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\rsid7155828\rsid7806488\rsid8608230}{\*\generator Microsoft Word 10.0.4219;}{\info{\title IN THE HIGH COURT OF FIJI}{\author Emalus Campus}{\operator ehndvaun_d}{\creatim\yr2003\mo7\dy31\hr17\min46}{\revtim\yr2003\mo7\dy31\hr17\min46}{\version2}
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{\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 \f66\fs24\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 IN THE HIGH COURT OF FIJI

\par At Suva
\par Civil Jurisdiction
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par CIVIL ACTION NO. 0171 OF 1994
\par 
\par Between}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 1.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 MAQI FENG
\par 2.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 CITIC DEVELOPMENT INC. LTD.
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Plaintiffs
\par 
\par - and -
\par 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 1.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ELIKI BOMANI
\par 2.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 RESORT CONDOMINIUM INTERNATIONAL
\par (FIJI) LTD.
\par 3.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 BEL-AIR INVESTMENTS LTD.
\par 4.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 THE PUBLIC TRUSTEE
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Defendants
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Mr. S.C. Maharaj for Plaintiffs
\par Mr. D. Jamnadas for 1st, 2nd and 3rd Defendants
\par Mr. M.L. Ahmadu for 4th Defendant
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 JUDGMENT
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The initial originating summons in this action was issued on }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 13th of April 1993}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and sought an order against two named defendants requiring them to specifically perform an agreement entered into between the 2nd plaintiff company }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic') }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 and the 3rd defendant company }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo')}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  by providing a third {\*\bkmkstart QuickMark}{\*\bkmkend QuickMark}party mortgage over }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Lot 1}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  on }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 D.P.4206}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  situated at }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Waqadra, Nadi}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (}{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land')}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Unfortunately a subsequent search of the }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Certificate of Title}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  revealed that }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  did not in fact belong to }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 . 
\par 
\par This }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 complication'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 gave rise to an amended originating summons which added a further two (2) defendants, }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air Investments Limited (}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air')}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ,}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the registered proprietor of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , the registered mortgagee of }
{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The orders sought in the amended summons were also adapted and expanded to reflect the change in defendants and in particular,}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 reference may be made to the following orders}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7806488 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "3.\tab 
... third defendant do execute and provide a third party mortgage ... which when registered shall rank as a second mortgage over (land) ... known as Waqadra (part of) and ... being Lot 1 D.P. Number 4206 in favour of the second plaintiff."}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7806488 {\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 and}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7806488 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\tx-1440\faauto\rin0\lin1440\itap0\pararsid7806488 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "4.\tab 
... that the fourth defendant do provide its consent for the execution and registration of (a) second mortgage by the third defendant in favour of the second plaintiff over (land) known as Waqadra (part of) and ... being Lot 1 D.P. Number 4206."}{
\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The factual background to this case is not in dispute and may be briefly described as being principally based upon an }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  dated }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 13th November 1992}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  entered into between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic' }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 and}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  for the development of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , with the starting capital of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 $100,000}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  being provided by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  through a short-term loan, and all development works on }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'
}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  being carried out by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par Pursuant to the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  on the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
18th of November 1992}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  the sum of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 $US65,000}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 was paid over on behalf of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 'Citic' }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 to the 1st defendant and a hand-written receipt was issued for it.
\par 
\par Also pursuant to the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  the loan was to be secured by mortgages to be provided by }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  over two (2) pieces of land described in the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  as follows}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
"... THAT PIECE OF LAND OF LOT 8 ON DEPOSITED PLAN NO. 2246 IN THE CITY OF SUVA IN THE ISLAND OF VITI LEVU, ALL THE REAL ESTATE WHICH WILL BE BUILT UP ON THAT PIECE OF LAND OF LOT 1 ON DEPOSI
TED PLAN NO. 4206 IN THE DISTRICT OF NADI WHICH HAS ALREADY BEEN MORTGAGED TO THE PUBLIC TRUSTEE OF FIJI TO PARTY A FOR THE STARTING CAPITAL, $F100,000 ..."}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par As to the first piece of land which is owned by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, a mortgage was duly registered in favour of the 1st plaintiff (}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 not}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 as agreed}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ) on }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 20th November 1992}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 As to the latter piece of land }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 i.e.}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "LOT 1 ON DEPOSITED PLAN NO.}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 4206"}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, perhaps not surprisingly, no mortgage has been provided as agreed despite numerous requests.}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 So much then for
 the background to the case.
