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HBC0463R.2001S \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 BETWEEN}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 :}{ \lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12602704 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 QU RUCHUN \par YUN KUN \par HANS ENTERPRISES LTD.}{\b\lang2057\langfe1033\langnp2057\insrsid12602704 \par }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Plaintiffs \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid2773730 AND}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid2773730 :}{ \lang2057\langfe1033\langnp2057\insrsid12602704\charrsid2773730 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12602704 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 ZANG AI DONG, QU RU JUAN, \par ZHANG MIAN DE, HUANG RUO XIN, \par HAO WEI HUANG, CHAN JUAN HUANG \par FIJI ISLANDS TRADE & INVESTMENT \par BOARD, REGISTRAR OF COMPANIES, \par ATTORNEY-GENERAL OF FIJI. \par }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Defendants \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }{\lang2057\langfe1033\langnp2057\insrsid12602704 Counsel for the Plaintiffs}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 :}{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12602704 Fa & Co.}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par Counsel for 1st, 2nd, 3rd, 4th \par }{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 5th and 6th}{\lang2057\langfe1033\langnp2057\insrsid12602704 Defendants}{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 :}{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Jamnadas, Clarke & Assoc. \par Counsel for 7th, 8th and \par }{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 9th}{\lang2057\langfe1033\langnp2057\insrsid12602704 Defendants}{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 :}{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 No Appearance}{ \lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par \par }{\lang2057\langfe1033\langnp2057\insrsid12602704 Date of Ruling}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 :}{\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 11.7.02 \par \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 RULING}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par In a Summons filed on 11 March 2002, the Plaintiffs seek a grant of an injunction to restrain the 1st, 2nd, 3rd, 4th, 5th and 6th defendants from conducting the business operations of a company, Hans Enterprises Limited, of which all the parties lay claim to have interests in, until the determination of the action or as the Court further orders. \par \par The first and second plaintiffs are Chinese nationals who came to Fiji and joined the second defendant, also a Chinese national, in a business venture.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The venture Hans Enterprises Limited is a going concern, whose line of business is in the production of soy sauce with major distribution networks throughout Fiji.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The Company is included as the third plaintiff in this proceedings although strongly objected to by the defendants. \par \par In the affidavit in support of the Summons sworn by the first plaintiff on both her and}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 the second plaintiff\rquote s behalf, she stated that they, together with the second defendant, bought the company with the payment of twenty five thousand US dollars (US425}{\lang2057\langfe1033\langnp2057\insrsid2773730\charrsid12602704 , 000.00}{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 ).}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The money said the affidavit, was paid to and receipted by the first defendant \'93for 100% of the shares in the 3rd plaintiff \'93i.e. the Company.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The receipt of the money by the second defendant stated, according to the official translations provided by the Fiji Chinese Culture and Service Centre, as }{ \lang2057\langfe1033\langnp2057\insrsid2773730\charrsid12602704 follows:}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid12602704 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \'93I received money from you Bo Hua for the sum of $US$25,000.00.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 This money is from Yu Kun, Qu Ru Chun and Qu Ru Juan.}{\b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 This money is to buy shares in Han\rquote s Enterprise Limited.}{\b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 I give this receipt as proof. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid6504763 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Received from Zhang Ai Dong \par 21 September 1999.\'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par According to the affidavit, the US$25,000.00 purchase of shares of the Company by the first and second plaintiffs and the second defendant meant that all the three individuals held equal shares in the capital of the Company. \par \par In the meantime and unbeknown to the plaintiffs, the first defendant, a Fiji national, converted first 20% of the shareholding capacity in the Company to himself and later on the balance of the shares of the Company to the 3rd, 4th, 5th and 6th defendants, all of whom are Chinese nati onals.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 These transfers of shares, according to the plaintiffs were done without their consent and resulted in, not only the issuance of work and resident permits to them but the cancellation of the first plaintiff\rquote s work permit as well. \par \par In addition and as a consequence of these unlawful actions, the plaintiffs affidavit alleges, they have lost control of the Company including its bank account, which now have passed onto the}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 defendants.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Also, the plaintiffs claim, they had expended time and money in the business including inventing their very own special brand of soy sauce, which all in all had increased the productivity and profits of the Company. \par \par As of now, the first and second plaintiffs have been totally excluded from the operations of the Company and are not permitted to enter its premises. \par \par In her affidavit in reply on behalf of the first to sixth defendants, the second defendants who is the sister to the first defendant, contradicted the alleged facts as outlined in the plaintiffs\rquote affidavit.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 First, the second defendant stated that the first plaintiff did not contribute or invest any money whatsoever in the Company.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Whatever money paid, includi ng the US$25,000.00 paid by the first and second plaintiffs for shares in the Company, was given by the second defendant to the plaintiffs\rquote for them to pay the first defendant and thus make it appear to the Fiji authorities that money for the business was being contributed to from outside sources and specifically from Chinese resident and work permit applicants.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The receipt of the money is confirmed and acknowledged in a receipt annexed to the affidavit. \par \par According to both affidavits, the first defendant, the only Fiji national in this proceedings, had encouraged the Chinese individuals named either as plaintiffs or defendants, to come to Fiji and offered them his shares in the Company as enticement. \par \par As to the US$25,000.00 paid by the first and second plain tiffs for shares in the Company, the second defendant said that it was a very clear understanding between the sisters, at the time when the money was being handed over, that not only was the money, the property of the second defendant, but that the shares purchased from it belonged to her the second defendant.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Furthermore, it was clearly agreed, that the second defendant was to be the Managing Director of the Company. \par \par In reply to the plaintiffs\rquote claim that the payment of US$25,000.00 resulted in the acquis ition of all the shares in the Company, the second defendant stated that the plaintiffs were aware all the time that the first defendant only held 20% of the shares, while the remaining 80% was held by her, the second defendant. \par \par The defendants\rquote affidavit also confirmed that contrary to the plaintiffs\rquote assurances, the Fiji Trade and Investment Board (FTIB) requirements of cash and kind equity contributions, and shareholders advance, were never met.