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)}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 IN THE HIGH COURT OF FIJI \par AT SUVA \par CIVIL JURISDICTION \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 CIVIL APPEAL NO. HBA0005J OF 2002S \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 BETWEEN:}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 DAN PETERS and SERASEINI PETERS, \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 35 Ono Street, Samabula.}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 1ST APPELLANT \par And \par 2ND APPELLANT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 AND:}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 FIJI DEVELOPMENT BANK}{\b\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 RESPONDENT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par Counsel for the Plaintiffs:}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In Person \par Counsel for the Respondent}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 : }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 R. Patel & Co. \par }{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Date of Judgment:}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 19 September 2002 \par Time of Judgment:}{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 9.30 a.m. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 JUDGMENT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par This is an Appeal from the Suva Magistrates Court in which judgment in the sum of $13,409.02 plus interest was entered against the Appellants/Defendants. \par \par The Appellants would not seek Counsel and appeared on their own behalf.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Consequently the grounds of their appeal are}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 not exactly framed in any proper legal form or order.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is nevertheless clear from one}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s reading of the gro unds of appeal that the Appellants believe that the learned Magistrate erred in law and/or in fact in not giving sufficient weight to their argument that the Respondent/Plaintiff had not attempted to mitigate its loss by selling the vehicle at its proper market value.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Furthermore, the}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Appellants}{\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 claim, the learned Magistrate, had not given sufficient weight to their testimony that the Respondent had not taken into account the amount of money already paid by them to the Respondent for the repossessed vehicle.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 This included payment of insurance and other monthly fees added onto the principal sum by the Respondent. \par \par The facts are these.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Appellants, being husband and wife, had applied for a loan from the Respondent to enable them to purchase a motor vehicle (Mitsubishi twin cab 4 x 4), a vacuum yellow jacket pump and a transarc 400 machine with accessories.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The purpose of the loan was for the Appellants to establish a refrigeration and air conditioning repair business. \par \par The total costs of the project was $49,420.00 of which the Appellants were required to contribute as indeed they did,}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the sum of $24,710.00, representing half of the projects}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 costs.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The other half was provided by the Respondent by way of a loan.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As security, the Respondent obtained a Bill of Sale over the vehicle as well as the pump and the transarc 400 machine and accessories. \par \par Under the terms of the Bill of Sale, repayment was to be $960,00 per month over a period of 3 years.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The first payment was to be made in July 1997 with the final payment due in June 2000.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The interest on the loan was 8 per cent per annum. \par \par The loan from the Respondent was only to be released after the Applicants had deposited their contribution of $24,710.00 with the Respondent, the production of valid driving licences, their completion of insurance/security formalities and proof of contracts }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 with FNPF and FHL}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (presumably corporate clients with whom the Appellants were going to do business with). \par \par A total of $49,419.92 was subsequently released in five payments between 20 May and 13 June 1997.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 All instalment disbursements were acknowledged by the Appellants. \par \par It appeared that, according to the documentary evidence submitted by the Respondent, the Appellants soon after obtaining the loan, began to fall into arrears on the ir repayment, for barely after two (2) months of their first repayment, they received by letters dated 7 October 1997, their first reminder of arrears from the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 This was followed by others of 11 November 1997, 10 June 1998, and}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 24}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 July}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 1998.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Finally, on}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 7 August 1998} {\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Respondent,}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 in}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 face of}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Appellants persistent defaults in repayment, and pursuant to its rights under the Bill of Sale, called up the balance of the Appellants}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 loan which then stood at $19,093.82.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 At the same time it serv ed notice that it will exercise its power to seize and sell the assets the subject of the Bill of Sale, if the balance of the loan was not paid in full. \par \par The Respondent conceded that some money were paid in by the Appellants after their letter of demand of 7 August 1998 but they again quickly fell into arrears hence the Respondent}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s second demand letter of 7 September 1998. \par \par By the beginning of 2000, the Respondent, clearly worried with the non}{\lang2057\langfe1033\langnp2057\insrsid6362927 -}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 performance of the Appellants and more so with their inability to meet their monthly repayments, was asking for their financial statements as well as their financial projection for the next 12 months, to enable it to assess their ability to meet their commitment.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The evidence including letters from the Respondent to the Appellants of 17 August and 24 October 2000, clearly showed that the situation had not improved only deteriorated.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Finally, the Respondent was forced to serve a third and final Demand Notice on the Appellants on 11 January 2001 and followed by Demand an d Seizure Notice in favour of the Respondent}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s Bailiff.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 According to the Respondent, the Bailiff was only able to seize the motor vehicle as the other chattels could not be located.