Applicable legal principles
43 In conducting a review under s 414 of the Act the Tribunal must 'arrive at the correct or preferable decision in the case before it according to the material before it': Minister for Immigration and Citizenship v Li [2013] HCA 18; (2013) 249 CLR 332 at [93]; Bushell v Repatriation Commission [1992] HCA 47; (1992) 175 CLR 408 at 424-425; Sellamuthu v Minister for Immigration & Multicultural Affairs [1999] FCA 247; (1999) 90 FCR 287 at [59]; Benjamin v Repatriation Commission [2001] FCA 1879 at [47]; Paramananthan v Minister for Immigration and Multicultural Affairs (1998) 94 FCR 28 at 63. Also, that decision is to be based on the information before the Tribunal at the time that the decision is made, not on the information before the Minister or delegate at the time the decision under review was made: Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) CLR 286 at [32], [50], [129].
44 The function of the Tribunal is inquisitorial: NAFF of 2002 v Minister for Immigration and Multicultural and Indigenous Affairs [2004] HCA 62; (2004) 221 CLR 1 at [22]. While the Tribunal has no obligation to make general inquiries, 'a failure to make an obvious inquiry about a critical fact, the existence of which is easily ascertained could, in some circumstances, supply a sufficient link to the outcome to constitute a failure to review': Minister for Immigration and Citizenship v SZGUR [2011] HCA 1; (2011) 241 CLR 594 at [20], [23]; Minister for Immigration and Citizenship v SZIAI [2009] HCA 39; (2009) 111 ALD 15 at [25]
45 Subject to certain exceptions that are not presently relevant, s 425 provides that the Tribunal must invite the applicant to appear before the Tribunal to give evidence and present arguments relating to the issues arising in relation to the decision under review. Section 425A provides that the applicant must be given a notice and s 426(1) and s 426(2) provide that the s 425A notice must notify the applicant that the applicant may give the Tribunal written notice that the applicant wants the Tribunal to obtain evidence (orally or otherwise) from a person named in the applicant's notice. Section 426(3) provides that the Tribunal must have regard to an applicant's wishes where such a notice is given, but is not required to obtain evidence (orally or otherwise) form a person named in an applicant's notice. Section 427(1)(a) provides that 'for the purposes of the review of a decision, the Tribunal may … take evidence on oath or affirmation'. Section 429A provides for such evidence to be given via telephone.
46 Section 426 does not confer power on the Tribunal to take evidence. The relevant power is in s 427(1)(a). Section 426 is a facultative provision through which an applicant makes it known to the Tribunal that the applicant wishes the Tribunal to exercise power under s 427(1)(a). In that event, s 426(3) imposes a mandatory requirement on the Tribunal to 'have regard to' the applicant's wishes, but is not required to obtain the evidence. That is, s 426(3) confirms that a notice given under s 426(2) does not fetter the Tribunal's discretion to exercise the power in s 427(1)(a) 'for the purposes of the review of a decision': AYX17 v Minister for Immigration and Border Protection [2018] FCAFC 103; (2018) 262 FCR 317 at [44]-[49].
47 In Minister for Immigration and Multicultural and Indigenous Affairs v Maltsin [2005] FCAFC 118 at [38], Kenny and Lander JJ (Spender J agreeing) said of the analogous provision in Pt 5 of the Act (s 361(3)):
It does not follow from this, however, that the appeal in this case should be upheld. By virtue of s 361(3), the Tribunal is obliged to have regard to any notice given by an applicant under sub-ss 361(2) or (2A) of the Act. This means that the Tribunal must genuinely apply its mind to the contents of the notice and, in particular, to the question whether it should take the oral evidence of the nominated individuals in accordance with the applicant's wishes. The Tribunal must not merely go through the motions of considering the applicant's wishes as expressed in the notice. As the respondents' counsel said, the authorities establish that the invitation to appear before the Tribunal must be "real and meaningful and not just an empty gesture": NALQ at [30]; SCAR at [37]; and Mazhar at 188 [31]. It follows that the consideration that the Tribunal gives to the wishes of the applicant concerning the evidence to be taken at the hearing must also be genuine. The Tribunal must not decline to comply with the applicant's wishes capriciously, but must take account of such relevant matters as the relevance and potential importance to the outcome of the review of the evidence that could be given by a nominated witness (compare W360/01A v Minister for Immigration and Multicultural Affairs [2002] FCAFC 211 ("W360/01A") at [2] per Lee and Finkelstein JJ and [30]-[32] per Carr J)), the sufficiency of any written evidence that has already been given by a witness, and the length of time that would afford the applicant a fair opportunity to put his or her case before the Tribunal. These considerations flow from the nature of the Tribunal's overarching objective, which is to provide a review that is "fair, just, economical, informal and quick": see s 353(1). The Tribunal must bear in mind this statutory objective when considering the weight to be given these matters.
