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os}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow0\irowband0 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2109939\charrsid8197383 \cell }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid2109939\charrsid8197383 \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid2109939\charrsid8197383 \trowd \irow1\irowband1 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Background\cell 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 5\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow2\irowband2 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow3\irowband3 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Evidence Adduced by Plaintiff to Date \cell 6}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 7\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow4\irowband4 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow5\irowband5 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Preliminary Issue of Law\cell 8}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 12\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow6\irowband6 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow7\irowband7 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 The Facts\cell 13}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 21\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow8\irowband8 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow9\irowband9 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 The Pleadings Regarding Illegality \cell 22}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 27\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow10\irowband10 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow11\irowband11 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Development Investment Act 1977}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16744065 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920\charrsid8197383 Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920\charrsid8197383 1996}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920\charrsid8197383 28}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920\charrsid8197383 32}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow12\irowband12 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow13\irowband13 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Relevant Provisions of the 1977 Act \cell 33\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow14\irowband14\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow15\irowband15 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow16\irowband16\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Was the Plaintiff }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 carrying on business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 in the Cook Islands?\cell }\pard \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid16653789\yts16 { \fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 34}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 50\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow16\irowband16 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow17\irowband17\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow17\irowband17 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow18\irowband18\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Status of the Approval of the Development Investment Board\cell }\pard \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid16653789\yts16 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 51}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 53\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow18\irowband18 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow19\irowband19\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow19\irowband19 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow20\irowband20\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Does the letter advising approval of the registration of Market Reach purport retrospectively to approve advances made before registration?\cell }\pard \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid16653789\yts16 { \fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 54}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 58\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow20\irowband20 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow21\irowband21\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow21\irowband21 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow22\irowband22\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Was it within the statutory power of the Board to grant retrospective approval?\cell }\pard \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid16653789\yts16 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 59}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 76\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow22\irowband22 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalb\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\trowd \irow23\irowband23\ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132 \pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow23\irowband23 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Relief from an Illegal Contract\cell 77}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 82\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow24\irowband24 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow25\irowband25 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Result\cell 83}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 85\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow26\irowband26 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \cell \cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow27\irowband27 \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\faauto\adjustright\rin0\lin0\pararsid8927633\yts16 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 Costs\cell 86\cell }\pard\plain \ql \li0\ri0\widctlpar\intbl\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16653789\charrsid8197383 \trowd \irow28\irowband28\lastrow \ts16\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind0\tblindtype3 \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7848\clshdrawnil \cellx7740\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1392\clshdrawnil \cellx9132\row }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid2839418\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2839418\charrsid8197383 Back}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid348980\charrsid8197383 g}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4260006\charrsid8197383 round}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2839418\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This case concerns the lending of $90}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 by the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 an Australian company which is currently in creditors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 voluntary liquidation}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a Cook Islands company which operates as an inbound service operator}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to facilitate its purchase of a bus}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Second Defendants}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 who are Cook Islands residents}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 are said to have provided guarantees for the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s obligations under the loan made by the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8799868\charrsid8197383 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff sues pursuant to }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a Loan Agreement and Acknowledgement of Debt dated 31 May 1995 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Loan Agreement}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 an Instrument by Way of Security over the bus dated 4 August 1995 and }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 3}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a Multiple Guarantee also dated 4 August 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 3}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff claims the following relief \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8093568\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6581840 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 JUDGMENT}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in the sum of }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 EIGHTY FIVE THOUSAND NINE HUNDRED AND SEVENTY SEVEN DOLLARS SEVENTY CENTS}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 $85}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 977}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 70}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 together with a further sum}{\fs24\lang2057\langfe1033\langnp2057\insrsid5470596\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 re}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2770800\charrsid8197383 presenting interest from the 1}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid2770800\charrsid8197383 st}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 day of September 1998 down to the date of }{\fs24\lang2057\langfe1033\langnp2057\insrsid6581840\charrsid8197383 judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under and pursuant to the terms of the Judicature Act 1980}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 81}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid2770800 {\fs24\lang2057\langfe1033\langnp2057\insrsid2770800\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6581840 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 B}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 AN}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 order that the Bus be delivered forthwith to the solicitor and duly }{\fs24\lang2057\langfe1033\langnp2057\insrsid6581840\charrsid8197383 authorized}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 agent of the Plaintiff}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid1379494 {\fs24\lang2057\langfe1033\langnp2057\insrsid1379494\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6581840 {\fs24\lang2057\langfe1033\langnp2057\insrsid6162281\charrsid8197383 C}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6162281\charrsid8197383 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 declaration that the Plaintiff is entitled t}{\fs24\lang2057\langfe1033\langnp2057\insrsid2635175\charrsid8197383 o sell and dispose of the Bus}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7864834\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2635175\charrsid8197383 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ubject to the terms of th}{ \fs24\lang2057\langfe1033\langnp2057\insrsid13569694\charrsid8197383 e instrument by way of security}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid13569694 {\fs24\lang2057\langfe1033\langnp2057\insrsid13569694\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6581840 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 D}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 THE}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 costs of and incidental to this action}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3683459 {\fs24\lang2057\langfe1033\langnp2057\insrsid3683459\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid6581840 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 E}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 SUCH}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 further and other relief as this Honourable Court deems just}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid6581840\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 4}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Defendants admit that the total sum of $90}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 was advanced but raise various defences and contend that they are under no obligation to repay the advances}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6689993 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 5}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 One of the defences is illegality due to alleged non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 compliance with the Development Investment Act 1977 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 if it was in force}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Development I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6689993\charrsid8197383 nvestment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6689993\charrsid8197383 1996}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid6689993\charrsid8197383 It is }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pleaded that }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff did not obtain approval for the advance of funds from the }{\fs24\lang2057\langfe1033\langnp2057\insrsid6689993\charrsid8197383 Development Investment Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...":}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 paragraph 14}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Amended Statement of Defence}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 13 April 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid6581840\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Evidence Adduced by Plaintiff to Date \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 6}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The evidence of Mr Stephen Lloyd}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a director of the Plaintiff and the main witness for the Plaintiff was taken before me in Auckland on 3 October 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Mr Lloyd had previously sworn an affidavit dated 23 May 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 He gave some supplementary evidence and was cross}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 examined}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 7}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 At that hearing an Agreed Bundle of Documents was produced}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6581840\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Preliminary Issue of Law \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff wishes to bring this case to a conclusion because it is the last outstanding matter in its liquidation}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 There are other witnesses to be heard who reside in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 9}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The parties agreed in a joint memorandum of counsel dated 12 October 2001 that the final determination of the case may be expedited if the Court rules on the legal issues arising under the illegality defence}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 10}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 They invoke Rule 197 of the Cook Islands Code of Civil Procedure}{\fs24\lang2057\langfe1033\langnp2057\insrsid6096545\charrsid8197383 which}{\fs24\lang2057\langfe1033\langnp2057\insrsid290382\charrsid8197383 provides}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8093568\charrsid8197383 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid8093568 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The parties may}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 after an action has been commenced}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 concur in