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{\title NATIONAL BANK OF FIJI V KIAORA VENTURES (PTY) LTD & OTHERS [14 DEC 93]}{\subject BILLS OF SALE}{\author JOHN E. BYRNE}
{\doccomm  IN THE HIGH COURT OF FIJI;  ( AT SUVA );  CIVIL JURISDICTION; ACTION NO. 206 OF 1991; BETWEEN :     NATIONAL BANK OF FIJI  a banking body;   duly constituted under the National;   Bank of Fiji Act       Plaintiff;       AND;   KIA ORA VENTU
RES (PTY) LTD }{\operator ehndvaun_d}{\creatim\yr2003\mo7\dy31\hr15\min49}{\revtim\yr2003\mo7\dy31\hr15\min49}{\version2}{\edmins0}{\nofpages10}{\nofwords3629}{\nofchars20686}{\*\company USP}{\nofcharsws24267}{\vern16469}}
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\par (AT SUVA)
\par CIVIL JURISDICTION
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par ACTION NO. 206 OF 1991
\par 
\par BETWEEN:
\par 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 NATIONAL BANK OF FIJI}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 a banking body}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
duly constituted under the}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 National}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
Bank of Fiji Act}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Plaintiff
\par 
\par AND
\par 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 KIA-ORA VENTURES (PTY) LTD.}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 a limited}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
liability company having its registered
\par office at }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 41 Gladstone Road, Suva, Fiji
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 1st Defendant
\par 
\par AND
\par 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 1. RAYMOND DAVID PATON}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 of Suva, }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 Fiji, Engineer}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 2. LOG NADAN}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (f/n Veera Sami) of}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Korovuto, Ba, Fiji, Farmer}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674\charrsid1338674 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 2nd Defendants
\par }\pard \ql \li0\ri0\nowidctlpar\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par S. Parshotam: For the Plaintiff
\par V. Maharaj: For the Defendants
\par 
\par Dates of Hearing: 17th, 18th March, 3rd, 22nd June, }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674 7th December 1993}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par Date of Judgment:}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid1338674  14th December 1993}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx4536\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 JUDGMENT}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 INTRODUCTION}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par The Plaintiff has instituted these proceedings against the Defendants claiming the sum of $27,711.35 and interest thereon at the rate of 16 percent per annum from 1st of March 1991 until payment.
\par 
\par The Plaintiff's claim is based on a Bill of Sale dated 16th January 1990 made between the 1st Defendant as Grantor and the Plaintiff as Grantee whereby the 1st Defendant for 
a consideration of $9,500.00 advanced to it by the Plaintiff assigned its Toyota Corolla Motor-vehicle registered number AB584 upon the terms and conditions stated in the Bill of Sale as security for the payment of money owing at any time by the 1st Defen
dant to the Plaintiff.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
The 1st Defendant admits that it executed the Bill of Sale and the 2nd Defendants admit that they guaranteed payments of the amount due under the Bill of all sums lawfully drawn by the 2nd Defendants who were the only authorised agent
s of the 1st Defendant.
\par 
\par Paragraph (d) of the Instrument of Guarantee is in the following terms:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\b\i\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
"All moneys whatsoever which the Bank shall lend pay or advance or become in any way whatsoever liable to lend pay or advance to for or on the credit or for t
he accommodation or otherwise on the account of the Debtor or to for or on account of any other person upon the order or request or under the authority of the Debtor."}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 

\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par The Defendants admit that the Plaintiff made certain advances and loans to the 1st Defe
ndant and granted general banking accommodation to the 1st Defendant from time to time at agreed interest rates and bank charges which were to be debited to their accounts at agreed times.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 The Defendants aver however that the Plaintiff made certain unautho
rised payments, purportedly authorised by the Defendants, to one of its officers and unlawfully and fraudulently debited the 1st Defendant's account with the Plaintiff.
\par 
\par The Defendants admit that as at 28th February 1991, they were and still are indebted t
o the Plaintiff in the sum of $27,711.35 together with interest accruing at the rate of 16 percent per annum but that they have a counter-claim against the Plaintiff for the sum of $87,500.00 which they seek to set-off against the Plaintiff's claim.

