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\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 IN THE HIGH COURT OF FIJI
\par AT SUVA
\par CIVIL JURISDICTION
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\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid8746887 M.}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 I. MOTORS INTERNATIONAL}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 a limited}{\lang2057\langfe1033\langnp2057\insrsid4026071  l}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 iability company having its registered office at
\par 437 Leland Avenue, San Francisco, California,
\par United States of America.
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 PLAINTIFF}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
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\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 TYRE POWER (FIJI) LIMITED}{\b\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 a limited}{\lang2057\langfe1033\langnp2057\insrsid4026071  l}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 iability company having it}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s registered office at
\par Unit 12, Top Floor Kasabia Building, 68 Suva}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Street, Suva.
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 FIRST DEFENDANT}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 FLEET SERVE (FIJI) LIMITED}{\b\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 formerly }{\lang2057\langfe1033\langnp2057\insrsid4026071 k}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 nown as }{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 TYRE POWER (FIJI) LIMITED}{\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 a}{\lang2057\langfe1033\langnp2057\insrsid4026071  l}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 imited liability company having its registered}{
\lang2057\langfe1033\langnp2057\insrsid9656631 
\par }{\lang2057\langfe1033\langnp2057\insrsid4026071 o}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 ffice at 374 Grantham Road, Raiwaqa, Suva.
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 SECOND DEFENDANT}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
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\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 father}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s name}{\lang2057\langfe1033\langnp2057\insrsid8746887  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Yenkat Reddy of 374 Grantham Road,
\par Raiwaqa, Suva, Company Director.
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 THIRD DEFENDANT}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
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\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 SASHI KALA}{\b\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 father}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s name Jagnath of}{\lang2057\langfe1033\langnp2057\insrsid8746887  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 374 Grantham Road, Raiwaqa, Suva,
\par Company Director.
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 FOURTH DEFENDANT}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
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\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 Counsel for the Plaintiff:}{\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 G. O}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 Driscoll for Messrs Iqbal Khan & Associates
\par Counsel for the Defendants:}{\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 S. Lateef, Lateef & Lateef
\par }{\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 
\par }{\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887 Date of Decision}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 :}{\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 19.11.02
\par Time of Decision:}{\lang2057\langfe1033\langnp2057\insrsid8746887\charrsid8746887  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 9.30 a.m.}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 DECISION}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par On 24 September, 2002 the Plaintiff obtained from this Court a Mareva Injunction restraining the defendants from dealing in any way whatsoever with their assets, whether jointly or individually owned, for up to the value of $US34,506.58.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 This amount represents the total value of two (2) }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL
 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Jeep Cherokee}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
 motor vehicles which, the plaintiff sold to the 1st defendant Company but for which no money has been paid by the said defendant, to the plaintiff.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The plaintiff is a US Company with its registered office in San Francisco, California United States of America.
\par 
\par On 3 October 2002 the terms of the injunction was varied to allow the 2nd defendant to pay out salaries and wages of its employees.
\par 
\par The Court, on 8 October 2002 heard Counsel for both parties on the defendants}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  motion to dissolve the injunction.
\par 
\par Very briefly, the facts are these.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
The third defendant on behalf of the 1st defendant, ordered and obtained from the plaintiff two (2) American }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Jeep Cherokee}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  vehicles.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The order was valued at US$34,506.58.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The delivery was made in August 1996.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Since then, the plaintiff has been trying but in vain, to extract payment from the defendants.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 A Winding}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Up petition notice was finally served on the defendants in August 1999 and remains to be heard, at the time of this hearing.
\par 
\par The 3rd defendant does not deny that the 1st defendant had received the two vehicles in 1996.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Counsel for the defendants confirmed that both vehicles have in fact been sold.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 There had originally been some disagreement
 as to the amount (US$46,321.18 claimed in the Winding}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Up Petition compared to US$34,506.58 shown in the Bill of Lading) but in his affidavit in support of the injunction application, the plaintiff acknowledged that the amount of debt which after negotiati
ons between the parties, had been agreed at US$34,506.58.
\par 
\par In his affidavit in support of the Motion to dissolve the injunction, the 3rd defendant who is a director of both the 1st and 2nd defendants, says that the debt is one that is owed by the 1st defendant Company only.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
And while he remained the majority shareholder in the 1st defendant, another person, a Anishwar Reddy, was the majority shareholder in the 2nd defendant.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The legal position, according to Counsel for the defendant, is that while the direc
tors of the 1st and 2nd defendant Companies, may be the same, they nevertheless remain as separate legal entities.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
There is no nexus between the two companies which would enable the plaintiff to include the 2nd defendant as a party to the proceedings.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Whil
e they share the same premises as work place or office facility, their registered offices are separate.
