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\par At Suva
\par Civil Jurisdiction
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par CIVIL ACTION NO. 113 OF 1991
\par 
\par Between:
\par 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 CARPENTERS FIJI LIMITED}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724\charrsid4001724 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Plaintiff
\par 
\par - and -
\par 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 RAM DUTT}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724\charrsid4001724 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Defendant
\par (f/n Not Known)
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par Mr.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Lateef for the Plaintiff
\par Mr. V. Parmanandam for the Defendant
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
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\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 This is an application by the plaintiff under }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Order 14}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  of the }{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 High Court Rules}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  for summary judgment in the sum of }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 $10,000}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  against the defendant.
\par 
\par The action is based on a }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Memorandum of Guarantee}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 executed by the defendant on the}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  16th of December 1986}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  in favour of the plaintiff company guaranteeing payment up to a sum $10,000 in respect of all goods and services supplied by the plaintiff company to}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  Toorak Builders Ltd}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 .}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par 
\par }{\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Although there is no }{\b\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Statement of Defence}{
\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  before the court the defendant has filed an affidavit disputing liability under the guarantee which it is not disputed was executed by him.
\par 
\par In particular the defendant raises several undisputed factual matters in his affidavit whic}{\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid5777586 h may be summarised as follows:}{
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\par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid4001724 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 "At the time of executing the guarantee he was
 an employee and shareholder of Toorak Builders Ltd. Subsequently on the 21st of July 1987 his employment with the company was terminated and this fact was advertised on the 23rd of July 1987 in a daily newspaper by way of a }{
\b\i\f0\ul\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 PUBLIC NOTICE}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  }{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 signed by the Managing Director of Toorak Builders Ltd.}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid4001724  }{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Within a week of his termination the defendant transferred his shareholding in Toorak Builders Ltd. to a third party.}{
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He also wrote to the company withdrawing his personal guarantee given on behalf of the company."}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
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\par The defendant also deposed in his affidavit that}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par 
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"the plaintiff company was aware of the facts that my guarantee had no effect on the credit facilities given to the said Toorak Builders after I had been terminated ..."
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\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 and furthermore}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }\pard \ql \li720\ri0\sa120\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid4001724 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 "the plaintiff wi
thout my prior consent has supplied goods to the said Toorak Builders for the period 1990 to 1991 when they ought to have known my guarantee was of no effect at the time of the goods delivery."}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par Neither of the above paragraphs have been denied on oath as t
hey could have been but learned counsel for the plaintiff company submits that they are irrelevant in any event because the defendant's liability is to be found in the guarantee document which is before the Court.
\par 
\par I cannot agree.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 The guarantee itself by}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  Clause 4}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  permits the defendant }{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 " ... in respect of future transactions, ... to give one calend}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid4001724 a}{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 r month's notice in writing of the cessation of this guarantee"}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 .
\par 
\par In the circumstances, although no such written notice has been annexed to the defendant's affidavit, nevertheless, the undisputed assertion in the defendant's affidavit}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724 : }{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 " ... that the plaintiff company was aware of the facts that my guarantee had no effect ..."}{
\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 raises some}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  prima facie}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  evidence invoking the provisions of}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  Clause 4}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  of the }{
\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Memorandum of Guarantee}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 .
\par 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Then counsel for the plaintiff company sought to rely on a recent decision of}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
 Jayaratne J.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  in C.A. 114/91 }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Carpenters Fiji Ltd. v. Chandra Lachmaiya Naidu}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  but having perused a copy of the ruling I note that the learned judge was there dealing with an }{
\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Order 14}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 application in which the defendant had completely failed to file any affidavit in reply to that of the Credit Manager of the plaintiff company.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 The judge's decision was, in the circumstances, perfectly understandable and easily distinguisha
ble from the present application.
\par 
\par In }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Paclantic v. Moscow Naroduy Bank}{\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  (1983) 1 WLR 1063}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  the following propositions were laid down in relation to applications under}{\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
 Order 14}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724 :}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  (per}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  Webster J.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  at p.1065).
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid4001724 {\b\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 "... summary judgment should not be given where ther
e is a bona fide defence (i.e. an issue or question in dispute which ought to be tried) or where there ought for some reason to be a trial; that on an application for summary judgment disputes of fact should not be decided, serious questions should not be
 determined in a summary manner and issues should not be tried; and that a defendant seeking to resist summary judgment should state clearly and concisely what his defence is and what facts are relied upon as supporting it."
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 In this present application the defendant has shown cause}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 by way of an affidavit with annexures which satisfies me}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 that there is an arguable defence to the plaintiff's claim.
\par 
\par Accordingly the plaintiff's application is dismissed, the defendant is granted leave to defend the action and it is further ordered that the defendant file and serve a }{
\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 Statement of Defence}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  within}{
\i\f0\expnd0\expndtw-2\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  21 days}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724  of the date hereof.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 The action is adjourned to Friday the }{
\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 20th September, 1991}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 .
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 (D.V. Fatiaki)
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 JUDGE
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 At Suva,
\par 28th August, 1991.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 
\par }\pard \qr \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid4001724 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4001724 HBC0113D.91S}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid16143094\charrsid4001724 

\par }}