Ralkon Agricultural Co Pty Ltd v Aboriginal Development Commission and anor [1984] FCA 428
Federal Court of Australia
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428 CATCHWORDS
ADMINISTRATIVE LAW - Natural justice - Aboriginal Development
Commission - Grant of "interest" in land under Aboriginal Land
Fund Act 1974 - Nature of interest - Subsequent grant of lease -
Whether estopped from making grant - Relief against third parties
- Indefeasibility of title.
Aboriginal Land Fund Act 1974 - s.20
Aboriginal Development Commission Act 1980 - 3s.8, 27, 28
Administrative Decisions (Judicial Review) Act 1977
RALKON_ AGRICULTURAL COMPANY PTY. LTD. v. ABORIGINAL DEVELOPMENT
COMMISSION and ANOR
No. G.9 of 1984
Fox, Woodward and Davies JJ.
14 December 1984
Sydney
~~
IN THE FEDERAL COURT OF AUSTRALIA
SOUTH AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISTON
)
)
) No. G.9 of 1984
)
)
ON APPEAL FROM A SINGLE JUDGE
OF THE FEDERAL COURT OF
AUSTRALIA
BETWEEN :
RALKON AGRICULTURAL COMPANY
Pry. LTD.
Appellant
AND:
ABORIGINAL DEVELOPMENT
COMMISSION and POINT McLEAY
COMMUNITY COUNCIL INC.
Respondent
ORDER
JUDGES: Fox, Woodward and Davies JJ.
DATE OF ORDER: 14 December 1984
WHERE MADE: Sydney.
THE COURT ORDERS THAT:
1. The appeal be dismissed.
2. The appellant pay the respondent's costs of the appeal.
rh)
IN THE FEDERAL COURT OF AUSTRALIA
SQUTH AUSTRALIA DISTRICT REGISTRY No. G.9 of 1984
ddan
GENERAL DIVISION
ON APPEAL FROM A SINGLE JUDGE
OF THE FEDERAL COURT OF
AUSTRALIA
BETWEEN :
RALKON AGRICULTURAL COMPANY
Pry. LTD.
Appellant
AND:
ABORIGINAL DEVELOPMENT
COMMISSION and POINT McLEAY
COMMUNITY COUNCIL INC.
Respondents
CORAM: FOX, WOODWARD and DAVIES JJ.
DATE: 14 December 1984
REASONS FOR JUDGMENT
FOX and WOODWARD Jd.
This appeal from a judge of the Court (Fisher J.) brings
into question under the Administrative Decisions (Judicial
Review) Act 1977 ("the Judicial Review Act"), a decision of the
Aboriginal Development Commission ("the A.D.C.") to grant a lease
of land, known as Bartlett's Farm, to the Point McLeay Community
Council ("the Community Council"). The appellant ("Ralkon")
claims a competing interest in the same land under or in
consequence of the grant of an "interest" made in September 1976
and otherwise challenges the validity of the decision. Ralkon
has been in occupation of the land for some years and has carried
on the business of farming (with Government support) both it and
adjoining lands. The land in question is at Point McLeay, in the
south east of South Australia.
The decision to grant the lease to the Community Council
is challenged as having been made by the A.D.C. without power
(because of Ralkon's interest), in breach of the rules of natural
justice, and as having been based on irrelevant considerations
and as having fazrled to take account of relevant considerations.
The facts are set out fully in the judgment of Fisher
J., and we state here only the more salient features.
Ralkon was incorporated in 1975, and has among its first
objects the carrying on of the business of pastoralist, farmer
and grazier. A purpose of its promotion was to farm lands at
Point McLeay heid by the Aboriginal Land Fund Commission ("the
A.L.F.C."), the predecessor in title to the A.D.C.. This appears
ina letter dated 5 December 1975 from the Regional Director of
the Department of Aboriginal Affairs to members of the Aboriginal
Community at Point McLeay. The letter was written in simple
terms and reads in part:
"WHO OWNS THE COMPANY?