\par 
\par On the other hand, the plaintiff claims that the nexus between the 1st defendant Company and the 2nd defendant Company is very strong that the Court should consider them one and the same.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 For example, the directors in both companies are identical although their share}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 holding capacities differ}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 from one to the other.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Further, the two Companies operate their businesses from the same premises.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Both deal in the general business of car and other vehicles and}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
provisions, services and maintenance of the same.
\par 
\par The plaintiff also points to two additional features of the relationship of the 1st and 2nd defendants that make their relationship different from others.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 First, is the fact that one of the }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Cherokee Jeep}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  vehicles the subject matter of this proceedings, had been sold, and presumably, still in possession of Anishwar Reddy, the majority shareholder in the 2nd defendant Company.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Secondly, the plaintiff annexed (Annex KY11) to his affidavit, a page from the Fiji Telephone Directory 200.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Under the entry }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols"
 \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Tyre Power Fiji Ltd.}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt
\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  (the 1st defendant,) also appears, in bracket, the words: }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 See Fleet Serve Fiji}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 , (the 2nd defendant).}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
All of these the plaintiff argues, tend to show that the 1st and 2nd defendants are one and same entity.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
The only difference, according to the Counsel for the Applicant, is that the 1st defendant did not change its name to that of the 2nd defendant but instead incorporate a new Company altogether.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 But according to the plaintiff, such action was solely motivated by the 1st and 3rd defendants attempt to use the Corporate Veil to avoid its creditors.
\par 
\par The law on corporate entity principle is well settled since }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Salomon}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  vs. }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Salomon}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  [1897] AC 22 H.L. supra p.63, which states that the Courts will not treat a company as the }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 alias agent, trustee or nominee}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  of its members.
\par 
\par However, the Courts have granted exceptions to the veil of incorporation in cases where the legislature has specifically permitted it to be so, and in instances where the strict application of the }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Salomon}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  principle would result in injustice and inconvenience.
\par 
\par Clearly, in the Court}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
s view, there is a serious issue of law raised by the plaintiff on whether the Corporate Veil is being used by the defendants to avoid their creditors.
\par 
\par Counsel for the defendants further argues that the plaintiff had already begun Winding}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Up proceedings against the 1st defendant.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 This according to the defendants, and the fact that the matter had not bee
n disclosed to the Court, amounted to the abuse of the process of the Court (O.18 r.18).
\par 
\par The plaintiff Counsel on the other hand, contends that the Winding}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Up Petition against the 1st defendant, which was, specifically referred in the plaintiff}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s supporting affidavit, does not exclude the present proceedings, especially if it appears to the plaintiff that the assets of the 1st defendant are being dissipated.
\par 
\par The defendants argue that the plaintiff has no evidence to show any fraud committed by the 1st defendant in the course of the Winding}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Up proceedings, although the plaintiff intimated in the course of his Counsel}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s argument,}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
that possible offences may have been committed by the 1st defendant}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s officers under sections 225, 313 and 319 (1) (e), (h) and (m) of the Companies Act (Cap. 247).
\par 
\par The defendant has also raised the issue of the inclusion in the plaintiff}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s affidavit of }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 without prejudice}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  communication between the parties in the course of negotiations.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Legal authority is well settled as summarised in }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Field}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  vs }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Commissioner for Railways (NSW)}{\lang2057\langfe1033\langnp2057\insrsid8746887  (1955) 99 CLR}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  285.}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The High Court of Australia stated (p.292):
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 As a matter of policy the law has long excluded from evidence admissions by words or conduct made by parties in the course of negotiations to settle litigation.}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
The purpose is to enable parties engaged in an attempt to compromise litigation to communicate with one another freely and without the embarrassment which the liability of their communications to be put in evidence subsequently might impose upon them.}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The law relieves them of this embarrassment so that their negotiations to avoid litigation or to settle it may go on unhampered.}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 In the present circumstances, the exchange of communication by letters between the solicitors of the parties bearing }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 without prejudice}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
 stamps did not relate directly to any attempts at settlement.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
They consisted mainly of general denial of liability although the letter of 1 July 2002 from the defendant}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}
}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s solicitors, did mention a payment scheme of sort.