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The vehicle itself was in a bad state of disrepair, according to the Respondent}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s Inspection Report.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 There were parts missing and the engine itself was dismantled.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In its then current state, the Report concluded, that the estimated market value would be $4,000.00.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As it turned out, the vehicle was sold by public tender for $5,000.00.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 This amount, less the $100 of the deposit of the successful tenderer, was credited to the Appellants account.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As of 19 February 2001, the balance of the Appellants outstanding loan with the Respondent stood at $13,409.02. \par \par I have gone into some lengt h to describe in greater details the chronology of events and the transactions if only to assist the Appellants understand with some preciseness the extent of their obligations and as well as the Respondents rights under the law governing their relationsh ip. As was the case with the learned Magistrate, this Court too had given the Appellants a great deal of latitude in their submissions in support of their appeal. \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The legal relationship between the Appellants and the Respondent is one based on the law of contract.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is the law that governed the parties}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 behaviour towards each other and is specifically defined in two documents namely, the Letter of Offer dated 5 May 1997, followed by the Bill of Sale of 19 May 1997 and registered with the Registrar of Deeds (No. 97/1240) on 21 May 1997. \par \par The contract documents stipulate that both parties had agreed to a loan of $24,710.00 by the Appellants for a term of 3 years beginning July 1997 with a monthly instalment payment of $960.00 per month and carrying an interest of 8 per cent per annum.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The final monthly instalment payment was due on June 2000. \par \par As outlined in the background facts above, it is normal procedure in similar types of loan made available by the Respondent to borrowers, the Applicants were required to contribute a portion or percentage of the total costs of the project to which the loan was sought, before the loan was released.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In this instance, the Appellants were required to pay 50 per cent of project costs i.e. $24,710.00 to match the amount advanced by the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Such payment to be made to the Respondent prior to the release of the loan of the equivalent amount.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Both parties agree that the Appellants had fulfilled this and other requirements when the first disbursement of the loan was released to them.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is from hereonafter that the problem of non}{\lang2057\langfe1033\langnp2057\insrsid6362927 -}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 payment of monthly instalments of the loan began. \par \par The Appellants do not dispute that they were in arrears of their payment to the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Learned Magistrate found so. \par \par What rights and obligations do the parties have at the point of the first default in payment by the Appellants?}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Respondent, as the aggrieved party, is entitled under the terms of the agreement, to immediately call up the total sum or the balance of the outstanding loan, without serving notice on the Appellants.}{\lang2057\langfe1033\langnp2057\insrsid6362927 } {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Specifically paragraph F.1(ii)(a) of the Bill of Sale states}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (ii)\tab The moneys hereby secured shall at the option of the Mortgagee and notwithstanding any delay or previous waiver of the right to exercise such option immediately become payable and this security shall immediately become enforceable without any demand or notice in each or any of the following events}{\lang2057\langfe1033\langnp2057\insrsid6362927 :-}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par {\listtext\pard\plain\s16 \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \hich\af0\dbch\af0\loch\f0 (a)\tab}}\pard\plain \s16\ql \fi-709\li2127\ri0\nowidctlpar\faauto\ls1\rin0\lin2127\itap0\pararsid6362927 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 If the Mortgagor or Debtor makes default in the payment of the moneys hereby secured or any part thereof ....}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard\plain \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par It is true that there had been interim arrangements entered into between the Appellants and the Respondent whereby the latter had deferred the call}{\lang2057\langfe1033\langnp2057\insrsid6362927 -}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 up for the total sum owed, in favour of the Appellants paying the amount in arrears.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 But the fact remains that such arrangements do not constitute a waiver of the rights of the Respondent to demand full payment should default in payment continues, and the on}{ \lang2057\langfe1033\langnp2057\insrsid6362927 -}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 going obligation on the Appellants part to meet their instalment payments as well as the balance of the loan if demanded. \par \par Furthermore, in addition to the Respondent demanding full payment of the balance of the loan, it is entitled to seize and sell the chattels.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Again the Bill of Sale is very specific.}{\lang2057\langfe1033\langnp2057\insrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Paragraph F.2 states}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \fi-720\li1440\ri0\nowidctlpar\faauto\rin0\lin1440\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 2.\tab If the Mortgagor sh all make default in payment of any of the moneys hereby secured or in the observance or performance of any of the covenants conditions and agreements herein contained on the part of the Mortgagor to be observed or performed the Mortgagor may sell the mort g aged chattels or any of them by public auction or tender or private treaty and in one lot or several lots and separate sales may be so made to different persons or at different times without notice to the Debtor or the Mortgagor and the Mortgagee shall no t be answerable or accountable for any involuntary losses which may happen in or about the exercise or execution of any of its rights powers or remedies hereunder.}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par The legal rights of the Respondent and the obligations on the Appellants could not be any clearer. \par \par The Appellants first argued that they were not given the opportunity to repay the loan including the arrears that had slowly accumulated.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is different to follow this argument in the light of evidence adduced by the Respondent, showing that between October 1997 and July 1998, the Appellants had been given extensions of time to pay up their arrears.