Bevelon Investments Pty Ltd v Melbourne City Council

Bevelon Investments Pty Ltd (the appellant) appealed to the High Court of Australia from a decision of the Supreme Court of Victoria concerning the validity of a planning permit issued by the Melbourne City Council (the respondent). The dispute centred on whether the Council had acted *ultra vires* in issuing the permit for the construction of a multi-storey office building on a site that was zoned for residential purposes.

The High Court was required to determine whether the Council had the power to grant a permit for a use that was not permitted by the relevant planning scheme, and if so, under what conditions. Specifically, the Court had to consider the interpretation of the planning scheme provisions and the extent of the Council's discretion in granting permits for non-conforming uses. The central legal question was whether the Council had properly exercised its statutory powers and duties in approving the development.

The Court held that the planning scheme did not grant the Council an unfettered discretion to permit any use on land, even if it was contrary to the zoning. The scheme's provisions were intended to guide development in accordance with the zoning, and any departure required a clear justification and adherence to specific criteria. The judges reasoned that the Council had failed to demonstrate that the proposed office building was a permissible non-conforming use or that it had adequately considered the impact on the surrounding residential area. The Court found that the Council had acted *ultra vires* by issuing the permit without proper regard for the scheme's intent and purpose.

The appeal was allowed, and the planning permit was declared invalid.