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Whether the Acting Minister could not deport the first
naned arplicant becaus of his family relaticnsrip with
Ot
the second named applicant - whether the Acting Minister
was bound br the International Covenant for Civil and
Folitiacal Rights - whether the covenant is pert of the
law of Lustecalia - the effect of the covenant on a
Aecreian made geursuant toa the lave of Ausrcralia.
t
MINISTER FOr
VG No. 153 of 1983
+
Smithers c.
21 Octcber 1°B2
Ielbourne.
Rae teats
wae
we re
we a Rn Aes De A en Smee te en ee fee ee nD eee ee ee
or
we ere
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY VG No. 153 of 1983
GDINERAL DIVISION
et ee ee re
EX TENPORE JUDGMENT
Betveen: LIGOR SEZDIRIDZOGLU and
PENELOPE DROKOS
ra (Applicants)
And: THE ACTING MINFSTOR FOR
IMMIGRATION & Mt WiC
APFALRS
(Respondent)
Coram: Smithers J.
21 October 1983
REASONS FOR JULGAHENT
HIS HONOUR: When this matter was heard in September I made
an order that the third ground of the order to review
be dealt with separately from the other grounds. I
have handed down a judgment in relation to the other
grounds and it is the third ground which is now
before the Court. The third ground was in these
terms: "
.
"That insofar as the deportation of the
first-named applicant would be likely to
Ce en at ee as - ~ -- -- eee --
ne a a SE Oe aT eS eT eee ee ne
a
he be neta
nN
.
seriously impair the exercise by the second
named applicant, an Australian citizen, of her
rights including her rights to maintenance for
the child en ventre sa mere of the applicants,
1f£ 1s not within the power of the Commonwealth
officer so to order, that is to say to make the
deportation order."
That ground was particularised by Mr. Little this
morning in the following terms, namely, that in the
exercise of the discretion of the Acting Minister,
the Acting Minister could not deport the applicant
because of his family relationship with Mrs. Drokos,
that relationship being a genuine de _ facto
relationship, he being the father of her child about
to be born and also being accepted as in loco
parentis by Mrs. Drokos' d@aughter, that 1s, the
daughter of Mrs. Drokos by her previous marriage.
The relevant facts are, shortly, that the applicant
and Mrs. Drokos arrived in Australia from Greece and
took up again a de facto rejJationship which according
to them had commenced in Greece at least some 12
months before they arrived in Australia. Mrs. Drokos
arrived in Australia shortly before the applicant.
Mrs. Drokos is about to be divorced in Greece and
intends to marry the applicant. As previously
mentioned there jis a daughter from Drokos' previous
marriage who has lived with Drokos and the applicant
sd ee
ate ok ere
we eta a Ne rn ee ea rN eta he lead eld Se er ROE rede mene
ae
at all times when they have been living together and
who regards the applicant in the position of her
parent.
Mrs. Drokos 1s with child to the applicant and
expects the baby 1o be born in about two months time.
She is an Australlan citizen. The applicant 1s
Turkish. There 1s, therefore, so it is said, a
Family situation in existence consisting of the
applicant, Mcs. Drokos, and her daughter, which has
been further enhanced by the existence of the
pregnancy in relation to the child of the applicant
and Drokos.
In the first instance Mr. Little contended that
Australia having acceded to the Internationa]
Covenant for Civil and Political Rights (the
covenant) the provisions of the covenant are binding
on the Acting Minister for Immigration and Ethnic
Affairs in this case in the sense that he is
restrained from making an order for deportation which
would invade, or fail to protect, the family
.
situation.
The Human Rights Commission Act 1981 indicates that
ict is desirable thet the laws of the Commonwealth and
the conduct of persons administering those laws
a a ne es ene eee ee wee
=
tM ne ee a,
tak
ee re ee rn ee te rete ad Sate!
"ot
gle NE ee me te
ny
should conform with the provisious of the covenant
and certain other international declarations, but of
course such a recital stops short of enacting that
the provisions of the covenant are part of the law of
Australia, and in fact those provisions are not part
of the law of Australia.
