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Medi-Data Inc. and Book Bargains Inc. (Applicants)
v.
Attorney General of Canada (Respondent)
Court of Appeal, Jackett C.J., Thurlow and Walsh JJ.—Ottawa, April 12 and 14, 1972.
Post Office—Prohibition of mail services to person com mitting offence through mails—Order by Postmaster Gener- al—Review by Board of Review—Form of order—Powers of Board—Post Office Act, R.S.C. 1970, c. P-14, section 7.
Judicial review—Court of Appeal—Jurisdiction—Prohibi- tion of mail services by Postmaster General—Review by Board of Review—Right to challenge—Federal Court Act, section 28.
On March 4, 1971, the Postmaster General made interim prohibitory orders under section 7 of the Post Office Act prohibiting mail service to two United States firms on the ground that they were committing offences by transmitting obscene material through the mails. Fourteen days later, in purported compliance with section 7(2) of the Act, he informed the applicants of the orders. Applicants' attorney requested "without prejudice to any and all rights of client" that the orders be inquired into. Inquiries were held by Boards of Review set up by the Postmaster General under section 7(3), and on the Boards' recommendations the interim prohibitory orders were made final in August 1971. Applicants applied to this Court under section 28 of the Federal Court Act to review and set aside the interim prohibitory orders, the recommendations of the Boards of Review and the final prohibitory orders.
Held, their applications should be dismissed.
1. The Court has no jurisdiction to set aside the interim prohibitory orders, which were made before the Federal Court Act came into operation on June 1, 1971.
2. The interim prohibitory orders were not invalidated because they did not recite in the words of section 7(1) that the Postmaster General "believes on reasonable grounds" that the applicants were committing offences.
3. Having regard to the wide powers given to the Board of Review on an inquiry under section 7, it was open to the Board to take into consideration the transmission by an applicant of material not referred to in the interim prohibito ry orders.
4. The failure of the Postmaster General to notify the applicants in the interim prohibitory orders within five days of making them, as required by section 7(2), did not nullify those orders but merely gave applicants the right to chal lenge them, and applicants had not done so. Their attorney's letter requesting the inquiry "without prejudice" to his
clients' rights operated at most to preserve their right to challenge the orders.
APPLICATION for judicial review. J. C. Hanson, Q.C. for applicants. W. J. Trainor for respondent.
JACKETT C.J. (orally)—This is an application to review and set aside the decisions and recommendations of certain Boards of Review nominated by the Postmaster General pursuant to section 7 of the Post Office Act, which deci sions and recommendations were contained in reports made on August 6, 1971, and to review and set aside final prohibitory orders of the Postmaster General made on August 17, 1971, under section 7 of the Post Office Act'.
Section 7 of the Post Office Act reads as follows:
7. (1) Whenever the Postmaster General believes on rea sonable grounds that any person
(a) is, by means of the mails,
(i) committing or attempting to commit an offence, or
(ii) aiding, counselling or procuring any person to commit an offence, or
(b) with intent to commit an offence, is using the mails for the purpose of accomplishing his object,
the Postmaster General may make an interim order (in this section called an "interim prohibitory order") prohibiting the delivery of all mail directed to that person (in this section called the "person affected") or deposited by that person in a post office.
(2) Within five days after the making of an interim prohibitory order the Postmaster General shall send to the person affected a registered letter at his latest known address informing him of the order and the reasons therefor and notifying him that he may within ten days of the date the registered letter was sent, or such longer period as the Postmaster General may specify in the letter, request that the order be inquired into, and upon receipt within the said ten days or longer period of a written request by the person affected that the order be inquired into, the Postmaster General shall refer the matter, together with the material and evidence considered by him in making the order, to a Board of Review consisting of three persons nominated by the Postmaster General one of whom shall be a member of the legal profession.
(3) The Board of Review shall inquire into the facts and circumstances surrounding the interim prohibitory order and shall give the person affected a reasonable opportunity
of appearing before the Board of Review, making represen tation to the Board and presenting evidence.
(4) The Board of Review has all the powers of a commis sioner under Part I of the Inquiries Act, and, in addition to the material and evidence referred to the Board by the Postmaster General, may consider such further evidence, oral or written, as it deems advisable.
(5) Any mail detained by the Postmaster General pursu ant to subsection (8) may be delivered to the Board of Review, and, with the consent of the person affected, may be opened and examined by the Board.
(6) The Board of Review shall, after considering the matter referred to it, submit a report with its recommenda tion to the Postmaster General, together with all evidence and other material that was before the Board, and upon receipt of the report of the Board, the Postmaster General shall reconsider the interim prohibitory order and he may revoke it or declare it to be a final prohibitory order, as he sees fit.
(7) The Postmaster General may revoke an interim or final prohibitory order when he is satisfied that the person affected will not use the mails for any of the purposes described in subsection (1), and the Postmaster General may require an undertaking to that effect from the person affected before revoking the order.
(8) Upon the making of an interim or final prohibitory order and until it is revoked by the Postmaster General,
(a) no postal employee shall without the permission of the Postmaster General
(i) deliver any mail directed to the person affected, or
(ii) accept any mailable matter offered by the person affected for transmission by post,
(b) the Postmaster General may detain or return to the sender any mail directed to the person affected and anything deposited at a post office by the person affect ed, and
(c) the Postmaster General may declare any mail detained pursuant to paragraph (b) to be undeliverable mail, and any mail so declared to be undeliverable mail shall be dealt with under the regulations relating thereto.
In July, 1970, there was brought to the atten tion of the Post Office Department a brochure entitled "WOMAN: Her Sexual Variations and Functions" which had been received through the mail by a Canadian resident from the appli cant Book Bargains Inc. In December, 1970, there was brought to the attention of the Post master General a brochure entitled "Sex Educa tion Without Censorship" which had been received through the mail by Canadian residents from the applicant Medi-Data Inc.
On March 4, 1971, the Deputy Postmaster Generale made an order, which, as far as rele vant, read as follows:
PURSUANT TO the provisions of section 7 of the Post Office Act the undersigned hereby makes an Interim Prohibitory Order against:
(c) Medi-Data Inc. whose postal addresses are: P.O. Box 388, Van Brundt Station, Brooklyn, N.Y. 11215 and P.O. Box 4399, Grand Central Station, New York, N.Y. 10017 on the ground that Medi-Data Inc. is, by means of the mails, committing an offence TO WIT transmitting an obscene or indecent advertising brochure entitled "Sex Education with out Censorship" contrary to section 153 of the Criminal Code of Canada;
PURSUANT TO this Order the delivery of all mail directed to or deposited in a Post Office by any of the persons or corporations mentioned in paragraphs (a) to (j) inclusive is prohibited.
