clr/1989/1989_3A_177.pdf

(3)— ThePermitsAuthority is bound to considerthe matters, referred to m sub-paragraphs (a), φ), (c),(d)— Permit for Carrier A granted,notwithstanding that the type and capacity of the vehicle was never placed before the administration— In the light of section 15(d). the discretionary power was exercised m a defective manner Composite admimsiraiiveact— Intermediate act— Invalidity ofpart ofa composite administrativeactrendersallacts which follow,including the finalact, nullandvoid Recoursefor annulment— Practice— Parties—Recourse arectedagainst wrongparty—Amendment of titleexpropno mow — Motor transport —The Motor TransportRegulation Law, 1982 (Law9/82), section 16 — Carrier Β — No provision for replacement of an existing Carrier Β licence— Relevantapplication correctlytreatedasanapplication forthe grant ofa licence Both the Licensing Authority and the Review Permits Authority granted licences A and B, which are impugned by means of these 177 "Bothrote\" Ltd&. Oth.\. Republic & \n.

(1989)recourses Thelicencesfoi Carriers Aweregranted notwithstandingthat thetvpeandcapacityofthevehiclesinrespectof\\hichthc\ wereapplied had ne\er been placed before the administration Licences Β were granted thoughfrom thematerialm thefileitappearsthat the applicants formulated theirapplicationsasapplicationsfor replacementof existing Carrier Β licences particulars of which were never placed before the administration Theprinciples of Law expoundedb\ theCourtappearsufficiently in thehereinabove Headnotes 5 10 Sub judice decisions relating to Gamers A annulled Recourses relating toCarriers Β dismissed \oordei as to cosh 15 Case* refenedίο Chnstidcs \ Republic

(1966)3CLR 7V 20 Iordanou\ Republic

(1967)3CLR 24ϊ Pjphitis\ Republic

(1967)1CLR 300 TInmopoullo\ \ HCOUD1IC

(1967)3 CLR 5SS 25 \lipoi\to< \ Republic

(1967)τ CI R 701 h\lon \ Republic (I9(>t>t 3 CI R2b 30 lLidiik\ndkoudndOihci* \ Republic(\o 2/ (196S) >C LR 6? \hikns \ Republic (196SI 3C L R 50S keimilι \ Republic (1969> 3CLR 127 35 Cnmiou\ Republic (I960;3CLR 134 kdii\idimh\ Republic 11969) 3CLR 341 40 Yuilloundcw Republic

(1969)3 CLR 379 178 3C.L.R. "Bothrotex"Ltd& Oth.v.Republic & An. Goulelis v. Republic

(1970)3CLR. 81. Economou v. Republic

(1970)3CLR.420. 5 Andreou v.Republic

(1973)3CLR. 101. Zinierisv. Republic(No. 2)

(1975)3CLR.

1. 10 Christodoulou v.Republic ofCyprus, through The CollectorofCustoms. Nicosia 1 R.S.CC
2. Cyprus Transport Co. Ltd. andAnother v. Republic andAnother(No.1)

(1969)3CLR. 501. 15 HadjiPapasymeou v. Republic

(1984)3CLR.1182. Pesas andOthers v.Republic ofCyprus, through TheDistrict Officerof Nicosia

(1984)3CLR.

1. 20 Recourses. Recourses againstthedecisionsof therespondentswhereby the decision of the Licensing Authority to grant to interested partiescarrier"A"licenceswasconfirmed. 25 A. Theofilou,fortheApplicants. M. Tsiappa (Mrs). Counsel of the Republic B, for the Respondents. 30 S.Karapatakis,for InterestedpartyinCaseNo. 531/
2. G. Tnantafyllides,for Interested partyinCaseNo. 532/
3. 35 Cur. adv. vuit. STYLIANIDES,J.readthefollowing judgment.Theabove recoursesweretaken together ontheapplication oftheparties andtheapprovaloftheCourt. 40 Recourses Nos. 529/86 and 533/86 are directed against decisions of the Respondents 2, dated 31st May, 1986, 179 Stylianides.J. "Bothrotex"Ltd & Oth.v.Republic &An.

