonwealth
to pay a pension is not at large but is subject to the provisions
of the Act. The entitlement of the applicant under the Act 1s a
consequence of his incapacity and 1s to a pension in accordance
with Division 1. The word "incapacity" dogs not appear to be
defined by the Act, out a perusal of other provisions indicates
that the relevant incapacity 1s in effect a physical or mental
disability rather than an incapacity sich as an inabrlity to
perform work or earn wages or otherwise.
The crucial provision 1n Division 1 of the Act in respect
of the pension which the Commonwealth 1s liable to pay 1s 3.35
which 18 as Follows:
"35(1). Subject to section 35AA, the rates of pensicn
payable under this Division aid Jivisions 6 to 10
(inclusive) are those specified in the Schedules."
There are five Schedules to the Act which provide varying
rates of pensions, and Schedule 1 1s the relevant Schedule in
this matter. It 1s desirable to set it out in full.
"Schedule 1
GENERAL PENSION RATES
TABLE OF PENSIONS PAYASLE, SU3JECT TO SCHEDULE 3, TO A
WIDOWED MOTHER OR A WIDOW ON DEATH OF A MEMBER OF TR
FORCES OR TO A MEMBER UPON TITS TOTAL INCAPACITY
Column 1 Column ? Columa 3
Pension payable to Pension payable to Pension payable
Widowed Mother on Wadow on Death of to Member on
Death of Member Member Total Incapacity
$ $ $
per fortnight per foxtnight per fortnight
17 1904.49 76.99
l. ...
2. eee
3. Where a member of the Forces 1s temporarily totally
uneapacitated to such an extent as to be precluded
from earning other than a aogligible percentage of a
living wage while he 1s so incapacitated, and where
the aggregate of the ra'e of pension payable to that
member under Colum 3 of the table in this Schedile and
the amount (if any) payable to him under Schedule 5 1s
less than the Special Rate of Pension specified in
Schedule 2, the Commission may grant an additional
pension to a member at a rate not exceeding the amount
of the difference between that agyregate sum and that
Special Rate of Pension for such period, whether in
excess of s2x months or not, as the Commission 'ietermines,
6. Where the incapacity of a member of the Forces 1S such
that he 1s unable to earn a living wage by reason that
he 1s unable to engage 1n a remunerative occupation
except on a part-time basis or unterinittently, the
amount specified in Column 3 of the table in this
Schedule shall, in ats application in relation to him,
be deemed co be $140.30."
The impression given by this Schedule confirms that given by
the Act as a whole, namely that the incapacity which the
legislation has in mind 1s a physical or mental disalility,
and any consequent impairment of earning capacity has nao relevance
to the rate of pension, unless the Act or the Schedules expressly
so direct. Thus for example notwithstanding his total incapacity
for the purpose of column 3 of Schedule 1, a member may enjoy full
earning capacity notwithstanding his iisability. The corverse
1s also true. He may have a minor physical incapacity but in
consequence he is unable to earn a living wage.
The three columns of Schedule 1 provide the General Rates
of pension and they are referred to as such. Tne rate of pension
prescribed by paragraph 3 of Schedule 1] 1s the temporar~ily totally
incapacitated rate and shortly referred to as the "T.T.T." rate.
Paragraph 6 of the Schedule, which 1s particularly relevant here,
1s referred to as the "Intermediate Rate" of pension. This 1s
probably because it 1S between the General Rate prescribed by the
three columns of the Schedule 1 ani the Special Rate of Pension
provided by Schedule 2.
Schedule 2 and the subseqient Schedules prescribe the rates
of pension payable to various classes of persons and in respect
of various types of disabilities. Apart from the firsk paragraph
of Schedule 2 the schedules make no reference to impairment of
earning capacity. This first paragraph 1s in the following
terms:
"The Special Rate of Pension may be granted to nembers
of the Forces who have been blinded as the result of
War Service, and to members who are totally and permanently
incapacitated (1.e. incapacitated for life to such an
extent as to be precluded fron earning other thin a
negligible percentage of a living wag2)."
