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HBC 350 OF 2001 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8860470\charrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8860470\charrsid8653037 BETWEEN:}{\insrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\b\insrsid8860470\charrsid8653037 TERENCE R. BUCKLEY, YELLAPPA REDDY }{\insrsid8860470\charrsid8653037 and \par }{\b\insrsid8860470\charrsid8653037 MICHAEL J AH KOY}{\insrsid8860470\charrsid8653037 of Nadi, Auckland, New Zealand \par and Suva respectively, Company Directors of \lquote Westmall \par Limited\rquote \par FIRST PLAINTIFFS \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8860470\charrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037\charrsid8653037 AND:}{\insrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\b\insrsid8860470\charrsid8653037 WESTMALL LIMITED}{\insrsid8860470\charrsid8653037 a company incorporated in Fiji \par Islands and having its registered office at Lautoka \par (Receiver appointed) \par SECONDPLAINTIFF \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8860470\charrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037\charrsid8653037 AND:}{\insrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\b\insrsid8860470\charrsid8653037 BRUCE GEOFFREY SUTTON}{\insrsid8860470\charrsid8653037 and }{\b\insrsid8860470\charrsid8653037 JOHN HAROLD \par GAUKRODGER}{\insrsid8860470\charrsid8653037 of KPMG, Chartered Accountants as \par Receivers and Managers for \lquote Westmall Limited\rquote \par FIRST DEFENDANTS \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8860470\charrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037\charrsid8653037 AND:}{\insrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\insrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid13373314 {\b\insrsid8860470\charrsid8653037 AUSTRALIA}{\b\insrsid8653037\charrsid8653037 }{\b\insrsid8860470\charrsid8653037 AND NEW ZEALAND BANKING \par GROUP LIMITED}{\insrsid8860470\charrsid8653037 a company incorporated in the \par State of Victoria, Australia as bankers and registered in \par Fiji as a foreign company \par SECOND DEFENDANT \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\insrsid8860470\charrsid8653037 \par }{\insrsid8653037 Date of Hearing}{\insrsid8860470\charrsid8653037 : 3 October 2001 \par }{\insrsid8653037 Date of Decision}{\insrsid8860470\charrsid8653037 : 8 July 2002 \par \par Mr. Jai Ram Reddy with Mr. K. Muaror for the 1st and 2nd Plaintiffs \par Mr. P. McDonnell for the 1st Defendants \par Mr. S. Parshotam for the 2nd Defendant \par }{\b\insrsid8860470\charrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\insrsid8653037\charrsid8653037 DECISIO}{\b\insrsid8860470\charrsid8653037 N \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par This case is concerned with whether a Court can grant, and the extent to which it can grant, injunctive relief against a creditor who calls in his \'93on demand\'94 loan in order to permit a deb tor time to raise a fresh loan or to make a more favourable sale. \par \par The American discount warehouse company, Cost-U-Less Inc. occupied a Crown Lease near Nadi Airport,}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 known}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 as the Westmall Complex.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The lease, CL90577 which eventually became CL13421 was held in the name of the 2nd Plaintiff and sub-let to Cost-U-Less for a term of 10 years.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The 2nd Plaintiff obtained finance for this development from the Second Defendant bank, which took various securities including a first registered debenture mortgage over all of the assets and undertakings of the 2nd Plaintiff and unlimited guarantees from three of its directors, the 1st Plaintiffs.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Plaintiffs claim that after 3 years Cost-U-Less reneged on its agreement with the 2nd Plaintiff, and abandoned its sub-lease from the 1st of May 2001.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 As a result the 2nd Plaintiff was not thereafter in a position to meet its financial obligations to the 2nd Defendant, which then appointed the 1st Defendants as}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Receivers and Managers.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The 1st Defendants were to advertise sale of the whole of the Westmall Complex on the 27th of October 2001. \par \par The proposed sale precipitated these proceedings.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 A writ was issued on the 26th of October 2001 with a brief indorsement claiming inter alia an injunction to prevent such sale.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 An ex part e notice of motion was issued the same day. The papers seem to have been served on Solicitors for the 1st Defendants since they were present on the application that same day.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Scott J. made an order for}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 transfer of the matter to Lautoka High Court, as there was a related matter already filed there.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The judge granted}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 an interim injunction restraining sale till the matter could be heard in Lautoka. \par \par The 1st and 2nd Plaintiffs filed in opposition the affidavit of Terence Rex Buckley, sworn and filed on 26th October 2001 in support of their application. \par \par The 1st Defendants filed the affidavit of John Harold Gaukrodger sworn on 16th November 2001.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He was a partner in the accounting firm of KPMG with the first named of the 1st Defendants, both being the appointed Receivers and Managers of the 2nd Plaintiff.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He did not state that he was authorised by his partner to depose on behalf of the partner also, though this may have been an oversight.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The 2nd Defendant filed in opposition the affidavit of Christopher Robin Griffiths sworn on 16th November 2001.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Lastly Mr. Buckley for the 1st Plaintiffs deposed to an affidavit in reply sworn and filed on 30th November 2001. \par \par None of the deponents gave sufficient details of their respective addresses as required by the Rules.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They simply said \'93 I, XYZ of Nadi, (or of Suva), Company Director make oath and say as follows:\'94 All witnesses in a trial state their addresses in full after they are sworn, and before commencing upon their evidence.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Deponents swearing affidavits are in no different a category to such witnesses.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It is a fundamental requirement of our system of justice that an accused, or a litigant in a civil claim, should know who his accusers are so that he may mount his defence or challenge to what they say against him. T he opposing side therefore is entitled to know the full identification and location of a witness, save}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 in exceptional circumstances such as where the life of a witness is threatened}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 or in similar dire circumstances.