The Migration Act 1958 is law in Australia on the
subject of immigration. In that Act Parliament lays
down, inter alia, the conditions according to which
persons may be admitted to Australia and may be
deported therefrom. lt 1s to those provisions that
regard must be had.
So far as the deportation of a prohibited immigrant
is concerned, the Minister has a discretion, the
width of which has been described in various
decisions such as The Minister for Immigration &
Ethnic Affairs v. Tagle (unreported decision of
Sweeney, Woodward and Fitzgerald JJ., dated 28
September 1983; VG No. 53 of 1983) and Akpan v. The
Minister for Immigration & Ethnic Affairs (unreported
decision of Sheppard J. dated 7 April 1983). That
discretion itself must be exercised according to law
one provision of which is that the Minister must
Pp
consider all circumstances relevant to the position
of the person with whose desire to remain in
2S kee
Nae
ee ee a ere ne ra ated ee tell ee ee tr ae
Australia he 2s concerned. I do not say that he must
apply the principles laid down tin the covenant.
However, the declaration of Parliament in the Human
Riqhts Commission Act 1981 that it as desirabJe that
the conduct of persons administering the laws of
Australia should conform with the provistons of the
covenant may supply a ground for contending that the
Minister should at least take into account the
principles expressed therein.
So far as I can see in this case, save that the order
of the Acting Manister as previously made and at
present under reconsideration may cause a separation,
it appears that he has in an indirect way taken into
consideration the provisions of the covenant. It is
apparent that the Acting ifinister is apprised of and
considers it his duty to have regard to the de facto
relationship between these two parties and that he
recognises that it is his duty to take that anto
account with all other matters which bear upon the
desirability or otherwise from the point of view of
Australia that the applicant be deported or that some
privileges arising out of the de facto relationship
be extended to him. The duty, however, 1S no more
than a duty to take all relevant considerations
concerning the prohibited immigrant in relation to
the interests of Australia into account.
DET To era Ce et re ee ee " veo - . - eae - -~ ~ nee
eae
eae te an Li ental See Siete rie tS aD a EA te er
pate ree
The situation+for Mrs. Drokos, of course, is a very
difficult one indeed from all points of view and at
is noted that she is an Australian citizen. But it
is going too far to suggest that as a separation
between these parties might possibly arise if the
order as previously made were carried into effect the
possibility of that separation makes it unlawful for
the Minister to make the order. The existence of the
family and respect for what I call the rights thercof
do not take effect to prohibit the exercise of all
lawful acts which may work in a hostile manner
towards the family. The family is still subject to
law and not the reverse. This is made clear ain the
covenant itself: see article 9(1), article 10(1),
article 13 and article 17(1). If one reads, for
example, article 13 1t states:
"An alien lawfully in the territory of a
state party to the present covenant may be
expelled therefrom only in pursuance of a
decision reached in accordance with law
and shall, except where compelling reasons
of national security otherwise reguire, be
allowed to submit the reasons against his
expulsion and to have his case reviewed
by, and be represented for the purpose
before, the competent authority or a
person or persons especially designated by
the competent authority."
The principle that the law of the land as made by the
law-making bodies of Australia shall operate
qeeigQ en aR ee wee - ,- _.
rn
me en ke er re le ee leat ete Le nel Pa tn
7s
notwithstanding any general provisions which appear
\ "
in the covenant seems to be supported by a number of
decisions ~ indeed those dectsions which Mr. Little
himself submittcd ~ and I refer in particular to Rv.
Home Secretarv ox parte Bhajar Sinoh [19376] 1 Q.B.
198; Rv. Home Secretary ex parte Phan Sopxar [1976]
1 Q.B. 606; Rv. The Chief Immiqretion Officer cer
parte Salamat Bibi [1976] 1 W.L.R. 979. Reference
.
may also be made to In re Simsek (1981-1982) 40 ALR
6L.