In so far as 1s relevant to this matter s.27 provides that:
"(1) Each Board shall be charged with the duties of -
(a) determining whether the r.ncapacity from which a
member of the Forces 15 saffering or from which
he has died -
(i) aun fact resulted from an occarrence that
happened daring his war service:
(11) ...
(i221) ...
(iv) ...
and un the case of incapacity the nature and
extent thereof;
(c) ...
(d) assessing, from tim? to time, the rates of pensions
of members of the Forees and their depondents, and
determining the dates of the commencement and
cessation of such po2nstions;
(e) ...
(f) ...
(g) ...
(h) ...
(3) determining whether a member of the Forces 1s
permanently unemployable.
(2) The Commission may, 1n such cases as 1t thinks fit, make
any determination or assessment specified 1n paragraphs
(a) to (3) (1anclusive) of the last preceding sib-section,
and may, at any time, direct that any particular case
or cases or a particular class be referred to it for
assessment or determination."
Since 1 July 1979 the Act has provided for a review of certain
of the decisions of the Board and the Commission by che Repatriation
Review Tribunal. Section 107 VZZH provides for an appeal to this
Court on a question of law from decisions of the Tribuial and the
relevant parts thereof are as follows:
"(1) An applicant in a proceeding before the Tribanal or
the Commission may appeal to the Tederal Court of
Australia, on a question of Law, from any dicision of
the Tribunal in that proceeding.
(b) ...
(3) The Federal Court of Australia has jurisdiction to
hear and determine appoals instituted in that Court in
accordance with sab-section (1).
(4) The Federal Court of Ausi.ralia shall hear ani determine
the appeal and may make such order as it thinks
appropriate by reason of its decision,
(5) Without limiting by impication the generality of sub-
section (4), the orders that may be made by the Federal
Court of Australia on an appeal include an order
affirming or setting aside the decision of the Tribunal
and an order remitting th> case to be heard and decided
again, either with or without. the hearing of further
evidence, by the Tribunal in accordance with the
directions of the Court."
For the purpose of determining whether the applicant correctly
labelled the alleged error of the Tribunal as an error of law,
it 1S necessary to consider the Tribunal's reasons for its
decision in the laght of the ev.deance befo.e it. Only if the
alleged error can be so characterised is this court entitled to
intervene.
After noting that the applicant had enjoyed an additional
pension at the temporarily totally incapacitated rate from 11
July 1977 until 26 January 1978 (which period covered hospital
treatment and convalescence) the Chairman enquired of him whether
he thought the reduction from the temporarily totally incapacitated
rake was premature of was fair in the circumstances. The evidence
thereafter was as follows:
"MR COLLINS: It was totally premature.
MR HARDING: Do you? Why?
MR COLLINS: I don't think Lt was warraited. Well, to
my reading of the information 1s that 1f
you're not earning - 1f your not ina
position to earn a liveable tncome then you
should Se on T.T.I. or an Intermediate
rate sorry.
MR
MR
MR
MR
MR
MR
MR
Fs
MR
MR
HARDING:
COLLINS:
HARDING:
COLLINS:
HARDING:
COLLINS:
HARDING:
COLLINS:
HARDING:
COLLINS:
HARDING:
COLLINS:
HARDING:
COLLTNS:
Well could we ---
Sorcy just a nonent, you were mentioning
T.T.I. rate weren't you-
T.T.I. yes.
No, I'm sorry, I was thinking of the
Intermediate rate, I beg your pardon,
Ch well, we'll yet to that - sorry - yes
I might have misled you. Taking first of
all, you had six months on the T.T.I.
equivalent, this was for your operation
and six months convalescent. Do you think
that you were ready by the end of January
1978, do you think that reduction, the
cancellation of the T.T.I., was fair and
reasonable at that time - putting you
back to the Intermediate rate?
