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Kwan v Honiara Liquor Licensing Board [1998] SBHC 5; HC-CC 081 of 1997 (13 January 1998)

HIGH COURT OF SOLOMLANDS

Civil Case No. 81 of 1997

DENNIS KWAN

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HONIARA LIQUOR LICENSING BOARD

High Court of Solomon Islands

pan lang="EN-GB">Before: Lue: Lungole-Awich, J
Civil Case No. 81 of 1997

Hearing: 30 September 1997
Judgment: 13 January 1998

Counsel: A Radclyffe for the appellant;
G Samuel for the respondepan>

lass="Mso="MsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> JNT

(LUNGOLE-AWICH, J): span lang="EN-GB">This is an appeal by stated case, from the decision of Honiara Town Town Council Liquor Licensing Board made on 20.12.1996. The Board refused to renew liquor licence of the appellant, Mr Dennis Kwan, for Kwan Ming Store at Kukum Shopping Centre in Honiara. The licence was categorised as, “retail full licence”. By authority of section 33 of the Liquor Act, Cap. 33 of Laws of Solomon Islands, appeal from the decision of the Board is to the High Court. It must be appeal on grounds that the decision was; (1) “erroneous in point of law” or (2) “in excess of jurisdiction.” I set out section 33:

33. (1) Any applicant or objector who is aggrieved by the decision of a licensing authority may, if dissatisfied with such decision as being erroneous in point of law, or as being in excess of jurisdiction, apply in writing within one month from the date of such decision to the licensing authority to state and sign a special case setting forth the facts and the grounds of such decision for the opinion thereon of the High Court:

lass=lass="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> Provided that the period of one month may be exd by the licensing authority for good cause shown.

(2) Upon receiving an application under subsection (1), the licensithority shall forthwith drah draw up a special case and transmit the same to the Registrar of the High Court, and thereafter such special case shall be heard and disposed of, mutatis mutandis, as though it were an appeal by case stated under Part IX of the Criminal Procedure Code Ordinance:

Provided that the decision of the High Court in respect of such applin shall be final and concluonclusive and shall not be questioned in any proceedings whatsoever.

(3) Where a licensee whose licenc not been renewed applies under subsection (1) to theo the licensing authority to state and sign a special case for the opinion of the High Court, his licence shall be deemed to have been renewed until the decision of the High Court is made known.

Appellant stated 6 groof appeal in his notice of appeal dated 7.11.1997, addressed to the Secretary of the the Board. He did not specify whether the grounds were about errors in point of law or about excess of jurisdiction. None of the grounds suggests question of jurisdiction, I shall assume that they were about errors in point of law. During hearing, learned counsel Mr. Radclyffe, for the appellant submitted that although the Board had power to raise objection on its own, the Board had no power to raise a particular objection it raised during the hearing of appellant’ application. That I regarded as a point about jurisdiction.

Appeal ground 6 is misconceived. A licensee whose licence has not been renewed is not required under section 24 of the Liquor Act to apply for a licence which the appellant described as “a temporary licence,” to enable him to dispose of his stock of liquor, and the Board is not required or authorised under section 24 to receive and consider an application for such a licence; it only determines the time necessary for the licensee to dispose of stock and any apparatus. The Board, if it considered such an application, would have acted without authority. It might have been aware of the lack of authority; it did not record the making of the application in its record of proceedings. The appellant himself did not state in his affidavit, filed at the High Court, that he made the application. The affidavit was not required, but not prohibited either. Section 24 simply requires that a licensee whose licence has not been renewed make payment for licence, to enable him to dispose of his stock. The licensee is entitled to the licence upon payment of the proportionate fee. The licence lasts for not more than 3 months and is to enable the licensee to dispose of his stock. I quote section 24 there.

24. If the renewal licence is refused, the licensee shall, on payment of the proportionate part of the the fee for the appropriate licence, be entitled to a licence of such description and for such period, not exceeding three months, as the licensing authority may deem necessary for the purpose of disposing of the liquor or apparatus on the premises, such period to commence on the day on which the renewal of licence was refused or on the day after the termination of the existing licence, whichever day is the later.

Moreover, the appellant did not even need the licence referred to by section 24. He applied to the Bto state case for the opinion of the High Court, as the result, his licence is deemed to have been renewed by authority of section 33 (3), “until the decision of the High Court has been made known.” Subsection (3) of section 33 has been quoted in paragraph 1 above.

Ground 1 is that appellant had not been informed under section 25, of the, “matter or thing,” that the Board has taken notice of as constituting objection. The wording of ground 1 suggests that appellant was informed on the occasion of the earlier meeting of the Board held on 21.11.1996. Appellant ended ground 1 in these words. Despite being informed by the Chairman at the meeting on 21st November 1996 that “details would be given.” So the complaint in the ground is really that appellant had not been given details of the objection. In paragraph 7 of his affidavit, the appellant complained about not being informed, “in writing.” The minutes of the meeting on 21.11.1996 states:

“Kwan Ming Store - Kukum Shopping Centrennis Kwan

Matters adjourned to 20/12/1996. For (sic) full discussion as the Board was concerned over the number of liquor outlets in Kukum Shopping Centre and that he had already been granted the renewal of Jimmy Store. The applicant was informed accordingly.”

When that is considered with what I have stated above, the conclusion is that the appellant had been informed of the matter the Board viewed as objection. It is not required that the notice given by the Board be in writing although an independent objector's notice is required, by section 23 (2), to be in writing. If in the meeting of 20/12/1996 the appellant felt he had short notice and he needed more time, he would have requested adjournment. He was entitled to adjournment, under section 25 (2), but upon request. Ground 1 fails.