\par 
\par In their counter-claim the Defendants allege that it was agreed that all advances to the 1st Defendant would be drawn out by the 2nd Defendants as the only authorised agents of the 1st Defendant.
\par 
\par They allege that whilst the Plaintiff made certain advances to the 1st Defendant, it also made certain advances to one of its own employees out of the credit facilities provided for the use of the 1st Defendant without the authority of the Defendants.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 They further allege that the Plaintiff fraudulently or unlawfully de
bited the Defendants' account in respect of all moneys used by the Plaintiff's employee.
\par 
\par The Defendants also claim that because of the unlawful actions of the Plaintiff in allowing one of its employees to use the credit facilities of the Defendants the 1s
t Defendant company did not have sufficient funds to meet its orders overseas for the supply of sawn timber to the value of $87,500.00.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Finally the Defendants allege that the Plaintiff at all material times knew or ought to have known the purpose for which
 the Defendants had obtained the credit facilities and that it was within the reasonable contemplation of the Plaintiff that if the agreed full credit facilities were not provided by the Plaintiff the 1st Defendant would suffer financial loss through its 
inability t}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 o meet its export commitments.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par As to this latter allegation the Plaintiff says that if any payments were wrongfully debited to the 1st Defendant's account with the Plaintiff, which is denied, then the 1st Defendant ought to have raised the matte
r at or about the time the payments were debited and that consequently the Defendants are now estopped from alleging that the 1st Defendant did not have sufficient funds to meet its orders.
\par 
\par In a letter dated 25th January 1993 from the Plaintiff's solicito
rs to the Defendants' solicitors the Plaintiff alleges that at all relevant times, meaning the 12th of February and 7th of March 1990, a person named Joe Tavaiqia was an officer of the 1st Defendant as well and that he had authority (actual or ostensible)
 to draw sums from the 1st Defendant's account and that the Defendants were fully aware of this.
\par 
\par This is a reference to a gentleman who was the Plaintiff's former Manager at Nadi and the relevance of the two dates I have mentioned is this:
\par 
\par The Defendants 
allege that the Plaintiff through its Manager Tavaiqia, having agreed to provide overdraft facilities to the 1st Defendant for a specific purpose, namely to enable the 1st Defendant to purchase and export sawn timber to the 1st Defendant's customers overs
eas, compromised its position through its Manager, who, without any authority from the Defendants used the sum of $10,500.00 for an alleged payment for the sale of a car by Joe Tavaiqia to Raymond David Paton, the co-2nd Defendant.
\par 
\par In their letter of the 25th of January 1993 to the Defendants' solicitors the Plaintiff's solicitors say this:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
"It appears from a perusal of our correspondence and the pleadings that there are two transactions in particular which your clients are claiming offends against the conduct of their accounts with our client.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 These are:
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\tx2160\tx2880\tx3600\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 12 Feb 90:}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 \tab \tab \tab \tab }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 $1,000.00
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Payment for repairs to Joe}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Tavaiqia's vehicle.
\par 
\par 7 Mar 90:\tab }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 \tab \tab \tab }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 $9,503.00
\par Payment to S & S Auto Sales
\par ($8,500.00).}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Joe Tavaiqia
\par ($1,000.00) and bank cheque}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
\par }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 charges ($3.00)."
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 THE EVIDENCE}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par The evidence given before the Court consisted of:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (i)}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
 }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 a bundle of documents tendered by both the Plaintiff and the Defendants by consent;
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (ii)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 the testimony of Rajnish Lal on b}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
ehalf of the Plaintiff;}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (iii)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 the testimony of Raymond Paton (the First-named Second Defendant) on behalf of the Defendants.
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par Mr. Lal's initial testimony related to the TRANSACTION HISTORY REPORT (THR).}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He explained in some detail how the THR was to be read and the various terms that were used in the THR.
\par 
\par Mr. Lal testified that there were two accounts that were held by the Plaintiff in the name of the 1st Defendant; these were:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (i)\tab A Loan Account; and
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid10899215 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (ii)\tab A Current Account.