On the same day, he made another order read ing, in part, as follows:
PURSUANT TO the provisions of section 7 of the Post Office Act the undersigned hereby makes an Interim Prohibitory Order against:
(y) Book Bargains Inc. whose postal address is: P.O. Box 4040 Grand Central Station, New York, N.Y. 10017 on the ground that Book Bargains Inc. is, by means of the mails, committing an offence TO WIT transmitting obscene or indecent advertising brochures entitled "Woman her sexual variations and functions" contrary to section 153 of the Criminal Code of Canada;
PURSUANT TO this Order the delivery of all mail directed to or deposited in a Post Office by any of the persons or corporations mentioned in paragraphs (a) to (y) inclusive is prohibited.
On March 18, 1971, the Postmaster General wrote to the applicant Medi-Data Inc. as follows:
TAKE NOTICE THAT on the 4th day of March 1971 an Interim Prohibitory Order was made by the Deputy Post master General pursuant to the provisions of section 7 of the Post Office Act against Medi-Data Inc. whose postal addresses are: P.O. Box 388, Van Brundt Station, Brooklyn, N.Y. 11215 and P.O. Box 4399, Grand Central Station, New York, N.Y. 10017 on the ground that Medi-Data Inc. is, by means of the mails, committing an offence TO WIT transmitting an obscene or indecent advertising brochure entitled "Sex Education Without Censorship" contrary to section 153 of the Criminal Code of Canada.
AND TAKE FURTHER NOTICE that pursuant to that Order the delivery of all mail directed to you or deposited in a Post Office by you is prohibited.
AND TAKE FURTHER NOTICE that within 15 days of the date of this notice you may request that the Interim Prohibitory Order be inquired into, and upon receipt within the said 15 days of a written request by you that the Order be inquired into, the Deputy Postmaster General will refer the matter, together with the material and evidence consid ered by him in making the Order, to a Board of Review consisting of three persons nominated by the Postmaster General, one of whom shall be a member of the legal profession.
AND TAKE FURTHER NOTICE that attached hereto, for your information, is a copy of section 7 of the Post Office Act of Canada.
A letter to the same effect was written on the same day to the applicant Book Bargains Inc. with necessary changes to refer to the fact that the order relating to the applicant was based on the brochure "Woman: Her Sexual Variations and Functions".
On March 25, 1971, a letter was written to the Deputy Postmaster General by a New York lawyer named Herbert Monte Levy. That letter reads as follows:
We represent Book Bargains, Inc., which has received a notice from you dated March 18, 1971, advising client that 14 days previous to the date of your notice, an Interim Prohibitory Order was issued.
On behalf of said client, we hereby request that the Interim Prohibitory Order be inquired into.
I should also appreciate it if you could advise me whether it would be proper or appropriate for me to represent the client in Canada, either with or without legal counsel.
This request, of course, is without prejudice to any and all rights of client.
It may be that we can amicably dispose of this matter without litigation. If the Canadian Post Office were willing to enter into an agreement under which advertisements for the book mentioned in your letter would no longer be sent into Canada by mail, and permitting all other mailings (except for advertisements for the aforementioned book), client would be willing to settle the matter on such basis, providing, of course, that it is agreed that such a stipulation would not constitute an admission by client that the book in question was obscene, nor, of course, would it constitute an admission by Post Office Department that it was not obscene.
I should perhaps add that a Statute similar to the one you rely on was unanimously ruled Unconstitutional by the United States Supreme Court a few weeks ago in a case known as Blount v. Rizzi. Of course, if we have to proceed
with any hearings, we intend to have the matter go to the highest Court it could go. We have already been in touch with a distinguished Canadian attorney, but we should appreciate adequate advanced notice of any hearing date to permit us to make arrangements for Canadian counsel, since the attorney we spoke to is so situated geographically that he cannot be of assistance to us.
On the same day, the same New York lawyer wrote a further letter to the Deputy Postmaster General reading as follows:
We represent Medi-Data, Inc., which has received your notice dated March 18, 1971.
Within this envelope, we have enclosed a letter written to you on behalf of client Book Bargains, Inc. We hereby incorporate by reference and make a part hereof as if fully set forth at length herein each and every request, objection, consent, and offer to stipulate that is made in said letter written on behalf of Book Bargains, Inc., except, of course, that it is made or stated on behalf of Medi-Data, Inc., and in reference to the advertising brochure referred to in your letter to Medi-Data, Inc.
Of course, this includes the request that the Interim Prohibitory Order be inquired into.
On April 22, 1971, the Deputy Postmaster General referred the Medi-Data Inc. matter to a Board of Review by a document reading as follows:
An interim prohibitory order having been made by me on the 4 March 1971, prohibiting the delivery of all mail directed to or deposited in a Post Office by Medi-Data Inc., P.O. Box 388, Van Brundt Station, Brooklyn, N.Y. 11215 and P.O. Box 4399, Grand Central Station, New York, N.Y. 10017, U.S.A.
And the said Medi-Data Inc. having requested that the interim prohibitory order be enquired into;
Now, therefore, pursuant to Section 7 of the Post Office Act, I do hereby refer this matter, together with the material and evidence considered in making the said interim prohibi tory order, to a Board of Review, consisting of the follow ing three persons hereby nominated by me:
Mr. L. A. Couture, Q.C.—Chairman
Mr. E. C. Savage
Mr. A. S. Whiteley
and on April 23, 1971, he referred the Book Bargains Inc. matter to a Board of Review consisting of the same persons by a similar document.
The Boards of Review conducted inquiries accordingly. On August 6, 1971, the Board in the Medi-Data matter made a report that con cluded as follows:
In the circumstances, and for the above reasons, the Board of Review finds that the use of the mails for the purpose of transmitting the advertisement "SEX EDUCA TION WITHOUT CENSORSHIP!" constitutes the offence described in section 153 of the Criminal Code. The Board of Review recommends that the interim prohibitory order be made a final prohibitory order.
and on the same day the Board in the Book Bargains Inc. matter made a report that con cluded as follows:
The Board of Review finds that the use of the mails for the purpose of transmitting the advertisement of "WOM- AN: Her Sexual Variations and Functions" (and the adver tisement of "More Blazing Sex-Films ...") constitutes the offence described in section 153 of the Criminal Code. The Board of Review recommends that the interim prohibitory order be made a final prohibitory order.
These reports having been duly transmitted to the Deputy Postmaster General, on August 17, 1971, he wrote letters to Mr. Levy reading, in part, as follows:
I am pleased to inform you that the Board of Review that was nominated by me to inquire into the facts and circum stances surrounding the interim prohibitory order respecting mail service to your client, Medi-Data, Inc., has now sub mitted a report with its recommendation to the Postmaster General.
The Board of Review came to the conclusion that the use of the mails for the purpose of transmitting the advertise ment "SEX EDUCATION WITHOUT CENSORSHIP!" constitutes the offence described in section 153 of the Criminal Code. The Board of Review has recommended that the interim prohibitory order be made a final prohibito ry order.