For T.T.I. - I think 1t mghtn't have been
too bad. At this stag2 I was coming up to
take over the audit of the local R.S.L.
books - they were having a 4.G.M. (Annual
General Meeting) in February - and I was
sort of starting to work myself back into
doing what I felt I coald do, and this was
going to be in the field of audit. Of
course, unfortunately, the chapple that
had been elected treasurer dicd so I sort
of swung straight into treasurer - this was
in February well -
February?
78. So on that basis I think in retrospect
now, T.T.I. reduction would be right
because T did in fact do -
So your real complaint is that the reduction
taking you off the Intermediate rate was
premature?
That's right.
And what would your view be about that?
Do you think you still should be on the
Intermediate rate ox something inbetween
the 60% to which they reduced you and the
Intermediate rate? Have you any views on
that?
My own personal view is that 1 should be
on the Intermediate rate in view of the
wording that's in the Schedules.
You don't think you should have been reduced
at all?
I don't think 1 should have been reduced at
all."
Clearly the essence of the applicant's case before the
Tribunal was not the assessiment by the Board of his ancapacity at
60%. It was his claim that the p~oper decision was that, 1n
consequence of his inability to earn a "liveable income," as
he termed it, resulting from that incapacity, he should be on the
Intermediate Rate of pension. There is no doubt that when using
the expression "liveable income" th? applicant was referring to the
words "living wage" in paragraph 6 of Schedule 1. Subsequently
the applicant gave evidence generally concerning his earning
capacity and his earnings from part-time accountancy.
In its reasons for decision the Tribunal mentioned at the
outset when stating the applicant's penston history that he had
enjoyed the Intermediate Rate of pension trom 21 January 1977,
but thereaftec made no reference to that particular rate of
pension (or to paragraph 6 of Schedile 1) nor to the applicant's
contention that he was entitled to a pansion at this rate, It
merely stated that "he considers he should still be on the T.T.I.
pension".
After considering all the evidence, including the applicant's
oral evidence at the hearing, the Tribunal made the following
fandings:
"The Tr2bunal finds that, in respecx of the applicant's
condition during the period prior to the Board's decision
of 7 August 1978, the additional evidence is generally
an conformity with the medical opinion and other evidence
set out in the departmental records that were available
to the Board on 7 August 1973 and that the applicant has
not overstated his case...
The Tribunal is of opinion that the myocardial ischaemia
1s the major disability, that 1t has involved 32 mnajoz
change of life-style for the applicant and that both
Dr. Thornton ad the Board were a little optimistic as
to the applicant's ability to engage in = sustained light
work...
10.
-..-but the Tribunal interprets the whole picture available
to the Board on 7 August 1978 as being that the applicant's
real ability was by reason of his accepted heart disability,
restricted at best to only part-time rather than full-time,
sustained light work. He was _iot fit for saslained light
work, such as light bench work or similar, and cven in his
light, mainly sedentary -type, accountancy work he was not
able to cope without substantial breaks From work. Tho3re was
Obviously also very substan'ial interference with his
gocial and recreational life." (The underlining 1s that of
the Tribunal).
The Tribunal went on to say that 1t considered that an
assessment of 80% of the General Pate "fairly and justly represents
that degree of whole man impairment of capacity caused by the
applicant's disabilities" and 1t substituted that assessinent for
the Board's assessment of 60%.
Thus, although it made findings favourable to the applicant
on all aspects of the evidence which he put forward 1n support
of his claim to a pension at the Intermediate Rate, the Board
appears to have given no consideration to his claim to such
entitlement nor any reasons for rejecting that claim. lt may
well have given consideration and have 30und grounds for a
rejection, but 1t has not said so in its reasons. Ccunsel for the
respondent conceded that there was aisthing in the reasons for
decision of the Tribunal which expressly indicated that it had
given consideration to the provisions of paragraph 6 2f Schedule
1. He also acknowledged that the applicant clearly stated the
issue before the Tribunal, namely that he considered he should
remain on the Intermediate Rate of pension.
