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\f5\fs24\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 IN THE HIGH COURT OF FIJI
\par At Suva
\par Civil Jurisdiction
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par CIVIL ACTION NO. 510 OF 1993
\par 
\par Between:
\par 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 1.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 MAQI FENG
\par 2.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 CITIC DEVELOPMENT INC. LTD.
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Plaintiffs
\par 
\par - and -
\par 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 1.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ELIKI BOMANI
\par 2.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 RESORT CONDOMINIUM INTERNATIONAL (FIJI)}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 LTD.
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Defendants
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par Mr. S. Maharaj for Plaintiffs
\par Mr. D. Jamnadas for Defendants
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\faauto\rin0\lin0\itap0\pararsid10552670 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 JUDGMENT
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 This is an opposed application by the 1st defendant }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ONLY}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  seeking to set aside a default judgment entered against him on the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 27th of October 1993}{
\f0\lang2057\langfe5129\langnp2057\insrsid10552670  in the following terms:}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid10552670 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "... that the first defendant do pa
y the plaintiff the sum of $13,000 (THIRTEEN THOUSAND DOLLARS) and both the defendants do pay the sum of $115,000.00 (ONE HUNDRED AND FIFTEEN THOUSAND DOLLARS) and interest at the {\*\bkmkstart QuickMark}{\*\bkmkend QuickMark}
rate of $15.00 per centum per annum on the sum of $100,000 from 24th day of July, 1993 to date of judgment together with costs of this action."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par A copy of the default judgment was served on the first defendant on the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 11th of January 1994}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  and on the }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 14th of January 1994}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  a }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Writ of Fieri Facias'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  was issued out of the High Court Registry.}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 On }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 29th March 1994}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 the present application was brought and all execution was stayed until further order.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
The application is supported by a short affidavit of the first defendant in which he deposed }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 inter alia}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "3.\tab ... I had caused my solicitors to
 enter an appearance on the 20th of September 1993 which specified that I had intended to contest the proceedings.
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 4.\tab 
... I had instructed my solicitors to file a defence in the matter upon which my solicitors requested details of my dealings with the plaintiffs}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid14095480  and}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 5.\tab 
That prior to me providing the details of my defence to my solicitors, the plaintiffs unbeknown to me had obtained judgment in default against me and the second defendant on the 27th day of October, 1993."}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par There is also annexed to the 1st defendant's affidavit a copy of his proposed }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Statement of Defence}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 in which he denies personally borrowing from or owing any money to the plaintiffs.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 More particularly the 1st defendant claims}{
\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\tx-1440\faauto\rin0\lin720\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "8.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid7942080  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ... That all or any monies advanced by the plaintiffs in
 this matter were advanced to the 2nd defendant company for which the 2nd defendant mortgaged its property described in C.T. 27561 to the 1st plaintiff."}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par He however admits giving the plaintiffs two cheques totalling $15,000 }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "... on the understanding that 
the cheques would not be presented until monies were given to the 1st defendant by the 2nd defendant to cover the value of the cheques".}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par 
\par Quite plainly the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "good defence"}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 which the first defendant seeks to raise against the plaintiffs claim is based or founded on the fundamental doctrine or principle expounded in the famous case of }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
Salomon v. Salomon & Co. Ltd}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 . }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (1897) A.C.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid14095480  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 22}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 in which the }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 House of Lords}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  explained and emphasised the separate and independ}{
\f0\lang2057\langfe5129\langnp2057\insrsid7942080 e}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 nt corporate existence and legal personality of a company as distinct from its members or shareholders.
\par 
\par In passing I note that the first defendant has been extremely tardy in these proceedings.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
In the first place he allowed a month to lapse after filing an }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 acknowledgement of service'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  and even after default judgment was served upon him a further 2 months passed before the present application was brought.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Needless to say the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 excuse'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  provided in his affidavit for this inordinate delay is not entirely clear but in any event is quite unacceptable.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 As learned counsel for the plaintiffs cynically observed}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "It doesn't need too much organising to say }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
I am not the recipient of funds nor privy to the contract'."}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par 
\par There can be no doubting that default judgment was regularly entered in this instance against the first defendant.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
Certainly no challenge has been raised on that score by learned defence counsel.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
In these circumstances the law is clear that such a judgment will only be set aside if the defendant is able to produce to the Court evidence that he has a good defence on the merits or raises an arguable or triable issue.
\par 
\par In this latter regard the submission of learned counsel for the first defendant is a relatively simple seemingly straightforward one.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 He says}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "In essence the first defendant denies borrowing any money from the plaintiff personally.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The money was advanced to the first defendant's company and the company gave a second mortgage over its land.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 No money was advanced to the first defendant personally.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 No consideration passed and there was no privity of contract betw}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid7942080 e}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 en the first defendant and the plaintiff so as to make the first defendant personally liable."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 This raises in counsel's submission a }{\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 triable issue'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  for which leave to defend ought to be granted.