The owners of the Ralkon Agricultural Company
Pty. Ltd. are the people of Point McLeay over the age
of 18 years. No-one else can be an owner, but any
person at Point McLeay can refuse if he or she does not
want to be an owner. That is his (or her) decision.
The owners are called SHAREHOLDERS, and their shares
are held for them in trust by the Council.
WHAT IS THE COMPANY'S JOB?
The Ralkon Agricultural Company Pty. Ltd. isa
company formed to do a certain job.
That job is to make sure that the farm is run
properly as a business, and that 1t makes a profit as
soon as possible."
Later, the letter contains these observations:
"The Government has put ina lot of money, but
the people of Point McLeay also are expected to help
with their company. The Government has bought
Bartlett's farm, and has paid a lot of money to start
the Company, but now it is up to the people to give
something in return.
Very soon, you will be asked to pay something,
perhaps $5.00 each, to show the Government that you are
also prepared to help. When you pay this money, you
will be a SHAREHOLDER. (You only pay once, not every
year)."
The Community Council took ninety-eight or one hundred
ordinary shares of one dollar each (the evidence varies, but the
difference is immaterial), and there were two subscriber shares.
The share holding gave it control of the company.
At its meeting of 16-17 September 1976 the A.L.F.C.
purported to approve the grant of an "interest" in land to Ralkon
in respect of Bartlett's Farm. Ralkon had already begun farming
the land. The trial judge could find no evidence that Ralkon was
formally notified of the grant of interest.
In granting the "interest" the A.L.F.C. purported to act
under s.20 of the Aboriginal Land Fund Act 1974 ("the A.L.F.
Act"). It will be necessary later to decide the effect of the
action of the A.L.F.C. at this September 1976 meeting.
In discussions between the A.L.F.C. and Ralkon after the
grant, Ralkon made clear that it wished the freehold in
Bartlett's Farm to be transferred from the A.L.F.C. to it. The
directors of Ralkon passed a resolution to that effect on 7
September 1979. The A.L.F.C., on the other hand, made clear its
plans to transfer title to the Farm to the Point McLeay Community
Council upon the Council becoming incorporated under s.78 of the
Aboriginal Councils and Associations Act 1976. The learned trial
judge found that, in his words, "the A.L.F.C. made, in my
opinion, its attitude very plain. It contemplated that a
superior title to Bartlett's Farm would be vested in the
Community Council, with Ralkon 'continuing to manage and operate'
the property". This seems to us correctly to summarize the
position.
The Articles of Ralkon were amended on 14 November 1979.
The amendment created a class of shares designated "Residents'
Preference Shares" and these were allotted, as determined by the
directors, to Aboriginal residents of the Point McLeay Reserve.
It appears that some thirty to forty of these shares were
allotted. As, by these amendments, each shareholder had one vote
regardless of the number of shares held, control of Ralkon passed
to the holders of the preference shares.
On 3 January 1980 a joint meeting of Ralkon's Board and
the Councillors of the Community Council passed a resolution that
"Bartlett's Farm be vested in the Point McLeay Community in the
name of the Ralkon Agricultural Company by purchase if
necessary".
In March 1980 the A.L.F.C. decided to rescind its
purported grant of an "interest" in land to Ralkon and to
substitute a grant of "interest" to the Point McLeay Aboriginal
Community Council. The A.L.F.C. advised Ralkon and the Community
Council of this by letter of 13 May 1980.
On 1 July 1980 the A.L.F.C. ceased to exist and was
replaced by the A.D.C., pursuant to the Aboriginal Development
Commission Act 1980 ("the A.D.C. Act"). That Act repealed the
A.L.F. Act. Section 51 of the A.D.C. Act provides for the
transfer to the A.D.C. of all rights, property and assets, and
all debts, liabilities and obligations held by the A.L.F.C.