Appellant says in ground 2 that he was not given enough time in the meeting on 20.12.1996. He does not say that he asked for adjournment, and it is not in the record that he did. Ground 2 is baseless.

Ground 3 might have been a serious matter if Mr. Kevin Leong, one of thbers of the Board, was a licensee in the area and did not mention the matter at the hearing of the appellant’s application. In this case I do not have to decide the issue. Mr. Leong is not a licensee; he is said to have “supplied beer to two of the other licence holders in Kukum.” It is not clear whether it means he continues to supply. I think that is going too far down the line in showing prejudicial beneficial interest of a member of an administrative tribunal. It must be remembered that it is perhaps for good reason that some of the members appointed to the Board are business people in the same business or even in the same area. They are in a position to point out the point of view of business people. They may also be useful if the Board wishes to investigate. I consider it important that the appellant, if he considered the past business transactions of Mr. Leong prejudicial to the appellant’s application, appellant should have raised objection at the hearing. He does not say he did. I think such damaging imputation of improper motive should not be advanced so readily without giving it sufficient consideration. Moreover, Mr. Leong should have been made aware of the damaging allegation of improper motive on his part. There is no indication that the affidavit filed at the High Court was served on the Secretary to the Board or on Mr. Leong. Ground 3 fails.

Ground 5, that ownership of the premises was made clear to the Board, but the Brefused to listen, is a matter of assessment of the fthe facts presented to the Board. The Board dealt with it in its record. There is nothing to suggest that the facts were not properly appraised. Ground 5 is not based on error in law or on jurisdiction so that the High Court could exercise its jurisdiction in terms of section 33.

p class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Ground 4 is a contention suggesting what the appellant believea better way of effecting the Board’s policy to reduce the the number of liquor outlets in Kukum. He suggested in this Court that the newest applicant is the one to be eliminated not the applicant who has held licence for some years - given as 6 or 8. The Board decided that it would effect the policy by refusing to renew one of appellant’s licences on the ground that he already had a licence for another premises in the same location, renewed. It is not for the court to decide upon the logic of policy or the best way to carry out a policy. It is not a question of law or jurisdiction. See Judgment of Palmer J in Derek Daii -v- Palm Teaitala and Others, Civil Case No. 200 of 1995. Ground 4 is dismissed.

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> I have considered some decided cases iland about renewal of licences. It is my view that most are inapplicable and thereforrefore lack persuasive value in Solomon Islands. They were based on the specific legislation in England. Moreover, some of them are conflicting. The compelling reason in England in some of the cases that the licence in issue has been the only means of earning a living is not true in appellant’s case. He held two licences in the same location, and one of the licences had been renewed. The point was raised in the English case of R -v- Metropolitan Police Commissioner Ex Parte Parker [1953] 1 WLR 1150. An important point was natural justice. See criticism in Merricks -v- Nott Bower [1965] 19B 417 and disapproval in R -v- Gamming Board [1970] 20B 417. The general rule that the exercise of discretion requires acting in a fair and unprejudiced; not arbitrary, capricious or bias manner, according to rules of reason and justice, was not ignored by the Board in this case. In applying adopted law we must note the provisions of paragraphs 2(1) of schedule 3 to the Constitution, provided for by section 76 of the Constitution. The paragraphs of the schedule are:

lass="Mso="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> Section 76.

SCHEDULE 3 TO THE CONSTITUTION

APPLICATION OF LAWS

1…

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2. (1) Subject to this paragraph, the principles and rules of the common law and equityl have effect as part of thof the law of Solomon Islands, save in so far as:

a) they are inconsistent with this Constitution or a Act of Parliament;

b) they are inapplicable to or inappropriate in the circumstances of Solomon Islands from time to time; or

ctheir application to any particular matter, they are inconsistent with customary law law applying in respect of that matter.

3..pan>

4. ( court of Solomon Islands shall be bound by any decision of a foreign court given on n on or after 7th July 1978.

lass=lass="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> (2) Subject to receding provisions of this Schedule or any provision in that regard made by Parliameliament, the operation in Solomon Islands of the doctrine of judicial precedent shall be regulated by practice direction given by the Chief Justice.

I have also considered the power of the Bon terms of sections 25 and 23 of the Act, although it was not included in the groundsounds of appeal filed. Mr. Radclyffe submitted that the objection raised by the Board, that there are too many liquor outlets in Kukum, was an objection under section 23(4)(d) and therefore applicable to application for grant of new licence only; not to application for renewal of licence. Section 23(4)(d) requires the Board to consider the reasonable requirements of the neighbourhood. Counsel insisted on the submission even after court had inquired of him whether the Board could not consider, “any other objection which appears to the licensing authority to be relevant,” a provision in subsection (4)(h). The submission has no merit. The objections that may be raised in application for renewal are enumerated in section 23(6) which includes subsection (g). Subsection (g) enumerates, among other objections, those in subsection (4)(h) which reads:

(4).

class="MsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> (h) any other objection (not being frivolous or vexatious) which appears to the licensing authority to be relevant.

Learned counsel's submission was the result of misreading or misunderstanding section 23. The Board had the power twer to raise that objection. I do not think that the objection that there are too many outlets in an area is frivolous or vexatious. The submission is rejected.

What was alleged to have been a remark that the chairman had prior to the hearing does not appear to have influenced thed the decision of the Board. The reason for the decision was given as there being too many outlets in Kukum and appellant had already one licence renewed.

lass="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Based on the opinions I have given, the appeal is dismissed. Appe is to pay costs to the Board.

class="Mso="MsoNormal" style="margin-top: 1; margin-bottom: 1"> Dated this 13th day of January 1998

At the High Court

Honiara

Sam Lungole-Awich
JUDGE


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