To my mind it 1s perfectly clear that nothing in the
Human Rights Commission Act 1981 or the covenant, so
far as it 1s called in aad in that Act, 1s effective
to modify 1m any way the powers of the Minister under
ss.16 and 18 of the Migration Act. The only way in
which the Act is relevant is that 1t makes clear that
it is the desire of Parliament that the conduct of
the Minister in performing his duties shall conform
with the provisions of the covenant, and the fact
that the covenant refers to the entitlement of the
family to be protected, but it 1s a right for the
family to be protected in the context of the law of
the country concerned and, of course, subject to
those qualifications which are to be found in the
covenant itself.
a ak dee eh ue ee
8.
I have said that in this case 1t would appear that
the Acting Minister 1s quite well aware of the duty
to consider all relevant matters and no doubt, will
in his reconsideration, take into account the
desirability of the protection of this family unil so
far as that protection is compatible with the other
considerations which it 1s necessary that the Acting
Minister should take anto account which, of course,
relate to the interests of Australia, the interest of
the maintenance of its laws and various other
considerations which appear from the reasons of the
Acting Minister.
The substance of the argument put by Mr. Little would
really mean that the provisions of s.51(27) of the
Constitution dealing with immigration, would have to
be read subject to a qualification that the
Parliament was unable to authorise the Minister to
take action in certain situations where his action
might be incompatible with the full protection of the
family. I think it is impossible so to argue and
that matter is made clear in those authorities to
which Dr. Jessup has referred eg: Osborne v. The
Commonwealth & Anor (1910-1911) 12 CLR 321;
especially at pp.334, 343, 346 and 358, and the
recent case of The Commonyvealth v. Tasmania (1983) 46
ALR, in the judgments of Mason J. at 713 and 714;
we gr nt ea te pre ee er ee oe - woe - aos eee
fe an ee tle meta ee
N
9.
Murphy J. at 736; Deane J. at 813 and 814. OF
course, it 1s-quite clJear that once ss.16 and 18 are
shown to be laws with respect to immigration pursuant
to s.51(27) of the Constitution they remain laws
relating to immigration although their operation may
have an impact on an ancillary matter.
On the general question of the influence of a Family
situation and the significance of a family situation
on the administration of the laws of immigration
it is useful to refer to Ah Yin v. Christie (1912) 4
CLR 1428 where a boy of 15, cenvicted of a charge of
being a prohibited immigrant, sought entry to this
country on the basis that he was domiciled in this
country his father being already domiciled and
resident in this country. It was said by Griffiths
C.J. at p.1431:
"lt as a question of a right of a stranger
to claim admission to a foreign country.
That is a matter depending upon political,
not upon civil status. Sec per Lord
Westbury in Udny v. Udny L.R. 1 H.L. Sc.,
441, at p.457. It 1s settled law, as
pointed out by this Court in the case of
Robteimes v. Brenan 4 C.L.R., 395, quoting
the decision of the Judicial Committee in
Attorney-General for Canada v. Cain and
Gilhnula (190G) A.C., 512, that one oF the
rights possessed by the supreme power in
every State is the right to refuse to
permit an alien to enter that State, and
to annex what conditions 1t pleases to the
permission to enter it, and to expel or
deport him from the State at plcasure.
ee een pane nen ne ae er eee te te ee eee ee pes ewe wee weg
nant dean tee eam ERT eee et et ate ohm A AGA eet et te a Thee Re ete eee Uri Dak a eet ey de
A weitere
10.
The Commonwealth
Constitution power
has
to exclude
whether @n alien or not."
So far
as the application
the order to review, I give
I will reserve the costs.
Nene ye te
.
'
+
(?
~~
depends
under
th
c
any person,
upon
no relief.
ground 3 of
ene ed Aw
ent eee
fares sent
CATCHWORDS
Administrative Law - judicial review - whether decision to
discontinue action vitiated by apparently generous offer to pay
cests.
evidence on matter veculiarly within knowledge of party.