On 23 March 1981 the A.D.C. made to the Community
Council a formal offer of a lease of Bartlett's Farm. This was
rejected on 30 March 1981, and on 27 April 1981 the Council
sought the title for Ralkon. However, on 9 July 1981 the Council
accepted the lease; a lease was entered into, and was registered
in the Lands Titles Office on 25 September 1981. In granting the
lease the A.D.C. acted under Part IV of the A.D.C. Act.
Ralkon challenges the A.D.C.'s decision to grant a lease
to the Community Council, being a decision in, as it were, two
parts: the decision expressed in the letter of 23 March 1981, and
the decision in July 1981 to proceed, arising from the acceptance
by the Community Council.
Ralkon's Interest:
Ralkon's primary submission is that the grant to the
Community Council could not be made, because it was inconsistent
"with Ralkon's interest. We mention later some considerations
concerning the place in the operation of the Judicial Review Act
of submissions of this nature, but it is desirable that we
examine the substance of the argument.
The first question is the nature of Ralkon's interest
pursuant to the A.L.F.C.'s decision of 16 or 17 September 1976.
Section 20(1) of the A.L.F. Act provided as follows:
"The Commission may, on such terms and conditions, if
any, as it thinks fit -
(a) grant to an Aboriginal corporation an interest in
land for the purpose of enabling the members of
that corporation to occupy that land; and
(b) grant to an Aboriginal land trust an interest in
land for the purpose of enabling Aboriginals to
occupy that land."
Any grant to Ralkon could not have been made pursuant to
8.20(1)(b); therefore only s.20(1)(a) is appropriate.
We are of the view that Ralkon was ineligible to receive
a grant under that paragraph, as it was not an "Aboriginal
corporation" within the meaning of the Act.
Section 3 defined "Aboriginal corporation" as "a body
corporate of which all the members for the time being are persons
as to whom the Minister is satisfied that they are members of a
community of Aboriginals".
Ralkon is a body corporate, but at the material time,
September 1976, it had three members: two subscriber shareholders
and the Community Council. For Ralkon to be eligible for a grant
it would be necessary to find that the Community Council isa
"person" within the meaning of the section and that, in our
opinion, is not the case. The reference is clearly to natural
persons. The Community Council is not itself a member of the
community, it is an entirely separate body.
Ralkon being ineligible for a grant, the purported
action of September 1976 was of no effect. At the time of the
grant to the Community Council, Ralkon's interest was as a
licensee only.
Because of the view just expressed, it is not necessary
to decide the correct characterization of the interest
purportedly given by the A.L.F.C. to Ralkon, but we shall deal
briefly with it. The minutes of the meeting of the A.L.F.C. in
September 1976 indicate that the A.L.F.C. regarded the statutory
term "an interest in land" as creating a class of interest wholly
separate from those known to the law. This was not correct.
Section 3 defined "interest", in this context, as "a
legal or equitable estate or interest (including a licence) in
the land". On its correct interpretation s.20(1)(a) gave to the
A.L.P.C. the power to grant to any eligible party an interest in
land which was known in law or equity. It did not create a new
species of interest.
Accordingly, apart from the fact that Ralkon was
ineligible for a grant, the resolution of September 1976 could
not go beyond stating that the A.L.F.C. would grant to Ralkon an
uncertain and undetermined interest. No such interest was
registered, or registrable, nor was any caveat entered to protect
it.
Undoubtedly Ralkon secured a Licence to occupy the land,
but it did not in terms of grant acquire any greater interest.
In our view Ralkon fails on its primary submission. We
doubt whether this licence to Ralkon has been revoked by the
A.D.C.: the lessee took with notice of the occupation and appears
not to have planned itself to evict Ralkon, as distinct from any
action the specific terms of the lease might require (see later).
The interposition of a lessee between the holder of a fee-simple
and a licensee does not simpliciter revoke the licence. We note
that eviction proceedings have been commenced by the Community
Council but counsel informed the Court that these had been stayed
pending the outcome of this case.