The applicant's counsel contented that an error of law was
apparent because, in the light of the obligation on the Tribunal
under s.107 VK(1) infra to give reasons in writing for its
11.
decision, including any findings of fact, ats failure to refer to
the applicant's claim to an Intermediate Rate of pension and the
supporting evidence indicated that it hai overlooked a relevant
consideration, and 1n so doing had erred in law. He cited in
support of this contention the views of Deane J. in Sullivan v
Department of Transport (1978) 20 A.L.R. 323 at 349, namely:
"The Tribunat's Failure to direct its attention to the
considerations properly relevant to the determination
of 1t was, in the circumStances, understandable. The
consequence of that failure is, however, that the
proceedings before the Tribunal miscarried in that the
Tribunal failed to deal, by reference to the relevant
considerations, with a matter which arose for its
determination and which it parported to determine."
Counsel also drew attention to my reasons in that case at
pages 350 to 353, and in particular to the consequences which I
held flowed from the failure of the Tribunal to give the precise
reasons upon which 1t acted and its findings on material facts.
But for the very persuasive argunent of counsel for the
respondent I would ve of the opinion that the applicant's
Submission was clearly correct, and chat I should remit the
matter to the Tribunal with a direction that it give consideration
to his claim for a pension at the Intermediate Rate ain the light
of the applicant's evidence and any further relevant evidence
and of the provisions of paragraph 6 of Schedale 1. However, if
accepted, the arguments of counsel for the respondent require a
contrary conclusion rejecting the appeal on the groand that this
court has no jurisdiction.
The respondent's primary submission was that no appeal lay to
this court because the Tribunal was not bound to decide the
application before it in accordance with law. He basei this
12.
argument upon s.107 vG of the Act wnich must be set out in full:
"The Trabunal, 1n conducting a proceeding, or the
hearing of a proceeding, or in making a decision ina
proceeding, on a review -
(a)
(b)
1s not bound by technicalities, legal forms or rules
of evidence; and
shall act according to substantial justice and the merits
and all the circumstances of the case, and, without
limiting the generality of the foregoing, snall take
unto account any difficulties thak, for any reason, lie
in the way of ascertaining the existence of any fact,
matter, causé or circumstance including aay reason
attributable to -
(1) the effects of the passage of time including the
effect of the passage of time on the availability
of witnesses: or
(1i)an absence of, or a deficiency in, relevait official
records, including an absence or deficiency
resulting from the fact that an occurrence that
happened during the service of a membex of the
Forces was not reported to the appropriate author-
ities."
It 2S convenient at this stage to set out two additional
provisions of the Act relevant to the Tribunal's obligations.
Section 107 VH deals with the decision of the Tzribunal as follows:
(2)
In a proceeding on a review, the Tribunal shall have
regard to the evidence that was before the Commission
or a Board when the decision the subject of the review
was made and to any further evidence before the Tribunal
in the proceeding that was not before the Connission or
the Board but woald have been relevant to the making of
a decision in the proceeding before the Commission or
the Board.
On the completion of 1ts consideration in a proceeding
on a review -
(a) where the decision the subject of the review was a
decision refusing a claim ox application for pension -
the Tribunal shall set aside the decision unless
1t 18 satisfied, beyond reasonable doubt, that there
were insufficient grounis for granting -he claim or
application; or
(b) an any other case - the Tribunal shall set aside the
decision the subject of the review unless it is
satisfied, beyond reasonable doubt, that the decision
is the decision that the Tribunal would ave mad2
1£ 1t had conducted the proceeding in which the
decision was made.
ory
13.
(3) Where the Tribunal sets aside a decision the sibject of a
review, it shall substitute for that decision such
decision as the Tribunal considers to be in accordance
with this Act.
(4) Where the Tribunal does i10¢ set aside a decision the
subject of a review, it shall affirm that dscision,"
Section 107 VK obliges the Tribunal in certain specified
circumstances to give reasons for 1ts decisions:
"(1) Where, in a proceeding before the Tribunal, the ?ribunal
makes a decision relating, in whole or in part, toa
prescribed matter, the Tribunal shall cause to be
prepared a written record of the decisio1, containing
a statement of the reasons for the decision, so far
as the decision relates to the prescribed nattc_,
including any findings of fact in relation 'o the
prescribed matter.
