The observations on Liu in SZHKA
43 The operation of s 425 arose in SZHKA in different factual settings from that in Liu. In SZHKA, an earlier decision of the Tribunal had been set aside by the then Federal Magistrates Court and the matter had been remitted to the Tribunal for reconsideration according to law. The appellants (there were two appeals heard together in SZHKA) advanced two alternative arguments. First, they contended that the Tribunal was required to give a second invitation to appear under s 425(1) in every case of a remitter following a successful judicial review challenge. Alternatively, they argued that, in their particular circumstances, s 425(1) was re-engaged such that a second invitation had to be given. That was because, they submitted, the issues arising in relation to the decisions under review had changed since the first reviews were conducted.
44 Both these alternative arguments were accepted by Gray and Gyles JJ. Justice Besanko dissented on the question of whether there was an absolute obligation to issue a second invitation in every case, but he accepted the alternative submission which focused on the appellants' particular circumstances.
45 It is useful to summarise the observations of Gray J at [20]-[23] and Gyles J at [29]-[34] concerning Liu.
46 Justice Gray did not state explicitly that Liu was wrongly decided, however, it is evident that his Honour was troubled by some aspects of the reasoning in Liu. In particular, Gray J considered that:
(a) Although s 428(5) expressly recognised that the Tribunal's decision-making function may be exercised without a Tribunal hearing (i.e. because evidence could be taken by another person), that exception was "a very specific one" (at [21]).
(b) Even more importantly, the exception in s 428(5) was not expressed in terms which absolved the Tribunal entirely from compliance with s 425(1) if evidence was taken by an authorised person. That is because the exception only relates to an invitation to a hearing to give evidence and there is no reference to presenting arguments about the issues arising in a review. Thus, if an applicant's evidence is given to an authorised person and not to the Tribunal directly, the Tribunal could not make a decision without inviting the applicant to a Tribunal hearing to present arguments, as required by s 425(1) (at [21]).
(c) Nor do ss 422 or 422A absolve the Tribunal from complying with s 425(1). These provisions confer a discretion on the Tribunal member as to whether or not to have regard to any record of the proceedings of the review made by the Tribunal as previously constituted and neither of the provisions said anything about excluding "the Tribunal's obligation under s 425(1)" (at [22] - emphasis added). Justice Gray said that to have regard to the record of what a previous Tribunal member has done is a sensible step, and may assist in eliminating repetition of a number of steps, but it is not a substitute for the opportunity given to a review applicant under s 425(1) to give evidence and present arguments about the issues.
(d) Justice Gray included at [23] that:
… it is difficult to imagine a case in which a Tribunal member could be satisfied that the facts remained as they had been when another member made a purported decision, and that the issues were such that no further oral evidence or argument on the part of the applicant could possibly have any effect in relation to them.
47 These matters led his Honour to find that, when a Tribunal member is called upon to exercise the Tribunal's decision-making function, "that member can only do so following an invitation to the relevant applicant to a hearing that complies with s 425(1) before that member, unless the case falls within one of the exceptions in s 425 itself" (at [23]).
48 There are two important points to note about Gray J's reasons for judgment in SZHKA. First, it is significant that the only aspect of the Full Court's reasoning in Liu which was commented upon by Gray J related to the significance which the Full Court attached to s 428(5). That particular matter formed only a part of the Full Court's reasons in Liu for rejecting the appellants' contention in the two appeals as to why there was an unqualified obligation on the Tribunal as reconstituted to issue fresh invitations to the respective appellants to attend another hearing before the Tribunal as reconstituted. Justice Gray was silent on the other reasons given by the Full Court for rejecting that contention. In those circumstances, his Honour's observations in SZHKA fall far short of supporting the appellant's claim here that Liu was "wrong", let alone "plainly wrong". Even if s 428(5) is put entirely to one side, the balance of the Full Court's reasoning in Liu provides a sufficient basis for the Court's decision to dismiss the appeals in those particular circumstances.
49 The second matter, which is independent of the first, relates to a fundamental difference in the circumstances in Liu and SZHKA. In Liu the Tribunal was reconstituted before any decision had been made by the Tribunal in respect of the review applications before it. The obligation of the Tribunal as reconstituted was "to continue to finish the review" (see s 422(2) and s 414). In continuing to finish the reviews in Liu, the Tribunal also had a clear discretion under s 422(2) to have regard to any record of the proceedings made by the Tribunal as previously constituted.