Estoppel:
In relation to this and other arguments concerning the
proprietary rights of the parties, we should note a submission
made by counsel for the A.D.C. It is that this Court, on an
application such as the present, cannot or should not be
concerned with private rights alleged to affect the title to, or
possession of, the land. R. v. Ross- Jones; Ex parte Beaumont
(1979) 141 C.L.R. 504, and Ascot Investments Pty. Ltd. v. Harper
(1981) 148 C.L.R. 337 were referred to, but there is danger in
seeking to apply what was said in those cases to the present
case. As we have stated it, the proposition does not permit of a
simple, unqualified answer. There must certainly be an area, in
most cases, where the proprietary rights of the parties affecting
land, should be left to be determined by the courts of the place
where the land is situated. The Judicial Review Act is concerned
with the validity of administrative decisions, and an inquiry
into such rights may not, in a particular case, be properly
incidental to that. In the present case the various matters
concerning proprietary rights have been argued on both sides, and
we shall deal with them without attempting any further answer to
the general question posed.
-~ 10 -
The appellants contend that whatever interest they had
in the land, that was in the circumstances enough to give rise to
what is commonly called a "proprietary" estoppel. The A.D.C., it
submits, was estopped from dealing with the land inconsistently
with that interest,
It seems to us that there is no adequate basis for any
estoppel, and there are a number of factors that tell against an
estoppel which would preclude the grant of the lease which was
actually made. As we have already indicated, there was no
misinterpretation and no representation or promise to which
effect could be given. When the A.D.C. succeeded the A.L.F.C. it
held the land as owner, and the appellant was a licensee. The
latter was allowed, one would say encouraged, to use the land for
agricultural purposes, but this did not create an estoppel, nor
an irrevocable licence. There was not a promise or a
representation, express or implied, that if Ralkon carried on
agricultural pursuits a lease would be granted to it, let alone a
lease for ninety-nine years as claimed by Ralkon. It spent money
on improvements, but this money came largely, if not entirely,
from public funds and the expenditure was incidental to the use
it was making of the land. The disposition of the land, and of a
leasehold interest in it, remained in the discretion of the
Commission, to be exercised in accordance with the requirements
of the A.D.C. Act.
The A.D.C. is empowered to grant interests in land
pursuant to ss.27 and 28 of the A.D.C. Act. These sections
provide as follows:
- ]1 -
"27. (1) The Commission may acquire by agreement any
interests in land or personal property and may, on such
terms and conditions as it determines, grant any
interests so acquired, or any interests derived from
interests so acquired, to Aboriginal land trusts for
the object of enabling Aboriginals to occupy land or to
Aboriginal corporations for the object of enabling
members of those corporations to occupy land.
(2) No payment shall be due to the Commission in
respect of a grant made under sub-section (1).
28. For the purposes of section 24, the Commission
may acquire by agreement any real or personal property,
and may grant, sell, lease or otherwise make available
property so acquired to an Aboriginal or Aboriginals,
or to an Aboriginal body, on such terms and conditions
(if any) as are determined by the Commission."
An "Aboriginal corporation" (8.27) is a corporation in
respect of which a declaration under s.43 of the A.D.C. Act has
been made, but no such declaration has been made in relation to
Ralkon.
An "Aboriginal body" (8.28) means a body corporate that
is controlled, whether directly or indirectly, by Aboriginals and
the principal objects of which are conducive to the advancement
of Aboriginals (s.4(1)).
We note that the powers given to the Commission are to
be exercised for furthering "the economic and social development
of Aboriginals" (s.8). It may be doubted whether, in any event,
there could be an estoppel against the exercise of the discretion
given to it, for that purpose.
-12-
Natural Justice:
The appellant submits that if the grant to the Community
Council could in law be made, the decision was reached in such
circumstances as to make it null and void. This was so because,
it was submitted, the A.D.C. did not accord to Ralkon natural
justice when making the decision.