(2) ...
(3) In this section, 'prescribed matter' means a natter
referred to in paragraph (a), (d) or (3) of s ib-section
(1) of section 27."
The Tribunal in this instance was d2aling with a prescribed
matter, namely s.27(1)(d), the assessment of the rate of pansion
to which the applicant was entitled, and thus was prima facie
obliged to comply with s.107 VK(1).
Counsel relied upon s,107 VG to support his submission that
the Tribunal was not obliged to proceed in accordance with law.
He contended that the direction to "act according to substantial
justice and the merits and all the circumstaices of the case"
required the Tribunal to determine applications for review in
accordance with equity and good conscience of at least principles
analogous thereto. On this basis there was, he subuitted, little
af any scope for this court to intervene, becaase only 1n most
exceptional circumstances could 1t be said that the Tribunal
erred in law. He supported his submission with copious aithority
referring to the old English Courts of Pequests, Small Debts
14.
Courts, the Indistrial Code of South Australia and other
legislation where the tribunals in question were directed to
arrive at a decision without references to legal standards. In
these circumstances, and even in sone instances where an appeal
on questionsof law was expressly provided, appellate courts have
declined to review the decisions, lowevcr, 1n each of these
matters the legislature provided cxpressly and very clearly that
the relevant tribunal was to be in its decisions guided only by
"equity, good conscience and the substantial merits" or sore
very similar criteria. I was referred tu a number of authorities,
(Moses v Parker [1896] A.C. 245, Walkley v Daaryvale Co-operative
(N.S.W.) 325, Ex_parte M rtin (1896) 13 W.N. (N.S.W.) 66, Scott v
N.Z.L.R. 821 KarorzBorough v Buxton {1918) N.Z.L.R. 739 Ellicott v
Hamilton (1374) 2 N.Z. JUR 95, Pearson v Clark (1864) Mccassey's
Reports (N.Z.) 136, Skinner v Singh (1913) 40 Indian Appeals
106), but first it 1S necessary to determine whether the Tribunal,
as also the Commission and the Board, is entitled to igiore
principles of law and the provisions of the Act and to act as
would a "court of conscience". Such a decision mast be made
upon a careful consideration of the relevant provisions of the
Act, which provisions, I find,are strongly persuasive to thea
contrary.
In the first instance it 1s relevant to note the approach
of the majority of the High Court in R v War Pensions Entitlement
Appeal Tribunal and Another Ex parte Bott (1933) 50 C.L.R. 228
when considering legislation very similar to s.107 VG bat which
has one significant difference. Section 45 W (2) of the then
15.
fe)
Repatriation legislation was the section corresponding t
s.107 VG and was in the following terms:
"Subject to this Act, a? appeal tribunal... shall 201,
in the hearing of appeals, b> bound by any rules of
evidence but shall act according to substantial
justice and the merits of th ca3ze..." (my under lioing)
In contradistinction to the present legislation s.45 W (2)
thus expressly indicated that the darrection to act according "to
substantial justice and the merits of the case" was sabject to the
provisions of the Ack. Mr. Justice Starke made the following
comments on the obligations of the Tribanal in hearing appeals
at p.249:
"But sec.45W(2) enacts that sidjeck to the Act, ai Appeal
Tribunal shall nor, in the heariny of appeals, be bound
by any rules of evidence, but shall act according co
substantial justice and the miits of the case (cf Moses v
Parker; Ex parte Moses {18961 ~A.c. 245). No doudt,'when
the duty of deciding an appeal 1s imposed, those whose
duty it 1s to decide it must act judicially. They must
deal with the question referred <2 Fhem without bias and
they must give to each of th-= parties the opportunity of
adequately presenting the case maid*+, The doecrs'on mast
be come to in the spirit and v.th the sense f responsibility
of a tribunal whose duty 1t 1s to mete out justice. But
1t does not follow that the procedase of every such
tribuial must be the same. In the case of a Court of law
tradition... has prescribed certain principles to which
in the main the procedure mist conform, But whak that
procedure 1s to be 1n detail must depend on the nature
of the tribuial'. (Local Governnent. Board v Ar lidy= {1915}
A.C. 120 at p.132). Rules laid down by the Act must be
observed decause they are imposed by the Act and tor
no other rea3on."