stating the questions of law arising in the action in the form of a special case for the opinion of the Court}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Every such special case should be divided into paragraph numbers consecutively}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and shall concisely state such facts and documents as may be necessary to decide the questions raised thereby}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On the argument of such case the Court and the parties shall be at liberty to refer to the w}{\fs24\lang2057\langfe1033\langnp2057\insrsid931604\charrsid8197383 hole contents of such documents}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and the Court shall be at liberty to draw from the facts and documents stated in any such special case any inference}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whether on fact or of law which might have been drawn therefrom if proved at trial}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 11}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The questions of law to be determined are set out in the joint}{\fs24\lang2057\langfe1033\langnp2057\insrsid10123521\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 memorandum of 12 October 2001 as follows}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2097781\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "(}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Whether or not the contract the subject of these proceedings is an illegal contract}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by virtue of the actions of the Plaintiff amounting to an illegal carrying on of business }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whether}{\fs24\lang2057\langfe1033\langnp2057\insrsid15999141\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under the provisions of the Development Investment Act 1977 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as amended}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or under the provisions of the Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and if the Court should find it to be illegal}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid2097781\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Whether or not relief is available under the Illegal Contracts Act 1987 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whether under the provisions of Section 46 of the Development Investment Act 1977 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as amended}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or under}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3817544\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the provisions of Section 40 of the Development Investment Act 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 12}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As to the }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 facts and documents}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to which reference may be made in terms of Rule 197}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the joint memorandum states that }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Counsel are agreed that for the purposes of addressing these two issues}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court shall have regar d to the pleadings of the parties and to the folio of agreed documents which has been filed by the parties}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It further states}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2097781\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 6}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 COUNSEL}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for the parties }{\fs24\lang2057\langfe1033\langnp2057\insrsid394557\charrsid8197383 acknowledge}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid394557 {\fs24\lang2057\langfe1033\langnp2057\insrsid394557\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid16412069 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 If the Plaintiffs lose on t}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16412069\charrsid8197383 he basic question of illegality}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 but it is held that relief is available under the Illegal Contracts Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 there may need to be additional evidence relevant to the exercise of the discretions under }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 40 of the Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to grant relief}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid535951 {\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 7}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 COUNSEL}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for the Defendants take the position that there is sufficient evidence in the portfolio of agreed documents for the purposes of making a determination under Section 40 of the Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The submissions of the Defendants under Part F addre ss this issue}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid535951 {\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 COUNSEL}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for the Plaintiff takes the position that the evidence contained in the portfolio of agreed documents is insufficient for the purposes of making a determination under Section 40}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and wish to reserve their right to call further evidence for the purpose of determining any issues of fact relevant t}{\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 o the application of Section }{\fs24\lang2057\langfe1033\langnp2057\insrsid13462186\charrsid8197383 40}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid535951 {\fs24\lang2057\langfe1033\langnp2057\insrsid535951\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid2097781 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 9}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 IF}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff chooses to call further evidence}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Defendants reserve their position to a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14304166\charrsid8197383 lter}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid14304166\charrsid8197383 amend or add to }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid14304166\charrsid8197383 its}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid14304166\charrsid8197383 wr}{\fs24\lang2057\langfe1033\langnp2057\insrsid4214421 itten submissions}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ..."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid4739153 {\fs24\lang2057\langfe1033\langnp2057\insrsid4739153\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 The Facts \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 13}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Based on the pleadings and the Agreed Bundle of Documents and drawing appropriate inferences from them}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court finds that the undisputed chronology of events is as follows}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 21 March 1995 there was a meeting at Aggie Grey Hotel}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Western Samoa}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 between Mr Stuart Henry a director of the First Defendant and Mr Steven Lloyd}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a director of the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The purpose of the meeting was to make arrangements for a loan by the Plaintiff to assist with the financing and purchase of a Mitsu}{\fs24\lang2057\langfe1033\langnp2057\insrsid16138923\charrsid8197383 bishi Fuso coach model No NK 11}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 6J }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the bus}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which was at that time situated in New Zealand}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The bus was}{\fs24\lang2057\langfe1033\langnp2057\insrsid8261310\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to be used in Rarotonga for the purposes of the tourist business of the First Defendant which operates within the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 14}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As a result of the Aggie Grey meeting}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff made a first advance of $10}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 by transmitting that sum to the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s bank account in Rarotonga on 28 March 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 31 May 1995 the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the First Defendant and Second Defendants signed in Rarotonga a document entitled }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Loan Agreement and Acknowledgment of Debt}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ",}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under which the Plaintiff agreed to advance the sum of $120}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 to the First Defendant and the Second Defendants for the purchase of the bus}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for alterations and refurbishment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for its freight and insurance}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for the construction of a garage for the bus and for refinancing aspects of the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s operations}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The loan agreement provided}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10241159\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid10241159 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Security for the advance shall be provided by way of chattels security over the coach as a first and only charge in respect of the coach}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10241159\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The loan agreement further provided}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10241159\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid10241159 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The principal sum shall earn interest at a rate to be ag}{\fs24\lang2057\langfe1033\langnp2057\insrsid681672\charrsid8197383 reed between the parties hereto}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and repayment shall be made at such rate and manner as shall be agreed between the parties}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10241159\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Subsequently the parties agreed that a lesser sum than $120}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 would be}{\fs24\lang2057\langfe1033\langnp2057\insrsid3555124\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 advanced}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 15}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 8 June 1995 the Plaintiff advanced the sum of $80}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 by transmitting that sum to the First Defendant}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s bank account in Rarotonga}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 No arrangements were made for int}{\fs24\lang2057\langfe1033\langnp2057\insrsid14159624\charrsid8197383 erest to be paid on the advance}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 16}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The total sum of $90}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 was paid by the First Defendant to a Christchurch}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 New Zealand company in relation to the acquisition of the bus}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1855854\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 2 August 1995 the First Defendant through its solicitors Stevenson Nelson & Mitchell}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 applied to the Cook Islands Monetary Board for registration of the Plaintiff as a foreign enterprise}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The application was put forward on the basis that }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the case of }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Andersen v Automarine}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 suggests that Market Reach Pty Ltd should apply }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for registration as a foreign enterprise at least for the purposes of making the advance }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and possibly in respect of}{\fs24\lang2057\langfe1033\langnp2057\insrsid14223611\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the payment in and out of their bank account at Rarotonga which might conceivably fall under the description of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carry on business} {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "".}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 18}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 4 August 1995 the First Defendant executed an instrument by way of security over the bus}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 4 August 1995 the Second Defendants signed in Rarotonga a document entitled }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Multiple Guarantee}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by which they assumed personal responsibility as principal debtors for all sums advanced}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Under the loan agreement of 31 May 1995 and the Multiple Guarante e of 4 August 1995 the liability of the Second Defendants was joint and several}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 5 October 1995 the Cook Islands Monetary Board wrote to Stevenson Nelson & Mitchell and said}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3562486\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3621806 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Dear Sir}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6427299 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6427299\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3621806 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 re}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 MARKET REACH PTY LIMITED \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6427299 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6427299\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3621806 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Please to advise that the Board at its meeting has approved the }{ \fs24\lang2057\langfe1033\langnp2057\insrsid4144932\charrsid8197383 registration of Market Reach Pty}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Limited as a foreign enterprise pursuant to section 28 and 46 of t}{ \fs24\lang2057\langfe1033\langnp2057\insrsid683243\charrsid8197383 he Development Investment Act 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 77 to carry on business in the Coo}{ \fs24\lang2057\langfe1033\langnp2057\insrsid28574\charrsid8197383 k Islands in the activities of}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :-}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid28574 {\fs24\lang2057\langfe1033\langnp2057\insrsid28574\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid3562486 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Advancing funds to Hugh Henry & Associates to refinance the recent purchase of a bus and make further funds available for the construction of a garage f}{\fs24\lang2057\langfe1033\langnp2057\insrsid9593586\charrsid8197383 or the bus and make further sum}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 available for the settlement of certain company obligations}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6427299 {\fs24\lang2057\langfe1033\langnp2057\insrsid6427299\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9593586 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Yours sincerely}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9593586 {\fs24\lang2057\langfe1033\langnp2057\insrsid9593586\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3621806 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Maine Brown \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9593586 {\fs24\lang2057\langfe1033\langnp2057\insrsid9593586\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9593586 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid9593586\charrsid8197383 for Acting Secretary}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 20}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 15 November 1995 the Plaintiff entered into Creditors}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Voluntary Liquidation}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 21}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 On 1 September 1998 the Plaintiff made formal demand of the First and Second Defendants for the sum of $85}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 977}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 70 which it claims is outstanding but has not received payment}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The First and Second Defendants have not made any payment in reduction of the amounts advanced by the Plaintiff to the First Defendant}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4919376\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4919376\charrsid877682 The Pleadings}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 Regarding Illegal}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid3487485\charrsid877682 ity}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9587804\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 22}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 amended statement of defence dated 13 April 2000 states in the relevant part}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid1986257\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid4919376 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 14}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid1986257\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 advance}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of funds made by the Plaintiff to the First Defendant was in contravention of the Development Investment Act 1977 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by virtue of the fact t hat the Plaintiff did not obtain}{\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 approval for the advance of funds from the Development Investment Board as required under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid1855854\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid4919376 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 15}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The approval of the Development Investment Board was for }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Advancing funds to Hugh Henry & Associates to refinance the recent purchase of a bus and make further funds available for the}{\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 construction of a garage for the bus and make a further sum available for the settlement of certain inter}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 company debt}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid1855854\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid4919376 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 16}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The approval of the Development Inve}{\fs24\lang2057\langfe1033\langnp2057\insrsid14174894\charrsid8197383 stment Board was granted on 5}{ \fs24\lang2057\langfe1033\super\langnp2057\insrsid14174894\charrsid8197383 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 October 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 some seven }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 7}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 m}{\fs24\lang2057\langfe1033\langnp2057\insrsid14942910\charrsid8197383 onths after the advance to the P}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 laintiff of the sum of Ten thousand dollars }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 $10}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and for some four }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 4}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 months after the advance of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9111268\charrsid8197383 Eighty thousand dollars }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9111268\charrsid8197383 $80}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid9111268\charrsid8197383 000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by the P}{\fs24\lang2057\langfe1033\langnp2057\insrsid9269973\charrsid8197383 laintiff to the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid3562486\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid4919376 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Therefore the advance of funds by the Plaintiff to the First Defendant was illegal and under the 1977 Act any contract that may have existed under the documents plead }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 sic}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or otherwise is void}{\fs24\lang2057\langfe1033\langnp2057\insrsid220031\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 ab}{\fs24\lang2057\langfe1033\langnp2057\insrsid988988 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 initio}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 , }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and the Plaintiff does not have recourse to the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 23}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 By way of alternative defence the Defendants plead}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid2507025\charrsid8197383 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 18}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 if the Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the 1995 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 applies to the transaction undertaken by the Plaintiff and the First Defendant and contract that may have existed under the documents plead }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 sic}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by the Plaintiff or otherwise was illegal and the Plaintiff has no recourse to }{\fs24\lang2057\langfe1033\langnp2057\insrsid2507025\charrsid8197383 the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid2507025 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This is by virtue of the provisions of section 40}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )(}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as the Plaintiff knew or ought to have known that the act or omission reasonably done by him was in contravention of this Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9731398 {\fs24\lang2057\langfe1033\langnp2057\insrsid9731398\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 24}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 At paragraph 14 of the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s amended statement of claim dated}{\fs24\lang2057\langfe1033\langnp2057\insrsid3671248\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 4 May 2000}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is stated}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 I}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 f for any reason the Court should find that any contract alleged in this statement of claim is illegal at law or in equity }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 wh}{\fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 ich is denied by the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 then in the circumstances of the case i}{\fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 t is appropriate that the Court}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in }{\fs24\lang2057\langfe1033\langnp2057\insrsid2383059\charrsid8197383 the course of these proceedings}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 grant to the Plaintiff such relief as is available under section 6 of the Illegal Contracts Act 1987}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 specifically}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff at all times intended to comply wi}{\fs24\lang2057\langfe1033\langnp2057\insrsid6100115\charrsid8197383 th the laws of the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff at all times conducted itself in a manner calculated to ensure that its actions wer}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4089621\charrsid8197383 e in compliance with those laws}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 c}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 To ensure that the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s actions wer}{\fs24\lang2057\langfe1033\langnp2057\insrsid10687475\charrsid8197383 e in compliance with those laws}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff retained a solicitor in the Cook Islands to ensure that the transactions the subject of these proceedings were legal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 binding and }{\fs24\lang2057\langfe1033\langnp2057\insrsid4089621\charrsid8197383 enforceable as a matter of the laws of the Cook Islands}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 d}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In finalising those transactions}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff acted in good faith and in reliance upon the advice given by }{\fs24\lang2057\langfe1033\langnp2057\insrsid5321432\charrsid8197383 that solicitor}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 e}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff at no time deliberately did or made any act or omission in contravention of the Development Investment Act 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96 or any other enactme}{\fs24\lang2057\langfe1033\langnp2057\insrsid5321432\charrsid8197383 nt in force in the Cook Islands}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid265282\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid742704 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 f}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Having retained a solicitor in the Cook Islands to ensure that the transactions the subject of these proceedings were legal}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 binding and enforceable as a matter of the laws}{\fs24\lang2057\langfe1033\langnp2057\insrsid3032191\charrsid8197383 of the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid3032191\charrsid8197383 and not h}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 aving been advi sed that its proposed actions were illegal as a matter of the laws of the Cook Islands and having instead been advised that the documents made and approvals obtained by that solicitor on its behalf were sufficient compliance with the laws of the Cook Isla nds}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff did not know}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 nor ought it reasonably to have known that the acts or omissions of the Plaintiff were in contravention of the Development Investment Act 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 96 or any other enactment in force in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid265282 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 25}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff filed written submissions dated September 2001 disputing the Defendants}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 allegation of illegality of the contract un}{\fs24\lang2057\langfe1033\langnp2057\insrsid12001340\charrsid8197383 der the 1977 Act} {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid12001340\charrsid8197383 The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s submissions are in summary}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15349197\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff was not carrying on business in the Cook Islands because the contract to advance }{ \fs24\lang2057\langfe1033\langnp2057\insrsid7949081\charrsid8197383 funds was made in Western Samoa}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15349197 {\fs24\lang2057\langfe1033\langnp2057\insrsid15349197\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The written documents entered into in the Cook Islands were only to secure repayment of funds previously agreed by persons outside the Cook Islands and advanced to a third party in New Zealand}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 21 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 h}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the Development Investment Act 1977 provides that the securing or collection of a debt is not to be regarded}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7949081\charrsid8197383 as the carrying on of business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15349197 {\fs24\lang2057\langfe1033\langnp2057\insrsid15349197\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 c}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The advance of $80}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 was an isolated transaction excluded from the definition of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pursuant to section 21}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the }{\fs24\lang2057\langfe1033\langnp2057\insrsid15816455\charrsid8197383 Development Investment Act 1977}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15349197 {\fs24\lang2057\langfe1033\langnp2057\insrsid15349197\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 d}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The advance of funds for the benefit of the Defendants did not require regulatory approval under the Act because it lacked the necessary object of pecuniary gain purs}{\fs24\lang2057\langfe1033\langnp2057\insrsid5847072\charrsid8197383 uant to section 2} {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid5847072\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid5847072\charrsid8197383 of the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid15349197 {\fs24\lang2057\langfe1033\langnp2057\insrsid15349197\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid3286666 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 e}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 If the contract and loan were illegal under the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff is entitled to relief under the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Defendants filed submissions dated 1 October 2001 in respect of the defence of illegality}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Defendants submit in summary that}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid9796730\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff was in breach of section 26}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the Development