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{\title IN THE HIGH COURT OF FIJI (AT SUVA)}{\author Amelia Rasovo}{\operator blake_r}{\creatim\yr2004\mo8\dy30\hr13\min58}{\revtim\yr2004\mo8\dy31\hr9\min2}{\version3}{\edmins2}{\nofpages3}{\nofwords822}{\nofchars4691}{\*\company Judicial Department}
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\jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot7234700 \fet0\sectd \linex0\endnhere\sectdefaultcl\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang 
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\qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 \fs20\lang1033\langfe5129\cgrid\langnp1033\langfenp5129 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 IN THE HIGH COURT OF FIJI}{
\b\fs24\lang2057\langfe5129\langnp2057\insrsid11694777\charrsid11694777 
\par }{\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 (AT SUVA)
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 CIVIL ACTION NO. HBC 312 OF 1998S
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Between:
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 BLUESHIELD (PACIFIC) INSURANCE LIMITED
\par }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Plaintiff
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 and
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 FIJI BANK EMPLOYEES UNION
\par }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Defendant
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par Ms. S. Devan for the Plaintiff
\par R. Naidu for the Defendant
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 DECISION
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par On 12 July 2002 in}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
a written decision I gave conditional leave to defend, the condition being the payment into Court forthwith of the sum of $10,000.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 This is an application for a stay of the payment in pending appeal against my refusal to grant unconditional leave to defend.
\par 
\par Ms. Devan raised the preliminary question whether leave was required to appeal against my order.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
I am however satisfied that the clear meaning of Section 12 (3) of the Court of Appeal Act (Cap 12) is that the granting of conditional leave is an order refusing unconditional leave and that therefore leave is not required (see also }{
\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Maganlal Bros v. L.B. Narayan}{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777  FCA Reps 84/368).
\par 
\par The traditional position was that the Court does not \'93make a practice of depriving a successful litigant of the fruits of his litigation and locking up funds to which }{\i\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 prima facie}
{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777  he is entitled\'94}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 pending appeal (}{
\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 The Annot Lyle}{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777  (1886) 11 PD 114) but that the Court must also ensure that \'93when a party is appealing \'85
.. this court ought to see that the appeal, if successful is not nugatory\'94 (}{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Wilson v. Church}{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
 (No. 2) (1879) 12 Ch D 454).}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 It followed that \'93
as a general rule the only ground for a stay of execution is an affidavit showing that if the damages and costs were paid there is no reasonable probability of getting them back if the appeal succeeds.\'94 (}{
\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Atkins v. G.W. Rly}{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777  (1886) 2 TLR 400).
\par 
\par In the present case, since the condition imposed was payment into court as opposed to payment to the other party it is obvious that the question of nugatoriness does not arise.
\par 
\par In 1992 the English Court of Appeal refined the traditional position.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 In }{
\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Linotype \endash  Hell Finance Ltd v. Baker}{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
 [1993] 1 WLR 321; [1992] 4 All ER 887 the Court explained that where an appellant \'93can say
 that without a stay of execution he will be ruined and that he has an appeal which has some prospects of success then that is a legitimate ground for granting a stay of execution.\'94
\par 
\par It is clear from the context in which this words were used that they must be taken to mean not that the appellant merely has to make the two assertions but that he has to do so to the satisfaction of the Court.
\par 
\par On 7 August 2002 the National Secretary of the Defendant Union, Mr. Dewan Shankar, filed an affidavit in support of this application.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
After setting out the basis on which he believed that the Defendant has good prospects of successfully appealing against the refusal to grant unconditional leave he stated in paragraph 11:
\par 
\par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 \'93the Defendant is not in a position to pay forth
with the sum of ten thousand dollars ($10,000).}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 This financial condition is difficult for the Defendant to fulfil.\'94
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par As explained in the reasons for my original Decision it is not sufficient to allege indebtedness without some sort of supporting evidence as a ground for seeking summary Judgment where the debt is denied.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 It is equally evident to me that it is not sufficient to make an unsupported claim of indigence.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 It is also worth noting that paragraph 11 of the affidavit, just quoted, is self contradictory.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 The first sentence asserts that the Union is not in a position to pay.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 The second sentence states that it would have difficulty in paying.
\par 
\par Out of fairness to Mr. Naidu and Mr. Shankar I granted a short adjournment to enable the Defendant to file further evidence in support of its claim that it would be ruined if a stay was not granted.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }
{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 On 22 August 2002 a second affidavit was filed.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 This af
fidavit exhibited a current cheque account statement and a statement of income and expenditure of the Defendant Union for the year ended 31 December 2001.
\par 
\par The current account statement reveals that as at 8 August 2002 the Defendant had a credit balance of $1,411.99.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
From perusal of the various transactions set out (by far the largest of which is a deposit of $5,000) the clear impression is gained that this account is merely a day to day current expenditure account.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Nowhere does Mr. Shankar state that this is the only account held by the Defendant Union.
\par 
\par The income and expenditure statement is also most revealing.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
The statement shows that the defendant has received not insubstantial amounts by way of interest and dividends, by way of investment income and by way of income from a solidarity fund.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Other notable figures are $35,000 spent on \'93organising and research\'94, $16,000 on legal fees and $13,000 on solidarity expenses.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 In the year 2000 almost $17,000 was transferred to \'93accumulated funds\'94 and $14,000 to the \'93solidarity fund reserves\'94.}
{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 Admittedly, in 2000 the Defendant\rquote 
s financial situation deteriorated somewhat and it was necessary to withdraw $31,000 from the \'93accumulated funds\'94 and $6,000 from the \'93solidarity fund reserve\'94.
\par 
\par Given the above I am not satisfied that Mr. Shankar has frankly and completely disclosed the Defendant\rquote s true financial position.}{\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{
\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 The statement in paragraph 4 of his second affidavit that the Defendant was not in a position to pay any sum at all into to Court appears to me to be quite clearly incorrect.}{
\fs24\lang2057\langfe5129\langnp2057\insrsid11694777  }{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
Mr. Shankar did not even attempt to suggest that the Union would not be able to borrow the amount which it was ordered to pay in to court (see }{\fs24\ul\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 M.V. Yorke Motors (a firm) v. Edwards}
{\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777  [1982] 1 WLR 444; [1982] 1 All ER 1024).
\par 
\par The application for a stay fails and is dismissed.
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\b\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 M.D. Scott
\par Judge
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid11694777 {\fs24\lang2057\langfe5129\langnp2057\insrsid7234700\charrsid11694777 
\par 30 August 2002
\par }}