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par He explained that the Loan Account contained items of a non-recurring nature where the Plaintiff granted an initial advance to its customer against which periodic repayments were made.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }
{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He further explained that the account usually contained other loans that may be given by the Plaintiff to its customer.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He further explained that at times when a balance 
in the same customer's Current Account became what he terms "hard core" (i.e. that part of the Current Account balance, which showed no movement), such balance was transferred to the Loan Account by a corresponding credit entry in the Current Account.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He f
urther explained that this was usually accompanied by renewed arrangements for repayment of the Loan.
\par 
\par In so far as the Current Account was concerned, Mr. Lal explained that this contained transactions of a recurring nature where deposits were lodged into the account and cheques drawn.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He explained that it was from this account that payments to the Loan Account were made and that if there were insufficient funds in this account (or where any credit facilities provided by the Plaintiff were exhausted), no pa
yments could be made against the Loan Account.
\par 
\par In providing an analysis of the THR, Mr. Lal testified that there were numerous cheques that were drawn by the 1st Defendant and which were dishonoured by the Plaintiff.
\par 
\par These appear in the THR with the narration "OCC".
\par 
\par The first of these appear in the THR on 2/4/90 in the sum of $1,123.00, then on 18/4/90, again in the same sum and thereafter on various dates and in diverse amounts.
\par 
\par Mr. Lal also testified that the THR also contains two (2) contra entries between the Loan Account and the Current Account.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 These are:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 25/4/90: in the sum of $5,632.57; and}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 28/5/90: in the sum of $16,955.58.
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par Mr. Lal testified that the entry of $5,632.57 appeared as a debit entry in the Loan Account and as a credit entry in the Current Account and that the entry of $16,955.58 appeared as a credit entry in the Loan Account and a credi}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid10899215 t entry in the Current Account.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par He explained that the entry of $5,632.57 was effected by the Plaintiff to remove the "hard core" element of the Current Account by transferring this sum into the Loan Account.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He further explained that this did not in any way affect the 1st Defendant's indebtedness to the Plaintiff but allowed the Current Account to be operated on a "true" overdraft}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid10899215 basis.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par He also sai
d that despite requests contained in three letters from the Plaintiff to the First-named Defendant dated 21st January, 6th February and 15th February 1991 that the First-named Defendant should specify the alleged unauthorised withdrawals from its account,
 the Bank received no response to any of these letters.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
Accordingly on the 5th of March 1991 the Bank issued a Demand Notice on the Defendant requiring payment of an amount of $27,254.95 and interest at sixteen percent per annum from that date.
\par 
\par In cross-examination Mr. Lal admitted that proper procedures had not been followed in opening the Loan Account the Plaintiff alleges the Defendants had with the Plaintiff.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He stated that the practice before any Loan Account beyond $1,000.00 is opened is for the head office of the bank to first consider an application for such an account.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He also said that applications for all loans on the sole security of a Bill of Sale must be referred to head office for approval irrespective of the amount.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Here the loan was in excess of $1,000.00 and the Nadi Office of the bank did not seek approval from head office in this case.
\par 
\par He also said that it was only when these proceedings began that the Bank was informed by the First-named Defendant that it disputed the amount of $9,503.00.
\par 
\par For the Defendants the First-named Second Defendant only gave evidence.
\par 
\par Mr. Paton testified that he was desirous of setting up a timber exporting business and was introduced to the manager of the Defendant's Nadi Branch, a Joe Tavaiqia, some time in October-December 1989 by Log Nadan, the Second-named Second Defendant.
\par 
\par He testified that subsequent to discussions, Mr. Tavaiqia agreed to assist the 1st Defendant by making available certain banking loans and facilities.
\par 
\par He further testified that at that time he had a motor vehicle (a Land Rover) and another car which was getting very old.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He further testified that Log Nadan suggested to him that the said Mr. Tavaiqia was selling cars and financing them through the bank and that he should approach him.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He 
then went to Nadi to see Mr. Tavaiqia and discussed the possibility of purchasing a vehicle through finance from the Plaintiff.
\par 
\par He further testified that after discussions, Mr. Tavaiqia took him to the back of the Plaintiff bank's premises and showed him several cars; some of these cars had demonstration plates on them.