These principles apply equally to s 426(3): AYX17 at [34], [48].
48 Absent contrary intention, of which here there is none, a statutory discretion, like that in s 427(1)(a), is to be exercised reasonably. Further, a statutory discretion is confined by the subject matter, scope and purpose of the legislation under which it is conferred: Li at [23]-[26] (French CJ), [58]-[76] (Hayne, Kiefel and Bell JJ), [88]-[100], [109]-[110] (Gageler J); CZBH v Minister for Immigration and Border Protection [2014] FCA 1023 at [41]-[44]; AYX17 at [75]. Moreover, as Gageler J said in Li (at [99]) of the analogous provision to s 422B(1) (s 357A(1)):
The legislative declaration that Div 5 of Pt 5 "is taken to be an exhaustive statement of the requirements of the natural justice hearing rule in relation to the matters it deals with" (s 357A(1)) gives added significance to the implied requirement for the MRT to act reasonably in the performance of its procedural duties and in the exercise or non-exercise of its procedural powers. The significance is that the implied statutory requirement for the performance of those duties and the exercise of those powers always to be reasonable results in the division providing a measure of procedural fairness sufficient to meet the statutory description of it as a statement of the requirements of the natural justice hearing rule.
49 The legal standard of 'unreasonableness' is not limited to what is in effect irrational, that is, so unreasonable that no reasonable person could have arrived at it, but an inference of unreasonableness may be objectively drawn even where a particular error in reasoning cannot be identified: Li at [68]. Further, while an irrational decision may be unreasonable, it does not follow that a rational decision is necessarily reasonable. Not every rational decision is reasonable: Li at [30]. As to an objective inference of unreasonableness, the plurality (Hayne, Kiefel and Bell JJ) in Li said (at [68], [74]-[76], [82] (footnotes omitted):
68 Lord Greene MR's oft-quoted formulation of unreasonableness in Wednesbury has been criticised for "circularity and vagueness", as have subsequent attempts to clarify it. However, as has been noted, Wednesbury is not the starting point for the standard of reasonableness, nor should it be considered the end point. The legal standard of unreasonableness should not be considered as limited to what is in effect an irrational, if not bizarre, decision - which is to say one that is so unreasonable that no reasonable person could have arrived at it - nor should Lord Greene MR be taken to have limited unreasonableness in this way in his judgment in Wednesbury. This aspect of his Lordship's judgment may more sensibly be taken to recognise that an inference of unreasonableness may in some cases be objectively drawn even where a particular error in reasoning cannot be identified. This is recognised by the principles governing the review of a judicial discretion, which, it may be observed, were settled in Australia by House v The King, before Wednesbury was decided. And the same principles evidently informed what was said by Dixon J about review of an administrative decision in Avon Downs Pty Ltd v Federal Commissioner of Taxation, which was decided less than two years after Wednesbury, at a time when it was the practice of the High Court to follow decisions of the Court of Appeal in England which appeared to have settled the law in a particular area.
