Registrar of Friendly Societies, State (Plunkett) v (No. 1)

• Jurisdiction: Ireland
• Judgment Date: 09 February 1998
• Date: 09 February 1998
• Docket Number: [S.C.
• Court: Supreme Court

Supreme Court

[S.C. No. 65 of 1988]

The State (Plunkett) v. Registrar of Friendly Societies (No. 1)

The State (at the prosecution of Peter Anthony Plunkett and Ponderwood Society Limited)

Applicants

and

The Registrar of Friendly Societies and The Attorney General (No. 1)

Respondents

Cases mentioned in this report:-

Goodman International v. Mr. Justice Hamilton [1992] 2 I.R. 542; [1992] I.L.R.M. 145.

Keady v. Commissioner of An Garda Síochána [1992] 2 I.R. 197; [1992] I.L.R.M. 312.

Lynham v. Butler (No. 2) [1933] I.R. 74; (1932) 67 I.L.T.R. 75.

McDonald v. Bord na gCon [1965] I.R. 217; (1965) 100 I.L.T.R. 89.

Constitution - Statute - Validity - Administration of Justice - Whether interference with judicial function - Registrar of Friendly Societies - Power to defray costs of inspector appointed to examine society - Whether imposition of penalty or determination of legal rights - Duty of State to protect depositors - Industrial and Provident Societies (Amendment) Act, 1978 (No. 23), s. 13 - Constitution of Ireland 1937, Article 37.

Industrial and Provident Societies - Costs of inspector - Power of Registrar of Friendly Societies to defray costs of inspector appointed to examine society - Responsibility of members of societies to meet costs of inspection - Duty of State to protect depositors - Industrial and Provident Societies (Amendment) Act, 1978 (No. 23), s. 13 - Constitution of Ireland 1937, Article 37.

Appeal from the High Court.

The facts are summarised in the headnote and are fully set out in the judgment of O'Flaherty J., infra.

On the 28th July, 1986, the applicants obtained a conditional order of prohibition from the High Court (McKenzie J.) preventing the first respondent from entering on certain procedures set forth in letters to the applicants from the first respondent. The matter was heard by the High Court (Lynch J.) on the 17th, 18th and 19th November, 1987, which, by order of the 5th February, 1988, allowed the cause shown and discharged the conditional notice of prohibition.

A notice of appeal was filed on the 26th February, 1988. The appeal was heard by the Supreme Court (Hamilton C.J., O'Flaherty, Barrington, Keane and Barron JJ.) on the 22nd January, 1998.

Section 13(1) of the Industrial and Provident Societies (Amendment) Act, 1978, allows, inter alia, the Registrar of Friendly Societies ("the Registrar") to appoint an inspector to report to him on the affairs of any society.

Section 13(3) provides:-

"All expenses of or incidental to an investigation under this section shall be defrayed out of the funds of the society, or by the members (or former members) or officers of the society, in such proportions as the Registrar shall direct."

The first applicant substantially owned a group of industrial and provident societies and the second applicant was the parent body of the group. The group engaged in the accepting of deposits from the public and the making of loans and property investments. An inspector was appointed by the Registrar on the 3rd February, 1985, to investigate the affairs of the group. The Registrar later informed the applicants that it was his intention to consider making a direction under s. 13(3) of the Act of 1978 requiring them to pay all or a proportion of the expenses of the inspector.

In July, 1986, the applicants obtained a conditional order of prohibition in the High Court restraining the Registrar from entering on...