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Supreme Court of Papua New Guinea |
PAPUA NEW GUINEA
[SUPREME COURT OF JUSTICE]
SCA 159 OF 2022
BETWEEN:
PAUL MARIS
Appellant
AND:
DR ERIC KWA as the Secretary
of Department of Justice & Attorney General
and the Principal Legal Adviser of the
National Executive Council
Respondent
WAIGANI: KANDAKASI DCJ, KANGWIA J, LOGAN J
25 FEBRUARY 2025
ADMINISTRATIVE LAW – where the appellant appeals against a decision of the National Court to dismiss application for extension of time under Claims By and Against the State Act – whether ss 147A to 147E of the Civil Aviation Act 1988 mean the National Airports Corporation (NAC) is the State for the purposes of the Claims By and Against the State Act – whether the NAC meets the definition of State as set out in PNG Power Ltd v Augerea [2013] PGSC 53 – whether prejudice would be suffered by granting extension of time to give notice to the State – held: the NAC is the State for the purpose of the Claims by and Against the State Act 1996 - appeal allowed.
Facts:
The dispute arises from the termination of a contract for employment of Mr Paul Maris (the appellant).
The appellant was an employee of the National Airports Corporation Ltd (NAC) until 2019. At the end of September 2019, the appellant commenced proceedings against NAC for breach of policy. This culminated in a letter of 13 January 2020 in which the NAC maintained a decision to terminate the appellant’s employment.
The appellant commenced proceedings in the National Court to seek an extension of time in which to file a notice for a claim upon the NAC for damages for wrongful termination of employment.
In that National court case, OS 66 of 2022, the primary judge held that the NAC was not the State under s 5 of the Claims By and Against the State Act 1996.
The appellant appeals that decision to the Supreme Court.
Held:
Cases cited
Audambui and Post PNG Limited [2014] N5772
Mineral Resources Development Limited v Sisimiut [2010] SC1090
PNG Power Limited v Augerea [2013] SC1245
Rawson Construction Limited v Department of Works [2005] SC777
Counsel
Mr S Gor, for the appellant
No appearance for the respondent
147A. INCORPORATION OF NATIONAL AIRPORTS CORPORATION LTD., BY MINISTERS.
(1) A company has been incorporated pursuant to Section 132 under the Companies Act 1997 for the purpose of owning, operating, managing and maintaining airports and providing all related services in Papua New Guinea.
(2) The company referred to in Subsection (1) is called “National Airports Corporation Ltd.” (NAC) or, subject to the approval of the Registrar of Companies, such other name as the Ministers and the shareholders may decide from time to time.
(3) In furtherance of its principal airport function under Subsection (1), the functions of NAC shall include any function as determined by the shareholders and included in its constitution approved by the Registrar of Companies.
(4) The board of directors of the National Airports Corporation Limited shall have seven members comprising –
(a) the Managing Director of National Airports Corporation, ex officio; and
(b) the Departmental Head of the Department responsible for transport matters or his nominee, ex officio; and
(c) the Departmental Head of the Department responsible for treasury matters or his nominee, ex officio; and
(d) one independent director representing the aviation industry nominated by the industry; and
(e) one independent director representing the business community nominated by the Papua New Guinea Chamber of Commerce and Industry; and
(f) one independent director representing the tourism industry nominated by the Tourism Promotion Authority; and
(g) one independent director representing the shareholders being a person who has sufficient experience and knowledge in the aviation sector and who has a high reputable standing in the business community and can contribute to the delivery of aviation services in Papua New Guinea.
(5) The Minister shall advise the industry organisations or body referred to in Subsection (4)(d), (e) and (f) in the event of a vacancy or where a vacancy is likely to occur in the position of a director representing the particular industry or body.
(5A) Upon receipt of the advise of vacancy, an industry organisation or body referred to in Subsection (4)(d), (e) and (f) shall provide to the Minister, a list of three persons nominated for appointment as a director and the alternate, within 21 days or such other period as determined by the Minister.
(5B) In the case where an industry organisation or body referred to in Subsection (4)(d), (e) and (f) is unable for any reason to provide a list of three persons to the Minister within 21 days, the Minister shall take reasonable steps to consult widely with industry participants, as he considers appropriate.
(5C) The Minister shall submit to the National Executive Council a list of directors and the alternates under Subsection (4)(f), (g) and (h) in accordance with the procedures for appointment and revocation of directors of statutory authorities under the Regulatory Statutory Authorities (Appointment to Certain Offices) Act 2004.
(6) No person other than the Minister and the Minister responsible for finance matters shall hold any shares in the company or be entitled to exercise effective control of the company but nothing in this subsection shall prevent the Minister and the Minister responsible for finance matters, acting jointly, from disposing of all or part of the shares in or business of the company to any other person on such terms and conditions as they think fit.
