United Grocers, Tea and Dairy Produce Employees' Union of Victoria v Linaker

The United Grocers, Tea and Dairy Produce Employees' Union of Victoria, a registered organisation under the Commonwealth Conciliation and Arbitration Act 1904-1915, sought to recover dues from Robert Linaker, alleging he was a member. The Union's rules stipulated that a candidate for admission must fill in a nomination form and pay an entrance fee to become a member. The Magistrate dismissed the Union's complaint, finding that Linaker had not paid the entrance fee and was therefore not a member. The Union appealed, arguing that the evidence conclusively showed Linaker was a member and that he was estopped from denying membership.

The central legal issues before the Court were whether Linaker had become a member of the Union according to its rules, and whether he was estopped from denying his membership due to a subsequent agreement to pay off arrears. The Court was required to determine the mandatory nature of the Union's rules for membership and the effect of an agreement to pay dues on the question of membership, particularly in light of the requirements of the Commonwealth Conciliation and Arbitration Act.

The Court held that the provisions of Schedule B to the Act, which govern the rules of registered organisations, are peremptory. Consequently, a person can only become a member of an organisation in the manner prescribed by its rules. The rules of the Union required payment of an entrance fee as a condition of membership. As the Magistrate found that Linaker had not paid this fee, he had not become a member according to the rules. The Court further held that an estoppel could not prevail against the law, meaning that Linaker was not estopped from denying membership by his subsequent agreement to pay arrears, as this agreement did not cure the defect in his initial membership formation. The appeal was dismissed.