VISY BOARD PTY. LTD. v TRADE PRACTICES COMMISSION
VG No. 281 of 1683
Woodward J.
Melbourne
22 December 1983
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY
GENERAL DIVISION
BETWEEN :
)
)
) VG No.
)
)
VISY BOARD PTY. LTD.
TRADE
and
PRACTICES COMMISSION
JUDGE MAKING ORDER
DATE OF ORDER
WHERE MADE
THE COURT ORDERS THAT:
The application
ORDER
Woodward J.
22 December 1983
Melbourne
be dismissed with costs.
281 of 1983
Applicant
Respondent
IN THE FEDERAL COURT OF AUSTRALIA
VICTORIA DISTRICT REGISTRY VG No. 281 of 1983
GENERAL DIVISION
BETWEEN:
VISY BOARD PTY. LTD. Applicant
and
TRADE PRACTICES COMMISSION Respondent
CORAM: Woodward J.
DATE: 22 December 1983
WOODWARD J. REASONS FOR JUDGMENT
This action, pursuant to the Administrative Decisions
(Judicial Review) Act 1977 ('the ADJR Act'), relates to an
application by the Trade Practices Commission ('TPC') for leave to
discontinue proceedings it has brought under s.50 of the Trade
Practices Act 1974 ('the TP Act'), to prevent the take-over of
Fibre Containers Ltd. ('FCL') by APM Investments Pty. Ltd.
('APM').
That action has had a chequered career, involving a
number of interlocutory applications, and there has been no
hearing on the merits of the matter.
Three of the interlocutory applications have related to
attempts by parties other than APM to obtain release from
undertakings given to the court, so that the principal
shareholders in FCL ('Amatiil') could sell their shares to a rival
bidder to APM, SCI Packaging Pty. Ltd. ('SCI'). The Board of
Directors of Amatil has formally resolved that iat will not sell
. :
its shares to APM "at any time or in any circumstances or for any
price".
I refused the last of those applications on 15 November
(where I dealt with the effect of the Amatil resolution) and an
appeal was taken to a Full Court on 13 December. In the course of
those proceedings counsel for FCL and Amatil offered to consent to
judgment for injunctions to prevent Amatil selling to APM and
offered also to pay the costs of TPC including any costs it might
be ordered to pay to APM when it discontinued its action against
that company. The hearing of the appeal was adjourned to enable
the TPC to apply to a single judge in accordance with that offer,
which it indicated it would accept.
In the event the TPC has sought leave to discontinue
against all parties, with an order for costs against FCL and
Amatil. That application has been heard and I have reserved
judgment.
In the course of that hearing the present applicant
sought leave to intervene, which was refused. At the same time it
served and filed the present application under the ADJR Act,
challenging the TPC's decision to discontinue its action against
APM.
It has not been disputed that the applicant, as a trade
; .
competitor of APM, has standing to bring the action. Nor has it
been contended that the decision in question cannot be challenged
under the ADJR Act.
The main contention of the applicant is that the
decision to discontinue was vitiated because, in reaching 1t, the
TPC wrongly took into consideration the offer to pay its costs.
It was further argued that the decision was unlawful because 1t
involved the TPC fettering its discretion as to its future
actions. —-
This second point can be disposed of quickly. In my
view it has no substance because under ss.80 and 81 of the TP Act
the TPC has a clear choice whether to proceed by way of
application for an injunction to prevent a threatened takeover or
to wait and see what happens in the market place and then move to
secure appropriate divestiture. There 1s no reason in principle
why it should not begin the former action, change its mind and
discontinue, relying upon its right to sue for divestiture later
if necessary. It would be a normal incidence of leave to
discontinue in such a case that a Court would impose the condition
that the applicant would not recommence the same action for an
injunction. To offer such an undertaking does not represent a
fettering of discretion when the matter is looked at within the
overall scheme of the TP Act, and I believe that is the proper way
to approach the issue.
So far as the applicant's main contention 1s concerned,
it alleges that 1t was an improper exercise of power within the
meaning of s.5(1)(e) of the ADJR Act because the question of costs
was an irrelevant consideration which was taken into account
contrary to s.5(2)(a).
