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I couldn't let this one go without posting the judgement of popplewell which lead up to the appeal I have already posted.
R v Middlesborough Borough Council Ex parte IJH Cameron (Holdings) Limited
Queen's Bench Division (Crown Office List)
HEARING-DATES: 13 November 1991
13 November 1991
COUNSEL:
M Gill for the Applicant; S Hockman QC for the Respondent
PANEL: Popplewell J
JUDGMENTBY-1: POPPLEWELL J
JUDGMENT-1:
POPPLEWELL J: This is an application by the applicant to quash a resolution of the Direct Services Committee of the Middlesborough Borough Council of 19th April 1989 in refusing to grant the applicant's application for hackney carriage licences, and purporting to defer the said applications for future consideration.
The Middlesborough Borough Council are the licensing authority for its area in respect of applications for the licensing of hackney carriages pursuant to the provisions of the Town Police Clauses Act 1847, and in particular section 37 thereto, as amended by section 16 of the Transport Act 1985.
The facts are not in dispute and they can be shortly stated. On 6th January 1989 the applicant submitted written applications for 25 hackney carriage licences. On 20th January 1989 the licensing sub-committee ordered that the matter should be referred to the Transportation Sub-committee for consideration. The Transportation Sub-committee is a sub-committee of the Direct Services Committee.
In March 1989 the applicant's solicitors wrote complaining, in effect, that the Council were defering the applicant's application indefinitely and asking for a decision. There was correspondence. On 19th April 1989 the Direct Services Committee deferred issue of additional licences pending a survey. It was anticipated that that survey would take some four to six weeks. The survey was in fact received on 15th June. On 29th June, as a result of that survey, the Parking and Transportation Sub-committee refused to grant the applicant's applications, and that decision was notified to the applicant on 13th July. He received it on 15th July 1989.
It is against the decision of deferral on 19th April 1989 that this application is brought. It is an application to quash that resolution and there is a further application for mandamus which, as will appear, is not now regarded as an appropriate ground for relief. There is also sought a declaration if I take the view that the resolution passed on 19th April 1989 was contrary to the provisions of section 16 of the Transport Act 1985.
The granting of hackney carriage licences is primarily governed by two Acts of Parliament. Section 37 of the Town Police Clauses Act 1847, as amended by section 16 of the Transport Act 1985, reads:
"The Commissioners may from time to time license to ply for hire within the prescribed distance, or if no distance is prescribed, within five miles of a General Post Office of the city, town or place to which the special Act is refers (which in that case shall be deemed the prescribed distance) such number of hackney coaches or carriages of any kind or description adapted to the carriage of persons as they think fit."
It is not in dispute that by the Act of 1985 the discretion which the licensing authority had previously had was affected. Section 16 of the Transport Act 1985 reads:
"The provisions of the Town Police Clauses Act 1847 with respect to hackney carriages, as incorporated in any enactment (whenever passed), shall have effect -- . . . (b) as if they provided that the grant of a licence may be refused, for the purpose of limiting the number of hackney carriages in respect of which licences are granted, if, but only if, the person authorised to grant licences is satisfied that there is no significant demand for the services of hackney carriages (within the area to which the licence would apply) which is unmet."
To put it into simple language, if the local authority are going to refuse a licence, they have to be satisfied when they refuse it that there is no significant demand for the services of hackney carriages which is unmet.
What this authority did, when they received the applications, was to consider what the position of demand for the services of hackney carriages was. They have to be satisfied about that before they can refuse a licence. To that end they had this survey carried out. In order to allow time for the survey to be carried out, they deferred a decision on the applicant's applications.
It is inevitable that on an application for a licence time may of itself pass. For instance under section 57 of the Local Government (Miscellaneous Provisions) Act 1976, a district council may require an applicant for a licence under the Act of 1847 or under this part of this Act to submit to them such information as they may reasonably consider necessary to enable them to determine whether the licence should be granted and whether conditions should be attached to any such licence. For instance a council may want to make some inquiry as to the state of the vehicles that the applicant is going to use, as to the character of the applicant, and so on. There appears to be no time limit within which an application has to be considered.