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74 In the present case, regard might be had to the scope and purpose of the power to adjourn in s 363(1)(b), as connected to the purpose of s 360(1). With that in mind, consideration could be given to whether the Tribunal gave excessive weight - more than was reasonably necessary - to the fact that Ms Li had had an opportunity to present her case. So understood, an obviously disproportionate response is one path by which a conclusion of unreasonableness may be reached. However, the submissions in this case do not draw upon such an analysis.
75 In Peko-Wallsend, Mason J, having observed that there was considerable diversity in the application by the courts of the test of manifest unreasonableness, suggested that "guidance may be found in the close analogy between judicial review of administrative action and appellate review of a judicial discretion". House v The King holds that it is not enough that an appellate court would have taken a different course. What must be evident is that some error has been made in exercising the discretion, such as where a judge acts on a wrong principle or takes irrelevant matters into consideration. The analogy with the approach taken in an administrative law context is apparent.
76 As to the inferences that may be drawn by an appellate court, it was said in House v The King that an appellate court may infer that in some way there has been a failure properly to exercise the discretion "if upon the facts [the result] is unreasonable or plainly unjust". The same reasoning might apply to the review of the exercise of a statutory discretion, where unreasonableness is an inference drawn from the facts and from the matters falling for consideration in the exercise of the statutory power. Even where some reasons have been provided, as is the case here, it may nevertheless not be possible for a court to comprehend how the decision was arrived at. Unreasonableness is a conclusion which may be applied to a decision which lacks an evident and intelligible justification.
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82 It cannot be suggested that the Tribunal is under an obligation to afford every opportunity to an applicant for review to present his or her best possible case and to improve upon the evidence. Of course it may decide, in an appropriate case, that "enough is enough", but it is not apparent how that conclusion was reached in the present case, having regard to the facts and to the statutory purpose to which the discretion to adjourn is directed.
See, also, French CJ at [23]-[31] and Gageler J at [88]-[92], [105]-[113].
50 In the context of an assertion that a Tribunal had acted legally unreasonably in deciding not to take oral evidence from a witness, in CZBH Rangiah J made the following observations of relevance to the circumstance of this case with which I agree:
53 What is apparent is that the Tribunal provided no reasons, whether orally at the hearing or later in writing, for its decision to decline to obtain the fathers' oral evidence. While the Tribunal was not obliged to provide such reasons, the fact that it did not leaves the exercise of the power unexplained: cf Kaur v Minister for Immigration and Border Protection [2014] FCA 915 at [110] per Mortimer J. It is necessary to examine whether any evident and intelligible justification for its decision can be discerned.
54 In SAAP v Minister for Immigration and Multicultural and Indigenous Affairs (2005) 228 CLR 294 at [192], Hayne J observed that the review process undertaken by the Tribunal "is a predominantly documentary process". However, as his Honour noted at [194], s 426 contemplates that the Tribunal may obtain oral evidence (or another form of evidence) from witnesses. The Tribunal has also been given appropriate powers to facilitate the taking of oral evidence from witnesses, including the power to administer an oath or affirmation, the discretion to take oral evidence in person, by telephone or other means, and the power to delegate someone to take oral evidence overseas.
55 The Tribunal's core function pursuant to s 414(1) is to review decisions of the first respondent or his delegates that fall within s 411(1). Its process is inquisitorial. Its task is to make the correct or preferable decision on the materials before it: Li at [10] per French CJ. Section 426 and the ancillary provisions dealing with the taking of oral evidence recognise that in some cases the opportunity given to an applicant to present the evidence of witnesses in written form may not be enough. The purpose of those provisions must include assisting the Tribunal to arrive at the correct or preferable decision through the advantages that may be conferred by obtaining the oral evidence of witnesses.
56 One of the circumstances evidently contemplated by s 426 is where an applicant has been unable for some reason to obtain a written statement from a witness. Importantly, s 426 must also contemplate that obtaining oral evidence may assist the Tribunal to decide upon the credibility of a witness who has provided a written statement. In Butera v Director of Public Prosecutions (Vic) (1987) 164 CLR 180, Mason CJ and Brennan and Deane JJ held at 189:
A witness who gives evidence orally demonstrates, for good or ill, more about his or her credibility than a witness whose evidence is given in documentary form.