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It is sufficient}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 for professional witnesses, as here, simply to give their professional addresses.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 But proper details of such professional addresses should be provided.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The rule is set out in Order 41 r. 1(4): \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93Every affidavit must be expressed in the first person and, un less the Court otherwise directs, must state the place of residence of the deponent and his occupation or, if he has}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 none, his description, and if he is, or is employed by, a party to the cause or matter in which the affidavit is sworn, the affidavit must state that fact. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In the case of a deponent who is giving evidence in a professional, business or other occupational capacity the affidavit may, instead of stating the deponent\rquote s place of residence, state the address at which he works, the position he hold s and the name of his firm or employer, if any.\'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The ultimate sanction for breach of the rule is illustrated}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 by }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Hyde v Hyde (1888) 59 LT 523}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It is more important however to provide the necessary information in}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 an affidavit as}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 required by the rules, more so where the rules support a fundamental requirement of fairness. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Evidence \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par In his first affidavit Mr. Buckley}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 exhibited the letter of offer of finance from the 2nd Defendant of the 25th of September 1997.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The facilities schedule attached to it stated that the term of the loan was to be: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'935 years}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 with repayments and initially mortised over 15 years.}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 After 5 years, loan is subject to renegotiation at that stage.}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Any extension is purely at the bank\rquote s discretion\'94.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The purpose of the loan was \'93for development and construction of a commercial complex at Nadi\'94.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 All facilities were said to be \'93 repayable on demand\'94.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Plaintiffs did not exhibit copies of the relevant security documents, nor in particular the debenture of the 21st of May 1998, or the}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 demand notice from the bank of the 6th of June 2001.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mr. Griffiths for the Bank did however.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 By Clause 18 of the debenture, the monies secured were, at the option of the bank, immediately to become due and payable and the security created was to become immediat ely enforceable without the necessity for any demand or notice, upon the happening of any one of several events set out in paragraphs (a) to (r).}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Amongst the events was listed default in making payment under the debenture.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Clause 45 provided for}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 separate or concurrent pursuit of remedies under the securities. \par \par The demand notice set out the bank\rquote s demand for payment within 7 days of the outstanding balance of the loan.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Details were provided of the balance, which was}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 $1,803,995.91 as at 23rd of May 2001 with further details of interest, fees, accruing interest, other accounts and legal fees.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Additionally the 2nd Plaintiff was given 3 weeks to pay or the 2nd Defendant would pursue winding up proceedings.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 There was a problem with CL90577 in that initial searc hes suggested the title was unencumbered whereas later the Titles Office said it was encumbered. Eventually this was paid off, CL90577 surrendered, and CL13421 substituted in its place with the 2nd Defendant\rquote s mortgage registered on the title.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The mistake at the Titles Office does not affect the issue in this application.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Demand Notice was issued pursuant to the debenture mortgage and the guarantees. \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Is there a serious issue to be tried}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 ? \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The endorsement on the writ claims damages for breach of the Fair Trading Decree as well as seeking an injunction against the exercise of}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 powers of sale on the mortgage or debenture.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mr. Buckley exhibited to his first affidavit a copy of the statement of c laim in the related action against Cost-U-Less.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 This sought payment of damages equivalent to the remaining rent under the 10-year sub-lease which was running at the rate of $29,783.66 per month.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The defence was also exhibited.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In it Cost-U-Less denied ente ring into a lease but admitted executing a document called \'93Memorandum of Agreement\'94.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It denied liability to make further payments and pleaded in the alternative that the purported lease was illegal since the agreement with a non-resident company lacked th e prior written consent of the Minister of Lands in contravention of the Land Sales Act.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mr. Reddy said \'93 the ministerial consent is in order\'94.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He sought an injunction stating that there was a discretion in the court to allow a short period for the Plaintiffs to raise necessary monies.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Besides the action, which he said stood an excellent chance of success to recover the remaining rent and to which there was no real defence, he said there were other lots for sale on the site which could raise further funds. \par \par There was also an offer to purchase the site.