Polaris Holding Co v Airservices Australia

The Federal Court of Australia, sitting in the Australian Capital Territory District Registry, addressed cases brought by Monarch Airlines Limited, Polaris Holding Company, and Canadian Airlines International Ltd against Airservices Australia. These cases concern the validity of charges levied on certain aircraft and the statutory liens imposed on these aircraft by Airservices Australia. The applicants sought declarations that the charges were void and unenforceable and that the liens were invalid. They also sought repayment of the amounts paid under protest, along with interest. The court examined the legal framework under which the charges and liens were imposed, concluding that the determination by the Civil Aviation Authority was ultra vires, and thus the charges and liens were invalid. The court then turned to the issue of interest payable on the amounts to be repaid. The applicants argued for compound interest, while the respondent argued for simple interest. The court found that the deeds between the parties, which specified the interest rate, did not provide for compound interest. Instead, the court held that the phrase "with interest at the rate of 7.5% per annum on such amount" created an entitlement to simple interest. The court also addressed the issue of reserved costs, concluding that the applicants were entitled to costs for proceedings in the High Court up to the date of remission but not for certain motions heard by another judge. The court ordered Airservices Australia to repay the specified amounts plus simple interest and to pay the applicants' costs, excluding certain reserved costs.