Ralikon was not eligible to receive a grant of an
interest in land from the A.D.C. As counsel for the appellant
conceded, it could only be eligible if it was an "Aboriginal
body" within the meaning of s.28. As mentioned above, there are
three tests of an "Aboriginal body" under s.4(1), all of which
must be satisfied: the incorporation test, the control test, and
the principal objects test.
Raikon cannot succeed on the third of these tests.
Ralkon's principal object was the carrying on of the business of
pastoralist, farmer and grazier. That is not of itself
"conducive to the advancement of Aboriginals". It may well be
that there are methods of carrying out those objects which are
conducive to the advancement of Aboriginals, but that is not
a
sufficient.
In Raikon Agricultural Co. Pty. Ltd. v. Aboriginal
Development Commission (1982) 43 A.L.R. 535, the present
appellant was an applicant before Keely J. His Honour said, at
543, that a corporate body does not fall within the words of the
definition of "Aboriginal body" in s.4(1) umless its formal
- 13 -
objects can be said to tend ina positive way towards the
advancement of Aboriginais; it is not sufficient if the objects
are simply not inconsistent with the advancement of Aboriginals.
His Honour held, in our view correctly, that Ralkon was not an
Aboriginal body as defined in s.4(1). This being so, it was not
eligible for the receipt of a grant.
Counsel for Ralkon submitted that, on the grounds of
natural justice, it should have been given the opportunity to
make itself eligible to receive a grant, or at least should have
been heard on the question whether it could make itself eligible.
There was not, in our view, any obligation on the A.D.C. to hear
what it might have been able to say to that end.
The submission is put on the basis that arising from
what had happened in the past, Ralkon had a "legitimate
expectation" that it would be granted a lease, and it therefore
had a right to be heard before the land was dealt with in a way
inconsistent with that expectation (F.A.I. Insurances Utd. v.
Winneke (1982) 41 A.L.R. 1). The short answer to this submission
is that no such legitimate expectation existed at or about the
tame of the decision to grant the lease to the Community Council.
There might have been a hope, but it would have been a hope
maintained despite contrary intentions, and its current
ineligibility. The situation was not at ail analogous to that
existing in F.A.I. Insurances (supra), which was a case in which
an insurer under existing statutory authority was told that its
authority would not be renewed. The present case is one in which
a statutory body had a power to exercise as owner of land and, in
- 14 -
doing so, provided that it remained within the scope and purpose
and particular provisions of the statute (see ss.8, 24, 27 and
28), it was free to decide that it would grant a lease, and to
whom. In fact, the argument proceeded on the footing that Ralkon
should be heard before a lease was granted to another. This is
put on the basis that Ralkon did not know in advance that a lease
would, or might, go to the Community Council. The proposition is
simply one of being heard to oppose a grant to another, and in
our view there was no right of such a kind.
It has been submitted that even if Ralkon was not
entitled to be heard on the question of the grant of the lease,
it was entitled to be heard in relation to the insertion in it of
clause (3), or at least the first sub-clause of it, which
provided that the A.D.C. would not permit the assignment of the
lease to Ralkon, unless certain conditions, inciuding the
preparation of proper accounts, were met. We do not think this
is so. Once it was open to grant a lease to another, the terms
of the lease were a matter for agreement between lessor and
lessee. Ralkon did not have a right to remain in occupation and
the lessee was free to have it ejected. What sub-clause (i) does
is recognise. that it could stay if certain conditions were
fulfilled. Moreover, these conditions recognise situations
concerning the control of the company and the farming operations
conducted by it which had for years been the subject of
correspondence and discussion between the A.D.C. (and before that
the A.L.F.C.) on the one hand, and Ralkon on the other. There
had in other words been a fully adequate hearing. As an early
indication of the dispute, we set out a minute of a meeting of
the A.L.F.C. in 1977:
"The Regional Office stated that they were most
concerned that the property was being permanently
damaged by the manager, but they were unable to gain
access to the farm to verify these doubts. They
advised that, inan effort to force the manager's
compliance and because of the persistent breach of
departmental funding rules, no funds had been released
to the Ralkon Agricultural Company since May 1976.