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 A company wrote to express interest in September 2001, and wrote again in October 2001 stating it was \'93finalising release of funds to land owners\'94 by the Ministry of Fijian Affairs.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 On the 15th of November 2001 there was a letter from the head of a}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 tokatoka stating the original land owners}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 would like to enter a conditional contract to purchase the site for $3 million which was to go unconditional once the Ministry had released funds held in trust to the tune of $11 million.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mr. McDonnell described this as a nebulous sales offer.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He said the \'93 arrangements have an air of uncertainty about them.\'94 \par \par There appears to be no serious issue for trial here.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Plaintiffs seek more time.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 But unless they can show that a cause of action arises from the Defendant\rquote s \par failure to allow more time for the raising of fresh funds, no question of a discretion arises for the court to exercise.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Plaintiffs carry the burden of establishing the need for injunctive relief: }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Westpac Banking Corporation Limited v Adi Mahen Prasad [1999] 45 Fiji LR 1 at p6D}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 ; }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Haddington Island Quarry Co Ltd v Huson [1911] AC 727.}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Adequacy of Damages \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 If the Plaintiffs eventually were to succeed with their case they could be adequately compensated in damages.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 There is a significant embarrassment meanwhile for the 3 guarantors in having to meet any shortfall from the sale of the site in repaying the bank loan, interest, and ancillary charges.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 But this could be met by the 2nd Defendant, a large and profitable regional bank, if the Plaintiffs do succeed. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Undertaking as to Damages}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The Plaintiff company is the owner of the land in question.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Nothing more is said of other assets, if it has any.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Though the 3 guarantors, the first Plaintiffs, are joined in the undertaking contained in Mr. Buckley\rquote s affidavit nothing is put before the court as to the guarantors\rquote individual financial positions to meet any adverse award of damages, which in a case of this dimension could be substantial.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Although the undertaking is given in the affidavit, and said to be through counsel, it is not in a form which is easy for the court to weigh with any confidence. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Balance of Justice and Convenience}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The developers of the site, the Plaintiffs, are exceptionally without fault.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 What they had not anticipated was that their tenant would renege on its agreement and thereby}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 leave the Plaintiffs\rquote business to collapse.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Plaintiffs have not fallen into this catastrophic situation by over-trading, by mis-manage ment, by the dishonesty of the senior staff or by reckless overspending.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They have plans to achieve sales of other lots (one appears to be already sold) and to find a buyer for the main building and its site.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 All they need they say, is a little more time within which to conclude these sales at favourable}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 prices.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 If that were to result the 2nd Plaintiff would be able to pay o}{\lang2057\langfe1033\langnp2057\insrsid8653037 ff its loan owed to the bank. }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par \par More importantly the guarantors would not be called on to pay what may be ruinous sums unnecessarily to make up the difference.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The bank could afford to wait and to see if private sales could produce a better price.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 On the other hand the bank says there is a real chance that its costs may eventually become too great for the likely funds available from a delayed sale, delay here reducing the value of its securities:}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Rauzia Mohammed v A.N.Z. Bank [1984] 13 Fiji L.R.136 at p141. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mortgagee Sales}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par This area of the law is well settled.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Halsbury 4th Edition Vol.32 at paragraph 725 states: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93 The mortgagee will not be restrained from exercising his power of sale because the amount due is in dispute, or because the mortgagor has begun a redemption action, or because the mortgagor objects to the manner in which the sale is being arranged.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He will be restrained, however, if the mortgagor pays the amount claimed into court that is, the amount he claims to be due to him. \'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The principle was enunciated in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 McLeod v Jones (1883) 24 Ch.289 at p299}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 ; and has been applied in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Inglis v Commonwealth Trading Bank of Australia (1971-72) 126 CLR 161}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 and accepted in this jurisdiction in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Rauzia Mohammed v A.N.Z. Bank}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 (supra at p140.)}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The courts will not normally interfere with a mortgagee\rquote s power of sale.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 If they do they will only do so in exceptional cases and will usually demand payment of all outstanding monies owed into court.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It must be said this Rule has little commercial reality behind it.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mortgagors are rarely if ever in a position to pay such sums into court.