\par 
\par The test to exclude these correspondence is whether the contents of the letters are reasonably incidental to the negotiations to a settlement.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 In my view, the contents fell outside the area of protection and was properly included in the plaintiff}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst 
SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s affidavit.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 In any case, the objection by the defendants would certainly appear nugatory given that there is already admission of the debt owed to the }{\lang2057\langfe1033\langnp2057\insrsid8746887 
plaintiff by the 1st defendant.}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par 
\par Mareva injunction is a creation of the English Courts following the case of }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Mareva Compania Naviera SA}{\ul\lang2057\langfe1033\langnp2057\insrsid8746887  vs}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 International Bulk Carriers SA The Mareva}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  [1975] 2 Lloyd}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
{\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s Rep. 509.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 The decision stated the defendant is restraint by himself or by his agents or servants from removing from the jurisdiction or otherwise disposing of or dealing with those o
f his assets that will or may be necessary to meet the plaintiff}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s pending claim.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
Since then, the concept has extended its scope from purely commercial cases to all other cases in the High Court}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL
 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Where the plaintiffs and the defendants are}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  }{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 comparably placed}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  (per Lord Hailsham in }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Siskina}{\ul\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887  }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 v }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Distos Compania Naviera SA}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  [1979] AC 210 AT 261).}{
\lang2057\langfe1033\langnp2057\insrsid4026071  }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
It has now become a remedy of general application, available against both foreign as well as domestic defendants and especially in situations where the plaintiff has shown
 a very strong or indisputable claim against the debtor coupled with the plaintiff establishing a reasonable ground for belief that the defendant will otherwise attempt to frustrate satisfaction of judgment.
\par 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Given its far}{\lang2057\langfe1033\langnp2057\insrsid4026071 -}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 reaching implications, the Court}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s have, in dealing with its application, always approached it with extreme care.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 In this regard, the guidelines suggested by Mustill J in }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Third Chandris Corporation}{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  vs }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Unimarine S.A.}{\lang2057\langfe1033\langnp2057\insrsid8746887  (1979)}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  QB 64 (as set out in the Supreme Court Practice (White Book) 1985 Vol.1 p.457) are factors that the Court needs to satisfy itself before considering whether to grant the relief sought.
\par 
\par There is an additional consideration of the }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 Mareva}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  that Lord Diplock alluded to in the }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Siskina}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  (supra).}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 At p.256 his Lordship said}{\lang2057\langfe1033\langnp2057\insrsid4026071 :}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid4026071 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 A right to obtain an interlocutory injunction is not a cause of action.}{\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
It cannot stand on its own.}{\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 It depends on there being a pre}{\b\lang2057\langfe1033\langnp2057\insrsid4026071 -}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 existing cause of action against the defendant arising out of an invasion, actual or threatened by him, of a legal or equitabl
e right of the plaintiff for the enforcement of which the defendant is amenable to the jurisdiction of the Court.}{\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
The right to obtain an interlocutory injunction is merely ancillary and incidental to the pre}{\b\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 existing cause of action.}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 It is granted to prese
rve the status quo pending the ascertainment by the Court of the rights of the parties and the grant to the plaintiff of the relief to which his cause of action entitles him, which may or may not include a final injunction.}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Kerr L J advanced a stage further in his pronouncement in }{
\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Z Ltd}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  vs }{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 A}{
\ul\lang2057\langfe1033\langnp2057\insrsid4026071 -}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Z}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  and AA }{
\ul\lang2057\langfe1033\langnp2057\insrsid4026071\charrsid8746887 -}{\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887  LL}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  [1982] 1 All ER 556 when he added (at p.572)}{
\lang2057\langfe1033\langnp2057\insrsid4026071 :}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid4026071 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 It follows that in my view Mareva injunctions should be granted, but granted only, when it appears to the Court that there is a combination of two circumstances.}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 First when it appears likely that the plaintiff will receive judgment against the defendant for a certain or approximate sum.}{
\b\lang2057\langfe1033\langnp2057\insrsid4026071  }{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Second, when there are also reasons to believe that the defendant has assets within the jurisdiction to meet the judgment i
n whole or in part, but may well take steps designed to ensure that these are no longer available or traceable when judgment is given against him.}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f 
"WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 In the present case there can be no doubt, on the evidence before the Court, that there exists a strong and }{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 65 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 good arguable case}{
\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 64 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071  for the plaintiff}{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 s pecun}{
\lang2057\langfe1033\langnp2057\insrsid8746887 i}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 ary claim for debt or damages.
\par 
\par Finally, while the plaintiff has in its affidavit made the usual undertaking as to damages, the fact remains that it is located out of jurisdiction.}{\lang2057\langfe1033\langnp2057\insrsid4026071  }{
\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 Under the circumstances, it is only appropriate that the Court will, in addition to the undertakings already made, require payment of security.
\par 
\par The defendant}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 {\field{\*\fldinst SYMBOL 61 \\f "WP TypographicSymbols" \\s 12}{\fldrslt\f36\fs24}}}{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
s motion to dissolve the injunction is dismissed.
\par 
\par The plaintiff is ordered to pay $3,500 into Court within 14 days as security and file its Statement of Claim within the same days.
\par 
\par The costs to be in the cause.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid8746887 {\b\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 F. Jitoko
\par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid8746887 JUDGE
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\rin0\lin0\itap0\pararsid4026071 {\ul\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 
\par }{\lang2057\langfe1033\langnp2057\insrsid9656631\charrsid4026071 At Suva
\par 19 November 2002
\par }}