\par 
\par With the exception of the}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, none of the other named defendants has filed any affidavit, although counsel did briefly appear on their behalf at the hearing of the summons and orally opposed the application.
\par 
\par In particular, counsel laid emphasis on the registered proprietorship of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  the absence of any }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 privity'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  on the part of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to the agreement sought to be specifically enforced by the plaintiffs}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and the fact that }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  had been incorporated and became the registered proprietor of }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  long before the said }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  had been entered into and therefore presumably could have been made a party to the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  if that was intended by the parties.
\par 
\par Nothing was said however as to the obvious benefit that would accrue to }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 'Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  from the performance of the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 i.e.}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  through its land being developed, }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 nor}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 did counsel enlighten the court as to the details of development works }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (if any)}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 that had been or was proposed to be undertaken by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 on }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 It was conceded however that the 1st defendant was a shareholder in both }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par I propose to deal firstly with the order sought against the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  who was joined in the action as a }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 precautionary measure'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 on the part of the plaintiffs' and insofar as its rights of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 tacking'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  as a first mortgagee of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 'the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, stood to be adversely affected in the event that the plaintiffs application against }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  was successful.
\par 
\par With all due regard to the submissions of counsel for the plaintiffs I cannot accept that the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 has been properly joined as a party to the action.}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 In the }{\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
first place}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 is not a party to the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 secondly}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , there is nothing in the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
Public Trustee's}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  mortgage which requires its consent to a second or subsequent mortgage over }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and, although the title deeds are held by the }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , that fact alone is insufficient reason to join him as a defendant.
\par 
\par As was said by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Williams J.}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 In re Wright}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1894) 12 N.Z.L.R. 585}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  in ordering the }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Registrar}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to require production of the title documents from a first mortgagee in order to register a second mortgage, at 
}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 p.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 586}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "A certificate of title is not the property of the first mortgagee, he is only entitled to possession of it}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 and he cannot prevent other instruments being registered, but, on the contrary is bound to produce it in order that they may be registered."}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Furthermore the right of a mortgagor to further deal with mortgaged land has been long settled since }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Hopkinson v. Rolt}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1861) 131 R.R. 313}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  (per }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Lord Campbell L.C.}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  when he said at }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 p.}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 319}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 )}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
"Although the mortgagor has parted with the legal interest in the hereditaments mortgaged, he remains the equitable owner of all
 his interest not transferred beneficially to the mortgagee, and he may still deal with his property in any way consistent with the rights of the mortgagee."}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Even more directly relevant and in similar vein }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Lord Shaw of Dumfermline}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  said almost 50 years later in }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Deeley v. Lloyds Bank Limited}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1912) A.C. 756}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  at }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 p.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 781}{\f0\lang2057\langfe5129\langnp2057\insrsid7806488 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
"In the case of a grant of a mortgage to a bank by a customer in security of advances made and to be made, there, of course, still remains in the customer an estate capable of being disposed of by sale or affected by subsequent mortgage ..."}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 A}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 fortiori}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  under the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Torrens}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 system of land titles where the mortgagor remains the registered proprietor of the mortgaged land and where a registered mortgage is regarded as a legal charge against that estate without operating as a transfer of the land.}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (}{\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 See}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Section 63 Land Transfer Act}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Cap.}{\i\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 131}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .)}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Clearly then in the absence of any agreement to the contrary }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (of which none has been drawn to the court's attention)}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, not only is }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air' }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 prima facie}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  entitled to further mortgage }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  but the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
as an existing mortgage is not required to consent to such}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 subsequent mortgage nor can he prevent the registration of the same.
\par 
\par In the circumstances the joinder and orders sought against the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 are misconceived and are accordingly refused with costs to the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Public Trustee}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par I turn next to consider the plaintiffs substantive claim against }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 In this regard as already noted }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  is not and has never been a party to the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  entered into between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and although }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  undoubtedly stands to benefit under the terms of the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  that cannot render it liable to perform its terms }{
\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 nor}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  entitle it to enforce it.