Investment Act 1977}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which requires registration of a foreign enterprise carrying }{ \fs24\lang2057\langfe1033\langnp2057\insrsid679976\charrsid8197383 on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid679976\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Monetary Board registration was sought after the arrangements between the parties had been made and the advances to the First Defendant had taken place}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Monetary Board was not able to grant retrospectiv}{\fs24\lang2057\langfe1033\langnp2057\insrsid24532\charrsid8197383 e registration}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 c}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid6781447\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The arrangements between the parties }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Defendants deny that a binding contrac}{\fs24\lang2057\langfe1033\langnp2057\insrsid8155411\charrsid8197383 t was ever formed}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8155411\charrsid8197383 were illegal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 d}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid6781447\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 of the Act bars relief for illegal contracts}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including recourse to}{\fs24\lang2057\langfe1033\langnp2057\insrsid13396483\charrsid8197383 the Illegal Contracts Act 1987}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 e}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid6781447\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The arrangements between the parties are therefore unenforceable and the Court cannot grant relief to the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid7820826 {\fs24\lang2057\langfe1033\langnp2057\insrsid3286666\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 27}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff filed reply submissions dated 12 October 2001}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3373652\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 D}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid1908251\charrsid877682 evelopment Investment Act 1977 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid1908251\charrsid877682 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 Development Investment Act}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6762586\charrsid877682 }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 1995}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 1996 \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid7820826\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 28}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The first matter to be determined by the Court is which legislation applied to restrict the activities of foreign enterprises at the time of the relevant transactions}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff submits that the Development Investment Act 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1996 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the 1996 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 applied}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 while the Defendants submit that the Development Investment Act 1977 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ("}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 applied}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 29}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court finds that the 1977 Act was the legislation in force when the transactions in question took place}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 30}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The 1977 Act was repealed on 1 September 1996 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the date that the 1996 Act came into force}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under section 44 of the 1996 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 43}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1996 Act confirms the rule of statutory interpretation that the later Act is not retroactive in effect}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It states}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "(}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Without limiting the provisions of the Acts Interpretation Act 1924}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is hereby declared that the repeal of the Development Investment Act 1977 by this Act shall not affect any approval granted or anything whatsoever done under the enactment so repealed and every such approval so far as it su}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6566663 bsists or is in force at the tim}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 e of the amendment or repeal shall continue and have effect as if it had been made or done under the corresponding provision of this Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3373652 {\fs24\lang2057\langfe1033\langnp2057\insrsid3373652\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 31}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 The material arrangements between the parties were initiated in March 1995 in Western Samoa}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 but}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 more importantly}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 the actual advances were made in Rarotonga on 28 March 1995 and 8 June 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 Dealings between the parties continued until the Plaintiff entered voluntary liquidation in November 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 The application to the Cook Islands Monetary Board was made on 4 August 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 . }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid3234558 Registration by the Cook Islands Monetary Board was given in October 1995 but under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 32}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 There is therefore no doubt that the 1977 Act was the current legislation at the time of the relevant transactions between the parties}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 namely the advances made in March and June 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 Relevant Provisions of the 1977 Act \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 33}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In determining whether the contract in question is illegal under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the following provisions are relevant}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ):}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid12870821 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "'}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Activity}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 includes any single commercial}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 industrial or trade enterprise carried on wi}{\fs24\lang2057\langfe1033\langnp2057\insrsid9911805 th the object of pecuniary gain}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ..."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid2428058 {\fs24\lang2057\langfe1033\langnp2057\insrsid2428058\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid12870821 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "'}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Carrying on business}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 means carrying on an economic activity pursuant to the objects of the enterprise }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 but an enterprise shall not be regarded as carrying on business by reason solely that it}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3373652 {\fs24\lang2057\langfe1033\langnp2057\insrsid3373652\charrsid8197383 \par }\pard \ql \li2160\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin2160\itap0\pararsid12870821 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 h}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 secures or collects any of its debts or enforces its rights in regard to any securi}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2428058\charrsid8197383 ties relating to any such debts}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3373652 {\fs24\lang2057\langfe1033\langnp2057\insrsid3373652\charrsid8197383 \par }\pard \ql \li2160\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin2160\itap0\pararsid12870821 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 i}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 conducts an isolated transaction that is completed within a period of 31 days}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 not being one of a number of similar transactions repeated from time to time}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9272018\charrsid8197383 Section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9272018\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ):}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid12870821 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 No foreign enterprise shall carry on business in the Cook Islands in any activity unless that foreign enterprise is registered in respect of that activity pursuant to this Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 28}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ):}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid11221698 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Registration of new activities}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Any foreign enterprise intending to carry on business in the Cook Islands in any activity in respect of which it is not registered pursuant to this Act or which it is not included in the existing activities of that foreign enterprise shall apply to the Board for registration of that activity pursuant to this section}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid11221698 {\fs24\lang2057\langfe1033\langnp2057\insrsid11221698\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 30}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid5596831 {\fs24\lang2057\langfe1033\langnp2057\insrsid5596831\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid1604266\charrsid8197383 Pursuant to this Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a registered foreign enterprise may carry on business in an activity in relation to which it is registered}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 42}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ):}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid11417536 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Every foreign enterprise which carries on business in contravention of subsection }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of section 26 of this Act commits an offence and shall be liable on conviction to a fine not exceeding $5}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 and where the offence is a continuing one to a further fine not exceeding $500 for every day or part of a day during which the offence continues}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid9522405 {\fs24\lang2057\langfe1033\langnp2057\insrsid9522405\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid7956165 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Loans and Contracts}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In any case where a foreign enterprise carries on business in the Cook Islands in contravention of section 26 of this Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 any loan or contract entered into by that foreign enterprise shall be illegal and of no effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and none of the prov isions of the Illegal Contracts Act 1987 shall be available to that foreign enterprise}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 nor to the party who contracted with that foreign enterprise if that party knew at the time of entering into the loan or contract that the foreign enterprise was operating in contravention of section 26}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9899427\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 Was the Plaintiff }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16744065 \'93}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 carrying on business}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 in the {\*\xmlopen\xmlns1{\factoidname place}}Cook Islands{\*\xmlclose}? \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9899427\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 34}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff submits that it was not carrying on business in the Cook Islands under the definition in the 1977 Act because the contract was formed in Western Samoa}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the activity that did take place in the Cook Islands was an isolated transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and in any event the Plaintiff did not make the loans with the object of pecuniary gain}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9977157\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 35}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The issues whether the contract was formed in the Cook Is}{\fs24\lang2057\langfe1033\langnp2057\insrsid16673297\charrsid8197383 lands and whether the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities amounted to an isolated transaction under the Act are linked}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9977157\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 36}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court rejects the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s submissions}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff is faced with the difficulty that even if the original agreement was formed in Western Samoa}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 this agreement was a}{\fs24\lang2057\langfe1033\langnp2057\insrsid13305349\charrsid8197383 t a minimum varied in the Cook I}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 slands and may in fact have been replaced by a new agreement formed in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 But in any event the crucial point is that counsel have agreed in a joint memorandum that the $10}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 and $80}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 000 advances were made in the Cook Islands and matters relating to the loan}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including formal documentation}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 took place in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9977157\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 37}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2123867\charrsid8197383 Preston v Tiern}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ey}{\fs24\lang2057\langfe1033\langnp2057\insrsid4723844\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid4723844\charrsid8197383 CA 7}{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 92} {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2 July 1992}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 McMullin}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Speight and Barker JJA}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court of Appeal noted the exceptionally broad meaning of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court stated at page 10}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9977157\charrsid8197383 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid9977157 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the terms }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 activity}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 have been defined in the Act in a comprehensive way and undoubtedly cover activities which would not normally be considered to be the carrying on of a business or the carrying out of an activity}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4723844\charrsid8197383 As the Chief Justice observed}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Act cast }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a wide net of fine mesh}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13069074\charrsid8197383 it was very}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 difficult to imagine an economic activity which wou}{\fs24\lang2057\langfe1033\langnp2057\insrsid13069074\charrsid8197383 ld not be caught by the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...""