\par 
\par He further testified that he picked on a car and the price quoted to him was $8,500.00 - he felt that this was more than reasonable.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 In so far as payment was concerned, he testified that h
e had agreed with Mr. Tavaiqia that he would sell his other two vehicles and in the meanwhile pay off this loan at the rate of $100.00 per month.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 He then took the vehicle away.
\par 
\par He also stated that on the shipment of the Defendants' timber Mr. Paton would pay for the car immediately.
\par 
\par He further testified that he then had the vehicle registered in his personal name; the number AB584 was given to it.
\par 
\par He said that as far as he was concerned, a personal account in his name was to be opened at the bank with respect to the moneys being advanced by the Plaintiff for the purchase by him of this car.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He testified that till to date no such account has been opened, that he has made no payments towards the loan that was supposed to have been given to him for the purchase of the car and that he still had possession and use of the car.
\par 
\par In cross-examination, he testified that he had been involved in a number of business ventures over the past years but that all of these had been wound up, either through liquidation or failures.
\par 
\par He admitted that Mr. Tavaiqia was a banker and not a financial adviser.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
He further admitted that the sale of motor vehicles was something a bank manager did not normally get involved in and found this peculiar.
\par 
\par He admitted that he had signed no documents for what he had described as a }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 '}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
personal loan' and neither was any account opened with the Plaintiff under his personal name.
\par 
\par The following documents were then put to him:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 P2:\tab Bill of Sale dated 16 January 1990.
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid10899215 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 P3:\tab Guarantee dated 16 January 1990.
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par and he admitted both these documents.
\par 
\par He admitted that the Bill of Sale was a charge created by the 1st Defendant (Kia-Ora Ventures Pty Ltd) to secure the sum of $9,500.00; he admitted that it was signed by the 1st Defendant under its seal and was not a charge given personally by him.
\par 
\par He further admitted that the guarantee was given by him in his personal capacity in support of unlimited debt of the 1st Defendant to the Plaintiff and that he understood that this meant that he would be personally lia
ble for the debt of the 1st Defendant to the Plaintiff.
\par 
\par He had no response to the suggestion put to him that the Bill of Sale being executed by the 1st Defendant under its Common Seal and not by him personally meant that the car over which the Bill of Sal
e was given was owned by the 1st Defendant and not by him personally.
\par 
\par He also admitted that any banking advances made available to the Defendants were payable on demand and that interest on such advances was 16.0% per annum.
\par 
\par The series of written communications that was exchanged between the parties was also put to Mr. Paton in cross-examination all of which he admitted.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 These will be referred to further when I discuss some of the evidence.
\par 
\par The evidence before the Court is unsatisfactory in a number of respects.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
First for the Plaintiff I find it strange that only at the beginning of the trial and after a lapse of over two-and-a-half years since the opening of the Defendants' account did the Plaintiff admit for the first time that the $1,000.00 had been wr
ongly debited to the 1st Defendant's account.
\par 
\par Secondly Rajnish Lal in his evidence stated that the $1,000.00 debited in the alleged loan account of the 1st Defendant on 12/2/90 was actually the commission taken by Ratu Joe Tavaiqia for the sale of the car
 by Joe Tavaiqia to Mr. Paton (this of course is the car referred to in the Bill of Sale).
\par 
\par Thirdly in cross-examination Rajnish Lal was then shown two letters from the Plaintiff's solicitors dated 18th of June 1991 and the letter of the 25th of January 1993.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 In the former letter}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
written to the Defendants' solicitors it is stated that $1,000.00 was debited to the Defendants' account and transferred to Joe Tavaiqia's account for repairs to the car whereas in the letter of 25th January 1993 it is stated that 
the $1,000.00 was payment for repairs to Joe Tavaiqia's vehicle.
\par 
\par Rajnish Lal was obviously surprised when confronted with these two contradictions of his evidence and could not explain the reason for the contradictions.
\par 
\par Fourthly Rajnish Lal also admitted in cross-examination that these amounts were not withdrawn by writing cheques but by the Plaintiff raising internal vouchers which he said was not unusual.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 However, when asked if he could produce the vouchers he stated that they had been given to the Plai
ntiff's solicitors who should still have them.