Despite this, the manager continued to be intransigent
and apparently supported himself and the farm by
selling assets and stock and generally running down the
property.
The Regional Office also advised that the Company
had been repeatedly in breach of the South Australian
Companies Act and had been fined several times for
this. The Department had attempted to use these
; breaches to have the Company deregistered. In
addition, the major shareholder in the Company, the
Point McLeay Community Council (98%), had attempted
1 several times to exert its position to force a
' dismissal of the manager. Unfortunately, because of
peculiarities in the Company's Articles and Memorandum
of Association, and because of statutory delays in
prosecuting procedures under the Companies Act, these
attempts had so far been unsuccessful."
The sub-clause sets out, in one way, an intention previously
communicated by the A.D.C., and by the federal Minister for
Aboriginal Affairs. At the centre of the debate there was, and
is, the desire of Ralkon to operate in relation to the land as an
independent commercial enterprise. It desires to have a fee
simple.
- 16-
Relevant and Irrelevant Considerations
In the final ground of challenge it is submitted that
irrelevant considerations were taken into account by the A.D.C.
and that it failed to take relevant considerations into account.
The discretion given to the A.D.C. is a wide one. We have
already referred to part of the opening language of s.8 of the
A.D.C. Act, which section deals with its functions. Reference
can also be had to s.27 ("grants of interests in property") and
3.28 ("grants, etc. of property for purposes of business
enterprises") in respect of the width of the discretion conferred
by those sections.
A number of matters were raised, but they are in our
view without substance. In general, the allegations amounted to
saying that some matters adverse to Ralkon and the interest it
was claiming were taken into account, and some matters favourable
to it were not. The particular focus of the allegation was
Ralkon. The evidence makes it abundantly clear that the A.D.C.
was fully informed about Ralkon and its activities and made a
deliberate decision adverse to it and favourable to the Community
Council. There is no evidence to show that in so doing it failed
to exercise its discretion properly.
-17-
Relief:
The principal relief sought by the applicant in these
proceedings is an order quashing the decision of the A.D.C. to
grant the lease to the Community Council, and an order that the
farm be transferred to the applicant.
Three submissions were made by counsel for the A.D.C.,
on the assumption that earlier arguments failed. It was put that
the court had no power to make orders against third parties, and
in this connection Ascot Investments Pty. Ltd. v. Harper (1981)
148 C.L.R. 337 was relied upon. It was then submitted, for
slightly different reasons, that if third parties were involved,
appropriate orders could only be made by State (or Territory)
Courts. The third submission was that the Community Council had
an indefeasible title, even if the decision to grant the lease
(and the lease) were void.
It should be recorded that the Community Council became
a party as a consequence of the interlocutory order of a judge
made on the application of the applicant. There was no appeal
against that order, but at the conclusion of his argument counsel
for the Community Council said that his client had been wrongly
joined. The question of whether it should have been joined is of
course largely circular. In our view it was properly joined, if
for no other reason than that, vis-a-vis each other, 1t and the
applicant would be bound by the decision of the Court. We are
also of the view that in appropriate circumstances orders can be
made against what were called "third parties". One basis, which
on
- 18 -
we think is available in most judicial proceedings, is to secure,
or make good, relief given or which may be given against a
principal party. An additional consideration is that the issue
under the Judicial Review Act going to legality cannot he
re-litigated in a State or Territory Court.