Although that statement was made in the context of considering a criminal trial conducted by a court, it is also true of oral evidence given before a Tribunal which is engaged in an inquisitorial process. In Chen v Minister for Immigration and Ethnic Affairs (1994) 48 FCR 591 at 599 and 602, the Full Court indicated that an oral hearing before the Minister's delegate may be required where issues of credibility arise. The Tribunal may find oral evidence given under oath or affirmation more persuasive than evidence given by written statement. If oral evidence is obtained by the Tribunal, it will also have the opportunity to test the credibility of the evidence given in any written statement by questioning a witness in the same way that it has the opportunity to test the evidence of an applicant.
57 The appellants had submitted corroborative statements from their fathers. The appellants then asked the Tribunal to obtain their fathers' oral evidence in the obvious expectation that it would be consistent with the statements. The appellants' legal advisor had evidently anticipated that the appellants' credibility would be crucial to the outcome of the case. That was later borne out by the Tribunal's reasons. The reason why the appellants wished for the Tribunal to obtain the oral evidence, which would be given under oath or affirmation, was to allow the Tribunal to test the evidence of the corroborating witnesses by asking them questions. If the fathers had been believed then it is at least likely that important parts of appellants' evidence would also be believed.
58 A myriad of factors may influence a Tribunal's decision to obtain oral evidence or its decision not to do so. These factors include the relevance and importance of the proposed evidence, whether written evidence is sufficient for the Tribunal's purposes, whether taking the evidence would cause undue delay, the ease or difficulty of contacting the proposed witness and the availability of a suitable interpreter. In an appropriate case, the Tribunal might decide that the evidence of an applicant is so compromised that hearing the oral evidence of a corroborating witness could not affect the outcome: cf Re Minister for Immigration and Multicultural Affairs; Ex parte Applicant S20/2002 (2003) 77 ALJR 1165 at [49] per McHugh and Gummow JJ.
59 In the present case, there was no obvious practical difficulty for the Tribunal in obtaining oral evidence from the appellants' fathers. The appellants' solicitor had provided telephone numbers at which the fathers could be contacted and they were both immediately contactable. An interpreter was available. The oral evidence of the fathers was relevant and potentially important because acceptance of their evidence would have bolstered the appellants' credibility: cf W360/01A v Minister for Immigration and Multicultural Affairs [2002] FCAFC 211 at [2] per Lee and Finkelstein JJ, at [31] per Carr J. The Tribunal did not make any finding that obtaining the oral evidence of the fathers could not have affected its view of the credibility of the appellants (instead reasoning that if the appellants' evidence was contrived, so too must have been the written statements from the fathers).
60 The factors outlined above suggest that there were cogent reasons for the Tribunal to obtain the oral evidence of the fathers. As the Tribunal did not explain why it refused to take the oral evidence, it has not identified any countervailing factors. The first respondent did not identify any, but hinted that the Tribunal may have been suspicious that the persons at the other end of the telephone may not have been the appellants' fathers and that there was no way of verifying who they were. That seems to me to be mere speculation and does not find support in anything said by the Tribunal or in any material before the Tribunal.
61 In these circumstances, no evident and intelligible justification for the Tribunal's decision not to obtain the oral evidence of the fathers is discernible [sic].
51 Even where, as here, some reasons are given, and accepting that statutory discretions confer an 'area of decisional freedom' a decision may be legally unreasonable if it shown 'to be arbitrary or capricious or to abandon common sense': Li at [28], or if it 'lacks an evident and intelligible justification': Li at [76]. Such expressions are not to be regarded as rigid formulae, but rather, as assisting in the evaluative task of determining whether a decision may be properly characterised as sitting outside the boundaries of legal reasonableness: Minister for Immigration and Border Protection v Stretton [2016] FCAFC 11; (2016) 237 FCR 1 at [2]-[13] (Allsop CJ).