50 Section 422 did not arise in SZHKA. There was no question there of the Tribunal as reconstituted continuing to finish the reviews. Rather, because the first decisions of the Tribunal in that matter had been set aside on judicial review, the obligation of the Tribunal as reconstituted was to conduct the reviews according to law in accordance with s 414. That is the context within which Gray J made his observations in SZHKA concerning Liu. Section 422 simply did not arise and it was unnecessary for the Court in SZHKA to consider how that provision interacted with s 425.
51 That is not to say that, in a case such as SZHKA, the Tribunal as reconstituted had to start the entire review process from scratch following the remitter. Its duty under s 414 (and the remitter) was to conduct a "review of an RRT - reviewable decision" according to law. In so doing, it need not have proceeded on the basis that every step or procedure which had been taken by the previously constituted Tribunal was also invalid. As Emmett, Siopis and Rares JJ stated in SZEPZ v Minister for Immigration and Multicultural Affairs [2006] FCAFC 107; 159 FCR 291 at [39]:
Until the Tribunal has made a valid decision on the review that has been initiated by a valid application under s 414, it has a duty to perform that particular review. An invalid decision by the Tribunal is no decision at all but it does not follow that all steps and procedures taken in arriving at that invalid decision are themselves invalid. The Tribunal still has before it the materials that were obtained when the decision that had been set aside was made.
52 Justice Gyles' observations in SZHKA concerning Liu may be summarised as follows:
(a) Liu was not directly on point because it related to s 422 so there was no need to consider the correctness of that decision, but if the Court's reasoning was inconsistent with Gyles J's construction of the legislation, his Honour said that he would not apply that reasoning to the circumstances in SZHKA (at [29]).
(b) Some of the reasoning in Liu needed reconsideration in the light of SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs [2006] HCA 63; 228 CLR 152 (SZBEL); Minister for Immigration and Multicultural Affairs v Wang [2003] HCA 11; 215 CLR 518 (Wang) and Applicant NAFF of 2002 v Minister for Immigration and Multicultural and Indigenous Affairs [2004] HCA 62; 221 CLR 1 (NAFF) at [27]. His Honour did not elaborate upon his view why the reasoning in Liu needed reconsideration in the light of these High Court decisions.
(c) Section 428 did not assist because it had no operation in the circumstances of SZHKA, nor could the issue of construction in that case be resolved on the basis that Div 4 of Pt 7 (including s 425) referred to the Tribunal in its "corporate" capacity as opposed to the member constituting the Tribunal (at [30]).
53 With respect, it is difficult to see how the reasoning in any of the three High Court authorities referred to by Gyles J is inconsistent with any of the reasoning in Liu. Wang dealt with a different issue, namely the Full Court's error in ordering that a matter be remitted to the same Tribunal member in order to preserve previous findings of fact in the review applicant's favour and notwithstanding that that Tribunal member's decision was quashed for jurisdictional error. In essence, the High Court said that this was wrong because, in conducting the remitter, the Tribunal (however constituted) was not obliged to reach the same findings of fact as previously made because circumstances may have changed or, even if they had not, a different view might be taken of the evidence.
54 SZBEL is important in illuminating the Tribunal's obligation under s 425, but it is difficult to see how the reasoning there is inconsistent with that in Liu. At [27] in SZBEL, the plurality (Gleeson CJ, Kirby, Hayne, Callinan and Heydon JJ) emphasised that s 425 imposed an obligation on the Tribunal to invite an applicant to appear before it to give evidence and present arguments relating to the issues arising in relation to the decision under review (subject to the qualifications set out in s 425(2)).
55 As to NAFF, it is convenient to set out [27] of the judgment of the plurality (McHugh, Gummow, Callinan and Heydon JJ), to which Gyles J made express reference (emphasis added):
One aspect of the overall duty to review was the duty to invite the appellant to give evidence and present arguments: s 425(1). The duty to review therefore entailed a statutory duty to consider the arguments presented and in that way to afford the appellant procedural fairness. That implied that if the Tribunal thought that the arguments had been presented so inadequately that the review could not be completed until further steps had been directed and performed, it could not be peremptorily concluded by the making of a decision before that direction was complied with or withdrawn.
56 That passage is not inconsistent with the reasoning in Liu. On the contrary, it underlines the fact that the duty imposed by s 425(1) is one which may not be discharged by a single hearing of the Tribunal and may require a further hearing or hearings depending upon the particular circumstances, including the example given by the plurality.
57 We are not persuaded that Liu is plainly wrong and should be overruled. Indeed, we consider that, having regard to the particular circumstances in that case, the decision and related reasoning were correct. The obiter observations by Gray and Gyles JJ in SZHKA do not lead us to take a different view of Liu. Ground 1 is rejected.