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It could very well be the case that the political}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 turmoils of May 2000 had exacerbated the Appellants}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt \f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 financial ability to repay their loan, but the fact remains that they had fallen behind in their payment long before the events of May 2000 came along.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par The Appellants then argued that they had not been informed of the sale of the chattels.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 But as the Court has already stated, notice of sale is not an obligation owed by the Respondent to them, as clearly spelled out under paragraph F.2 of the agreement.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 At the end, the seizure by the Respondent of the Appellants}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 chattels and the sale by tender are in total conformity with the law and in keeping with the terms of the Agreement entered into between the parties. \par \par Much weight was placed by the Appellants to the submission that the Respondent had failed to sell the chattels, in this particular instance, the motor vehicle, at its proper value.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In so doing, the Appellants argued, it had failed to mitigate its loss, as is required by law.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As evidence, the Appellants referred to the fact that the vehicle was insured at the time for $20,000.00, whilst its sale realised only $5,000.00. \par \par In the Magistrates}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Court, the learned Magistrate heard both sides on this argument.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Appellants produced two individuals one of whom claimed that he was willing to purchase the vehicle from them for $18,000 whilst the other confirmed that the vehicle was in a good condition at the time he inspected it.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Respondent on the other hand through its investigating officer produced a report which stated that at the time of the seizure, the vehicle was being repaired with parts, including a tyre, missing.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Appellants confirmed according to the learned Magistrate, that the vehicle was}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 undergoing repairs when it was seized.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The fact is that, the vehicle had to be towed away after it was seized by the bailiff.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 A Vehicle Inspection report by one of the Respondent} {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s employees estimated th e market value of the vehicle at $4,000.00. \par \par In finding for the Respondent, the learned Magistrate considered that while the insurance of the vehicle was at $20,000.00, the material time was when it was seized by the bailiff.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 At page 2 of the judgment, the learned Magistrate concluded}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is the condition of the vehicle at the time of the seizure that matters as it may have gone through changes or deterioration with lapse of time.}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par It is a statement I totally endorse.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The fact that certain individuals ha d offered $18,000.00 for the vehicle, would not of itself be sufficient ground to hold the value of the vehicle at the price it was insured for especially when the only firm offer by one of them was made a good few months before seizure or at any rate, be fore the vehicle began to undergo repairs.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As the learned Magistrate, had correctly pointed out that, assuming that the two individuals were genuinely interested in purchasing the vehicle,}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the Appellants should have put them in touch with the Respondent, after the vehicle had been seized. \par \par The Appellants argued that they were not notified of the sale of the vehicle and presumably therefore the learned Magistrate}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s view that they should have referred the two prospective buyers of the vehicle to the Respondent, is irrelevant.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 But as already stated, the Respondent under the provisions of the Bill of Sale is not obliged to notify the Appellants of the sale or subsequent disposal of the chattels seized. \par \par One would have assumed that the most prudent action expected of the Appellants and in fact of any one under similar circumstances, was to enquire of the Respondent from time to time, what the fate of the}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 seized chattels}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 were going}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 to be .}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Certainly, it}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 would have been}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 commercially}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 wise and advisable for the Appella nts to be alert to the possibility of sale by tender and advertisement of such sale, as this is the general practice of disposal of seized chattels by the Respondent and recognised nation}{\lang2057\langfe1033\langnp2057\insrsid6362927 -}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 wide.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Respondents were at liberty at anytime to make an offer as well as compete with other tenderers when the vehicle was offered to the public.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 As it happened the sale by tender was advertised in two of the local dailies on 18th and 23rd January 2001.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The fact that the Appellants were not aware of the sale of the vehicle most certainly was not the fault of the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Nor was it \par \par a failure of duty to inform on the part of the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It would most likely appear to an interested observer,}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 to be careless behaviour by the Appellants.}{\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The duty to mitigate one}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s loss is one that is recognised in law.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In respect of a Mortgagee being under a duty to obtain a fair market value when realising property sale, the authority had been laid down by Lindley L J in }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Farrar v. Farrar}{ \ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s Limited}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 40 Ch. 411 where he said}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 If in exercise of his power he acts bona fide and takes reasonable precautions to obtain a proper price, the mortgagor has no redress, even although more might have been obtained for the property if the sale had been postponed.}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par As to what constitutes }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 reasonab le precautions}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Lindley L J put it in }{ \ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Kennedy v. De Trafford}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 [1896] 1 Ch. 762 thus}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 A mortgagee is not a trustee of a power of sale for the mortgagor at all; his right is to look after himself first.