\par 
\par This fundamental common law principle of the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 law of contract'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 is succinctly set out in }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 para. 329 }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Vol.9}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Halsburys }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Laws of England}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 '}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  (4th edn) which reads}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
"The doctrine of privity of contract is that, as a general rule, a contract cannot confer rights or impose obligations on strangers to it, that is, persons who are not parties to it.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The parties to a contract are those who reach agreement ...}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The doctrine has been accepted by the courts and would seem to be intimately connected with the doctrine of consideration and the rule that consideration must move from the promisee."}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Further the headnote in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The Chesterfield and Midland Silkstone Colliery Co. (Ltd) v. Hawkins}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1865) 140 R.R.}{\i\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 677 }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 states}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "Where a deed is made inter partes, no one who is not expressed to be a party can sue on a covenan
t contained in it}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and this is not a mere rule of construction, but a rule of positive law."}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid2904766 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Half a century later }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Viscount Haldane L.C.}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 said in discussing the relevant principles in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1915) A.C. 847}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  at }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 p.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 853}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "My Lords, in the law ... certain principles are fundamental.}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 One}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 is that only a person who is a party to a contract can sue on it.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
Our law knows nothing of a jus quaestum tertio arising by way of contract.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ... }{
\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 A second principle}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  is that if a pe
rson with whom a contract not under seal has been made is to be able to enforce it consideration must have been given by him to the promisor or to some other person at the promisor's request ...}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 A third proposition}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  is that a principal not named in the cont
ract may sue upon it if the promisee really contracted as his agent.}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
But again in order to entitle him to sue, he must have given consideration either personally or through the promisee, acting as his agent in giving it."}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid7806488 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (Reaffirmed by the }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 House of Lords}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Midland Silicones Ltd. v. Scruttons}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1961) 2 Lloyds 365}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .)}{\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par Bearing the above principles in mind and the nature of the plaintiffs' claims against the defendants', I am satisfied that there is nothing in the evidence that would even vaguely support the s
uggestion that the circumstances in this case fall within any recognised common law or equitable exception to the general rule.}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (}{
\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 See}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 paras.}{\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488  }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 336 and 339}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  of }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Halsbury}{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid7806488 '}{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 s Laws}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ibid}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .)
\par 
\par In seeking to support its claim however, counsel for the plaintiffs laid stress on the obvious value-added benefit that the successful completion of the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  would confer on }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to the absence of any doubt in the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 as to the identity of the property which was intended to be mortgaged}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 ;}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 and}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to the }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 gross misrepresentation'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  in the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 by }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 albeit}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  implicitly, that it was either the registered proprietor of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 
'}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  or at the very least had the necessary control and power to enable it to obtain a second mortgage over }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  from the registered proprietor.
\par 
\par More particularly, counsel sought to impose a liability on }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  not on the basis of the equitable doctrine of }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 'rectification'}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ,}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  but by relying upon the principle commonly known as }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 lifting the veil of incorporation'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 If this is done, counsel says, the Court would inevitably find that the first defendant is the controlling shareholder of both }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air',}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and also the ultimate beneficiary of the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  entered into between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par As such it is argued, the first defendant should not be permitted to hide behind the }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 corporate veils'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , instead he should be made to specifically perform the terms of the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  as if he had personally entered into it }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 and}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 as if he was the registered proprietor of the land offered as security under the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par In support of this rather far-reaching submission counsel referred to the ruling of this court in an earlier }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Civil Action No. 510 of 1993}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  in which the plaintiffs' successfully invoked the principle against the first defendant who had unsuccessfully sought to rely on the }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 
'}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 separate entity'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  doctrine laid down in the leading case of }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Salomon v. Salomon & Co.}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1897) A.C. 22}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par In its ruling however this Court listed no less than }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 5 (five)}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  undisputed }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 exceptional circumstances'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 in the case which clearly showed that the first defendant although not a party to the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, had actively and inextricably dealt with the plaintiffs' in a }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 personal capacity'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , not only in receiving and receipting the loan monies under the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  but also in issuing personal cheques in payment of }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 interest'}
{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  due to the plaintiffs' under the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{
\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The first defendant also held 99 of the 100 shares issued by }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
'Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and the date of incorporation, }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 May 1992}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , had a not insignificant proximity to the date of the }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  which was }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 November 1992}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par In }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Tunstall v. Steigmann}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1962) 2 W.L.R. 1045}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  where the landlord held virtually the whole of the shares in the limited company incorporated to defeat the tenant's c
laim for a renewal and had the sole control of the business of the company, the Court of Appeal in refusing to go behind the corporate veil restated and affirmed the principle in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
Salomon's}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  case }{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (ibid) }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 when it:
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "}{\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Held}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  (1) that a limited company and the indi
vidual or individuals forming the company were separate legal entities, however complete the control might be by one or more of the individuals over the company.