It was said further that the TPC placed undue weight
upon the decision of Amatil never to sell to APM. Although, as I
said in my judgment of 15 November, that decision cannot be
accepted without reservation in. the longer term, there is no
reason why it should not be given great weight in the short term.
In any event, the weight to be attached to it is a matter for TPC
(in this context) and not a f2t subject for review.
It was also argued that the TPC did not give any weight
to its often-repeated view that a takeover by APM would be
unlawful. However there is nothing to suggest that the TPC has
resiled from this view. It has simply decided, as a matter of
commercial reality, that APM almost certainly cannot acquire
shares, and so the question of legitimacy of such a takeover
cannot arise. There is, in my view, no substance in either of
these subsidiary arguments of the applicant.
It 1s not practicable for me in this judgment to give
all the background to this matter which I set out in my judgment
of 15 November in TPC v APM and Others (VG 84 of 1983). Suffice
it to say that in the course of that hearing before me the TPC was
urged, by parties other than APM, to take appropriate steps to
pring the proceedings to an end because they had become academic
and futile, since APM could not now acquire FCL shares. The TPC
took no action at the time, or after considering my Judgment of 15
November in which I declined to put any pressure on TPC to
terminate proceedings.
When the appeal against my decision came before another
Full Court on December 13, it was not surprising that the judges
of that Court, coming fresh to this complex matter, started asking
questions as to why the matter was proceeding, since all the
parties other than APM, including the TPC, seemed convinced that
APM could not acquire shares in FCL.
It was against this background that FCL and Amatil made
their offer to submit to judgment and pay costs, so as to bring
the action to an end and thus terminate the undertakings, leaving
them free to deal with SCI. In the event the TPC sought only
discontinuance, no doubt because s.80(1) of the TP Act did not
permit a consent judgment unless the Court could be satisfied that
the facts justifying it had been established - and this was not
possible without an extensive hearing.
On the face of it, the TPC's decision to discontinue, an
order that the ownership of FCL should first be determined in the
market place and action against APM resumed only if, against all
the odds, it succeeded in obtaining FCL shares, would seem
entirely reasonable from the point of view of everyone except APM.
That company has the right to argue against leave being given to
discontinue and has done so forcefully in separate proceedings.
But the present applicant maintains that the decision to
discontinue represents a change of heart by TPC and that there 1s
a strong inference from the sequence of events that the offer to
pay costs played a part in this decision. It says that this view
is supported by the way the matter was explained to me by counsel
for the TPC when leave to discontinue was sought.
Having carefully considered all the evidence, and the
inferences I am asked to draw from that evidence, I find that I am
left quite uncertain as to whether the offer to pay costs played
any part in the decision of the commission. However I am
inclined to the view that it did not.
Certainly the offer was made at a critical time in the
course of the Full Court hearing, when the Court, having indicated
some reactions to the facts put before 1t, adjourned at lunch-time
in the understanding that the parties would be considering their
positions. I have little doubt that the offer was made in the
hope that it would impress the Commission (and perhaps the Court)
with the strength of feeling of FCL and Amatil about the matter,
an@ also with the thought that it might just sway the balance of
the TPC's judgment on the matter. I am not, however, satisfied
that 1t was in fact taken into account by the TPC.
It is clear from the transcript of the Full Court
hearing that FCL and Amatil had filed and served a notice of
motion seeking, in effect, an entry of judgment against themselves
by way of permanent injunction. The possibility of such a
judgment had been canvassed previously before me, but no such
positive step had been taken. Alternatively an unqualified
undertaking to the same effect was offered before the Full Court.
It was also the first time that this had been done. Some time
during the luncheon adjournment, costs must have been added to
these offers. The Commission's decision to agree to the FCL and
Amatil proposal must have been taken some time between the
commencement of the luncheon adjournment and the time, not long
after the Court resumed, when counsel announced the decision.