(1989)whereby theyconfirmed decisionsoftheLicensingAuthority taken on 24th October, 1985.concerningthegrant of carrier "A'*licences. Recourses Nos.531/86 and532/86 are directed against decisions of Respondents

1. dated 31st May, 1986, whereby they confirmed decisions of the Licensing Authority 5 taken on 24th October. 1985, and on 21st May. 1985, respectively concerningthegrant ofcarrier "B"licencestothe interestedpartiesnamedtherein. After thedecisionsoftheLicensingAuthoritytheapplicants 10 being aggrieved lodgedhierarchical recourses against thegrant ofsuchlicences. ThoserecoursesweredismissedbytheReview LicensingAuthority on 31st May,
2. Hencetheserecourses. 15 Theinterested partiesinthecaseofcarrier"A"licencesdid not give particulars of the vehicles in respect of which such licences were sought and the applications for licences carrier "B"weremadefor replacementofexistinglicences. 20 It was submitted by counsel for the applicants that the decisionsoftheLicensingAuthorityandthesubjudicedecisions constitute compositeadministrativeactsandbychallengingthe validity of the sub judice decisions - the final act which 25 completed the administrative act -aground may be raised for annulmentwhichreferstotheintermediateactsoftheLicensing Authority dated 21st May, 1985, and 24th October,
3. respectively. 30 It is wellsettledthat thoughthelastdecision of acomposite administrative act is the only one that can be challenged. nevertheless,oncetheintermediatecomponentpartsarealegal prerequisite tothefinal act,theirvaliditymaybeexaminedin decidingthevalidityofthefinal act,astheinvalidityofapartof 35 a composite administrative act renders all acts which follow, including the final act, null and void. (Kyriacopoulos -Greek Administrative Law, Vol. 3 p. 99, Tsatsos - Recourse for Annulment, 3rdEdition,p.152). 40 A hierarchical recourse is not intended to review the correctnessofthehierarchicallysubordinateorgan'sdecisionby 180 3 CUR. "Bothrotex" Ltd & Oth. v. Republic &An. Stylianides, J. reference to the soundness of the reasoning propounded in support thereof but,to establish asecond tier in the decision taking process, designed toeliminate mistakes as well as abuse of authority by subordinates. Both organs inthehierarchy are 5 charged with thesame duty - topromotetheobjects of thelaw bytheapplication ofitsprovision inparticularcases. Generally. it is competentfor thebody exercisingpowers inahierarchical recourse, toreviewthelegality of thedecision taken inthefirst instance (Tsoutsos - Administration andthe Law,

(1979).p. 63: 10 Stassinopoulos -Law of Administrative Acts.

(1951), p. 177et sequence). Section 15

(3)of the MotorTransport Regulation Law. 1982 (Law No.9/82) provides:15 "

(3)Η αρχή αδειώνεντηενασκήσειτη;διακριτική; αυ­ τή; εξουσία;διάτηνχορήγησιναδεία; μεταφορέα);'Α'θα εξετάζητακάτωθι:20 25 30 (α)Τα; ανάγκα; τη; περιφέρεια;διά την μεταφοράν τουσκοπούμενουείδου;φορτίου ω;καιτην έκτα­ ση'καιφύσιντωντοιούτωναναγκών (β)τηνέκτασινκαθ' ηναιτοιαύταιανάγκαιεξυπηρετούνται υπό των εν τη περιφέρειαυφισταμένων αδειούχων μεταφορέων Ά'· (γ) τον βαθμόνει; τονοποίον είναι πιθανόν ότι ο αιτητή; θα δύναταινα παρέχηει; την περιφέρειαν ασφαλεί;.συνέχει;καιτακτικά;μεταφορικά;υπη­ ρεσία;· (δ)τον τύπον και την δυναμικότητα του οχήματο; αναφοοικώ;προ;τοοποίονυπεβλήθηη αίτησι;." 35 ("

(3)The licensing authority in the exercise of its discretionary power for thegrant of carrier Ά ' licence shall examine thefollowing: 40 (a)The needs of the area for the transportation of the particular type of load together with the extent and nature of suchneeds; 181 Stylianides,J. "Bothrotex" Ltd &Oth. v.Republic &An.

(1989)(b)Theextent to whichthearea'sneedsarebeingserved byexisting carriers "A*inthe area; (

1. c)The degree to which it is possible that the applicant will be in a position to supply in the area safe, 5 continuous and regular transportation services; (
2. d)The type and capacity of the vehicle in relation to which the application hasbeen lodged.") 10 In Recourses Nos. 529/86 and 533/86 the question arises whether the Licensing Authority and the Review Licensing Authority exercised their discretion properly in the casesbearing in mind the matters enumerated in sub-section 3 of section 15. 15 it was submitted that the Licensing Authority to be enabled to exercise its above discretionary powers should be furnished byan applicant inrespect of aparticularvehicle atleastthetype and capacity thereof. 20 In Recourses Nos. 529/S6 mid 533/86 the applications were submitted in respect of a non existent vehicle. From the wording of section 15

(3)(c)(d) it is plain that the 25 Authority ''shall", and this isnot directory but mandatory, take into consideration the factors set out in the paragraphs of subsection