No doubt 1t may be said that in that case the rules made by the
Act had to be observed even in counection with the hearing of
apps als and notwithstanding the direction to act "according to
substantial justice and the merits of the case", because the latter
direction was expressly "subject to this Act". However when the
legislature goes to lengths and in particular to sash
considerable lengths as 1t does tn che present Act to
presccibe in great detail the amount and the
16.
circumstances of entitlements, it would be surprising indeed if
these prescriptions could be iagnoxved in rel1rance upon the
"substantial justice and merits" provision. Rathez one would
expect to find express introductory words such as introduce the
"equity good conscience and substantial merits" provision in
s.51 of the Industrial Code 1967 (S,A.) namely "notwithstanding
anything in this Act or in any other law or any practice to the
contrary".
Since the hearing of this appeal the Full Court of the
Federal Court has handed down, on 14 August 1933, its jadgnent
in The Repatriation Commission v Nancy Law, affirming the decision
of Toohey J. I do not propose to rfer to the reasons of the judg-
ment of the court in any detail, but rather to note merely that
1t 18 very apparent that they are wholly based on the obligation
of the Tribunal to obServe the provisions of the 2ct. Such an
obligation denies it the right to att in accordaice with equity
and good conscience.
I would also refer to the comments of Isaacs J. (as he then
was) in British Imperial 011 Company Ltd v Federal Cormiss1oner
of Taxation (1925) 35 C L.R. 422 at p.438. After referring to
the provision in the Income Tax Assessment Act 1922 to the effect
that a Board of Appeal (the predecessor to the present Boards of
Review) was not "bound in 1ts consid?cation of any quescion by any
rules of evidence, but in forming 1ts decision shall be giided
by good conscience and the facts of the case", His Yo nour
distinguished Moses v Parker supra, an authority here relied
upon by the respondent, on the basis trat the Tribunal there under
consideration was "expressly exonerated from all rules »f law and
17.
practice". In reference to the abovementioned powers of the
Board of Appeal he said:
"It cannot be maintained here that, by virtue of the
words relied on, the Board 1s absolved from all rales
of law, as, for instance, the express provisions of
the Taxing and Assessment Acts themsclves..."
In my opinion the position 1s equally clear in this matter before
me.
There are additiznally, an my opinion, in the Act a sub-
stantial number of positive indications which point contrary
to the defendant's submission. Tnere 1s of course no specific
direction to act in accordance with equity and good conscience,
and 1t 18 crucial to the respondent to equate those terms with
"substantial justice and the merits". My view that Ihey are not
in parl materia receives support from the judgnent of Fvatt J.
{the dissenting judge) 1n Ex parte Bott supra at p.25% where his
view was in effect that they accorded with the principles of
natural justice. It can hardly bo in azcord with natural justice
to deny an applicant an express entitlement under the Act, 1f he
be otherwise entitled co it. Clearly s3.35 and 101 impose a
liability upon the Commonwealth to pay a pension to the applicant
in accordance with tye rules laid down in the Schedules. LCqually
the applicant 1s entitled to receive such a pension. M>reover
notwithstanding the words "without limiting the generality of the
foregoing" in s.107 VG (b), I see what follows as indicating the
types of circumstance in which the 'ly ibinal 1s to proceed
according to "substantial justice and the merits". 1 an far from
satisfied that in making its ultimate decision on the review the
Tribunal is entitled to act only in accordance with thescriteria,
and I am of the opinion that the words "in making a decision in
a proceeding" embrace rather adecision made daring th- conduct of
the proceedings.
18.
My opinion that the Tribunal 1s required to act in accordance
with law, that 1s within the confines df and in aztcordanice with
the Act, receives support from other provisions of the Legislation.