Mr Gill in the course of his argument has observed that deferring an application is not the same as an ongoing consideration, because if you defer, you are stopping the process and then, when you have come to a conclusion, you are re-opening the process. If you are considering it, you are not stopping it, you are continuing to consider.
The issue which arises in this case can be put very simply. Under section 16 of the Act is a deferral for the purpose of satisfying yourself whether there is a demand or not a refusal? It is obvious that if the deferral is of a sufficiently long length, as a matter of fact it may be construed as a refusal. But the question which really arises is, is any deferral for the purpose of satisfying the council about the demand a refusal? I do not think it is suggested in this case, although a period of time did elapse, that the deferral, because of the passage of time, was tantamount to a refusal. What is urged is, if an application is made and is not granted but is deferred, that is a refusal. It is either to be granted or to be refused.
Support for that argument is sought from the nature of the language which is used and from a decision of Nolan J in a case to which my attention was drawn, called R v Reading Borough Council Ex parte Egan (unreported -- 11th June 1987) of which I have been provided a transcript.
In that case Nolan J (as he then was) was concerned with two motions brought before the court by Mr Egan who represented the Reading and District Owners and Drivers Association and a Mr Sullman, who was the proprietor of a firm of private hire operators. There were applications for licences. The decision which was under challenge was this, that the Chief Executive and Town Clerk be authorised to issue up to 30 new hackney carriage licences and that other applications be deferred until the effect of granting these additional licences have been assessed. I think it is sufficiently clear from the judgment that Mr Egan was complaining about the issue of 30 new hackney carriage licences and their method of selection, and that Mr Sullman must have been one of those whose application was deferred until the effect of granting additional licences had been assessed.
In that judgment Nolan J expressed some views about the power of the Council to grant unlimited number of licences. His view was not accepted by Webster J in a decision in a case called Ghafoor v Wakefield Metropolitan District Council (unreported -- 18th July 1990). The difference between those two views is not germane to the issue I have to decide.
At page 4 of the transcript Nolan J said this:
"The critical questions before me were (1) whether the Council were entitled on the information before them to set a limit of 30 upon the number of new licences to be issued, and to defer the consideration of applications in excess of that number until the effects of the initial issue had been assessed . . .".
In that case it was anticipated that the applications would be deferred for a period of six to nine months in order to ascertain the effect of the granting of the additional licences. Nolan J said this:
"The question before me, however, is a different one, namely, whether a council which is unsure of the presence or absence or unmet demand, but which fears that immediate and total derestriction may cause over-provision, is entitled to issue a limited number of further licences as a temporary measure, and as a means of obtaining the evidence by which the presence or absence of unmet demand can finally be established.
"I wish I could answer this question in the affirmative. The dangers of over-provision were clearly accepted by the law prior to 1985, as is shown by the judgment of Lord Goddard in the Teletax case . . . If there is an unnecessarily large number of taxis, there may be great and unnecessary difficulties in supervising and controlling them. The fact that a policy of total derestriction has worked without problems in other areas does not mean that it will work without problems in Reading. But in my judgment the language of section 16 is too clear to allow these considerations to prevail. By its own admission the respondent council was not satisfied on 28th January, 1986, and for that matter is not satisfied now, as to the absence of unmet demand. It is surprising, but clear, that the 1985 Act made no provision for any interim period during which licensing authorities might have an opportunity to establish, by market research or otherwise, the presence or absence of unmet demand. It follows that from the time section 16 came into force on 6th January 1986 the respondent council and any other council which is unable to feel satisfied that there is no significant unmet demand has been obliged to grant applications for licences in respect of suitably qualified vehicles without limit of number."
In the instant case the applicant is applying as a new applicant. The applications for licences are governed by the Town Police Clauses Act 1847. By section 43 they are to be in force for one year only.
