Secretary, Department of Health & Ageing v Nguyen
[2002] FCAFC 416
At a glance
AI case summaryResult
appellant. Appeal dismissed with costs
Key principles
- Section 98(1) of the National Health Act 1953 (Cth) imposes a mandatory duty on the Secretary to cancel an approved pharmacist's approval whenever a request is made, without...
- There is no conflict between s 98(1) and s 133(2) requiring hierarchical construction under Project Blue Sky principles; the provisions operate independently with different...
- Cancellation under s 98(1) does not render s 133(2) superfluous or insignificant; s 133(2) remains available where no cancellation request is made, and the protective/deterrent...
- The word 'whenever' in s 98(1) indicates that the duty to cancel arises immediately upon the Secretary appreciating that an unconditional request has been made, not 'within a...
Issues before the court
- Whether s 98(1) of the National Health Act 1953 (Cth) permits the Secretary to defer cancellation of an approval pending Ministerial consideration...
- Whether there is a conflict between s 98(1) and s 133(2) requiring hierarchical construction
Plain English Summary
The Federal Court held that when a pharmacist requests cancellation of their approval under s 98 of the National Health Act, the Secretary must cancel it immediately and cannot wait to see if the Minister wants to revoke it instead. The Court rejected arguments that the Secretary could defer cancellation while the Minister considered revocation under s 133, finding no conflict between these provisions. The protective purpose of s 133 is still served because cancellation removes the pharmacist from the scheme, preventing abuse. The Court also refused to read words like 'within a reasonable time' into s 98, as Parliament had not inadvertently overlooked this situation and the court could not be certain what words Parliament would have used.
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Judgment (7 paragraphs)
BACKGROUND 1 Since 26 November 1997 the respondent, in conjunction with her sister, has held approval No 20689X under s 90 of the National Health Act 1953 ("the Act") for the supply of pharmaceutical benefits from premises at 270 Hampshire Road, Sunshine ("the premises"). On 13 June 2001 the sister was convicted of defrauding the Commonwealth in relation to claims for payments made under the approval. By notice dated 7 November 2001 the then Minister for Health and Aged Care revoked the approval in respect of the premises, effective from 4 December 2001. The revocation was made pursuant to s 133(2) of the Act. In the meantime, on 21 November 2001 the respondent had applied, under s 90 of the Act, for approval as the sole proprietor of the pharmacy conducted at the premises. She and the sister applied for the existing approval to be cancelled under s 98. The explanation given for these applications was that the partnership between them had been dissolved, and the respondent was to conduct the business alone. On 28 November the Health Insurance Commission ("HIC") advised the respondent and the sister that the request for cancellation could not be approved because of the revocation. In December the Court stayed the operation of the revocation. In June 2002 the Minister restored the approval that had originally been granted in respect of the premises, and shortly thereafter the HIC invited submissions as to why that approval should not be revoked under s 133(2). The respondent made submissions. The sister did not. On 30 August the Minister notified a decision, purportedly under s 133(2)(b), to revoke the approval with effect from 4 September 2002. Because the HIC took the view that the revocation of the original approval precluded the grant of a new approval to the respondent as sole proprietor, on 5 September it refused to grant an approval to the respondent. On the same day the Pharmacy Board of Victoria suspended for three months the respondent's registration as a pharmacist after she pleaded guilty to failing properly to supervise the pharmacy. 2 On 10 October 2002 the Court set aside the Minister's decision of 30 August on the ground that she had exercised her discretion to revoke on an erroneous basis, namely that she was constrained to either revoke the approval in its entirety or not at all. The Minister had not turned her mind to the possibility that the approval could be revoked in its application to the sister but not in its application to the respondent. On the same day the respondent entered into an agreement to sell the pharmacy to Arthur Chan. The sale was subject to Chan obtaining approval pursuant to s 90 to operate the pharmacy, and the current approval being cancelled pursuant to s 98. On the same day Chan applied for approval under s 90 and the respondent applied for cancellation of the current approval. The respondent's application included a request that "this cancellation take effect immediately prior to the granting of approval to the above owners". The "above owners" is a reference to Chan. On 11 October the sister lodged with the HIC a document in which she said that the respondent's application for cancellation was made with her authority, and that she herself wanted it cancelled. 3 On 4 November the respondent's solicitors wrote to the HIC complaining that the Secretary had failed to process the respondent's s 98 request. The HIC replied by letter of 6 November noting that · the respondent's request for cancellation was conditional on Chan obtaining approval under s 90 · the HIC was considering whether to grant that approval · the HIC was considering whether to recommend to the Minister that the power in s 133 of the Act be exercised in the light of the sister's conviction and the Pharmacy Board's finding that the respondent had been guilty of conduct discreditable to a pharmacist · the purpose of s 133 could be frustrated if an approved pharmacist at risk of action under that section could avoid that action by requiring a cancellation under s 98. 4 On 12 November the respondent applied to the Court under the Administrative Decisions (Judicial Review) Act 1977 (Cth) and s 39B(1A) of the Judiciary Act 1903 (Cth) to review the Secretary's failure to cancel her approval under s 98 and to make a decision under s 90 to approve Chan as a pharmacist for the purpose of supplying pharmaceutical benefits from the premises. By motion on notice the respondent sought, under Order 20 of the Federal Court Rules, an order in the nature of mandamus requiring the Secretary to cancel her approval. 5 On 15 November the HIC sent the respondent a "show cause" letter informing her that the HIC was presently minded to recommend that the Minister exercise the power in s 133(2)(b) to revoke the approval of both the respondent and the sister. On 22 November the primary judge ordered that the Secretary forthwith cancel the approval of the respondent and the sister. His Honour stayed the operation of the order until 26 November or further order. On 26 November the appellants filed a notice of appeal. On the same day Weinberg J ordered that until the hearing and determination of the appeal the Minister be restrained from suspending or revoking the respondent's approval, and stayed the orders made by the primary judge. In the circumstances, the Chief Justice made arrangements for the appeal to be heard with expedition.