The fact that the amount of the pension to which an applicant is
entitled is not at larg= but 1s to be determined by the Act
receives support from ss.101 and 35 aid the detalled provisions
of the Schedules. Likewise the obligation of the Tribunal
under s.107 VH (3) when it sets aside 2 lecision which it 1s
reviewing 1S to substitute "such decision as the Tribunal
considers to be in accordance with this Act". There 1S no warrant
here to depart from the provisions of the Act. That the Tribunal
1s as a matter of law obliged to act in accordance with those
provisions receives fusther support from the provision of a right
of appeal lamited to an error of law (s.107 VZZH), the raght to
refer a question of law to this court for decision and the
obligation thereafter not to "proceed 1n a manner, or make a
decision, that 1S inconsistent with the opinion" of this court
(s.107 vZZG (1) and (4)). I refer also to the right of the
President of the Tribunal to refe: a decision under review to the
Administrative Appeals Tribunal (s.107 VZZB), which latter body
without doubt 1S required to act in atcordance with law. All
of these provisions would be quite pointless and of no possible
profit 1f£ the Tribunal was entitled to act other than in accordance
with the Act.
Finally I refer, as supporting the obligation so 'Lo act, to
the requirement that in certain circumstances, namely when entitle-
ment, assessment or permanent unemploy:ncnt 1s under consideration,
the tribunal must give reasons for its jecision including any
findings of fact (s.107 VK). Such a provision 1s obviously in aid
19.
of a possible appeal, and the giving of reasons for its decision
can have no significance 1f the Tribunal was entitled to make
ats decision on some arbitrary basis.
In my opinion the undoubted conclusion to be drawn from the
above 1s that the Tribunal has no charter to act in making its
decision in accordance with "equity and good conscience" but 1s
obliged to comply with the provisions of the legislation. It
follows that the authorities to which counsel for the respondent
referred have no application to the functions of the Tribunal or
restrict an any way the right of appeal if an error of law be
established.
Counsel's further submission was that if, contrary to his
primary contention, there was a right of appeal on an error of law,
no such error had been established here. He said that I was not
entitled to assume, as was assumed in Sullivan v Department of
Transport supra, that the silence of the Tribunal in respect of
the applicant's claim to an Intermediate Rate pension indicated
that it had given no consideration to a relevant matter. Rather I
should assume that proper consideration had been given resulting
in a rejection of the applicant's claim. He supported this
submission by pointing to what he said was a crucial difference
between the obligation to give reasons under the Administrative
Appeals Tribunal Act and the corresponding provision in the Act.
The Administrative Appeals Tribunal 1s obliged not only to give its
reasons 1n writing for its decision, but those reasons must"1include
ats findings on material questions of tact and a reference to the
evidence or other material on which those findings were based",
(s.43(2) of the former Act). The corresponding provision in the
Act (s.107 VK(1)) departs from s.43(2), requiring only "a statement
20.
of the reasons for the decision... imcluding any findings of fact
in relation to the prescribed matter". The latter provision, it
was said, did not require the Tribunal to give all its *indings
of fact, but only those which it decided to supply. In any event
the obligation to give reasons was of no great significance, but
was "merely a mandate to think about what it is doing to the extent
that it has to put something down in writing."
I can not accept either of these submissions.
As to counsel's last mentioned point, 1t 1s not correct to
say that the obligation to give reasons is of no great significme.
In my opinion such an obligation 1s essential 1f there 1s to be an
effective appeal on an error of law. Without such a provision 1t
would be impossible for the appellant or this court to discern
whether the Tribunal erred, assuming it did err, in law or in fact.
In Iveagh v Minister of Housing and Local Government {1964} 1 Q.B.
395 at 410 Lord Denning emphasised the importance of the obliga-
tion to give reasons when he said of a similar provision:
"The whole purpose of the enactment 1S to enable the
parties and the courts to see what matters he (the
Minister) has taken into consideration and what view
he has reached on the points of fact and law which arise.
If he does not deal with the points that arise, he fails
in his duty:and the court can order him to make good
the omission."