It is quite clear that under section 16 of the Transport Act 1985 the Council will have from time to time to ascertain whether there is a demand for the services of hackney carriages, because if they do not carry out some proper inquiry at some intervals, they may find, if they refuse, they are taken to judicial review on the ground that they cannot be satisfied because they have not carried out proper inquiries. Because applicants may apply at any time during the year, there may never be a period of time when it can be said for certain that they may not be carrying out inquiries at a time when an application is made.
What is said by Mr Gill in answer to that is that if they are presently satisfied as to the position, that is to say that they will issue 20 for the next year, once that 20 has been granted, then they will grant no more until they carry out a further survey. What they must do is refuse and then carry out a further survey before they deal with other applications. But in fact to defer is simply another way of refusing.
He drew my attention to a decision in another sphere, but analogous, of R v Tower Hamlets London Borough Council Ex part Kayne-Levenson [1975] KB 431, where the court were dealing with the issue of licences for pitches in Petticoat Lane street market. It is not necessary to set out any of the facts. It is only necessary to refer to one passage in the judgment of Lord Denning at page 441H:
". . . the borough council have taken this course: they have a number of applicants for one pitch; they grant the licence to one, and put the others on the 'waiting list'. They write to each of the unsuccessful applicants and tell him that his name will be placed on the 'waiting list'. This 'waiting list' is a list of applicants for a pitch in that street. Names are added in order of date. Then when any pitch in that street becomes vacant, it is offered to the names in that list. If the first one does not want it, it is offered to the next, and so forth. If any applicant refuses it twice, he goes down to the bottom of the list. The waiting list for some streets is so long that a person may have to wait for years before he will be offered a pitch in it."
"It appears that, in practice, when the borough council put a name on a waiting list, they do not treat it as a refusal, and accordingly they do not given him formal notification, or tell him that he can appeal.
"I see no objection to the council keeping a waiting list or operating it as they do. It is a convenient piece of administration. But I think they should alter their form of notification. To put an application on the waiting list is tantamount to a refusal. They should treat it as such and tell him so."
Mr Gill relies on that and by analogy says "If you defer consideration of the application you are in fact refusing to grant the application at that time".
Mr Hockman seeks to distinguish the decision in Egan on three bases: first, that Nolan J must have decided that the six to nine months period of deferment was so long that it was tantamount to a refusal; secondly, what he was considering was in effect the numbers that should be issued and was not really considering the question which is before me; alternatively that I should come to a different conclusion.
I am quite satisfied that Nolan J did not decide the case on the basis that the six to nine months deferment was equivalent to a refusal. I think the matter which is before me was directly in point in his decision. I would hesitate long before disagreeing with Nolan J because of course any decision of his commands enormous respect from this court.
The argument in favour of interpreting the word "refuse" as not covering a deferment can be put in a number of ways. First, if somebody makes in general terms an application to a court, the court may grant the application. It may refuse the application. It may adjourn it. In ordinary language adjourning the application could not be described as a refusal of the application. It is something which is totally neutral. It is keeping the position open. It is not putting somebody on a waiting list, because putting somebody on a waiting list for a vacancy presupposes that there is no vacancy and therefore the application is refused, but the applicant has first refusal next time. So that putting someone on a waiting list is not analogous.
Secondly, it is argued that section 16 deals with refusal, that is to say it does not require the council to make a grant "unless . . .": it simply deals with the position if there is a refusal and sets out the basis on which a refusal may be made. It does not require the council to grant.
Mr Gill replies to that by saying in effect that an obligation to grant is simply the mirror image of an inability to refuse: that if you are unable to refuse because you have not carried out the inquiry, you are obliged to grant.