I have reconsidered the interim prohibitory order and I wish to inform you that I have accepted the recommenda tion made by the Board of Review. The interim prohibitory order that was made against Medi-Data, Inc., on March 4, 1971, shall therefore be deemed, as from today, a final prohibitory order.
and
I am pleased to inform you that the Board of Review that was nominated by me to inquire into the facts and circum stances surrounding the interim prohibitory order respecting mail service to your client, Book Bargains, Inc., has now submitted a report with its recommendation to the Postmas ter General.
The Board of Review came to the conclusion that the use of the mails for the purpose of transmitting the advertise ment of "WOMAN: Her Sexual Variations and Functions"
(and the advertisement of "More Blazing Sex-Films ... ") constitutes the offence described in section 153 of the Criminal Code. The Board of Review has recommended that the interim prohibitory order be made a final prohibito ry order.
I have reconsidered the interim prohibitory order and I wish to inform you that I have accepted the recommenda tion made by the Board of Review. The interim prohibitory order that was made against Book Bargains, Inc., on March 4, 1971, shall therefore be deemed, as from today, a final prohibitory order.
Part II of the applicants' Memorandum of Points of Argument contains a long list of attacks on the validity of the proceedings in these matters. During the course of argument, however, counsel for the applicants made it clear that he was not relying on any of the attacks outlined therein except those that he put forward in the course of argument. In particu lar, he made it clear that he was not questioning the conclusions of the Boards that the use of the mails for the purpose of transmitting the brochures in question constituted the specified offences under the Criminal Code.
Three matters that were raised by counsel for the applicants and that must be considered are:
(a) the lack of any recital by the Deputy Postmaster General in either of the interim prohibitory orders that he "believed on rea sonable grounds" that the applicant was, by means of the mails, committing the specified offence,
(b) the inclusion in the Board's report in the Book Bargains Inc. matter of a finding based on the transmitting of the advertisement of "More Blazing Sex-Films ..." which was not referred to in the interim prohibitory order, and
(c) the failure of the Postmaster General to send the section 7(2) registered letters within the statutory period of 5 days 3 .
I shall discuss the three points in the order in which I have set them out.
First, I shall consider the lack of a recital in the interim prohibitory order.
The only legal basis that I am aware of for regarding the lack of a recital as something that
invalidates the order is that, in the absence of appropriate recitals, one might have to conclude that the order made did not fall within the authority conferred by the statute on the Post master General to make such orders 4 . I know of no requirement that there be such a recital. In certain circumstances at least such a recital would be prima facie evidence of what is recit ed and so might be sufficient evidence of the essential jurisdictional facts. The only question to be decided in this connection, however, is whether the essential jurisdictional facts did exist when the order was made. "The incom pleteness of the recital is ... of no moment. It is the substance of the matter that has to be considered'''. It was not seriously contended on behalf of the applicants that the Deputy Post master General, who had taken legal advice on the matter, did not believe on reasonable grounds that the offences in question were being committed "by means of the mails". I have no doubt that he did believe it before he signed the orders in question. Furthermore, I am of opinion, after examining it, that the material that he had before him was "reason- able grounds" for such belief.
I turn to the second ground of attack that has to be considered, namely, the fact that the Board in the Book Bargains Inc. matter based their report on the transmission of a brochure "More Blazing Sex-Films . ..", which was not referred to in the interim prohibitory order, as well as on the brochure "WOMAN: Her Sexual Variations and Functions", on the transmission of which the interim prohibitory order was based. This raises a problem of some difficulty.
On one view of the matter, the position is that an interim prohibitory order was made against the applicant based on the belief of the Deputy Postmaster General that it was committing a particular offence (s. 7(1)), that it requested, as it was entitled to do (s. 7(2)), that that "order" be inquired into, that the Deputy Postmaster General was bound to reconsider that order in the light of the results of the inquiry and either revoke it or make it a final prohibitory order (s.
7(6)), and that, in those circumstances, it would be unjust to face the person against whom the interim order was made with additional grounds at the inquiry stage. I have come to the conclu sion, however, that that is an unduly narrow view of the matter.
The view that, in my opinion, is more in accord with the overall scheme of section 7 is that, when, having reasonable grounds to believe that a person is, by means of the mails, committing an offence, the Postmaster General makes an interim prohibitory order and the person affected requests that the order be inquired into, the statute contemplates an inqui ry into the whole question as to whether the relevant activities of that person are such as to call for a permanent prohibitory order or not. In the ordinary course of events, the Postmaster General will have evidence, when he makes his interim order, of only a few incidents. An inqui ry may show that such incidents are capable of an innocent explanation, or, on the other hand, it may show that they are only a minor part of a large scale criminal operation. That is the sort of thing that the inquiry, in my view, is designed to find out. This is apparent from the fact that the Board is required to inquire into "the facts and circumstances surrounding the interim prohibitory order" and not merely the facts on which the order was based and from the fact that not only may the person affected present evidence (s. 7(3)) but the Board "may consider such further evidence, oral or written, as it deems advisable" (s. 7(4)). There is no doubt in my mind that the Board should inquire into the volume of the distribution of the specified liter ature being carried on by the person affected by the interim order and should also inquire into any criminal distribution of other literature in the course of the same overall operation. I am not saying that the Board has a mandate to explore unrelated activities. Furthermore, the person affected by the order is entitled to a fair opportunity to answer anything alleged against him. Here, in my view, the secondary piece of literature on which the Board relied was clearly distributed in the course of the same overall business operation as that in which the piece of literature specified in the order was distributed
and there has been no suggestion that there was any lack of fairness in the hearing.
I now come to the question as to the effect of the failure of the Postmaster General to send to the persons affected by the interim prohibitory orders the communications informing them of the orders and the reasons therefor within the period of five days established by section 7(2) of the Post Office Act.
In the circumstances of this case, the only possible effect of this failure is that it created a right to have the final prohibitory orders set aside. The applicants cannot, having regard to their conduct, raise it as an objection to the proceedings of the Boards of Inquiry and the interim prohibitory orders are not before the Court. Furthermore, as it appears to me, the only basis on which this failure to comply with the statute may be regarded as creating a right to set aside the final orders is if, by virtue of it, there were no interim orders to be declared final in August, 1971. This could be so if the failure to comply with section 7(2) automatical ly nullified the interim orders or was subse quently used as a basis to invalidate them before they were declared final on August 17, 1971. I propose therefore to consider now what was the legal effect of the delay in sending out the section 7(2) letters on the initial prohibitory orders that had been made before that delay occurred.
