A Sydney university is taking seven of its own students to the NSW Supreme Court in a bid to dissolve an independent student association and seize more than half a million dollars in funds.
Macquarie University will seek to forcibly close the postgraduate representative association (MUPRA) and absorb $500,000 in its reserves, according to court documents.
The university has also flagged its intention to claim legal costs against the seven students, all current or past elected members of MUPRA's voluntary executive if it wins the case due to be heard on Thursday and Friday.
The case could set a dangerous precedent for student unions, and ramps up a worrying trend among Australian universities, according to a peak student representative association.
Vice-president of the Council of Australian Postgraduate Associations and Macquarie student Mia Kwok said the case could open the door for other institutions to forcibly close student unions.
"We haven't seen anything like this before. A university has never tried to use the courts to wind up a student organisation in this way," Ms Kwok said.
She said the council had seen a "bullying culture" emerge among some universities when it came to their dealings with student associations.
"Many student unions are concerned that this is the tip of the iceberg and that, if Macquarie is successful, other universities will view this case as a precedent allowing them to close their own student unions," she said.
Tensions between Macquarie University and MUPRA have been building since 2012, and intensified in December 2013 when the university had MUPRA's bank account frozen.
The account contained more than $500,000, predominantly raised through student membership fees before compulsory student unionism was abolished in 2005.
President of MUPRA and a defendant in the case, Doug Williamson said he was shocked at the lengths to which the university was prepared to go to close the independent union.
"For a university to go to the extent of taking seven of its own students to court, students who pay to be educated by them and to receive student services, is completely unprecedented," Mr Williamson said.
The university's action only demonstrated the importance of independent student representation, he said.
Macquarie University claimed MUPRA failed to meet its financial obligations to deliver students services, and should be replaced by the university's student advisory board, according to court documents.
"The University is of the view that the interests of postgraduate students are better represented by the university's own initiatives and management," read an affidavit signed by Macquarie's deputy vice-chancellor for students and registrar Deidre Anderson.
For the benefit of postgraduate students the university intended to set aside the funds currently held by MUPRA, it read.