}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9977157\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 38}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As to whether the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities amounted to an }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 isolated transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as defined in section 2}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court finds that the Plaintiff cannot bring itself within this exception to the definition of carrying on business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is not defined in the 1977 Act but is regarded as a word of wide import}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The connotations of the word may be illustrated by reference to certain statutory definitions of the term}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 39}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 2 of the Financial Transactions Reporting Act 1996 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 NZ}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 defines }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 transaction}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 for the purposes of the Act as follows}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid10165173 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Transaction}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6954792 {\fs24\lang2057\langfe1033\langnp2057\insrsid6954792\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid13964097 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Means an}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 y deposit}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 withdrawal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 exchange}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or transfer of funds }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in}{\fs24\lang2057\langfe1033\langnp2057\insrsid9970088\charrsid8197383 whatever currency denominated}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whether}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6954792 {\fs24\lang2057\langfe1033\langnp2057\insrsid6954792\charrsid8197383 \par }\pard \ql \li2160\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin2160\itap0\pararsid13964097 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 i}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In cash}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ii}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 By cheque}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 paymen}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 t order}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 or other instrument}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 iii}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 By electro}{\fs24\lang2057\langfe1033\langnp2057\insrsid13964097\charrsid8197383 nic or other non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid13964097\charrsid8197383 physical means}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14823434 {\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid13964097 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Without limiting the generality of the foregoing}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 includes any payment made in satisfaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in whole or in part }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of any contractual or other legal obligation}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;..."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid10165173 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 40}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 292 of the Companies Act 1993 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 NZ}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 defines }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as \par follows}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6954792\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid10165173 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "(}{\fs24\lang2057\langfe1033\langnp2057\insrsid13837132\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid13837132\charrsid8197383 In this section}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in relation to a company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 means}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14823434 {\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid14100005 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A conveyance or tran}{\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 sfer of property by the company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3814701 {\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid14100005 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The giving of a security or charge over the property of the company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3814701 {\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid14100005 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 c}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The incurring o}{\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 f an obligation by the employer}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3814701 {\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid14100005 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 d}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The acceptance by the company of execution under a judicial proceeding}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid3814701 {\fs24\lang2057\langfe1033\langnp2057\insrsid3814701\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid14100005 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 e}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The payment of money by the company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including the payment of money under a judgment or order of a court}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid10165173 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 41}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In the light of the wide import of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and what constitutes a separate transaction as opposed to part of a single transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is improbable that the Plaintiff}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities in the Cook Islands come within the exception for an isolated transaction not related to other similar transactions under section 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )(}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 42}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In a}{\fs24\lang2057\langfe1033\langnp2057\insrsid8930947\charrsid8197383 ny event}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8930947\charrsid8197383 even if the Plaintiff}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities may properly be regarded as amounting to one isolated transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the chronology of events referred to in paragraphs 14}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 18 above shows that the transaction was not concluded within a period of 31 days as required by the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Counsel have agreed by a joint memorandum dated 4 February 2002 that advances were made to a Rarotonga account of Hugh Henry & Associates on 28 March 1995 and 8 June 1995}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This joint memorandum renders untenable the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s argument that the first advance on 28 March 1995 did not constitute the carrying on of business in the Cook Islands and whilst the advance of 8 June 1995 might have constitut}{\fs24\lang2057\langfe1033\langnp2057\insrsid5446824 e}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the carrying on of business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it was covered by the exception for an isolated transaction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927806 Counsel}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4024096\charrsid8197383 now agree}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that both advances were made in the Cook Islands and even if they are to be regarded as one transaction}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the transaction was not completed within 31 days}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 43}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In regard to the third point raised by the Plaintiff }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whether the advances were made with the object of pecuniary gain to the Plaintiff }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court finds that the object of pecuniary gain existed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14105672\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 44}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Pecuni}{\fs24\lang2057\langfe1033\langnp2057\insrsid9970088\charrsid8197383 ary}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid9970088\charrsid8197383 was defined in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9970088\charrsid8197383 Presbyterian}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Church of New Zealand Ben}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid10290738\charrsid8197383 e}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ficiary Fund }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid10290738\charrsid8197383 v Commissioner of Inland Revenu}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 e}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1994}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 3 NZLR 363 at 376 as }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pertaining to or of money}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 45}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Importantly}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pursuant to section 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is not necessary for the Plaintiff to have received a financial benefit before becoming subject to sanctions under the Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 All that is necessary is that the Plaintiff had the object of gaining a financial benefit}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 While interest was not charged on the loan as it was in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Preston v Tierney}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it does not follow that there was no }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 object of pecuniary gain }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as contemplated in section 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 47}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 First}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the loan cannot be divorced from the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s ongoing commercial relationship with the Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff contemplated a long}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 term and financially beneficial commercial relationship of which the loan was an integral aspect }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Even in the short term}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s clients were to get the use of the Defendant}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s coach and other services and it was contemplated that the Plaintiff and its clients would receive preferential treatment from the Defendants in return for the loan}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 48}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Second}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is not of assistance to the Plaintiff that the First Defendant was not under any contractual obligation to pro vide pecuniary reward in return for the loan}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The term }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pecuniary gain}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is analogous to the term }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 reward}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ",}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which was considered by Cooke J in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Transport Ministry v Keith Hay Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1974}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1 NZLR 103}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This case concerned whether carriage may be for reward even where there is no contractual obligation to pay for it}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 His Honour held at page 106}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9315360\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid8155819 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8155819\charrsid8197383 Carriage}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8155819\charrsid8197383 then}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 may be for reward although no}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 on}{\fs24\lang2057\langfe1033\langnp2057\insrsid7605861\charrsid8197383 e is legally bound to pay for it}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 49}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The exception for non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pecuniary activity must also be seen in the light of section 2}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This sub}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section permits the Minister to declare that a person is not an enterprise within the meaning of sub}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 where}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1011815\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid1011815 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the activity in which a person is engaged is primarily and }{\fs24\lang2057\langfe1033\langnp2057\insrsid10753339\charrsid8197383 mainly intended for a religious}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 educational charitable or community purpose or for any other non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 profit purpose that is socially desirable}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or for a combination of such purposes }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ..."