AIR CALEDONIE INTERNATIONAL AND ORS V. THE COMMONWEALTH
High Court of Australia
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AIR_CALEDONIE INTERNATIONAL AND OTHERS
THE COMMONWEALTH
JUDGMENT GAUDRON J.
AIR _CALEDONIE INTERNATIONAL AND OTHERS
ve.
THE COMMONWEALTH
Until its repeal with effect from 1 July 1988 s.34A of
the Migration Act 1958 (Cth) ("the Act") provided, in
sub-ss(1) to (4), as follows:
"(1) Where a passenger, other than a_ prescribed
passenger, travels to Australia on an overseas
flight, the passenger shall pay the prescribed
fee for immigration clearance of that
passenger by an officer at the airport at
which the passenger _ intends to enter
Australia.
(2) The fee shall be collected by the
international air operator operating the
flight.
(3) The international air operator shall pay to
the Commonwealth the amount of the fee payable
by a passenger, whether or not the operator
has collected that amount from the passenger.
(4) An amount payable to the Commonwealth by an
international air operator under subsection
(3) is a debt due to the Commonwealth and may
be recovered in a court of competent
jurisdiction."
The plaintiffs, international airline operators, have
brought proceedings challenging the validity of s.34A of the
Act and seeking, inter alia, a declaration that no amounts
are payable to the Commonwealth (the defendant) pursuant to
s.34A(3) of the Act. The defendant has demurred to the
plaintiffs' statement of claim and has _ counter-claimed
a
severally against each 'plaintiff for the amount of the
prescribed fees. Alternatively, it has counter-claimed
severally against each plaintiff for the amount of fees
prescribed and collected from passengers as "moneys had and
received by the plaintiff and not paid by it to the
defendant." From argument in these proceedings it is clear
that that is intended to be understood as "moneys had and
received to the use of the defendant".
By amended defence to counter-claim the plaintiffs admit
that they have collected the prescribed fee from some
Passengers, and that they have not paid the fees so
collected to the defendant. They do not admit that they
have collected fees from all passengers other than
prescribed passengers. Otherwise, they deny the allegations
contained in the counter-claim. Additionally they assert
invalidity as an answer to the whole of the counter-claim.
The defendant now seeks interlocutory mandatory
injunctions directing the plaintiffs to pay to it the moneys
collected by them as prescribed fees. The defendant
acknowledges that the plaintiffs are not presently in a
position to identify precisely what moneys have been
collected as prescribed fees by reason that stamps in the
amount of the prescribed fee were pre-sold to travel agents
and to individuals who did not enter or re-enter Australia
prior to the repeal of s.34A of the Act on 1 July 1988. In
some such cases refunds have been sought. The defendant
says that it is prepared to make appropriate allowance for
this, including by way of an undertaking to indemnify the
plaintiffs in respect of any refunds made by them or itself
to make refunds. Additionally, the defendant offers an
undertaking that in the event that s.34A is held to be
invalid it will refund the fees paid by individuals' who seek
such refund, and give such other undertaking or undertakings
as may be considered appropriate by the Court.
The defendant bases its. application on the general
principle that "it is the duty of the court to respect,
indeed, to defer to the enactment of the legislature until
that enactment is adjudged ultra vires": Richardson v.
Forestry Commission (1987) 61 A.L.J.R. 528; 73 A.L.R. 589,
at p.534; p.600 of A.L.R. See also Castlemaine Tooheys Ltd.
v. South Australia (1986) 161 C.L.R. 148; Davids Holdings
Pty. Ltd. v. Byrnes (1987) 71 A.L.R. 251. Doubtless that
principle will, in an appropriate case, ground the grant of
an interlocutory injunction to restrain a breach of
challenged legislation. However, as is clear from
Richardson, the grant of such relief is conditional upon the
applicant establishing that it will suffer irreparable harm,
or upon the applicant establishing a real possibility of
irreparable harm, to the subject matter of the proceedings.
In the present matter the defendant neither asserts that
it will suffer irreparable harm nor that there is a real
possibility of irreparable harm to the subject matter of the
proceedings. Nor is there any assertion that the plaintiffs
intend to so arrange their assets or business activities as
to defeat any judgment that may be obtained by the
defendant. Rather, it was put that the plaintiffs have
obtained a "windfall" in the nature of unjust enrichment, by
having the benefit of the fees collected by them pending
determination of the matters in issue and that justice and
the balance of convenience, when considered against the
general duty of the court to defer to the enactment of the
legislature, favour the Commonwealth having the benefit of
the fees collected. The argument is _ superficially
attractive, notwithstanding that the defendant can point to
no authority supporting such a broad approach to the grant
of interlocutory relief.
The defendant's argument loses much of its
attractiveness when it is appreciated that a discrete issue
raised by the counter-claim and defence to counter-claim is
the indebtedness of the plaintiffs to the defendant in the
sum of the fees collected from passengers even if the
legislation is ultimately adjudged invalid. The effect of
the grant of injunctions as sought would be to secure to the
defendant, in advance of any hearing as to the merits, the
debt. which is directly in issue in the proceedings between
the parties. Such a result could be achieved consistently
with authority and basic principle only if necessary to
prevent an abuse of the Court's process.
The application must be refused. The applicant
(defendant) should pay the respondents' (plaintiffs') costs.
It will be certified that this was a matter proper for the
attendance of senior counsel in chambers.
IN THE HIGH COURT OF AUSTRALIA'
AIR CALEDONIE INFERNATIONAL
THE COMMONWEALTH
REASONS FOR JUDGMENT
E
Judgment delivered at ..
eA 9... AUGUSE.--19-8.G
(GAUDRON_ J.)
RM74/30574