In the first place, I am of the view that the requirement in section 7(2) is an essential part of the statutory scheme 6 and is not a mere directory provision'. While it is nowhere expressly stated in section 7, a complete failure to comply with the requirements of section 7(2) must, in my view, provide some basis for reliev ing the person affected by an interim prohibito ry order of the operation of that order. Whether a mere delay in sending the registered letter
beyond the five-day period would be sufficient for that purpose is something that, on the view that I take of the matter, I do not have to decide. For the purpose of this discussion, I am going to assume that a mere delay in sending the letter would be sufficient for the purpose.
The second aspect of the matter that must be considered is precisely how a failure to comply with section 7(2) operates in relation to the interim prohibitory order. In my view, it does not operate automatically to create a nullity out of the perfectly valid order that, in the circum stances of this particular statutory scheme, must have been operative at the time that the failure to comply with the statute occurred. A failure to take the steps designed to afford the person affected a hearing is, from this point of view, of the same character as the failure, in the ordinary case, to grant a fair hearing before exercising a statutory power to make an order. In such a case, even where the failure to grant a hearing takes place before the order was made, the failure to grant a hearing does not have the effect of making the order a nullity. What it does is to make the order voidable at the instance of the party affected. That is, it enables the person who was deprived of a hear ing to challenge the order and have it declared void ab initio as against him. No other person is entitled to challenge it and the person who was deprived of a hearing may refrain from chal lenging it, in which event, it continues in full force and effect. Compare Durayappah v. Fer- nando [1967] 2 A.C. 337, per Lord Upjohn at pp. 352-5.
In my view, therefore, the position is that, assuming that the failure to send out the regis tered letters within the five-day period was the sort of breach of the statute that would give rise to invalidating effect, it did not make the interim prohibitory orders nullities but merely gave the applicants a right to challenge them so that they would be invalidated'. In my view, unless and until such action was taken, the orders continued in full effect.
The applicants did not, however, take any action to have the orders invalidated. On the
contrary, they requested that the orders be inquired into under section 7(2), which could only be done if the orders continued in effect.
It is true that, by the letters requesting that the interim prohibitory orders be inquired into, the applicants stated that "This request, of course, is without prejudice to any and all rights of client". Assuming that this language would operate to preserve rights inconsistent with the holding of the inquiries concerning the orders, the most that can be said for it is that the right to challenge the orders and have them invalidat ed was thereby preserved. It is also true that, during the course of the proceedings before the Boards, there was some discussion of the ques tion of waiver as a result of which it is at least arguable that there was an agreement that the applicants should not be taken as waiving any rights arising out of the failure to send the letters within the five-day period. That also, as I read the transcript of the hearing, can have done no more than preserve the right to chal lenge the orders at some subsequent time.
No such action to challenge the orders and have them invalidated was taken while the Boards were functioning or at any time before the Deputy Postmaster General, after receipt of the Boards' reports, declared the orders to be final prohibitory orders.
In my view, therefore, the interim prohibitory orders were still in effect when the Deputy Postmaster General made his declarations under section 7(6) as a result of which they became final prohibitory orders. There is, therefore, in this aspect of the matter, no basis for setting aside those final prohibitory orders.
I have not overlooked the fact that, in the Application to Review and Set Aside by which these proceedings were instituted, which was, of course, deposited after the final prohibitory orders were made, there is a request that the interim prohibitory orders be set aside. This Court has not, however, jurisdiction to set aside
such orders and I therefore refrain from saying anything concerning the question whether it is still open to the applicants to take such pro ceedings in the appropriate Court.
My conclusion is that the applications should be dismissed.
* * *
THURLOW J. (orally)—By this application under section 28 of the Federal Court Act the applicants seek an order setting aside the deci sions and recommendations contained in the reports, dated August 6, 1971, of a Board of Review under section 7 of the Post Office Act and the final prohibitory orders of the Postmas ter General made on August 17, 1971 as a result of his acceptance of the decisions and recom mendations of the said Board. In the case of each of the applicants there had also been an interim prohibitory order made by the Postmas ter General on March 4, 1971, but, while the notice of the application to this Court also asked that these interim prohibitory orders be set aside, the fact that they were made prior to the coming into force of the Federal Court Act appears to preclude any such relief and to make points taken in respect of their validity relevant only in so far as they may tend to establish the absolute nullity of such interim orders and thus affect the validity of the decisions made after that time by the Board of Review and the Postmaster General.
It would seem to follow from this that if the decisions of the Postmaster General of August 17, 1971 to declare the interim prohibitory orders to be final prohibitory orders were set aside the consequence would be that the interim prohibitory orders would remain, with such effect, if any, as they had immediately before the declaration of August 17, 1971 was made, and further that the effect of setting aside the decisions and recommendations of the Board of Review as well would simply be to relegate the matter one step further back, that is to say, to the situation as it existed immediately prior to the making of the Board's report.
Section 7 of the Post Office Act and the applicable portions of the interim prohibitory orders made thereunder against each of the applicants have already been read and I shall not re-read them. Nor do I propose to review any more of the facts than appear to me to be necessary to raise and deal with the matters put forward in argument.
In the case of each of the applicants it was admitted in the course of the proceedings before the Board of Review that the applicant had in fact made use of the mails to distribute advertising brochures, as stated in the order made against it, to recipients in Canada. Before us, no submission was made by counsel that the brochures in question were not in fact obscene within the meaning of the Criminal Code of Canada and it would in any case be difficult, if not impossible, to seriously contend, either that they were not obscene or indecent within the meaning of section 153 of the Criminal Code, or that the Board of Review could not properly conclude that they were obscene or indecent within the meaning of that section. Moreover, the evidence put before the Board indicated that in each case before making the interim prohibitory order the Postmaster General had before him an opinion of counsel that the bro chures were obscene and that in each case these brochures had been forwarded to Canadian addressees in envelopes bearing the return address of the applicant. In each case as Well the material in the envelopes offered for sale the books advertised in the brochures and invit ed the recipient to reply to the applicant.
The first submission with which I propose to deal was that under section 7(1) the authority of the Postmaster General to make an interim prohibitory order must be based on a belief on reasonable grounds that a person is, by means of the mails, committing or attempting to commit an offence, etc., and that the interim prohibitory orders made against the applicants were defective in not reciting such a belief. The answer to this, in my opinion, is that no form of order is prescribed by the statute and nowhere does the statute itself require that such a recital
be set out in the order. What is required by the statute is that the Postmaster General have a belief and that it be based on reasonable grounds. Here it is, in my view, apparent that such reasonable grounds existed in the case of each of the applicants and were known to the Postmaster General and his belief in them is to be presumed from the fact that he exercised a power that was conditional on his having such a belief.