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 50}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This reinforces the Court of Appeal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s view in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11408242\charrsid8197383 Preston v Ti}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 erney}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that the legislature intended the Act to catch almost all economic activity}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 even where it would not be considered to be the carrying on of business in }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 common parlance}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 page 10}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The legislature allowed a limited exception for economic activity which is primarily for a non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 profit purpose}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff did not apply for a declaration that its objects were non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 pecuniary}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and in any event they were sufficiently pecuniary to be subject to the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid15023431\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid877682 Status of the Approval of the Development Investment Board \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 51}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In the light of the finding that the Plaintiff was carrying on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 there are two principal issues to be considered in this part of the judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The first issue is whether the letter from the Monetary Board advising that it had decided to approve the registration of Market Reach purports retrospectively to approve advances made before registration}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 . }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The second issue is whether the Monetary Board had the power to grant retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\tx4590\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid10753339 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 52}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Defendants submit that under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it was essential that approval by the Cook Islands Monetary Board was granted }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 before}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the advances were made and the written documents entered into}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Because the Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s approval was in fact granted some months after the advances were made and the various legal documents executed }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Defendants say that the advance of funds by the Plaintiff to the Defendant was illegal and any contract which may have existed under the documents was void from the outset}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 53}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff however}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 argues that the Cook Islands Monetary Board has the ability retrospectively to approve and register a foreign enterprise}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9398568\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 activities}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff submits that this is what indeed it did in October 1995 and the terms of the approval cover the transaction in issue in this case}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid6692041 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid15424876\charrsid8197383 Does the letter advising the approval of the registration}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of Market Reach purport retrospectively to approve advances made before registration? \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid10165173 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 54}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As a preliminary matter it must be determined whether the approval document purports to grant retrospective approval}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 irrespective of whether a power to grant such approval exists}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid4550676 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 55}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The document states}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4550676\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13439662 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Please to advise that the Board at its meeting has approved the registration of Market Reach Pty Limited as a foreign enterpr}{\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 ise pursuant to section 28 and }{ \fs24\lang2057\langfe1033\langnp2057\insrsid14096059\charrsid8197383 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the Development Investment Act 1977 to carry on business in the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4550676\charrsid8197383 Cook Islands in the activities }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :-}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid13439662 {\fs24\lang2057\langfe1033\langnp2057\insrsid13439662\charrsid8197383 \par }\pard \ql \li1440\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin1440\itap0\pararsid3699062 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Advancing funds to Hugh Henry & Associates to refinance the recent purchase of a bus and make further funds available for the construction of a garage for the bus and make further sum available for the settlement of certain company obligations}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 56}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is not clear from this that the Monetary Board intended retrospectively to approve advances which had already taken place}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The document is most probably a standard form statement used for prospective approvals}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 New Zealand statutory schemes distinguish between prospective approval and retrospective approval where the latter is permissible}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 An example is the Overseas Investment Act 1973 in which separate provisions for retrospective approval are contained in section 15}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Where it exists}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a power to grant retro spective approval is a separate discretion}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the exercise of which should be evident in an approval document}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 57}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court observed during the taking of evidence that the approval document does not reveal whether the Board knew the funds had been advanced}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The letter of request for approval sent to the Board by the Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 lawyer on 2 August 1995 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 after the advances had been made}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 does not contain an express request for retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The letter contains statements which suggest that only prospective approval was being sought}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 These include}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13439662\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13439662 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "[}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Sydney company in the travel industry who wish to advance funds}{ \fs24\lang2057\langfe1033\langnp2057\insrsid15755357\charrsid8197383 \'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to refinance the recent purchase of a bus and to refinance other aspects of the company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s business}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14695112 {\fs24\lang2057\langfe1033\langnp2057\insrsid13439662\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13439662 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Under the proposed arrangement}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Sydney company which is }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Market Reach Pty}{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 would advance funds to refinance that purchase} {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ..."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14695112 {\fs24\lang2057\langfe1033\langnp2057\insrsid13439662\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13439662 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid13439662\charrsid8197383 That is the extent}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the proposed business activities in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 58}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is highly doubtful that the Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s letter of approval purports to grant retrospective approval}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 I shall proceed to consider whether it had the power to grant such approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5076321\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Was it within the statuto}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid5076321\charrsid8197383 ry}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid5076321\charrsid8197383 p}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ower of the Board to }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11825340\charrsid8197383 g}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 rant retrospective approval? \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 59}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As soon as a foreign enterprise carries on business in the Cook Islands in an activity in respect of which it is not registered}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it breaches section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act and thus section 46 is triggered}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 provides that in this situation }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 any lo an or contract entered into by that foreign enterprise shall be illegal and of no effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Therefore}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 if it is considered that the advancement of the loans was }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ",}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 then the contract was illegal from its inception}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Th e advancement of the loans without Monetary Board registration was a statutory offence subject to significant penalties under section 42}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the Act and sanctions under section 46}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including the barring of recourse to the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Consequently}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the arrangement was unenforceable and the Plaintiff would have been unable to recover the advances if it had attempted to do so}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 60}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s only argument on this point can be that the Monetary Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s approval cured this illegality}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 an d thereby validated the contract}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s submissions do not expressly address the question whether the Board had the power to grant retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The argument for the Plaintiff would likely be that the use of the present tense }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is registered}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in section 26}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 does not unambiguously prohibit the Board from granting retrospective approval and therefore such a power may be presumed to exist}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 simply states that the activity must be registered but it does not specify expressly wh}{ \fs24\lang2057\langfe1033\langnp2057\insrsid7162628\charrsid8197383 en that registration must occur}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 61}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 any lack of clarity in section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 should favour the argument that the Board did not have the power }{\fs24\lang2057\langfe1033\langnp2057\insrsid489500\charrsid8197383 to grant retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A clear statutory power is necessary to permit the Board to effect a change to the legal position}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which was that the arrangement was illegal from its inception and the advancement of funds was a statutory offence}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 does not clearly grant the Board the power to bring about the legal change of nullifying the statutory offence and validating the arrangement between the parties}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In New Zealand statutory regimes}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is considered necessary to expressly provide for a power to validate otherwise illegal contracts where the existence of such a power is considered desirable}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Examples include section 15 of the Overseas Investment Act 1973 and section 25 of the Land Settlement Promotion and Land Acquisition Act 1952 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 repealed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 62}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In Cromwell Corporation Ltd v Sofrana Immobilier}{\fs24\lang2057\langfe1033\langnp2057\insrsid9325987\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9325987\charrsid8197383 New Zealand}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid9325987\charrsid8197383 Ltd }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid9325987\charrsid8197383 CA 258}{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 89}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 10 September 1991}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the New Zealand Court of Appeal considered Regulation 15}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the Overseas Inves}{\fs24\lang2057\langfe1033\langnp2057\insrsid10512335\charrsid8197383 tment Regulations 1985 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid10512335\charrsid8197383 SR 1985}{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 256}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 repealed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which