The other argument which was canvassed during the course of these proceedings was this. As I have indicated, a deferment plainly could constitute a refusal given sufficient length of time. The position of somebody whose application is renewed, whether the deferment of that application constitutes a refusal, is relied on by Mr Gill as showing that "deferment" and "refuse" are identical words. It is quite clear that separate provisions govern the approach to somebody who has a licence who wants it renewed. But if consideration of that is deferred over the period when the licence is due to expire, and is for instance deferred for a period of three months, the effect is to refuse the renewal of the licence, or refuse the licence for that period of time. If "refuse" is to be interpreted in that way in a renewal case, so, as an additional argument it is said, it should be interpreted in relation to the grant of an original licence.
I look at this as a matter of straightforward construction looking as best one can at the purpose of the Transport Act. The purpose of the Transport Act under section 16 is fully set out in the decision (which otherwise is of no assistance in the instant case), of the Court of Appeal in Sawyer v Great Yarmouth Borough Council (unreported -- 16th June 1987) in transcript before me. In that case Woolf LJ sets out the effect of section 16 and the purpose of the Transport Act.
But for the decision of Nolan J I would have no doubt at all in my mind that "defer" in this case, for a comparatively short period of time in order to carry out the inquiry which it was proper for the local authority to carry out, could not on any proper construction in the English language be called a refusal. As I have indicated, there may be cases where the period of time is so great that it was tantamount to a refusal -- but that is not this case.
I am therefore put in the invidious position of having to disagree, because I do not think that the case of Egan can properly be distinguished on its facts or in the rationale of the decision from the instant case. I am therefore driven to take, regrettably, a contrary view to that which Nolan J (as he then was) took in Egan's case. He found, as I have already indicated, that the language of section 16 was too clear for him to come to any other conclusion. I sadly also take that view but come to a different conclusion. In my judgment a refusal means saying "No". It does not mean "We are going to consider your case within a comparatively short period of time when we have made some inquiries as to the demand which is required."
I have therefore come to the conclusion that the contentions for which the council contend are to be preferred to those of the applicant.
The question of delay was raised in this case and I deal with it in case it transpires that my view on section 16 is incorrect.
What the applicant is asking for is certiorari to quash the decision of 19th April. There has undoubtedly been delay. The chronology I can shortly set out. The 19th April 1989 was when the decision was made. I was told that it was not communicated until 19th May. This application was not in fact made until 17th November 1989. The reasons why it was not made are set out in the applicant's Form 86A and in the affidavit of Mr Wilson.
Webster J has given leave in this case. It is clear that the approach to the question of delay is different at the leave stage from the position on the actual hearing. It is only necessary to refer to Order 53 rule 4 and section 31(6) of the Supreme Court Act 1981, and the decision in R v Dairy Tribunal Ex parte Caswell [1990] 2 AC 738 and the speech of Lord Goff. In effect there having clearly been undue delay, the court may refuse to grant any relief sought on the application if it considers that the granting of the relief sought would be likely to cause substantial hardship to or substantially prejudice the rights of any person or would be detrimental to good administration.
I have no evidence before me of any of those matters. There will be cases where the matter will be self-evident, and the court can take a view that it is detrimental for instance to good administration without any evidence. But in the instant case what I am being asked to do is to make a ruling as a matter of law on section 16. If I am in favour of the applicant, I would then have quashed the resolution. Mr Gill accepts that an order of mandamus, which was originally sought, requiring the Council to grant a hackney carriage licence, is inappropriate, as it is only for a period of a year. A declaration which sets out, if I had found in the applicant's favour, that a deferal of an application constitutes refusal, is not in my judgment in any way affected by the undoubted delay that has taken place in this case.
It is said that the Council has been put to expense and so on in having the survey, and if this application had come in earlier it would have affected that. There is no evidence about that. That is the most unlikely situation. The council were going to have the survey, which they needed, in order to consider the subsequent applications. If I had been minded to find in the applicant's favour, the question of delay would not have affected that decision. But for the reasons which I have given, this application is dismissed.
DISPOSITION:
Application dismissed
SOLICITORS:
Levinson, Walker & Lister, Hartlepool; Lee Bolton & Lee
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