The applicants' next point was equally techni cal and arose on the form of the notices of the interim prohibitory orders that were sent to the applicants. It was that the reasons for the making of the orders were not stated in the notices as required by section 7(2). It will be observed that section 7(2) does not call for a statement of the Postmaster General's beliefs or of the evidence upon which he holds them but of the reasons for the order. Here the notice in the Medi-Data case stated:
TAKE NOTICE THAT on the 4th day of March 1971 an Interim Prohibitory Order was made by the Deputy Post master General pursuant to the provisions of section 7 of the Post Office Act against Medi-Data Inc. whose postal addresses are: P.O. Box 388, Van Brundt Station, Brooklyn, N.Y. 11215 and P.O. Box 4399, Grand Central Station, New York, N.Y. 10017 on the ground that Medi-Data Inc. is, by means of the mails, committing an offence TO WIT transmitting an obscene or indecent advertising brochure entitled "Sex Education Without Censorship" contrary to section 153 of the Criminal Code of Canada.
In the Book Bargains case the notice stated:
TAKE NOTICE THAT on the 4th day of March 1971 an Interim Prohibitory Order was made by the Deputy Post master General pursuant to the provisions of Section 7 of the Post Office Act against Book Bargains Inc., whose postal address is: P.O. Box 4040, Grand Central Station, New York, N.Y. 10017 on the ground that Book Bargains Inc. is, by means of the mails, committing an offence TO WIT transmitting an obscene or indecent advertising bro chure entitled "Woman her sexual variations and functions" contrary to section 153 of the Criminal Code of Canada.
In each case the ground for the order appears to me to be stated explicitly and I fail to see in what respect the statement is insufficient to satisfy the statutory requirement that the person affected by the order be informed of the reasons therefor.
The next point with which I shall deal is the submission that the Board of Review exceeded its jurisdiction in the Book Bargains Inc. case in finding and reporting to the Postmaster General that the advertisement of "More Blazing Sex- Films" was obscene and that the use of the mails for the purpose of transmitting it con stituted the offence described in section 153 of the Criminal Code when the transmission of this advertisement was not the subject-matter of the inquiry. It may be noted that the Board immedi ately after finding that the transmission of the advertisement of "Women" and "More Blazing Sex-Films" constituted the offence in question, proceeded to recommend that the interim prohibitory order be made final but it did not expressly find that Book Bargains Inc. had used the mails to transmit the latter advertisement. The only evidence of transmission by mail by Book Bargains Inc. consisted of two envelopes postmarked May 5, 1971 and May 7, 1971 respectively and bearing the name and an address of Book Bargains Inc. as the return address, together with the advertisements them selves which invited replies to Book Bargains Inc. In this case no admission was made that the envelopes or advertisements emanated from the applicant, but in the absence of evidence to the contrary and having regard to the evidence that was before the Board as to the nature of the business of Book Bargains Inc. and the manner in which it was conducted it was, in my opinion, open to the Board to find, as I think it should be regarded as having impliedly done, that Book Bargains Inc. was responsible for the transmission of these envelopes by means of the Canadian mails.
The submission put forward by counsel on this question, as I understood it, was that the Board's finding that the advertisement for "More Blazing Sex-Films" was obscene and the transmission of it by mail an offence under section 153 of the Criminal Code was prejudi cial in that it tended to persuade the Postmaster General to make the interim order final in a general way, as he did, whereas if these findings had not been made he might have considered putting some limitation on the prohibition.
Under section 7(2) what the Postmaster Gen eral is to refer to the Board is "the matter, together with the material and evidence consid ered by him in making the order." I take the word "matter" to refer to the use by the person affected of the mails to commit an offence described in section 7(1) and the expression "material and evidence" to refer to the informa tion and evidence tending to establish the use by that person of the mails for that purpose which have come to the attention of the Post master General and have given rise to his belief. If, therefore, this were all that the Board were empowered to consider there might well be force in the applicants' contention. However, subsections (3), (4) and (5) of section 7 provide for other materials being put before the Board and subsection (3) directs the Board to inquire not merely into the facts of which the Minister may have had knowledge but "into the facts and circumstances surrounding the interim prohibitory order." By subsection (4) the Board is, moreover, expressly authorized to consider, in addition to the material and evidence referred to it by the Postmaster General "such further evidence, oral or written, as it deems advisable".
It seems to me that the statutory direction to the Board of Review to inquire into the facts and circumstances surrounding the interim prohibitory order is broad enough to embrace not merely an inquiry into the specific facts of such particular mailings as may have come to the attention of the Postmaster General but to include as well an inquiry into the nature of the business in which the person affected was engaged, the sort of materials which he dealt in, and his conduct in the use of the mails both before and after the making of the interim prohibitory order. It also seems to me that the authority to consider such further evidence as it deems advisable empowers the Board to consid er in relation to the material referred to it the conduct of the party affected in the use of the mails in connection with other matters of which the Board has evidence and, because it has considered them, as it has authority to do, to refer to such other evidence in its report. What effect the Postmaster General thereafter gives
to it is for him to decide. It is, of course, not inconceivable that such further evidence might be highly favourable to the party affected by the interim prohibitory order and might be a cause of the Postmaster General deciding to terminate it. On the other hand its effect may be adverse, as it was in the present case. But so long as the party affected is afforded a fair hearing as required by subsection (3) in regard to such additional evidence, including a fair opportunity to rebut it, no legal objection can be taken to the Board's receiving and consider ing it and if the Board is entitled to consider it I can see no sound objection to their reporting on it. Here no complaint is made of any lack of a fair hearing and in my opinion the objection is not sustainable.
The remaining point that calls for considera tion is the submission that the Board and the Postmaster General acted without jurisdiction because the notices of the making of the interim prohibitory order were not given within the five day period prescribed by section 7(2). In the course of argument there was a discussion of whether the requirement of this subsection was directory or mandatory but to my mind no purpose is served by endeavouring to character ize the requirement in this way. I incline to think it is mandatory but, even if it is not, it would be open to question whether the giving of notice as late as fourteen days after the making of the order could be regarded as substantial compliance with a direction to give the notice within five days. But, whether directory or mandatory, the requirement, as I read it, is one for the benefit of the person affected and strict compliance with it is capable of being waived. The failure to comply with the mandatory requirement, however, in my opinion, has no ipso facto effect on the validity of the interim prohibitory order. That order is regularly made ex parte. It is valid when made and continues to be valid and unassailable during the five day period. As I see it it also stands after the expiry of the five day period until it is voided by a
competent authority and in the meantime it is always open to the person affected to waive the failure of which he might have taken advantage. Such a waiver is in my opinion to be implied whenever the person affected, with knowledge of the facts, takes a course which is not consis tent with his exercise of his right to have the order voided by competent authority on the ground of failure to comply with the statutory requirement and in my view the requests of the applicants for reference of the matter to a Board of Review in the present case were, subject to what I shall add with respect to the purported reservation of rights, effective waiv ers of the applicants' rights to object to the timeliness of the notices.
The reservation to which I have referred was expressed in the letter by which Book Bargains Inc., through its New York attorneys, requested an inquiry by a Board of Review and it was incorporated by reference in the request of Medi-Data Inc. as well. In the Book Bargains case the letter, after acknowledging receipt of the notice of the order, read:
On behalf of said client, we hereby request that the Interim Prohibitory Order be inquired into.