(7) No director or employee of the company shall be personally liable for any liability of the company, or for any act done or omitted by the company, or by the chief executive of the company or any other employee of the company in good faith in pursuance or intended pursuance of the functions or powers of the company.
(8) The term of appointment of all independent directors to the Board of NAC shall be four years.
(8A) A minimum period of four years separation shall apply before a person shall be available for reappointment as a director unless the Minister waives this requirement, in the interest of NAC.
(9) The company, the board, each director, and each shareholder of the company shall have the rights, powers, duties, and obligations set out in the Companies Act 1997 and the company’s constitution approved by the Registrar of Companies consistent with the objects and functions of the NAC as set out in this Act.
147AB. CHAIRMAN AND DEPUTY CHAIRMAN.
(1) The Chairman of the Board shall be appointed by the National Executive Council from among the independent members appointed under Section 147A(4)(d), (e), (f) and (g).
(2) The Deputy Chairman shall be appointed from among the independent directors appointed under Section 147A(4)(d), (e), (f) and (g) by the members of the Board.
147AC. LEAVE OF ABSENCE OF DIRECTORS OF THE BOARD.
(1) A director shall in writing notify the Minister that he will not be available for a scheduled meeting of the Board.
(2) The Minister may grant leave of absence to a director on such terms and conditions as the Minister determines.
(3) Unless the Minister grants leave of absence to a director under Subsection (2), the director shall be deemed absent from the scheduled Board meeting.
(4) A director who is absent from three consecutive scheduled meetings of the Board shall be dismissed by the Minister.
147AD. RESIGNATION OF INDEPENDENT DIRECTORS.
An independent director under Section 147A(4)(d), (e), (f) and (g) may resign from office by written notice to the Minister.
147AE. VACATION OF OFFICE BY INDEPENDENT DIRECTORS.
(1) If an independent director under Section 147A(4)(d), (e), (f) and (g) -
(a) dies or is permanently incapable of performing his duties; or
(b) resigns from office; or
(c) is absent from three consecutive meetings of the Board, without obtaining special leave of absence granted by the Minister; or
(d) becomes bankrupt or makes any assignment or composition with his creditors generally; or
(e) is convicted of a criminal offence in Papua New Guinea or in any other jurisdiction,
the Minister shall terminate his appointment.
(2) The Minister may, at any time, by written notice, advise an independent director that he intends to terminate the appointment of the independent director on the grounds of inability, non-performance or misbehaviour.
(3) Within seven days of the receipt of a notice under Subsection (2), the independent director may reply in writing to the Minister who shall consider the reply and where appropriate proceed to recommend the termination of the appointment.
(4) Where an independent director is given notice under Subsection (2) fails to reply in accordance with Subsection (3), his appointment is deemed terminated.
(5) Where the appointment of the independent director is terminated under Subsection (4), the Minister shall request the interest group of the terminated director to nominate a candidate to fill the vacancy.
147AF. APPOINTMENT OF MANAGING DIRECTOR.
(1) There shall be a Managing Director who is the chief executive of the Company who shall be appointed in accordance with the procedures for the appointment, suspension and revocation of appointment of chief executive officers of Regulatory Statutory Authorities under the Regulatory Statutory Authorities (Appointment to Certain Offices) Act 2004.
(2) The Managing Director shall be appointed for a term of three years and is eligible for re-appointment subject to his performance in accordance with his contractual provisions.
(3) The terms and conditions of the Managing Director shall be as determined by the National Executive Council and contained in a written contract of employment which shall be signed by the Minister and by the Managing Director.
(4) The person considered for appointment as Managing Director shall -
(a) be the holder of an academic degree in a field, considered by the Public Service Commission to be related to the position, from an accredited university that is recognised by the department responsible for higher education; and
(b) has at least 10 years practical experience in a field considered by the Public Service Commission to be related to the position, at least five of which were in an executive managerial capacity equivalent to head or deputy head level of a reputable organisation; and
(c) be a fit and proper person, which includes -
(i) passing the fit and proper person test prescribed under Section 50 of the Act; and
(ii) medical clearance from a certified medical practitioner; and
(iii) police clearance.
(5) The Managing Director shall be terminated if he –
(a) fails one of the requirements under Subsection (4)(c); or
(b) becomes incapable of performing his duties; or
(c) other than with written consent of the Minister, engages in any paid employment or carries on business outside the duties of his office; or
(d) becomes bankrupt, applies for the relief of the law for bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of his salary for their benefit; or
(e) is convicted of an offence that is punishable by law with a sentence of imprisonment; or
(f) ceases to be ordinarily resident in the country; or
(g) commits an offence against this Act.