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 struggle to keep their creditors at bay and if fortunate are able to re-schedule their loans or to find finance from an alternative lending institution: see comments of Walton J in }{ \b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Bank of Baroda v Panessar}{\b\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 & Others [1986] 3 All ER 751 at p760b}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The unlucky ones have no alternative but to come to court for an injunction. }{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 However the requirement to pay outstanding, albeit disputed, sums owed into court before an injunction will be granted, save in cases of mala fides or breach of duty of care, is so well entrenched as settled law, that it must be ac cepted until it is re-examined by an appellate court. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The Defendants Conduct \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The 2nd Defendants\rquote financial assistance to the 2nd Plaintiff was granted on terms of repayment \'93on demand\'94.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It is admitted the loan could not be serviced by the 2nd Plaintiff once Cost-U-Less failed to honour the agreement to pay rent.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The 2nd Plaintiff fell into admitted default with the bank.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It last made repayment for the loan on the 8th April 2001.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 It was a further 2 months or so before the bank issued a Demand Notice[14th of June 2001], and a further 2 months [14th}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 August 2001] following further and continuing default before the bank appointed Receivers and Managers, and 2 more months before the Receivers decided to advertise.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In the circumstances this could hardly be called precipitate on the part of the 2nd Defendants.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In his second affidavit Mr. Buckley claims that the appointment of the Receivers and Managers was, having regard to all the circumstances, improper and/or invalid and/or unconscionable.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In argument Mr. Reddy did not pursue this allegation.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par \par On the day they were appointed, the Receivers through Mr. Sutton met Mr. Buckley.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They met again on the 14th of September 2001 when Mr. Buckley said he would provide, within a week, details of prospective parties interested in purchasing the property either as a whole or in sub-divided lots.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 He did not provide such information.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They met further on the 19th of October 2001 when amongst other things Mr. Buckley said negotiations were advanced with a party who would offer $3 million for the whole property.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Substantial progress was expected by the 24th of October 2001 he said.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mr. \par Sutton requested written evidence of all of this, but it was not made available to him.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Later e-mail communications were forwarded to Mr. Sutton concerning the progress of negotiations but no confirmed sale was evidenced.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Accordingly the Receivers decided not to allow further time but to advertise the property for sale. \par \par There is little that could be said, if anything at all, pointing to any unlawfulness or any unfairness on the part of the Receivers.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Generous time had been}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 allowed to the Plaintiffs who unfortunately had not been able to clinch a firm purchaser by private means by the time of this application or indeed by the time of the hearing. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Monies \'93on demand\'94 and the Court\rquote s discretion}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par In conformity with the 2nd Defendant\rquote s letter of offer of finance, the mortgage debenture stated that the mortgagor was to pay duly}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 on demand}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 from the bank [Clause 1].}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 When the Demand Notice was issued it allowed 7 days within which payment in full was to be made. \par \par Mr. Reddy referred me to \'93The Law of Company Receiverships in New Zealand and Australia\'94 by Blanchard and Gedye 2nd Editio n and cited several authorities in support of his argument that the court had a discretion to allow a further short period, as in the instant case to permit}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 the Plaintiffs to raise the monies demanded.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The approach of other common law jurisdictions has varied only slightly, with the English courts adopting the strict view, the Canadian courts a more liberal view, and the Australian and New Zealand courts a position more or less in the middle. \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93This position adopted by the English Courts to a requirement for payment \'93on demand\'94 has been consistently rigorous.}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Though it is accepted that these words cannot mean that the debtor is bound to pay the money the very next instant, the debtor has only such time as is reasonable to enable the necessary money to be bro ught physically to the creditor from some convenient place.\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 (Blanchard p.73).}{ \b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 R.A. Cripps Ltd v Wickenden [1973] 1 WLR 944 at p955}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Goff J. said: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93 The cases show that all the creditor has to do is to give the debtor time to get [the money] from some convenient place, }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 not to negotiate a deal which he hopes will produce the money} {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 (Emphasis added.) \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Brighty v Norton (1862) 3 B & S at 312}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Blackburn J. had said: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93I agree that a debtor who is required to pay money on demand, or at a stated time, must h ave it ready, and is not entitled to further time in order to go and look for it.\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Toms v Wilson (1862) 4 B & S 442 at p453}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Lord Cockburn C.J. had \par said: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93The deed must receive a reasonable construction, and it could not have meant that the plaintiff was bound to pay the money in the very next instant of time after the demand, but he must have a reasonable time to get it from some convenient place.