We have already commented on the extent of the Court's
power to deal with private law rights arising between the
parties, and the present submissions do not require closer
consideration of that matter. There is no doubt that the Court's
power to set aside a decision includes power to make
consequential orders respecting acts done in pursuance of .that
decision. In the present case the act of the A.D.C. has been
followed by the acts of others, and particularly the registration
of the lease. Under South Australian law, as it has been
construed, (Palais Parking Station Pty. Ltd. v. Shea (1980) 24
S.A.S.R. 425) registration results in indefeasibility, even for a
dealing which is void for want of power in a statutory body, in
that case the resuming authority. The occasion does not arise to
express a concluded opinion on the matter but it may be that this
Court's power would not extend to making an order for the
assignment or surrender of the lease.
Our view 1s that the appeal should be dismissed, with
costs.
I certify that this and the I7 !
preceding pages are a true copy, of the
Cc
Reasons for Judgment herein of mes Honours
Mr. Justice Fex aud Mr Sushice
2 eae Va hrcia Kiev
' Associate
| Dated: 4/12] $4 ; }
—
IN THE FEDERAL COURT OF AUSTRALIA )
)
SOUTH AUSTRALIAN DISTRICT REGISTRY) No. SAG.9 of 1984
)
GENERAL DIVISION )
ON APPEAL FROM A SINGLE JUDGE OF THE
FEDERAL COURT OF AUSTRALIA
BETWEEN : RALKON AGRICULTURAL COMPANY
PTY LIMITED
Appellant
AND : ABORIGINAL DEVELOPMENT.
COMMISSTON and POINT McLEAY
COMMUNITY COUNCIL INC
Respondents
REASONS FOR JUDGMENT
CORAM : Fox, Woodward and Davies Jd
14 December 1984
DAVIES J : I have had the opportunity of reading the reasons for
judgment prepared by Mr Justice Fox and Mr Justice Woodward. In
general I agree with them, but I would add a few words of my own.
In my opinion, at the relevant dates in 1981, Ralkon
Agricultural Company Pty Limited ("Ralkon") was not an
"Aboriginal body" as defined in s.4({1) of the Aboriginal
Development Commission Act 1980 (Cth) ("the Act") or an
"Aboriginal corporation" as defined therein. The latter position
is clear, for Ralkon was not declared by the Commission under
s.43 of the Act to be an aboriginal corporation. As to the
former, I am of the view that the principal objects of Ralkon
were not "conducive to the advancement of Aboriginals". At the
time of the decisions which are under review, the memorandum and
articles of association were not directed to the advancement of
aboriginals. Ralkon was established and maintained as a company
to carry on the business of primary production. There was no
provision in the memorandum or articles of association, other
than the provision introduced in 1979 for "residents' preference
shares", which required the shareholders to be aboriginals or
which required the company to be carried on in a manner conducive
to the advancement of aboriginals. In my opinion, Ralkon
satisfied only paragraph (a) of the definition, that is to say,
it was controlled by aboriginals. [It did not satisfy paragraph
(b) of the definition, for its principal objects were not
conducive to the advancement of aboriginals. Its principal
objects were conducive to the advancement of its shareholders,
whoever they might be.
In my opinion, this conclusion is fatal to the contention
put forward by the appellant. The functions of the Aboriginal
Development Commission ("the Commission") are set out in s.8 of
the Act as, inter alia,
"8. The functions of the Commission are, subject to
and in accordance with this Act, to further the
economic and social development of Aboriginals
and, in particular, but without limiting the
generality of the foregoing -
(a) to assist communities and groups of
Aboriginals to acquire land;
(b) to assist Aboriginals to engage in business
enterprises;
. Section 23(1) of the Act provides that moneys of the General Fund
of the Commission may be applied in certain ways for the purpose
of enabling aboriginals to occupy land. Section 24(1) of the Act
provides that moneys of the General Fund of the Commission may be
applied in certain ways for the purpose of enabling aboriginals
to engage in business enterprises. Section 27(1) provides :
"27.(1) The Commission may acquire by agreement any
interests in land or personal property and may, on
such terms and conditions as it determines, grant
any interests so acquired, or any interests
derived from interests so acquired, to Aboriginal
land trusts for the object of enabling Aboriginals
to occupy land or to Aboriginal corporations for
the object of enabling members of those
corporations to occupy land."