\par 
\par For the Defendants I consider most peculiar Mr. Paton's evidence that Mr. Tavaiqia had agreed to accept only $100.00 per month as repayments towards the alleged loan of $8,500.00 to Mr. Paton.
\par 
\par Such payments would not even cover the agreed interest of 16 percent per annum which is approximately $127.00.
\par 
\par Secondly, Mr. Paton's admission that even until the date of trial he had not seen any bank account in his personal name, he had made no payments towards what was supposed to be a personal loan account and that he still had the car in his possession.

\par 
\par I find it strange that he should testify that he kept questioning the bank "as to the unlawful debts" that appeared in the 1st Defendant's accounts but never raised the question of a personal bank account.
\par 
\par Thirdly I also find it very odd that despite the bank's requests for details of alleged unauthorised withdrawals the Defendants never offered any such details.
\par 
\par Undoubtedly Mr. Tavaiqia must have left much to be desired as an employee of the Plaintiff but, that said, it must not be allowed to divert the Court's attention from the evidence.
\par 
\par In my judgment the correspondence and communications that were exchanged between the Plaintiff and the Defendants indicate th
at the Plaintiff had made its position very clear in so far as the extent of any banking facilities it was making available to the 1st Defendant were concerned.
\par 
\par In exhibit }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid878540 '}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 P6' a letter from the First-named Defendant}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 to the Plaintiff the First-named Defen
dant seeks confirmation that its bank overdraft limit was $20,000.00 the amount agreed by Joe Tavaiqia in Nadi on the 5th of April 1990.
\par 
\par The Plaintiff confirmed this in a letter dated 9th of May 1990 to Mr. Paton and listed again the securities held by it and the terms of repayments.
\par 
\par In a following letter dated 11th of June 1990 after the Defendants had requested an extension of overdraft to $30,000.00 the bank replied:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\b\i\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
"In the meanwhile, we wish to advise that the bank has declined your request for an increased overdraft facility of $30,000.00 as requested, however, the bank is at present appraising the loan proposal of Native Timbers Limited."}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par From this I deduce that the Defendants could not have been in any doubt as to the state of their account and the amount of their overdraft; if they had been I cannot understand why they sought an increase to $30,000.00 of their overdraft.
\par 
\par Also in this letter it was clearly indicated that the amount owed by the 1st Defendant included a car loan}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 provided to the 1st
 Defendant and in my judgment paragraph (d) of the Instrument of Guarantee quoted at the beginning of this judgment is sufficiently wide to include "any car loan".
\par 
\par The evidence leaves me in no doubt that a loan was given by the Plaintiff to the 1st Defend
ant for the purchase of a car for the amount of $9,500.00 and that the 1st Defendant was allowed to make payments from its Current Account having deposited an initial sum of $1,000.00 in the account.
\par 
\par It is true that the Current Account subsequently went into overdraft but this is always at the discretion of a Bank and is frequently done by way of accommodation by a Bank for a customer.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
The fact that certain cheques above the agreed limit were honoured by the Plaintiff does not of itself prove there was a prior arrangement.
\par 
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 THE BILL OF SALE}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par The Bill of Sale given by the 1st Defendant states that it is for an initial advance of $9,500.00 but secures "all further sums and interest }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 ON DEMAND}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 "
\par 
\par Paragraph 9 reads:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\b\i\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 "The mortgagor i.e. the 1st Defendant hereby d
eclares that it hath now good right and absolute authority to grant and assign the said chattels unto the mortgagee as aforesaid free from all encumbrances.}{\i\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 "}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par In my judgment it is clear from this who the owner of the vehicle was and who had received the loan, in both cases these being the 1st Defendant and }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 NOT}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  the First-named Second Defendant.
\par 
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 THE LAW}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par 
\par I find the law applicable in this case to be as follows:
\par 
\par A banker is obliged to let his customer overdraw only if he has agreed to do so or such agreement can be inferred from a course of business: }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
Brooks & Co v. Blackburn Benefit Society}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1883) 9 App Cas 857.
\par 
\par An overdraft is payable on demand.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
However, the right to repayment on demand should be exercised so as not unduly to prejudice the borrower's interests, for example, outstanding cheques drawn in the belief that the facility was available.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
There are clearly conflicting interests but, providing the banker is in possession of a document by which the customer agreed to pay on demand, the banker would norma
lly be entitled to take any action necessary to safeguard his interests, even if it prejudiced those of his borrower: }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Paget's Law of Banking}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (9th ed) at p.115.