It would be pure speculation on my part to assume that
the offer for costs in fact played a role in that decision. As l
said in my previous judgment of 15 November, the TPC had been
urged to discontinue or to move for judgment by consent against
FCL and Amatil, but had said that it would not do so, "at least
until after this judgment has been delivered and considered". f
went on to say,
"No doubt the TPC has been influenced in this by
the reasons for judgment of the Full Court
[dismissing an earlier application for discharge of
undertakings] and by a desire to carry out its
responsibilities in as even-handed a way as
possible."
My judgment was entirely neutral as to the TPC's proper
course, but it certainly did not dzuscourage the TPC from taking
the kind of action it finally took. I said "I do not believe that
I should say anything to influence it in the performance of its
statutory functions ...
I believe that the luncheon adjournment in the Full
Court hearing represented a moment in time when the TPC could put
off a decision no longer. Faced with a clear choice between a
speedy resolution and a protracted hearing, with all eyes,
including the Court's, on it, it had to decide. The basic and
difficult decision was whether issues should be resolved first in
the market place or in the Court. This was a complex matter which
had already taken up my time on three occasions and was in the
process of involving a Full Court for the second time. It called
for a sensitive and highly responsible decision by the TPC.
The TPC would clearly have been quite wrong to allow
itself to be influenced in such an important decision by any
generous or unusual offer to pay its costs. Much more important
issues were at stake, involving very much larger sums of money and
the future prosperity of several major companies.
I can only say, as I have, that I am not satisfied that
the TPC took such an obviously improper consideration as its own
costs into account in making this vital decision.
Certainly the offer must have been present to the mind
of TPC when it made its decision. The packaged offer, inciuding
costs, had just been made and it-must have been conscious of it.
There was no reason in law or morality why the offer of costs,
however generous (and this 1s a matter I deal with later), should
not have been accepted. And it could hardly be said that the
making of the offer automatically vitiated any decision favourable
to FCL and Amatil which the TPC might then make. The sole
question is whether or not the TPC allowed the offer to pay costs
to influence the decision which it reached.
I believe that in a case such as this, where the
administrator cannot be required to give reasons (see ADJR Act
Schedule 2 para (f)), the Court should not be astute to impute
reasons that have not been stated. I have no doubt that, if the
TPC had supplied a formal statement of its reasons, there would
have been no reference to the subject of costs. And, on balance,
I believe the genuine explanation for that would have been that
costs played no part in the actual making of the decision.
I nave been asked to infer, from the failure of the TPC
to give evidence about its reasons, that the offer to pay costs
was one of them. As Menzies J. said in Jones v Dunkel (1959) 101
CLR 278 at 312,
",.. when an inference is open from facts proved by
direct evidence and the question 1s whether it
should be drawn, the circumstance that the
defendant disputing it might have proved the
contrary had he chosen to give evidence 1s properly
to be taken into account as a circumstance in
favour of drawing the inference."
I accept, of course, both the authority and what I might
respectfully call the obvious good sense of this statement. But
circumstances alter cases, and the weight to be attached to this
consideration in a case which has been carefully prepared over a
long period of time, or in which the relevant witness 1s in Court
or readily available, may be much greater than in Other cases.
-1ll-
In this matter the application was filed and served on
Thursday 15 December in the course of the hearing of the
application for leave to discontinue to which it relates. An
appearance was entered on Friday 16 December, the last day of
term, and the hearing began and ended on Tuesday 20 December. The
Trade Practices Commission has its head office in Canberra and the
hearing was held in Melbourne. It was only as the hearing
> :
developed on Tuesday 20 December that the fundamental importance
of the question of costs to the applicant's case became clear.
The TPC is absolved from stating its reasons in such cases by the
ADJR Act. Although I have been troubled by the failure of the TPC
to put evidence before me on the matter, when I take into account
all the circumstances of the hearing I fand that the applicant has
still failed to satisfy me that the TPC did in fact take the
payment of its costs into account in reaching its decision.
