Davidson v Commissioner for Fair Trading

Davidson, the respondent, sought judicial review of a decision by the Commissioner for Fair Trading to cancel their business licence. The Commissioner had acted pursuant to section 140A of the Fair Trading Act, on the basis that the respondent was not a fit and proper person to hold a business licence due to a criminal conviction. The High Court of Australia heard the matter on appeal from the New South Wales Court of Appeal. The central issue for the court was whether the Commissioner's decision to cancel the respondent's business licence was legally valid and whether the statutory provisions under which it was made were consistent with the Constitution. Specifically, the court had to determine if the decision-making process complied with the principles of natural justice and whether the statutory scheme adequately safeguarded the respondent's rights.

The court examined the statutory framework and found that the process for cancelling a business licence did not afford the respondent an opportunity to be heard before the decision was made. This procedural shortcoming was inconsistent with the common law principles of natural justice. Additionally, the court concluded that the statutory provisions did not sufficiently protect the respondent's right to procedural fairness. As a result, the court found that the decision to cancel the respondent's business licence was invalid due to the procedural flaws. The appeal was allowed, and the decision under review was set aside.