I should also appreciate it if you could advise me whether it would be proper or appropriate for me to represent the client in Canada, either with or without legal counsel.
This request, of course, is without prejudice to any and all rights of client.
At that moment the rights of the applicants were to take proceedings to have the order quashed or to waive that right and insist on a hearing before a Board of Review.
Thereafter, the Board of Review was appoint ed and convened and proceeded to make its inquiries and reports.. At the start of the first inquiry, however, counsel for the applicants objected that because of the failure to give the notices in time the Postmaster General had no jurisdiction to continue the orders in effect and the inquiries proceeded on the understanding that participation therein by the applicants and their counsel would not be treated as waiving their rights.
Notwithstanding these reservations, however, it appears to me that, so far as the proceedings of the Board of Review are concerned, includ ing its report and recommendations and the action of the Postmaster General thereon, which are the subject-matters of this applica tion, the objection as to the timeliness of the notice must be treated either as having been waived or as being irrelevant. The inquiries were requested by the applicants. They were set up and conducted pursuant to that request. They could have no basis for existence save as inquiries under section 7 requested by persons affected by interim prohibitory orders. And having requested and participated in them the applicants, in my view, should not now be heard to challenge that they were in fact and in law inquiries under section 7 or that the Board did not have jurisdiction, when convened, to pro ceed to conduct the inquiries and make its reports and recommendations. Nor do I think the applicants are in a position to challenge the authority of the Postmaster General to make a declaration under section 7 after reviewing the reports and recommendations of the Board.
What may yet be reserved to each of the applicants under the reservation of its letter and its preliminary objection at the hearing, though no concluded view on the question is required and I, therefore, express none, is any right it may have had to attack the interim prohibitory order itself for the purpose of having it quashed. Such an attack, however, as already indicated, is not open to it on this application and any ground it may have for such an attack, cannot, in my view, while the order itself stands, afford a basis for attacking a proceeding which is based on the existence of the order and the request of the applicant itself for such proceeding.
I would dismiss the application.
* * *
WALSH J. (orally)—This is an application to review and set aside the decisions and recom mendations made on August 6, 1971 by the Board of Review appointed by the Postmaster General pursuant to the provisions of section 7 of the Post Office Act, and to review and set aside the final prohibitory orders of the Post master General made on August 17, 1971 as a result of his acceptance of the decisions and recommendations of the said Board, as well as the interim prohibitory order.
These various decisions are based on section 7 of the Post Office Act, R.S.C. 1970, c. P-14 which I shall not quote in extenso as it is quoted in the Reasons for Judgment of the Chief Justice.
Following complaints received (although admittedly relatively few in number in relation to the total mailings of the material in question) the Postmaster General caused an investigation to be made as a result of which he issued two interim prohibitory orders against the two appli cants, among others, both dated March 4, 1971. The order against Medi-Data reads:
PURSUANT TO the provisions of section 7 of the Post Office Act the undersigned hereby makes an Interim Prohibitory Order against:
(c) Medi-Data Inc. whose postal addresses are: P.O. Box 388, Van Brundt Station, Brooklyn, N.Y. 11215 and P.O. Box 4399, Grand Central Station, New York, N.Y. 10017 on the ground that Medi-Data Inc. is, by means of the mails, committing an offence TO WIT transmitting an obscene or indecent advertising brochure entitled "Sex Education without Censorship" contrary to section 153 of the Criminal Code of Canada;
PURSUANT TO this Order the delivery of all mail directed to or deposited in a Post Office by any of the persons or corporations mentioned in paragraphs (a) to (j) inclusive is prohibited.
An identical order was made against applicant Book Bargains Inc. with relation to an advertis ing brochure entitled "Woman: Her Sexual Variations and Functions".
Notice of the making of these orders was only given to applicants pursuant to section 7(2) on March 18, 1971, that is to say, fourteen days after the order instead of five days as required by the said section. The notice complies with the requirements of subsection (2) of the Act with the exception of the delay within which it was given and a copy of section 7 of the Act was attached to the notice.
As a result of this, Mr. Levy, the New York attorney for applicants, wrote the Deputy Post master General on March 25, 1971 on behalf of Book Bargains Inc. together with a further letter on behalf of Medi-Data Inc., incorporat ing by reference and making part thereof the contents of the letter written on behalf of Book Bargains Inc. The first two paragraphs of the former letter read as follows:
We represent Book Bargains Inc., which has received a notice from you dated March 18, 1971, advising client that 14 days previous to the date of your notice, an Interim Prohibitory Order was issued.
On behalf of said client, we hereby request that the Interim Prohibitory Order be inquired into.
and the fourth and fifth paragraphs read:
This request, of course, is without prejudice to any and all rights of client.
It may be that we can amicably dispose of this matter without litigation. If the Canadian Post Office were willing to enter into an agreement under which advertisements for the book mentioned in your letter would no longer be sent into Canada by mail, and permitting all other mailings (except for advertisements for the aforementioned book), client would be willing to settle the matter on such basis, providing, of course, that it is agreed that such a stipulation would not constitute an admission by client that the book in question was obscene, nor, of course, would it constitute an admission by Post Office Department that it was not obscene.
In due course a Board of Review was set up and heard evidence and full representations on behalf of applicants and the Postmaster General including the introduction of an additional advertising folder for "More Blazing Sex- Films" as well as the introduction by applicants, although these exhibits were filed subsequently, of the books referred to in the advertising bro chures with respect to which the interim prohibitory orders had been made. The conclu sion of the report of the Board of Review dated August 6, 1971, in connection with applicant Medi-Data Inc. reads as follows:
In the circumstances, and for the above reasons, the Board of Review finds that the use of the mails for the purpose of transmitting the advertisement "SEX EDUCA TION WITHOUT CENSORSHIP!" constitutes the offence described in section 153 of the Criminal Code. The Board of Review recommends that the interim prohibitory order be made a final prohibitory order.
In the case of applicant Book Bargains Inc. it reads:
The Board of Review finds that the use of the mails for the purpose of transmitting the advertisement of "WOM- AN: Her Sexual Variations and Functions" (and the adver tisement of "More Blazing Sex-Films ...") constitutes the offence described in section 153 of the Criminal Code. The Board of Review recommends that the interim prohibitory order be made a final prohibitory order.
Section 153 of the Criminal Code referred to in the interim prohibitory order and the report of the Board of Review, reads as follows:
153. Every one commits an offence who makes use of the mails for the purpose of transmitting or delivering anything that is obscene, indecent, immoral or scurrilous, but this section does not apply to a person who makes use of the mails for the purpose of transmitting or delivering anything mentioned in subsection (4) of section 151.
(This section is now section 164 of the Criminal Code R.S.C. 1970, c. 34.)