Of course the TPC was—entitled to have regard to the
very large costs which would have been incurred by itself and
others 1f the hearing had proceeded pointlessly. The difficulty
about the costs offered was that the TPC would not have been able
to obtain them, as events turned out, if they had not been
offered. However the situation is more complex than this bald
statement suggests.
When the offer was made and accepted, an uncontested
judgment against FCL and Amatil was in contemplation. If no
agreement about costs had been reached, TPC would have had a
-12-
respectable argument that costs should follow the event. It was
only the next day, when it became clear that such a judgment was
inappropriate and probably unobtainable, that the decision to
apply for leave to discontinue against all parties was reached.
The TPC assumed that the offer to pay costs stood, but it was only
in the course of the hearing before me on 15 December that counsel
for FCL and Amatil confirmed that this was so.
e
At that point what I might call the generosity of the
offer to pay costs stood out in stark relief for the first time.
The applicant has relied upon the way in which counsel
for the TPC put to me, on 18 December, the circumstances leading
up to the application to discontinue. It is true that counsel
referred to "several very significant events", one of which was
that "three propositions were put [to the Full Court] by senior
counsel representing FCL and Amatil". These three propositions
were a willingness to give undertakings, an offer to consent to
judgment, and the offer to pay costs.
However counsel did not describe any of these matters as
constituting reasons for the TPC decision. What he said on that
subject was
"Now, the position that has been reached is that I
am instructed the Commmission is of the view, or
our submission to your Honour is, that if Amatil
were to remain firm in its resolution, by that I
mean its general resolve not to sell to APM under
any circumstances, then it would obviously be
unnecessary for the Commission to continue
proceedings against APM to restrain it from
acquiring shares which would not be available to
it. So the question then 1s what view does one
take of Amatil's resolve in that respect?
In theory, of course, as has been said on a
number of occasions and must be right, that short
of an order of the court, it must be open to the
directors to change their mind, but having regard
to the events which I have described, and most
especially the events of this week ...... the Trade
Practices Commission accepts that as a matter of
commercial reality - and we submit to your Honour
fhat as a matter of commercial reality - Amatil
will not sell its shares to APM.
I am instructed to inform the Court that in
recognition of what the Commission perceives to be
the commercial reality of the situation the
Commission no longer wishes to continue its
proceedings to restrain APM. If I might be
permitted to paraphrase words that were used by his
Honour Mr Justice Sweeney on Tuesday, the
Commission's position now is that it accepts that
there is no longer a commercial possibility of
Amatil selling to APM and thus there is no
commercial possibility of APM infringing the Act.
It will not be put into a position where 1t can.
The result therefore should be that the
proceedings should be brought to an end. The
Commission no longer seeks an injunction because to
seek an injunction, in_our submission, would be to
seek to restrain APM from doing what has become a
commercial impossibility. Now my learned friend Mr
Shaw [counsel for APM], and perhaps even more
strongly my learned friend Mr Merkel [counsel for
Visy Board Pty. Ltd.], might seek to argue that the
Commission is wrong in its assessment, but the
Commission has reached the point where it 158
desired to put to your Honour that commercial
reality should prevail and, in our submission, the
commercial reality, upon the assessment that has
been made by my clients, is that it would indeed be
pointless to seek to pursue an injunction in
relation to something that is not going to happen."
I believe that, on a fair reading of the material before
me, that passage contains the reasons of TPC for its decision. I
believe they were genuine reasons, responsibly arrived at after a
great deal of careful consideration both of the circumstances of
the case and of what had been said by the Court, variously
constituted. As I have said earlier, I believe that the final
decision was made at a time when pressure on the TPC was mounting
and it could delay a decision no further. This explains its
timing. The applicant has failed to satisfy me that the decision
was based on any improper consideration.
Accordingly the application should be dismissed, with
costs.
I certify that this and the 13
preceding pages are a true and
accurate copy of the Reasons
for Judgment herein of
The Hon. Mr. Justice Woodward
ociate .
Dated: 22 December 1983