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 But he is not at liberty to look after his own interests alone, and it is not right or proper, or legal, for h}{\lang2057\langfe1033\langnp2057\insrsid6362927 im, either fraudulently, or wil} {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 fully, or recklessly, to sacrifice the property of the mortgagor .....}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (P. 772). \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The formulation of the mortgagee}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s duty as set out by Lindley L J was accepted and refined further in }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Cuckmere Brick Co.}{ \ul\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 v.}{\b\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 }{ \ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Mutual Finance}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 [1971] 2 All ER 633 where Salmon L J stated}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par \par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is well settled is not a trustee of the power of sale for the mortgagor.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Once the power has accrued, the mortgagee is entitled to exercise it for his own purposes whenever he chooses to do so.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It matters not that the moment may be unpropitious and that by waiting a higher price could be obtained.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 He has the right to realise his security by turning it into money when he likes.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Nor, in my view, is there anyt hing to prevent a mortgagee from accepting the best bid he can get at an auction, even though the auction is badly attended and the bidding exceptionally low.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Providing none of those adverse factors is due to any fault of the mortgagee, he can do as he likes.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 If the mortgagee}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 s interests, as he sees them conflict with those of the mortgagor, the mortgagee can give preference to his own interests, which of course he could not do were he a trustee of the power of sale for the mortgagor.}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (P. 643). \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Cross L J added, in the same }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Cuckmere Brick Co.}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (supra) the pre}{\lang2057\langfe1033\langnp2057\insrsid6362927 -}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 requisite that}{\lang2057\langfe1033\langnp2057\insrsid6362927 :}{\lang2057\langfe1033\langnp2057\insrsid11033011 \par }{\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 the sale must be a genuine sale by the mortgagee to an independent purchaser at a price honestly arrived at}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (P 647). \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Fiji Court of Appeal in }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Jai Narayan v.}{\ul\lang2057\langfe1033\langnp2057\insrsid6362927\charrsid6362927 }{ \ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Mohammed Samshu Dean & Ors.}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 (Unreported CA No.56 of 1985) followed the English authorities above in recognising that the mortgagee is under a duty to obtain a fair market value tempered with the recognition of the rights of the mortgagee as detailed by Salmon L J in }{ \ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Cuckmere Brick Co}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 . above. \par \par The learned Magistrate in his judgment, had also referred to the case of }{\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Cuckmere Brick Co}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 . and the obligations and rights of the Appellants and the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In assessing all the evidence adduced, the learned Magistrate concluded that taking everything into consideration, he found that the Respondent has acted reasonably in the seizure and subsequent sale of the vehicle. \par \par I can find no grounds to differ from the conclusion of the learned Magistrate.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The Respondent had done all it could to reach a satisfactory arrangement with the Appellants.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 In the face of continuing default of payments and accumulating arrears, the Respondent had little choice, but to seize and sell the chattels in accordance with its rights under the Bill of Sale.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It did no wrong. \par \par The Appellants finally argued that the Respondent had not taken into consideration that not only had they paid into the project, the sum of $24,710.00 from their FNPF shares as their contribution, they had also paid a total of $17,740.00 for th e period between July 1997 to December 2000, towards the loan from the Respondent.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The assumption, so the Appellants}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 argument goes, is that at the time of the seizure, the Respondent should have taken cognisant of the fact that the outstanding balance amo unted to a mere $6980.00 being the difference between the total of repayments ($17,740.00) and the loan ($24,710.00).}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is an argument and view frequently advanced by so many but sadly,}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 not in accordance with commercial practices, let alone financial tran sactions of banking institutions. \par \par The fact of the matter is that loans and other money transactions by themselves generate additional costs and charges which are added on to the principal sums.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Quite apart from interests, there are nowadays such creatures as bank service fees, late repayment or arrears fees, insurance fees and ledger fees.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 It is no doubt a matter that has generated a lot of public debate on how equitable the banking practices especially the charges that are levied on customers.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Be that as it may, the Courts can only pronounce on the rights and obligations as reflective of existing laws.}{\lang2057\langfe1033\langnp2057\insrsid6362927 }{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 For the moment and regretfully for the Appellants, they cannot avoid their legal duties and financial obligations expected of them under the Bill of Sale.}{ \lang2057\langfe1033\langnp2057\insrsid6362927 }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 This in turn means that they are required to pay the Respondent the total sum of the judgment debt entered against them in the Magistrates}{ \lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f40\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Court together with interest at 8% per annum for the period as ordered. \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 The appeal is dismissed with costs of $200 to the Respondent.}{\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }{\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 F. Jitoko \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 Judge}{\b\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid6362927 {\lang2057\langfe1033\langnp2057\insrsid11033011\charrsid6362927 \par At Suva \par 19 September 2002 \par }}