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7806488 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 per Ormond LJ}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  (at p.1050).}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 If there has been any departure from a strict observance of the pr
inciple .... it has only been made to deal with special circumstances where a limited company might will be a facade concealing the real facts.
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid7806488 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 per Danckwerts LJ}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  (at p.1055).}{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 The personality of those in control of a company is only to be regarded as mater
ial in special circumstances, such as a state of war, and only as indicating the mature of the company without really departing from the principle that a limited company incorporated under the Companies Act is a distinct legal entity, differing from the i
ndividuals who hold the shares or who control it through the mechanism of the Companies Acts."}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bearing the above in mind and having carefully considered the evidence and submissions of counsel for the plaintiffs', I have no hesitation in holding that none of the }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 exceptional circumstances'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 noted in the above ruling or judgments exists in this case in relation to }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel-Air'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 True its shareholders are the same as those of }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  but any similarity between the cases ends there.

\par 
\par I cannot accept that the mere existence of a }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 common shareholder'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 is a sufficient let alone }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 special circumstance'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, which would entitle this court to depart from or disregard the general principle that a company is a separate legal entity quite distinct from its shareholders.
\par 
\par Nor, given the date of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air}{\b\f0\lang2057\langfe5129\langnp2057\insrsid7806488 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 s'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  incorporation, }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 January 1992,}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and its close proximity to the date of acquisition of }{\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 the land'}{
\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , namely }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 February 1992}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
, would I be justified in drawing the inference that }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air' }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
(as opposed to }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 ) was a }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 mere cloak or sham'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 incorporated by the first defendant for the purpose of enabling him to perpetrate a fraud on the plaintiffs'.
\par 
\par Furthermore, given the absence of any }{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 privity of contract'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
 between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Citic'}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766  }{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
or of any direct relationship between }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  and }{
\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 , it would be wholly unjustified in my view, to hold that 
}{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  could or ought to be made liable for any }{
\b\i\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 misrepresentation'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  made in the }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Agreement}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  as appears to have been suggested by counsel for the plaintiffs' }{
\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 or}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  to infer that }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Resort Condo'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  contracted as an authorised agent of }{\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 '}{
\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 Bel Air'}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 .
\par 
\par As was held by the Court of Appeal in }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 J.H. Rayner (Mincing Lane) Ltd v. Dept. of Trade and Industries}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766  }{
\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (1988) 3 W.L.R. 1033}{\f0\lang2057\langfe5129\langnp2057\insrsid2904766 :}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid2904766 {\b\i\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 "(3) That it was the foundation of company law that agency between
 a corporation and its members in relation to the corporations contracts with third parties could not be inferred from the control exercisable by the members over the corporation or from the fact that the sole object of the contract was to benefit the mem
bers; that the relationship of agency was based on the consent of both parties."}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par In all the circumstances the plaintiffs' originating summons must be and is hereby dismissed with costs to the defendants' to be taxed if not agreed.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\tqc\tx3968\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 (D.V. Fatiaki)
\par }{\b\f0\ul\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 JUDGE}{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }\pard \ql \li0\ri0\nowidctlpar\tqc\tx3968\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid2904766 
\par }{\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 At Suva,
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\b\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 24th May, 1995.
\par }\pard \qr \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid2904766 {\f0\lang2057\langfe5129\langnp2057\insrsid2904766 HBC0171J.94S}{\f0\lang2057\langfe5129\langnp2057\insrsid340328\charrsid2904766 
\par }}