Pursuant to section 7(6) of the Post Office Act the Deputy Postmaster General then reviewed the interim prohibitory orders and wrote letters to the New York attorney of appli cants on August 17, 1971, reading in part:
I have reconsidered the interim prohibitory order and I wish to inform you that I have accepted the recommendation made by the Board of Review. The interim prohibitory order that was made against ... on March 4, 1971, shall therefore be deemed, as from today, a final prohibitory order.
Even the most cursory examination of the pamphlets in question indicates that they are obscene within the definition of section 150(8) of the Criminal Code (now section 159(8)) which reads as follows:
(8) For the purposes of this Act, any publication a domi nant characteristic of which is the undue exploitation of sex, or of sex and any one or more of the following subjects, namely, crime, horror, cruelty and violence, shall be deemed to be obscene.
and hence the Postmaster General and Board of Review were correct in finding that applicants were making use of the mails "for the purpose of transmitting or delivering anything that is obscene, indecent, immoral or scurrilous" within the meaning of the then section 153. The fact that the material was unsolicited and enclosed in an inner envelope reading:
NOTICE—READ BEFORE OPENING
This envelope contains unsolicited sexually oriented, illus trated literature and brochures. The enclosed brochures may photographically or pictorially illustrate pictures of nude women and/or nude men together or separately in erotic situations, sexual embrace or intercourse and may include pertinent text.
IF YOU ARE NOT OVER THE AGE OF 21 AND/OR NOT INTERESTED IN SEEING OUR BROCHURES AND PURCHASING THIS MATERIAL, THEN:
PLEASE DISPOSE OF THIS ENVELOPE WITHOUT OPENING!!
It is not our intention to disturb, annoy or offend any person not interested in our literature. If you wish your name removed from our mailing list, please return to us the coded mailing label that bears your name and address. If you receive another mailing from us; after requesting the removal of your name, this would be only because your name appears on a list we rented from another firm and we were unable to delete your name from this list.
does not, in my view, help applicants. It was conceded before the Board of Review that the pamphlets in question could be mailed to addressees under the age of 18, and in such an event a warning as to the nature of the contents would be more likely to titillate the curiosity of the recipient, as it would also in the case of many adults, than cause them to reject the contents unopened.
Applicants contended that in the case of the findings of the Board of Review with respect to Book Bargains Inc., these were invalidated by the consideration of the advertisement for "More Blazing Sex-Films" which was not con sidered by the Postmaster General in making his interim prohibitory order. The answer to this argument is found in section 7(4) of the Post Office Act giving the Board of Review the right to consider, in addition to the material and
evidence referred to it by the Postmaster Gen eral, "such further evidence, oral or written, as it deems advisable". I am satisfied that the scheme of the legislation requires the Postmas ter General to make a summary finding in order to issue an interim prohibitory order on the basis of such evidence as is before him at the time, but that, when after due notice has been given to the party against whom the order has been made, a Board of Review is set up at his request, the Board of Review must then, in accordance with section 7(3) "inquire into the facts and circumstances surrounding the interim prohibitory order". The order is not made with respect to a certain piece or pieces of material but against a person who has mailed such material, and in deciding whether an offence appears to have been committed against what was then section 153 of the Criminal Code, a full investigation should be made by the Board of Review with a view to determining the volume of the material sent and the nature, not only of the material with respect to which the initial complaint has been laid but of any other material being mailed by the same person. The fact that not all of this material may be obscene is of no aid to the mailer since if he has mailed some obscene material, the order will, in effect, cancel his mailing privileges. It was, therefore, I believe proper for the Board of Review to go beyond the scope of the material which was before the Postmaster General when he made the interim prohibitory order and examine such further and additional material as might be sub mitted by either the applicants or the Postmas ter General.
Applicants further invoke section 7(7) of the Post Office Act which reads as follows:
7. (7) The Postmaster General may revoke an interim or final prohibitory order when he is satisfied that the person affected will not use the mails for any of the purposes described in subsection (1), and the Postmaster General may require an undertaking to that effect from the person affected before revoking the order.
and direct attention to the letter of Mr. Levy of March 25, 1971 requesting an inquiry into the interim prohibitory order in which he suggests
in the 5th paragraph (supra) that an agreement might be entered into under which advertise ments for the book in question would no longer be sent into Canada by mail, permitting all other mailing, the whole without any admission that the book in question was obscene. I do not find that this was a formal request by applicants to invoke section 7(7) of the Act nor that there is any obligation on the Postmaster General to apply section 7(7), the said section being per missive, and I might add that, in my opinion, the Postmaster General very properly failed to accept applicants' proposed settlement which would have had the effect of banning only the pornographic material specifically complained of and under consideration at the time, leaving applicants free to continue to use the mails for other similar material had they so desired, including any books for which orders might have been received as a result of the said por nographic advertising pamphlets. As already stated, the order is against an individual mailer who is mailing pornographic material and affects any material which he may mail, and is not directed against one specific piece of porno graphic material which is under investigation at the time.
Applicants argue that the form of the interim prohibitory order is defective in that it does not follow the wording of section 7(1) of the Act by stating therein that the Postmaster General believes "on reasonable grounds" that appli cants are by means of the mails committing an offence contrary to section 153 of the Criminal Code. I do not find much substance to this objection. While it might have been preferable if this statement had been made in the order, it is nevertheless clear from the evidence relating to the material before the Postmaster General that he acted on legal opinion of departmental counsel and therefore "on reasonable grounds" and not impetuously or without due considera tion of the material before him, and the nature of the material before him is spelled out in the orders which specifically name the offending brochures. Furthermore, in the notices sent to applicants advising them of these orders it is stated that they were made "pursuant to the
provisions of section 7 of the Post Office Act" and, hence, by implication "on reasonable grounds" even though these words are not specifically used in the orders or letters giving notice of them.
The most serious argument raised by appli cants deals with the effect of the delay in giving notice to applicants of the issue of the interim prohibitory order, which notices were given nine days later than they should have been under the provisions of section 7(2) of the Act. Applicants claim that they suffered grave preju dice as a result of this as otherwise they might have immediately desisted from mailing further such material and therefore avoided the addi tional mailing costs and the seizure of this material. It is of some interest to note, however, that the force of this contention is considerably weakened by the fact that some of the exhibits in the file bear post marks long after March 18, 1971 and hence it can be inferred that the mailings were continued even after notice of the interim prohibitory order had been received. The real issue is whether the requirement of giving notice within five days after the order is issued is a mandatory requirement such as to nullify the effect of the order if such notice is not given within the required time. While the Postmaster General should undoubtedly comply meticulously with the requirements of the law and the giving of the notice is an essential requirement, as otherwise applicants would have no means of knowing that their mailing privileges had been cancelled and the material they were continuing to mail was being seized, it is clear that the order takes effect from the date when it is made and that its effect is not suspended until this notice has been given. The notice is a supplementary step which should be taken and which the Postmaster General could no doubt be obliged to take by appropriate legal proceedings in the event of his failure to do so of his own volition to the prejudice of the person against whom the order is made, but the failure to take it within the five day period does not of itself make the order radically null ab initio. In my view, it merely gives the person against whom it has been made the opportunity
of asking that it be set aside by appropriate proceedings before a court having jurisdiction to do so by way of certiorari. Since this Court does not have jurisdiction over such proceed ings with respect to an order made prior to June 1, 1971, I express no views on whether such proceedings would have succeeded, on whether they are still open to applicants, nor on the related question as to whether a notice given nine days late nevertheless constitutes "sub- stantial compliance" with the requirements of the Act.
