6 In Kriticos the Court of Appeal applied Davies J in Kingsway Investments (Kent) Ltd v Kent County Council [1969] 2 QB 332 ("Kingsway") where his Honour said:
But if … the invalid condition relates not to the development itself but to matters preparatory or introductory to the permission in its final form then the condition can be severed.
7 After the hearing in this matter I also asked the parties to make further written submissions, if they chose, in relation to the decision of Talbot J in Wechsler v Auburn Council (1997) 130 LGERA 134 ("Wechsler"). In that case Talbot J applied s 32 of the Interpretation Act 1987 to maintain the validity of the remainder of a development consent after deletion of a particular condition. His Honour distinguished the approach taken by Stein J in Randwick Municipal Council v Pacific-Seven Pty Limited (1989) 69 LGRA 13 ("Pacific-Seven"), who applied Kingsway to find that as a condition was fundamental to the decision to grant consent it could not be severed, because it did not appear that Stein J in Pacific-Seven had been referred to s 32 of the Interpretation Act 1987. Section 32 of the Interpretation Act 1987 provides that:
(1) An instrument shall be construed as operating to the full extent of, but so as not to exceed, the power conferred by the Act under which it is made.
(2) If any provision of an instrument, or the application of any such provision to any person, subject-matter or circumstance, would, but for this section, be construed as being in excess of the power conferred by the Act under which it is made:
(a) it shall be a valid provision to the extent to which it is not in excess of that power, and
(b) the remainder of the instrument, and the application of the provision to other persons, subject-matters or circumstances, shall not be affected.
(3) This section applies to an instrument in addition to, and without limiting the effect of, any provision of the instrument or of the Act under which it is made.
8 Talbot J in Wechsler relied on Sloane v McDonald Industries (Sales) Pty Ltd (1989) 17 NSWLR 86 and Coleman v Gray (1994) 55 FCR 412 where Cole and Gummow JJ respectively held that the reasoning followed by Dixon J in Bank of New South Wales v Commonwealth (1948) 76 CLR 1 ("Bank of NSW") applied to provisions such as s 32 of the Interpretation Act 1987. In Bank of NSW Dixon J held at [84] and [85] that severability provisions cannot operate to conserve otherwise invalid instruments if it:
… sufficiently appear[s] that the invalid provision forms part of an inseparable context …once it appears that the rejection of the invalid part would mean that the otherwise unobjectionable provision would operate differently upon the persons, matters or things falling under it or in some other way would produce a different result.
9 Talbot J held in Wechsler at p 137 that the comments made by Dixon J in Bank of NSW applied to s 32 of the Interpretation Act 1987 so that:
The test so understood is that if severance results in the balance operating in a manner which is different to that in which the whole would have operated, then severance cannot be affected. Such a test is to be distinguished from the test derived from authorities analysed by Stein J in Pacific-Seven, namely, whether the condition under challenge relates to matters fundamental to the development or goes to the root of the planning permission itself. Although the answer to some factual situations could be the same, the application of the different tests will not always bring about the same result.
10 The Council argued that the correct test was that propounded in Greek Australian Finance Corporation. However, the Council noted that in the circumstances of this case the result will be the same regardless of whether the test applied is that propounded in Greek Australian Finance Corporation and Kingsway as applied in Kriticos or that propounded by Talbot J in Wechsler, as condition 36 is not severable on either of these tests.
11 The Applicant argued that for the purpose of these proceedings it did not matter which is the correct test as, in any event, condition 36 is severable on both of these tests.
12 Wechsler has been considered subsequently in this Court in MLC Properties v Camden Council (1997) 96 LGERA ("MLC Properties") and Hutchison 3G Australia Pty Limited v Waverley Council (2002) 123 LGERA 75 ("Hutchison 3G"). In MLC Properties Lloyd J held that although there was "some force" in a submission made that Wechsler was wrongly decided as s 32 of the Interpretation Act 1987 did not apply to a development consent, he was:
not prepared to depart from the findings of Talbot J in Wechsler, namely, that a notice of determination issued in the prescribed form under s92(1) of the Environmental Planning and Assessment Act is an instrument as defined in s3 of the Interpretation Act.