\par 
\par Learned counsel for the plaintiffs on the other hand made an equally simple submission that the defence was a }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "sham"}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  based on the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 veil of incorporation'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  which when lifted reveals the true nature of the dealings between the parties.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Counsel submitted that the 1st defendant was merely using the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 corporate veil'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  to avoid liability for a loan of which he was the sole and ultimate beneficiary.}{
\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
Reference was also made to various annexures to the plaintiff's affidavit in support of the submission and which I shall be dealing with in more detail later.
\par 
\par That the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 corporate veil'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 is not impregnable and can and will be lifted in exceptional circumstances can no longer be doubted.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 See}{
\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  Palmers }{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Company Law}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ' }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (24th edn)}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  para. 18-22 and 23 and Gower's }{\b\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
Principles of Modern Company Law}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ' }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (5th edn)}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  at p.130 to 134.
\par 
\par In }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Littlewoods Mail Order Stores v. I.R.C}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 . }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (1969) 1 W.L.R. 1241}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Lord Denning M.R.}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  in rejecting the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 separate and independ}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid14095480 e}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 nt entity'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  argument in that case said at }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 p.1254}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "The doctrine laid down in Salomon v. Salomon & Co. (1897) A.C.}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid14095480  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 22, has to be watched very carefully.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 It has often been supposed to cast a veil over the personality of a limited company through which the courts cannot see.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 But that is not true.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
The courts can and often do draw aside the veil.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 They can and often do, pull off the mask.}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 They look to see what really lies behind.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The legislature has shown the way with group accounts and the rest.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 And the court should follow."}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par Even more relevant in the context of the present interlocutory application is the judgment of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Russell J.}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  in }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Jones v. Lipman}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (1962) 1 W.L.R. 832}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 where the learned judge in giving summary judgment under }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Order 14}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  against the defendants and refusing leave to defend said at }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 p.836}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 : 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid14095480 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "The defendant company is the creature of the first defendant, a device and a sham, a mask which 
he holds before his face in an attempt to avoid recognition by the eye of equity ..."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par Finally the learned author of }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 Gower's Principles of Modern Company Law}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  (}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ibid}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  at p.133) identifies 3 circumstances in which the courts are clearly willing to look behind the }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 veil of incorporation'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 .}{
\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 These are}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
}{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "(1)\tab When the court is construing a statute, contract or other document}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (2)\tab 
When the court is satisfied that a company is a "mere facade" concealing the true facts}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  and 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (3)\tab When it can be established that the 
company is an authorised agent of its controllers or its members, corporate or human."}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par Before dealing with the affidavits it should be noted that learned defence counsel declined the court's invitation to address it on the question of }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "lifting the veil of
 incorporation"}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 .
\par 
\par What then are the undisputed }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 exceptional circumstances'}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  in the present case upon which learned counsel for the plaintiffs urges the court to lift the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 corporate veil'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 ? These are as follows}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (1)\tab }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The fact}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  that the first defendant persona
lly received the money from the 1st plaintiff's attorney and signed a receipt therefor in his personal capacity whilst recognising the agency of the attorney}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (2)\tab }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The fact}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  that the first defendant is a director of the second defendant company and holds }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 99}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  out of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 100}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 shares issued by it - the other share being held by a namesake l}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 iving with the first defendant;}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid7942080\charrsid10552670 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (3)\tab }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The fact}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 that the first defendant alone executed the two agreements between the two plaintiffs separately and the second defendant company - the latter being without the company seal }{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 albeit}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  in his capacity as a director}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (4)\tab }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 The fact}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  that the first defendant issued two (2) personal cash cheques to the plaintiffs for a total sum of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 $13,000}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  which together with a cash payment of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 $2,000}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 made up the first }{\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 interest payment'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  of }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 $15,000}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  due under the second defendant company's contract}{\f0\lang2057\langfe5129\langnp2057\insrsid7942080 ;}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 and}{\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (5)\tab }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
The undenied assertion}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  of the 1st plaintiff's attorney that }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
"the first defendant always purported to deal in his personal capacity relating to all the advances ..."}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 .
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par Learned defence counsel in reply asserts that in both agreements entered into with the second defendant company the first defendant is no-where named either as a party, borrower }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 or
}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  registered proprietor of any of the land offered as security.}{\f0\lang2057\langfe5129\langnp2057\insrsid10552670  }{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 He also doubted the enforceability of the second agreement which he described as an }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 "after-thought"}{
\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 .
\par 
\par I am however satisfied that this is a case which falls fairly and squarely within all three categories of cases enumerated above in which the court would be willing to lift the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 corporate veil'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670  and in doing so I am satisfied that the first defendant has }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid10552670 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 no defence'}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
 to the claim and accordingly the application is dismissed with costs to the plaintiffs to be taxed if not agreed.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3969\faauto\rin0\lin0\itap0\pararsid7942080 {\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 (D.V. Fatiaki)
\par }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 JUDGE
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid10552670 {\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 At Suva,
\par 4th October, 1994.}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }\pard \qr \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7942080 {\f0\lang2057\langfe5129\langnp2057\insrsid7942080 HBC0510J.93S}{\f0\lang2057\langfe5129\langnp2057\insrsid12809175\charrsid10552670 
\par }}