In the present case applicants' New York attorney was evidently well aware that the notice had not been given to his clients within the time required by the Act. His clients had been sent copies of section 7 of the Act with the letters giving them notice and in the first paragraph of his letter o•f March 25, 1971, he makes a point of the date of the notice being fourteen days after the issue of the interim prohibitory order. Despite this, a request is made to inquire into it although "without preju dice to any and all rights of client". At the opening of the hearing before the Board of Review, he raised this question and states:
... Therefore, the only way this could be remedied, I would believe, would be by the Board of Review really declaring not that the Board of Review has no jurisdiction in a sense, but that the Postmaster General has no jurisdiction to continue the order in effect—that is, the order that has been made in this case, and in the other case—since due and proper notice was not given thereof.
After considerable discussion between counsel, the Chairman of the Board of Review ruled as follows: (Proceedings before Board, p. 35)
The Board of Review feels that either the defect can be cured, or the defect would render the interim prohibitory order invalid. Should the order become invalid in that fashion, which the Board does not believe, then undoubted ly the Board would have no jurisdiction to entertain the review, and the Board would not be the proper forum in which to raise this objection, because the Board could not
rule upon this objection. On the assumption, however, that the defect is curable then the Board can review the case, and make a recommendation which is not a decision and which is not binding upon the Postmaster General, and the party affected in any event can avail itself of the present review without renouncing any rights it might contend to possess as to attacking either the jurisdiction of the Board or the validity of the order.
Can we proceed on that basis and ruling, Mr. Levy?
and Mr. Levy replied:
On the understanding that this continuation would be without prejudice and without waiver, we would consent to that, sir.
I do not think it would be reasonable to say, therefore, that Mr. Levy waived his clients' rights to object to the delay in giving notice of the interim prohibitory order but I do find that the Board was not the proper forum in which to make this objection. The Board of Review is required merely to "inquire into the facts and circumstances surrounding the interim prohibi tory order" after giving "the person affected a reasonable opportunity of appearing before the Board of Review, making representations to the Board and presenting evidence". It is not a court and its function is limited to dealing with the facts with the view of determining whether the order was justified, in its view, and recom mending whether it should be made final. I therefore agree with the Board's findings on this matter as set out on page 2 of its report (page 65, Appeal Book) where it states:
... The Board is of the opinion that the interim prohibitory order is not invalidated in the circumstances and that should a "grave prejudice" have been suffered by the persons affected, their remedy lies elsewhere than before a Board of Review that has to inquire into whether the Postmaster General had "reasonable grounds" to believe that a person is by means of the mails committing or attempting to commit an offence, and following the inquiry, to make "recommendations". Furthermore, the Board does not con sider that, in the circumstances, the fact of informing the applicants within fourteen days in lieu of five days consti tutes a jurisdictional fact in relation to the Board of Review; thus, having regard to its duty to inquire pursuant to the request of the persons affected and pursuant to the refer ence to the Board by the Postmaster General, and having regard also to the fact that the Postmaster General could issue or could have issued another interim prohibitory
order, the Board of Review feels that it must submit a report in each case herein.
The question of whether the interim prohibi tory order should be set aside because notice of same was not given to applicants within five days of the issue thereof is not before this Court in these proceedings and on the basis that such order has not been set aside by a court of competent jurisdiction in appropriate proceed ings, it must be considered as remaining in effect. On this basis the application to review the recommendations in the report of the Board of Review as well as the decision of the Post master General accepting these recommenda tions that the orders be made final prohibitory orders should be dismissed. It is true that the final prohibitory order is not a decision de novo and cannot stand by itself but is merely a reaf- firmation, after investigation and report by the Board of Review and a reconsideration of their recommendation, of the interim prohibitory order and that therefore, in the event that the interim prohibitory order should be found inval id, subsequent proceedings would also fail, but no such finding having been made in the present matter nor in fact being capable of being made on the proceedings brought to date, the interim prohibitory order is capable of being so reaf firmed by the final prohibitory order.
Applicants' application to review and set aside the orders in question must therefore fail and be dismissed.
' The Application to Review and Set Aside also refers to "the interim prohibitory orders" but as these were made on March 4, 1971, this Court has no jurisdiction to set them aside. See section 61 of the Federal Court Act, which came into force on June 1, 1971, and the decision of this Court in In re Copyright Appeal Board and Canadian Association of Broadcasters [1971] F.C. 170.
2 Section 7 of the Post Office Act should be read with section 23(2) of the Interpretation Act, c. 7 of the Statutes of 1967 (R.S.C. 1970, c. I-23), which reads as follows:
23. (2) Words directing or empowering a Minister of the Crown to do an act or thing, or otherwise applying to him by his name of office, include a Minister acting for him, or, if the office is vacant, a Minister designated to act in the
office by or under the authority of an order in council, and also his successors in the office, and his or their deputy, but nothing in this subsection shall be construed to authorize a deputy to exercise any authority conferred upon a Minister to make a regulation as defined in the Regulations Act.
3 A fourth matter concerning the form of the notices of the interim prohibitory orders was also raised and on that point I adopt the views to be expressed by Thurlow J.
4 In which event, it would be a nullity and, that being so, there would have been no foundation for the final prohibito ry orders that are before the Court in this proceeding.
5 Cf. Cooperative Committee on Japanese Canadians v. Attorney General for Canada [1947] A.C. 87 per Lord Wright at p. 107.
e Compare The Queen v. Randolph [1966] S.C.R. 260 per Cartwright J. (as he then was) delivering the judgment of the Court, at p. 266: "The main object of s. 7 is to enable the Postmaster General to take prompt action to prevent the use of the mails for the purpose of defrauding the public or other criminal activity ... Sub-section (1) enables him to act swiftly in performing the duty of protecting the public while subs. (2) gives protection to the person affected by confer ring the right to a hearing before any order made against him becomes final."
SI For a discussion of imperative and directory enact ments, see Maxwell on Interpretation of Statutes, 12th ed., pp. 314 ff.
e A further question would arise in a case under section 7 of the Post Office Act as to whether such invalidation would be retroactive and, if so, to what extent.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.