Russell L.d. made a similar comment during argument in that
case at p.405 when he said:
",.. the purpose of requiring the Minister to give the reasons
for his decision is to enable anyone interested to see
whether there is... in law a fault in his process of
reasoning, so that they may attack the decision."
There 18 a similar section to s.107 VK in the Tribunals and
Inquiries Act 1958 of the United Kinadom which was considered in
Re Poyser and Mills' Arbitration figsa| 2 Q.B. 467 by Megaw J.
(as he then was) at p.477:
21,
"The whole purpose of s.12 of the Tribunal and Inquiries Act
1958 was to enable persons whose property, or whose
anterests, were being affected by some administrative
decision or some statutory arbitration to know, 1f the
decision was against them, wnat the reasons fot it were.
Up to then people's property and other interests might
be gravelyaffected by a decision of some official. The
decision might be perfectly right. but the person against
whom 1t was made was left with the real grievance that he
was not told why the decision had been made. The purpose
of s.12 was to remedy that... Parllament provided that
reasons shall be given and tn my view that must be read
as meaning that proper adequate reasons must be given. The
reasons that are set out must be reasons which will not only
be intelligible, but which deal with the substantial points
that have been raised."
It 18 pertinent to note that s.12 of the latter legislation
only required reasons to be given, and not facts. Irrespactive
therefore of the difference between the requirements of the Act
and the Administrative Appeals Tribunal Act in respect of the
obligation to indicate facts, the above statements of the law are
applicable to the present matter. The Tribunal was obliged in
this present matter to comply wath s.107 VK and provide the
applicant with a statement at least of its reasons for 1ts decision
to reject his claim.
As to the second submission based on the fact that the Tribanal
was required to state "any" and not "all" findings of fact, I do
not see its obligation as different, to any significant extent,
from that of the Administrative Appeals Tribunal. Indeed it
would be surprising 1f it was different, in the light of the
fact that the President of the Tribunal had a discretion to refer
the application to the latter Tribunal. However the use of the
word "any" does not entitle the Tribunal to include a statement
of only some of the facts found, but requires a statement of all
facts to be given. "Any" in this instance means "all, if any".
I refer to Victorian Chamber of Manufacturers v The C.mmonwealth
(1943) 67 C.L.R. 335 per Williams J. at 346:
22.
"The authorities to which Mr. Ham referred, Liddy v
Kennedy, Isle of Wight Railway Co v Tahourdin and other
authorities cited in Stroud's Judicial Dictionary %nd ed.
and supplement, under the word "any", show that "any"
2s a word which ordinarily excludes limitation o
qualification and which should be given as wide a
construction as possible. 'Any goods! therefore
includes all goods except where this wide construction
1s limited by the subject matter and context of a
particular statute."
In my opinion, if the Tribunal found certain Cacts which
denied the appellant's entitlement to a ponsion at the Intermediate
Rate, it was obliged to state these facts. Likewtse it was obliged
to give its reasons for denying the appellant this entitlement.
At it has failed to state any such facts or give any reasons, this
court 1S entitled to assume, as is the appellant, that it failed to
give consideration to a material matter which arose for deter-
mination. Counsel for the respondent contended that the Tribunal
was justified in concluding that the appellant had tho capacity
to earn a living wage. That may well be so, though it appears
to fly in the face of the evidence and its own specific findings,
but the crucial thing from the point of view of this coirt as
that 1t has not expressly said so. The proceedings Lherefore
have miscarried, and this court should intervene as an error of
law has arisen. The appropriate order is that the matter be
remitted to the Tribunal for re-heating in the light of these
reasons and any further evidence which may be presented.
I allow the appeal with costs and I direct that the matter
be remitted to the Tribunal to be heard and decided again in the
light of my decision, with the hearimy of such further evidence,
if any, as may be presented to tho Tribanal.
| certify that this and tne o/ preceding
pages are a true copy of the Reasons for
Judgment of Mr Justice YL
fA /5 rn
iate
Dated 7 Sef bos (780 septa
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