(3). There was no material before them with regard to the requirement of paragraph (

1. d)- type and capacity of the vehicle - in relation to which the applications had been lodged. 30 At nostageeitheratthetimeoftheintermediate orthefinal act. such information was placed before the Administration. The Administration; therefore, reached its decision in a manner without proper assessment ofthefactors expressly setout inthe law. Neither paragraph (
2. c)nor paragraph (
3. d)of subsection

(3)35 were compliedwith. The discretion wasexercisedin a defective manner. It iswell settledthat the decision reached without paying due regardto allessential factors,orwithout full acknowledge ofthe 40 relevant facts, or through failure to ascertain the true position. or through acting inignoranceof allrelevant andessential facts, 182 3 C.L.R. "Bothrotex" Ltd &Oth. v.Republic &An. Stylianides, J. orthrough failure toconduct areasonablenecessary inquiry for ascertaining correctly the relevant facts, or through failure to pay and examine due regard to all material considerations and facts, results in defective exercise of the relevant discretionary 5 powers and is a decision contrary to the principles of administrative lawandadecisioncontraryto lawinthesenseof Article 146.1ofthe Constitution. (See Christides v. Republic

(1966)3 C.L.R. 732; lordanou v.Republic

(1967)3 C.L.R. 245; Paphitis v.Republic

(1967)3C.L.R. 300; Thymopoullos 10 v. Republic

(1967)3 C.L.R. 588; Xapolytos v. Republic

(1967)3 C.L.R. 703; Tryfon v.Republic

(1968)3 C.L.R. 28; HadjiKyriakou and Others v. Republic (IS'o.2)

(1968)3 C.L.R. 63; Makris v.Republic

(1968)3C.L.R. 508; Kephala v.Republic

(1969)3C.L.R. 127:Chhstou v.Republic

(1969)15 3 CLR. 134; Karayiannis v.Republic

(1969)3 C.L.R.341; Yiallourides v. Republic

(1969)3 C.L.R. 379; Goulelis v. Republic

(1970)3 C.L.R. 81; Economou v.Republic

(1970)3 C.L.R. 420; Andreou v. Republic

(1973)3 C.L.R. 101; Zinieris (No. 2) v.Republic

(1975)3C.L.R.224.). 20 In relation to Recourses Nos. 531/86 and 532/86 it is plain that section 16 is the relevant statutory provision. The controlling words are "the Licensing Authority may grant licence". There is no provision for replacement of an existing 25 carrier "B" licence. From thematerial placedbefore me bythe Administration the interested parties though ostensibly applied for'the "replacement'" of existing carrier "B" licences, in substance andeffect they applied for the grant of licences. The Administration treated theseasapplication for grant of licences 30 under section 16ofthe Law.Thisground, therefore, fails. From the material before me it is clear that the necessary inquiry, both under the relevant Law and the principles of Administrative Law. was carried out. The needs of the 35 applicants were dulyinquired into. Thecapacity of thevehicles for which the licences were applied for was before the Administration. It exceeded the seven tons but correlated with the needs of the applicants and it was duly taken into consideration asset down inthe proviso to section 16

(1). 40 ThesubjudicedecisionsinRecoursesNos.531/S6and532/86 are duly reasoned in the sense that the reasoning is 183 Stylianides,J. "Bothrotex"Ltd &Oth. v.Republic &An.

(1989)supplemented bythematerial inthefile. From the relief prayed in the recourses and the facts presented before the Court byallsidesit isplain that theacts. the validity of which is challenged, were taken by the Review 5 Licensing Authority. According to precedent I direct that the title of the cases be amended accordingly. (See MHtiades Christodoulou and TheRepublic of Cyprus, through The Collector of Customs, Nicosia 1 R.S.C.C. 1, 9; Cyprus Transport Co.Ltd.andAnother (No.l)andTheRepublicof 10 Cyprus, through 1. TheMinister of Communications and Works, 2. ThePermits Authority

(1969)3C.L.R. 501,502; Theofano Thoma HadjiPapasymeou v. The Republic of Cyprus, through The District Officer of IS'icosia

(1984)3 C.L.R. 1182: CostasFesas and Others v. The Republic of 15 Cyprus, through The District Officer of Nicosia(19S4)3 C.L.R. 11S2). For the foregoing reasons the sub judice decisions in Recourses Nos. 529/86 and 533/86 are declared null and void 20 under Article 146.4(b) of the Constitution and the sub judice decisions in Recourses Nos. 531/86 and 532/86 are confirmed underArticle 146.4(a)oftheConstitution. In the circumstances let there beno order asto costs in all 25 recourses. Subjudicedecisionpartlyannulled. Noorderastocosts. 184