The Commonwealth v Kreglinger & Fernau Ltd and Bardsley

The Commonwealth of Australia brought proceedings against Kreglinger & Fernau Ltd and Bardsley, alleging breaches of the *Commercial Tramways Act 1893* (NSW) and the *Commercial Tramways Act 1900* (NSW). The dispute concerned the validity of certain regulations made by the Commissioner of Tramways under these Acts, which the defendants argued were ultra vires and therefore invalid. The case was heard by the High Court of Australia.

The central legal issue before the High Court was whether the regulations promulgated by the Commissioner of Tramways exceeded the powers conferred upon him by the relevant legislation. Specifically, the court had to determine if the Commissioner had the authority to make regulations that imposed obligations and restrictions on tramway operators beyond those expressly contemplated by the *Commercial Tramways Act*.

The High Court, in its judgment, considered the scope of the statutory powers granted to the Commissioner. The majority of the Court held that the regulations in question were indeed ultra vires. Their reasoning focused on a strict interpretation of the enabling legislation, finding that the Commissioner's powers were limited to matters directly related to the operation and management of tramways as defined by the Acts. The Court emphasised that delegated legislation must be consistent with and not go beyond the powers granted by the parent Act.

Consequently, the High Court found in favour of the defendants, ruling that the regulations were invalid. The Court's decision affirmed the principle that statutory powers must be exercised within their defined limits, and any attempt to exceed these limits through subordinate legislation would render such legislation void.