provided}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid661461\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid661461 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 where a take}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 over offer is made and neither the Minister}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s consent is g}{\fs24\lang2057\langfe1033\langnp2057\insrsid12021100\charrsid8197383 ranted pursuant to regulation 10}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of these regulations}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 nor is the take}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 over offer effective under regulation 12}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )(}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of these regulations}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 any contract for the sale of shares resulting from the acc eptance of any such offer and any transfer of those shares consequent on such acceptance shall be unlawful and void}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 63}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This is similar to the }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 illegal and of no effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 provision in section 46}{\fs24\lang2057\langfe1033\langnp2057\insrsid12459917\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 of the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court of Appeal held at page 42}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid14823434 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "[}{\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 T}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 here can be no valid and lawful contract until application for consent has been made and either the Minister}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s consent has been obtained}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or the prescribed time has expired without notice of refusal of consent}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 64}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 A similar approach can be applied in the present case}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The contract is neither valid nor lawful }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is illegal and of no effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 until consent is given}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This means that the Monetary Board would require a power to waive the statutory offence }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 as provided in section 15 of the Overseas Investment Act 1973}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in order to cure the illegality at the contract}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s inception}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The 1977 Act does not contain such a power}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 65}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The availability and effect of retrospective consents was also considered by Doogue J in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Brodie v Wellington City Council}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8348221\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8348221\charrsid8197383 HC Wellington}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8348221\charrsid8197383 AP 186}{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 /}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 00}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid7961173\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 7 November 2000}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 66}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This case concerned provisions of the Building Act 1991}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Act provides}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 32}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Buildings not to be constructed}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 altered}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 or demolished without consent \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid96481 {\fs24\lang2057\langfe1033\langnp2057\insrsid96481\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It shall not be lawful to carry out building work except in a}{\fs24\lang2057\langfe1033\langnp2057\insrsid882607\charrsid8197383 ccordance with a consent to carry}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 out building work}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ...}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 issued by the territorial authority}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in accordance with this Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14950851 {\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 33}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Applications for building consents \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid10449774 {\fs24\lang2057\langfe1033\langnp2057\insrsid10449774\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 An owner intending to carry out any building work shall}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 befo}{\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 re the commencement of the work}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 apply to the territorial authority for a building consent is respect of the work}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 67}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Council had a policy of allowing retrospective consents}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The question was whether the granting of a retrospective building consent cured the illegality of building work undertaken prior to a consent being obtained}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 thereby preventing the Council from bringing proceedings under the offences section of the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court said}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The failure was a continuing failure and could not be righted by any action by the Council to grant an after}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 even}{\fs24\lang2057\langfe1033\langnp2057\insrsid5600178 t building consent}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ....}{\fs24\lang2057\langfe1033\langnp2057\insrsid15479713\charrsid8197383 It is not }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a consent}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in any event}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to the appellants}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 commencing the work without the requisite consents}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is a consent after the event to certify that the work carried out has been carried out in accordance with the Council}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s requirements}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "[}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 T}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 he Council cannot by its polic y amend or vary the statutory provisions or estop itself from taking action in respect of any breach of the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 18}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The retrospective consent of the Council is not inconsistent with the prosecution of the appellants for the breach of the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As already noted}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Council}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s policy is one to enable the lawfulness of the works done to be justified after the event}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is not a waiver of the failure of the appellants to apply for and obtain the necessary building consents before the works were commenced}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 23}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 68}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This case is different from the present case to the extent that the Building Act 1991 expressly requires consent prior to construction}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Brodie}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 does indicate that the Court will not lightly conclude that an authority possessed and exercised a power to waive past illegality}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In the present case the Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s approval letter conveys that the Plaintiff would have obtained registration to advance loans if it had applied for registration before making}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14038662\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the advances}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 this does not alter the fact that the Plaintiff}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities were illegal at the time they were undertaken and additional statutory authority was required to waive the statutory offence committed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 No such authority existed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 69}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In addition}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 there is force in the argument for the Defendants that it cannot have been Parliament}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s intention to allow a foreign enterprise to carry on business in the Cook Islands only to apply for registration and approval at a later stage}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The whole purpose behind the Cook Islands Monetar y Board approval and registration of foreign enterprises was to consider and screen foreign investment in the Cook Islands before it commenced}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It was not therefore a rubber stamping formality}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It was also persuasively submitted that if a foreign enterprise were allowed to operate in the Cook Islands without current registration}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 this would do little to deter foreign investors from setting up in the Cook Islands without any vetting whatsoever}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 only to operate until caught}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 70}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Additionally}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 must be interpreted in the light of other provisions of the 1977 Act and the Investment Code established pursuant to the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 71}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 of the Act makes it clear }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 indeed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff describes this section as }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 somewhat draconian}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ")}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that once a foreign enterprise has engaged in illegal activity}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it has no legal recourse }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the contract is of no effect}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 is triggered as soon as section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 has been breached}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It would be difficult to conceive that Parliament would have provided in s ection 46 that the illegality cannot be cured even pursuant to the Illegal Contracts Act 1987 only to allow the Plaintiff to go back to section 26 and obtain a waiver of the statutory offence and validation of the contract through the back door by applyin g for retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 72}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 must also be interpreted in the light of section 28}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13925647\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 This sub}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section provides}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Registration of new activities} {\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Any foreign enterprise intending to carry on business in the Cook Islands in any activity in respect of which it is not registered pursuant to this Act or which it is not}{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 included in the existing activities of that foreign enterprise shall apply to the Board for registration of that activity pursuant to this section}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 73}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The words }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 any foreign enterprise }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 intending}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to carry on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 suggest that only prospective approval is contemplated in the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 74}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Taken alone}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 26}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 may also be read as prohibiting retrospective approvals}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 albeit in a less than clear}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 cut manner}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The provision }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 no foreign enterprise shall carry on business in the Cook Islands in any activity unless that foreign enterprise is registered}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is not very different from a provision along the lines of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 no foreign enterprise shall carry on business in the Cook Islands prior to obtaining registration}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In the light of the purposes of the Act }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 3}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including the regulation of foreign investment}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and the consequences of non}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 compliance with the Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it would appear that the legislature intended the meaning conveyed by the latter wording}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is stretching the language of the Act to argue that the use of the present tense }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is registered}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 confers a power to effect the legal change of waiving the statutory offence and validating the contract}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 75}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Cook Islands Investment Code}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 which was established pursuant to}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14166137\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 18 of the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 also indicates that only prospective approval