Manfal Pty Ltd (in Liquidation) v Trades Practices Commission

Manfal Pty Ltd (in Liquidation) sought a stay of orders made by the Full Court of the Federal Court. These orders had overturned a decision by Mr Justice Lee of the Federal Court, which had previously required the Trade Practices Commission to obtain leave from the Supreme Court of Western Australia before proceeding with an action against Manfal. The Trade Practices Commission's action, brought under section 52A of the Trade Practices Act, alleged unconscionable conduct by Manfal, a building company that was in provisional liquidation and subsequently ordered to be wound up. The application for a stay was heard by Toohey J of the High Court of Australia.

The primary legal issue before Toohey J was whether the High Court had the jurisdiction to grant a stay of the Full Court of the Federal Court's orders, and if so, whether the circumstances warranted the exercise of that jurisdiction. This arose after a previous application for a stay made to a single judge of the Federal Court was dismissed on the grounds that the judge lacked jurisdiction to stay a Full Court decision, with such applications needing to be heard by the Full Court itself. Manfal sought to reinstate the orders of Mr Justice Lee, which had stayed the Trade Practices Commission's action pending the grant of leave from the Supreme Court of Western Australia.

Toohey J was required to consider the effect of the Full Court's order, which set aside Mr Justice Lee's orders and refused Manfal's motion, and the subsequent dismissal of Manfal's application for a stay by Mr Justice French. Manfal argued that the High Court, as a single justice, possessed the necessary jurisdiction to grant the stay, unlike the single judge of the Federal Court. The application for special leave to appeal to the High Court from the Full Court's decision had been filed but not yet listed for hearing, with an estimated hearing date in March or April of the following year.

The application before Toohey J was for a stay of the Full Court's orders pending the determination of Manfal's application for special leave to appeal to the High Court. The effect of granting the stay would be to reinstate the orders of Mr Justice Lee, thereby temporarily preventing the Trade Practices Commission from proceeding with its action against Manfal without first obtaining leave from the Supreme Court of Western Australia.