147AG. APPOINTMENT OF ACTING MANAGING DIRECTOR.
(1) In the interest of the Aviation Sector, the Minister shall suspend the Managing Director, with or without cause, if –
(a) the Managing Director is absent from duty (from whatever cause arising); or
(b) there is a vacancy (whether by reason of death, resignation, or otherwise); or
(c) from time to time while the absence or vacancy continues, and appoint a senior person in the company in terms of the number of years he has worked in the company or a suitable person to act in the position.
(2) The appointment process under Section 147AF is not applicable to Subsection (1).
(3) The appointment made under Subsection (1) shall be for a maximum period of three months and shall be published in the National Gazette.
(4) Any extension of the period prescribed under Subsection (3) shall be made in accordance with Section 147AF.
147B. NATIONAL AIRPORT CORPORATION LTD.
(1) The National Airport Corporation Ltd. is a company incorporated under the Companies Act 1997 pursuant to Section 132 of this Act.
(2) Subject to Subsection (4), after the commencement date of the amendment to this Act as declared by the Minister, no person other than the NAC shall provide the following services in respect of Papua New Guinea airports –
(a) improve, maintain, operate or manage an airport, whether or not the airport was established under this Act; and
(b) improve, maintain, operate or manage an airport which has been added to, improved or reconstructed by the State or some other authority, body or person since the establishment of the airport; and
(c) establish, improve, maintain, operate or manage an airport on any land, whether or not the land is wholly or partly owned by the airport authority; and
(d) improve, add to, alter or reconstruct an airport or part of an airport maintained or operated by the airport authority; and
(e) operate or manage an airport as a commercial undertaking; and
(f) establish, operate or manage or cause to be established, operated or managed at airports refreshment rooms, bookstalls, booking offices, travel agencies and such other facilities as may be considered necessary; and
(g) enter into contract for the management and operations of the airport; and
(h) set charges as an aviation service provider in accordance with this Act; and
(i) enter into contracts and agreements for the provision of services and facilities; and
(j) enter into and carry out any agreement or arrangement necessary for the exercise of any power or function conferred on the Company; and
(k) develop policies and corporate strategies directed to achieve the greatest benefit to the State and the people of Papua New Guinea.
(3) Nothing in this section shall apply to aerodrome flight information services.
(4) Subject to obtaining the consent of -
(a) the Minister; and
(b) the Director as to safety aspects, the NAC may contract with any other person for the provision of airport services in Papua New Guinea.
(5) Subject to obtaining the consent of the Director as to safety aspects, the NAC may consent in, writing, to any other person providing airport services in Papua New Guinea in the event that the NAC is unable to for any reason.
147C. POWER TO EXEMPT CERTAIN FLIGHTS FROM FEES.
(1) The Minister may, by notice in the National Gazette, after consulting with NAC, exempt flights of a particular class from payment of fees for the use of airport services.
(2) The Minister shall, with the concurrence of the Minister responsible for finance matters, out of moneys appropriated by Parliament, compensate NAC for exempt flights and the amount of compensation shall be equivalent to the sum which would have been charged by NAC to those flights as if they had not been exempted from charges.
(1) The company shall submit to the Minister an annual report, including the audited and approved financial statements endorsed by the board within three months of the end of each financial year.
(2) A copy of the annual report shall be sent to the last known address of all airport service customers of the NAC who operated scheduled services within or to and from Papua New Guinea.
(3) A copy of the annual report shall be supplied to other airport service users on request.
147E. PAYMENT TO CASA BY NAC AND PNG ASL.
(1) As from the commencement date of the amendment to this Act as declared by the Minister, the NAC and PNG ASL shall pay to CASA a percentage, as prescribed in Subsection (3), of all annual income earned from –
(a) international terminal facility charges; and
(b) domestic terminal facility charges; and
(c) security levy; and
(d) aeronautical charges.
(2) The payments shall be made –
(a) for each passenger; and
(b) at the end of each calendar month; and
(c) no later than fourteen days after the payment has been received from the operator.
(3) The percentages shall be paid by the NAC and PNG ASL as follows:
(a) the NAC –
(i) fifteen percent of international terminal facility charges; and
(ii) ten percent of domestic facility charges; and
(iii) ten percent of security levy; and
(b) the PNG ASL shall pay ten percent of aeronautical charges for upper airspace.
As to this, Mr Maris had placed before the primary judge evidence already adverted to as to informal endeavours which he had made to resolve the proceeding.
Orders
________________________________________________________________
Lawyers for appellant: Gor Lawyers
Lawyers for respondent: Solicitor General
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