The government's much-hyped Malaysian Solution is in turmoil after the High Court upheld a legal challenge on behalf of asylum seekers. The challenge, led by QC David Manne on behalf of 42 recently arrived asylum seekers (including six unaccompanied minors), focuses on human rights surrounding the policy and questions what protection Malaysia will offer to asylum seekers sent by Australia. Justice Kenneth Hayne ordered a hearing with the full High Court bench on August 22.

Sixteen of the men were due to fly out to Malaysia yesterday, the first of the government's new refugee swap deal with Malaysia, which will see 800 "boat people" swapped with 4000 refugees from Malaysia.