Section 28 provides
"28. For the purposes of section 24, the Commission
may acquire by agreement any real or personal
property, and may grant, sell, lease or otherwise
make available property so acquired to an
Aboriginal or Aboriginals, or toan Aboriginal
body, on such terms and conditions (if any) as are
determined by the Commission."
The decision under review was a decision by the Commission
to grant to the Point McLeay Community Council Incorporated a
lease of certain farming property at Point McLeay which was
occupied on licence by Ralkon. Also under review was the grant
of that lease, it being said that that grant was itself a
decision.
The Point McLeay Community Council Incorporated was and is
without question an aboriginal body as defined by the Act. Its
members are aboriginals and its objects require it to be carried
on in the interests of aboriginals. It is a body set up for the
advancement of the aboriginal community at Point McLeay.
For several years, the Commission, or its predecessor, the
Aboriginal Land Fund Commission, endeavoured to persuade Ralkon,
which was in occupation of the subject land, to ensure that it
was representative of and would be carried on solely in the
interests of the members of the Point McLeay community of
aboriginals. Ralkon resisted the requests, contending that it
was in the interests of aboriginals that ordinary corporations
controlled by aboriginais should conduct business and should be
able to seek loans in the ordinary manner, that is to say, by
mortgaging property owned by the company.
There were years of negotiation, which included
discussions, letters, representations and an inquiry by the
Commonwealth Ombudsman into the whole affair. In 1981, the
Commission decided to act. At the time when it did so, the
Commission could not, in my opinion, consistently with the Act
have granted either a lease or freehold title to Ralkon. Ralkon
was not an aboriginal body as defined. In my opinion, the
Commission took the most appropriate step that was open to it
having regard to the terms of its Act, namely, to grant a lease
of the property to the Point McLeay Community Council
Incorporated.
It was submitted that the Commission acquired its interest
in the land subject to any interest held by Ralkon, and that it
was only that residual interest of which the Commission could
dispose, In my opinion, however, the Commission was the
proprietor of the land and was entitled to exercise its powers as
such under the Real Property Act, 1886-1980 (SA). Any interest
which Ralkon had was an undefined interest which had not been
declared by any court. Provided the Commission exercised its
statutory powers properly, as in my view it did, the extent of
that interest was not a matter to be determined in the
application under the Administrative Decisions (Judicial Review)
Act 1977 (Cth). Nor was the Court asked to exercise, in relation
to that interest, its associated jurisdiction under s.32 of the
Federal Court of Australia Act 1976 (Cth).
It was next submitted that there was a breach of the rules
of natural justice, that Ralkon had not been givena fair
opportunity to be heard. I have perused carefully all the
material before the Court. It seems to me that the matter in
dispute had been thrashed out at great length between Ralkon and
the Commission, between Ralkon and the Point McLeay Community
Council Incorporated, between the Point McLeay Community Council
Incorporated and the Commission and between the aboriginals and
State and Federal officials and Ministers and that everyone was
perfectly well aware of what were the issues involved. In my
opinion, Ralkon was given a fair opportunity to present its case.
Finally, it was said that there was a specific matter with
respect to which Ralkon ought to have been given an opportunity
to be heard, namely, on the terms of the lease, as between the
Point McLeay Community Council Incorporated and Ralkon. But the
terms of that lease did not derogate from any legal entitlement
which Ralkon had to use the iand. The lease was a lease between
the Commission and the Point McLeay Community Council
Incorporated. It does not seem to me that Ralkon had any call to
be heard with respect to the specific terms of that lease.
For these reasons, I would dismiss the appeal with costs.
vcermty that this andthe = #. ze Cs)
preceding pages are a true copy of the
reasons for judgment herein of The Hofiour-
able Mr. Justice JI, 7 Paves
Cheer @—
* Assoclate
Dated ~
(4/121