}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 For instance, he might require time to get it from his desk, or to go across the street, or to his bankers for it.\'94}{\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par This was cited with approval by the Court of Exchequer in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Wharlton v Kirkwood (1873) 29 LT 644}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 , and by the Privy Counsel in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Moore v Shelley (1883) 8 App Cas 285 at p292}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Wharlton}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 , Branwell B. at p.646 doubted if time should be given for the debtor to go to his bank if it were some miles away.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Walton J. in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Bank of Baroda (supra at p760d )}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 said: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93Th ere is no reason why he should not keep the money in Scotland but, if he does, he must then arrange for such mechanics of payment as are, under modern conditions, available for the transfer of the money to his creditor, and, as is well known in these days of telex, fax and other methods of communication and transfer of money, the time required for that is exceptionally short.\'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Indeed the principles to be applied in these cases were carefully reviewed by Walton J. in the }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Baroda }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 case.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Mister Broadloom Corporation (1968) Ltd v Bank of Montreal et al (1979) 101 DLR (3d) 713 at p723}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Linden J. said: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid8653037 {\b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \'93 Thus, a reasonable time must always be allowed, but, in assessing what length of time is reasonable in a particular fact situation various factors must be analy zed: (1) the amount of the loan; (2) the risk to the creditor of losing his money or the security; (3) the length of the relationship between the debtor and the creditor;}{\b\i\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 (4) the character and reputation of the debtor; (5) the potential ability to raise th e money required in a short period; (6) the circumstances surrounding the demand for payment; and (7) any other relevant factors.\'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 On appeal to the Ontario Court of Appeal (4.DLR (4th) 74) it was held that for a creditor to make demand for payment of $1.5 million \'93now\'94 and upon failure of the debtor to come}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 up with a specific proposal for payment, to call in a Receiver within an hour was wrongful and made the creditor liable to the debtor in trespass and conversion. \par \par Reasonable time for compliance with the demand was also further supported by the Supreme Court of Canada in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Lister Ltd. v Dunlop Canada Ltd (1982) 135 DLR (3d)}{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In that matter the creditor had not given notice as it should under the debenture.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The position of }{ \i\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 on demand}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 calls was reviewed at some length in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 ANZ Banking Group (NZ) Ltd. v Gibson [1986] 1 NZLR 556}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 and by the Privy Council in }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Downsview Nominees Ltd v. First City Corporation Ltd [1993] 2 WLR 86}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 .}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Bunbury Foods Pty Ltd v National Bank of Australasia [1983-4] 153 CLR 491}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 set out the Australian position. \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid9791151 {\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Conclusion}{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par The position here is not really about monies on demand, or what constitutes reasonable notice.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 None of the usual challenges are brought against the actions of the bank or the Receivers.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The monies are not in dispute.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The challenge, if it is such, is to the denial of further indulgence to the Plaintiffs who seek to secure a private sale.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 The cases dealing with \'93on demand\'94calls allow hours or at most (in the Canadian and perhaps New Zealand cases) a few days only.}{ \lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 They do not allow a few months.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 Because of the delay in the delivery of this judgment, the Plaintiffs have in fact gained several more months indulgence.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 I have not been informed by the parties that a private sale has been meanwhile secured pending judgment.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 In view of how the bank and their Receivers have handled this matter, no doubt recognising the blamelessness of the unlucky}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{ \lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 developers, this is not a case in which an interlocutory injunction exceptionally should now be granted restraining the Receivers till trial. \par \par I therefore decline to grant the injunctive relief applied for.}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 I order costs against the Plaintiffs which I assess summarily at $750.00 for each Defendant exclusive of disbursements which are to be taxed if not agreed. \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8653037 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\b\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 A.H.C.T. GATES \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid8653037\charrsid8653037 JUDG}{\b\ul\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 E \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid8653037 {\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 \par Solicitors for the 1st and 2nd Plaintiffs : Muaror & Co, Suva \par Solicitors for the 1st Defendants}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 : Cromptons, Suva \par Solicitors for the 2nd Defendant}{\lang2057\langfe1033\langnp2057\insrsid8653037 }{\lang2057\langfe1033\langnp2057\insrsid8860470\charrsid8653037 : Parshotam & Co, Suva \par }}