was}{\fs24\lang2057\langfe1033\langnp2057\insrsid14166137\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 contemplated in the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Code provides in part}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5729272 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Foreign investment must first seek approval from Government and must be registered as a foreign enterprise before being permitted to carry on business in any activity in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 76}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court finds that the Monetary Board did not have statutory authority to grant retrospective approval under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It necessarily follows since the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s activities amounted to }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 carrying on business in the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 under the 1977 Act}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that the contract and advances were illegal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid5729272\charrsid8197383 Relief from an Illegal }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Contract \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 77}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Where a statute states that contracts in breach of the statute are illegal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the contract is illegal at its inception }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Contract chapter in Butterwor}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 th}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 s }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 The Laws of New Zealand}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 226}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 of the 1977 Act specifically}{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 provides that the contract itself}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and not solely the performance of the contract}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 is illegal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Where a contract is illegal as formed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the courts will not enforce it }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Chitty on Contracts}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 28}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid2896813\charrsid8197383 th}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1999}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 paras 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 007}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 17}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 008}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and money paid under the illegal contract cannot be recovered }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Treitel}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Law of Contract}{\fs24\lang2057\langfe1033\langnp2057\insrsid10119184\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10119184\charrsid8197383 10}{\fs24\lang2057\langfe1033\super\langnp2057\insrsid10119184\charrsid8197383 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ed}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1999}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 452}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 As stated in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid15231451\charrsid8197383 Halsbury}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s Laws of England }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 4}{ \fs24\lang2057\langfe1033\super\langnp2057\insrsid8927633\charrsid8197383 th}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 ed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 vol 9}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ),}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1998}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 883}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5051908\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5051908 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Where a plaintiff seeks to recover money paid under an illegal contract the rule is that he may not do so unless he can make out his cause of action without reliance on the illegal contract}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and there does not seem to be a case in which a plaintiff has succeeded in doing this}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 78}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 of the 1977 Act provides that }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 none of the provisions of the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6755705\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Illegal Contracts Act 1987 shall apply to }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 foreign enterprise}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ".}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 79}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court of Appeal of the Cook Islands said in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Preston}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 v Tierney}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9397592\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid9397592\charrsid8197383 CA 7}{\fs24\lang2057\langfe1033\langnp2057\insrsid8655878 / }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 91}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 2 July 1992}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5395639\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid5395639 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Prior to the passing of s 46}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the most direct way of enforcing the legislation was by way of prosecution but this may have been ineffective against those foreign enterprises which were not resident within the Cook Islands}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 S 46 gave further teeth to the legislation by making the transactions entered into in breach of it illegal and of no effect}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it provided that none of the provisions of the Illegal Contracts Act should be available to the foreign enterprise}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid14823434 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 80}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In its submissions}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 arguing that the 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1996 Act applies}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 appears to concede that it would not have recourse to the Illegal Contracts Act 1987 under the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff in its submissions regarding the meaning and extent of applicable legislation calls section 46 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 somewhat draconian}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 2l}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and further states that the section was inserted }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 to absolutely preclude relief under the legislation}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 whatever the merits or circumstances of a given case}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 30}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff went on to observe }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 31}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ):}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid13585125\charrsid8197383 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin720\itap0\pararsid13585125 {\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Section 46 was deeply flawed in that it denied relief to foreign investors whatever the justice or equity of the particular circumstances of the case might require}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Parliament has obviously recognised that the provision was inappropriate and accordingly it has been repealed}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ....}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is submitted }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 on the basis that the 1995}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 1996 Act applied}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 that the bar to relief by way of an application under the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 represented by s 46 of the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 no longer operates}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ."}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 81}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 While the position under section 46 was unduly rigid}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 it is by no means unusual}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Several New Zealand statutes preclude recourse to the Illegal Contracts Act 1970}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 including the Employment Contracts Act 1991}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 sections 25 and 178}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Fisheries Act 1983}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 41}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 5}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 and the Commerce Act 1986}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 section 89}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 5}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Contract chapter in Butterworth}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Laws of New Zealand}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 para 217}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ).}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid10165173\charrsid8197383 82}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff cannot rely on the general law or the Illegal Contracts Act 1987 to recover the loans advanced to the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid1835567\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Result \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 83}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 For all of the foregoing reasons the Court answers the first question }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 a}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 in the affirmative and finds that the contract sued upon was an illegal contract and the advances of funds made to the Defendants were in contravention of the De velopment Investment Act 1977}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff was illegally carrying on business in the Cook Islands in terms of the Development Investment Act 1977 without official approval and the contract and loans were therefore illegal}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is doubtful whether the Monetary Board}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s letter of approval actually granted retrospective approval and in any event the Court finds that the Board had no such power to grant such an approval under the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 84}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court answers the second question }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 b}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 )}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 by determining that relief is not available under the Illegal Contracts Act 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Recourse to that Act was precluded by section 46 of the 1977 Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 85}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Court derives no satisfaction from the foregoing result and is less than impressed by the attitude of the Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 They encouraged the Plaintiff to make the loan but are now content to utilise the technical defence of illegality to defeat their otherwise clear obligations to repay it}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However the Court considers that the result is compelled by the inflexibility and rigidity of the 1977 statute brought about by its elimination of the ameliorating provisions of the Illegal Contracts Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 It is unfortunate that the 1977 Act excluded reference to the Illegal Contracts Act and also did not clearly specif y that the Cook Islands Monetary Board might grant what could be called a retrospective approval}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 There can be absolutely no doubt that the financing of}{\fs24\lang2057\langfe1033\langnp2057\insrsid14823434\charrsid8197383 }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the bus purchase was plainly for the benefit of the Cook Islands economy and it is inconceivable that a n application to the Monetary Board would have been refused if made in a timely way prior to the commencement of business in the Cook Islands by the granting of the loans}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 Costs \par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 [}{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 86}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ]}{\fs24\lang2057\langfe1033\langnp2057\insrsid6436825\charrsid8197383 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 s action must fail and there will be judgment for the Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 In view of the overall circumstances and especially the matters referred to in the preceding paragraph}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Court is not enthusiastic about making any award of costs to the successful Defendants}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 However}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Defendants are entitled to make an app lication for costs if they wish and the Court will of course consider such application on its merits}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 If the parties cannot otherwise agree the question of costs and the Defendants wish to pursue such an application}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 they must file a written application within 21 days}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 If such an application is made}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9399920 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 the Plaintiff must respond to it within a further 14 days}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid16393505 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 SIGNED }{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 at Auckland on 12 February 2002 at 1}{\fs24\lang2057\langfe1033\langnp2057\insrsid9399920 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 00pm}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid12347476\charrsid8197383 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid8927633 {\fs24\lang2057\langfe1033\langnp2057\insrsid12347476\charrsid8197383 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\faauto\adjustright\rin0\lin0\itap0\pararsid12387108 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid8927633\charrsid8197383 David AR Williams J}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid5123708\charrsid8197383 \par }}