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\f36\fs24\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 IN THE HIGH COURT OF FIJI
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 At Labasa
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Civil Jurisdiction
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par CIVIL ACTION NO. 27 OF 1989
\par 
\par Between:
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 BANK OF NEW ZEALAND
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (Sub.nom Australia and New
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid9728170\charrsid9728170 Zealand Banking Group)}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Plaintiff
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid9728170\charrsid9728170 - and -}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 MAVIS JUDITH BASWAIYA
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 d/o Victor Hamilton Prasad
\par }\pard \qc \li0\ri0\nowidctlpar\tx-1440\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 & 10 OTHERS
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Defendants
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par Mr. V. Parshuram for the Plaintiff
\par Mr. V. Parmanandam for the Defendants
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 JUDGMENT
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 This is an application for summary judgment}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
under }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Order 14}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  of the High Court Rules.
\par 
\par The action was first instituted in }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 August 1989}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  and purported to be based on a guarant
ee signed by the defendants guaranteeing payment on an account styled }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
Labasa Farmers Club Co-operative Thrift & Credit Society Limited' (hereafter referred to as the }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Thrift & Credit Society').
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 In their }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Statement of Defence}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
 the defendants merely denied that they had made any request for advances from the plaintiff bank to the above-mentioned account.}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
They also denied giving any guarantee as alleged.
\par 
\par The particular guarantee document adverted to in the }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Statement of Claim}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  is dated the }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 26th of September 1985}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 .}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 In it the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 principal debtor'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  is described as}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9728494 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
"Labasa Farmers Club Co-operative Thrift and Credit Society Limited a duly constituted body under the provisions of the Co-operative Societies Act."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par On the face of it the action appeared to be fairly straightforward but in an }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 amended}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  }{
\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Statement of Claim}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  the plaintiff bank acknowledged that the guarantee, the basis of its claim, }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 "... erroneously referred to the debtor as the Labasa Farmers Club Co-operative Thrift and Credit Society Limited"}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
, whereas it should have been the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 "Labasa Farmers Club Co-operative Society Limited"}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (hereafter referred to as the}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Co-operative Society').
\par 
\par The plaintiff bank nevertheless maintains that the defendants }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (3 of whom were authorised signatories to the account)}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  knew that the }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
Thrift and Credit Society' had never been in-corporated; knew all along that the loan facilities requested had been provided to and was utilised by the }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Co-operative Society'; and whatsmore the defendants had always intended that the only guarantee }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (which 
they themselves provided)}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  would be an effective security for the plaintiff bank in respect of the over-draft facilities it provided on the account being operated.}{
\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 In effect the plaintiff without in so many words raises the equitable }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 doctrine of estoppel}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 .
\par 
\par Learned counsel for the plaintiff also submits that there is no room for misunderstanding nor is this a case where "technicalities" }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (whatever that may mean)}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  should be allowed to the defendants to avoid their liabilities and he asks rhetorically}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9728494 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 "Should t
he plaintiff be made to suffer from an obvious mistake after the defendants had taken advantage of the facility provided?"
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Learned counsel for the defendants on the other hand raises 2 grounds in opposing the application.}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{
\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Firstly}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  it is said that the application was precluded by the filing of a }{
\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Statement of Defence}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  and }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 secondly}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  the plaintiff's amended claim was such that it did not require an affidavit in reply.}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Put simply, the money was loaned to account }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
A' and the plaintiff claims on a guarantee given for account }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 B'.
\par 
\par As to the first ground I am satisfied that the filing of a }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Statement of Defence}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
 before an application for summary judgment does not preclude the application being made nor does it prevent summary judgment being granted if the Court is of the view that there is no defence to the claim.}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid9728494\charrsid9728170 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 See for example}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 McHardy v. Slateum}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  (1890) 2 Q.B. 504)
\par 
\par The defendants' second ground however can only be explained by a strict reliance on the terms of the guarantee.}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
There is no affidavit in reply to that filed}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
by the Labasa branch manager of the plaintiff bank and hence no denial of the numerous facts deposed therein which included assertions as to the state of the defendants' knowledge and understanding of the bank account and more particularly the guarant
ee in question.
\par 
\par Learned counsel for the defendants' cited from the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 White Book'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  the dictum of Bramwell L.J. in }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Lloyds Banking Co. v. Ogle}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  (1876) 1 Ex. D. 262 where the learned judge said at }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 p.264}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9728494 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 "In my opinion, it ought to be a general rule that, where
 there is no acknowledgment of the debt by the defendant or anything else to show that the defence is for mere purposes of delay, in the case of a guarantor or surety like the defendant, he should not be prevented from going to trial."}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par But in the same case Cleasby B. said at }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 p. 245}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9728494 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
"My impression would have been that, if a man induces a banker to advance money by giving a guarantee, then, on affidavit by the manager that the sum is due, a defendant setting up no defence should be called on to give securi
ty when he can say no more than that he does not know of his indebtedness."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par I note also that unlike in this case the defendant in that case filed an affidavit denying any knowledge of the debt nor receiving any statement of account from the plaintiff showing the particulars of their claim against the principal debtor.
\par 
\par More particularly in this case the defendants could have filed affidavits explaining their knowledge and understanding of the operations of the bank accounts and the circumstances in which the guarantee was furnished.}{
\f0\lang2057\langfe5129\langnp2057\insrsid9728494  }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 They have chosen instead to say nothing nor have they filed an amended defence as they are quite entitled to.
\par 
\par I am satisfied that estoppel does apply in this case and would respectfully adopt the exposition of the doctrine by Denning M.R. in }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Amalgamated Property Co. v. Texas Bank}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170  (1982) 1 Q.B. 84 when he said at }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 p. 122}{\f0\lang2057\langfe5129\langnp2057\insrsid9728494 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid9728494 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 "When the parties to a transaction proceed on the {\*\bkmkstart QuickMark}{\*\bkmkend QuickMark}
basis of an underlying assumption either of fact or of law -whether due to misrepresentation or mistake makes 
no difference - on which they have conducted the dealings between them - neither of them will be allowed to go back on that assumption when it would be unfair or unjust to allow him to do so.}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid9728494\charrsid9728494  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 If one of them does seek to go back on it, the Court will give t
he other such remedy as the equity of the case demands."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728494 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid9728494 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 In this case the underlying assumption upon which the parties conducted their dealings was that the guarantee was a binding and effective document that secured the }{
\f0\lang2057\langfe5129\langnp2057\insrsid9728494 '}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 Co-operative Society' account bei
ng operated at the plaintiff bank and in my view the equity of this case demands that judgment be entered for the plaintiff.
\par 
\par Accordingly the plaintiff's application is granted to the extent of $25,000 together with interest thereon at the rate of 7% p.a. with effect from the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 9th of July 1991}{
\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 .
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 (D.V. Fatiaki)
\par }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 JUDGE
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 At Labasa,
\par 5th August, 1992.
\par }\pard \qr \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid9728170 {\f0\lang2057\langfe5129\langnp2057\insrsid9728170 HBC0027J.89B}{\f0\lang2057\langfe5129\langnp2057\insrsid12457704\charrsid9728170 
\par }}