\par 
\par }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Williams & Glyn's Bank Ltd v. Barnes}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1981) Com LR 205 (also }{
\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Paget's}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 ) at p.401
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\b\i\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 "Where money is
 lent on overdraft by a bank and there is no agreed date for repayment and no special terms which require implication of further terms as to the date of repayment then it is clear to me that the overdraft is repayable on demand."}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Discretion on the part of the Banker}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 :
\par 
\par A customer may borrow from a banker by way of a loan or by way of overdraft.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
A loan is a matter of special arrangement.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
In the absence of agreement, express or implied from a course of business, a banker is not bound to allow his customer to overdraw: }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
Cunliffe Brooks & Co v. Blackburn and District Benefit Building Society}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1883) 9 App Cas 857.
\par 
\par Drawing a cheque where there are not funds sufficient to meet it amounts to a request for an overdraft: }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Cuthbert v. Robarts, Lubbock & Co.}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1909) 2 Ch 226, and it is up}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid10899215  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 to the banker whether to honour this request or not.
\par 
\par }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Combination of accounts}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 :
\par 
\par Unless precluded by agreement, express or implied from the course of business, the banker is entitled to combine accounts kept by the customer in his own right: }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
National Westminster Bank Ltd v. Halesowen Presswork and Assemblies Ltd}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1972) AC 785.
\par 
\par This case confirmed the following principles of law relating to combining accounts by a banker:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\tx2160\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (i)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 the banker's right to combine accounts arises from a long accept
ed usage of business, and is therefore a common law right;
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\tx2160\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (ii)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 it is not, in any legal sense, a species of lien;
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\tx2160\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (iii)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
the banker may agree, whether expressly or by implication to waive this right, or in certain cases, as where one of the accounts is clearly a trust account, the right may never come into existence; and
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\tx0\tx720\tx1440\tx2160\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 (iv)}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
the banker is entitled to exercise this right without giving notice to the customer, although the contract may provide that such a notice must be given.
\par }\pard \ql \li720\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin720\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par [Taken from Law of Banking by Lord Chorley, 6th ed, p.220.]
\par }\pard \ql \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
\par It may be that the Plaintiff was prepared to assist the Defendants in promoting their business of exporting sawn timber but the question which the parties have agreed must be decided first by the Court is whether the sum of
 $9,500.00 was wrongly debited by the Plaintiff to the Defendants' account.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 
The documentary evidence satisfies me that it was not.
\par 
\par Counsel for the Defendants accepts the law as I have just stated it but argues that the authorities I have mentioned are not relevant here since the Plaintiff has admitted that it did not follow proper procedures in opening the loan account.
\par 
\par In my judgment, even accepting that proper procedures were not followed, I consider that this does not affect the understanding of the Defendants of their position vis-}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid10899215 \'e0}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 -vis the Plaintiff which I find they must have had.
\par 
\par I reject the submissions of the Defendants on the facts as I have found them that there was a sufficient relationship of proximity or neighbourhood, that, in the reasonabl
e contemplation of the Plaintiff, any breach of assurance or undertaking on its part might be likely to cause damage to the Defendants.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 In my view therefore this case is different from }{\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 Meates v. ATT General}{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674  (1983) N.Z.L.R. p.308 (New Zealand Court of Appeal) on which the Defendants rely in their reply.}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643  }{
\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 For these reasons there will be judgment for the Plaintiff against the Defendants in the sum claimed by the Plaintiff together with costs to be taxed if not agreed.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid5443643 JOHN E. BYRNE
\par }{\b\f0\ul\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid5443643 J U D G E}{\b\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid5443643 
\par }\pard \qr \li0\ri0\nowidctlpar\tx-720\hyphpar0\faauto\rin0\lin0\itap0\pararsid878540 {\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid5443643 HBC0206J.91S}{\f0\expnd0\expndtw-3\lang2057\langfe5129\langnp2057\insrsid4870819\charrsid1338674 

\par }}