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The necessary FTIB approvals, therefore has yet to be given. \par \par According to the second defendant, her relationship with her sister,}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 the first plaintiff soon began to }{ \lang2057\langfe1033\langnp2057\insrsid2773730\charrsid12602704 deteriorate. }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 First the first plaintiff brought in her husband and another son under tourist visas, but with the intention of employing them in the Company.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Then the newly arrived husband made clear his intention of wanting to taken over the Company\rquote s operations.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 These were done through intimidation and even death threats.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The husband and son were illegally employed by the Company until the Fiji authorities caught up with them and revoked their permits including the first plaintiff\rquote s work permit. \par \par Again, according to the second defendant, as a result of souring relations with her sister and family she decided to offer them i.e. first and second plaintiffs, her shares in the Company for US$37,000.00.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 They refused.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 As a result, these shares were eventually taken up, with the consent of FTIB, by other Chinese nationals. \par \par As to the }{\lang2057\langfe1033\langnp2057\insrsid2773730\charrsid12602704 plaintiffs'}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 allegations regarding the control of the Company\rquote s bank account, t he second defendant replied that the first and second plaintiffs, together with another were signatories to the account, but after some abuse, and following a meeting between the parties the second defendant became the controlling signatory to the account . \par \par The first and second plaintiffs, according to the second defendant, have not invested any life savings or monies in the Company.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Nor have they invented their own brand of soy sauce now marketed by the Company, which they claimed in their affidavit.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 They could not possibly under the circumstances be entitled to any proceeds or profits of the Company. \par \par In her affidavit in response, the first plaintiff conceded that the US$25,000.00 paid for shares in the Company, was in fact money provided by the second defendant.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Nevertheless, it was according to the first plaintiff specifically agreed between the two plaintiffs and the second defendant, that while the latter will provide the funds for the purchase of shares in the Company, the first and second plaintiffs w ere to provide and purchase the raw materials.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Copies of Bill of Lading were annexed to the affidavit showing what appears to be a cargo of both solid and liquid soy as well as molasses.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 As far as the first plaintiff was concerned her contribution of raw m aterials amounted in total to approximately F$90,770.00, which would have been enough to meet the FTIB requirements of equity contribution and shareholders\rquote advance. \par \par There are numerous allegations against the second defendant that are contained in the first plaintiff\rquote s affidavit in response.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 All the three affidavits filed in support or against the injunction application contain conflicting versions of events that are now the subject of this Court action.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 What however is certain is that when the smoke clear ed, the first and second plaintiffs were no longer working for the Company, their working visas have been cancelled and are awaiting deportation, whilst the second defendant has assumed the sole responsibility of running and managing the Company together with new shareholders/partners, they also being Chinese nationals. \par \par The Court is now being asked that the first to sixth defendants be restrained by way of an injunction: \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid12602704 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \'93From conducting and operating the business operations of Hans Enterprises Limited, t he third plaintiff in any manner or form whatsoever until the final determination of this matter or until such further order of this Honourable Court...\'94 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par At the hearing of the plaintiff\rquote s Summons on 19 April, I had ordered that the parties filed skeleton legal submissions, which were done on 22 May and 7 June respectively, with my ruling on Notice. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid2773730 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid2773730 THE LAW ON INJUNCTION \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par The principles governing interim relief are set out in }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 American Cyanamid Co. v. Ethicon Ltd}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 [1975] AC 396.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Lord Diplock\rquote s pronouncement of the principles to govern interlocutory injunctions is now recognised authority in this area.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Clive Lewis in his book : \'93Judicial Remedies in Public Law\'94 (Sweet & Maxwell, 2nd Edition 2 000) p. 243, para. 8 - 025 says of the American Cyanamid principles as follows : \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid12602704 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \'93 They are intended to avoid courts determining disputes of fact or difficult questions of law at the interlocutory stage of an action.}{\b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Broadly a plaintiff no longer needs to establish a prima facie case.}{\b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 He need only establish that a serious issue arises, or that the claim is not frivolous or vexations or that the application discloses a reasonable prospect of success.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Thereafter, the governing consideration is the balance of convenience : this involves assessing whether the plaintiff could be adequately compensated by damages if refused an injunction; or whether the defendant could be }{\b\i\lang2057\langfe1033\langnp2057\insrsid12926340 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12602704\charrsid12602704 \par }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The legal submissions by both Counsel recognise the authority of the law on interlocutory injunction as laid down by Lord Diplock in the }{ \ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 American Cyanamid case}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (supra).}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 In addition the Fiji Courts have applied these principles in }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Pacific Timber Development s Ltd. vs Consolidated Agriculture Fiji Litd.}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 HBC 118/94) and most recently in Shameem J\rquote s judgment in }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid2773730 Ramendra Charan vs. NLTB & Mataqali Vusatoranikuka & Yavusa Nailagalaba}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (HBC 91/2000). \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid2773730 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid2773730 APPLYING THE LAW \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par Applying the Cyanamid principles to this case, it is plain that there are serious issues to be tried and the claim is neither frivolous nor vexations.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The factual details that backgrounds these issues, are adequately covered in the Plaintiff\rquote s submission. \par \par The next stage is to consider whether the first and second plaintiffs would be adequately compensated by an award of damages if the injunction application is refused.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The governing principle is clear and that is if the damages to be recovered is adequate}{\lang2057\langfe1033\langnp2057\insrsid15947486\charrsid12602704 ,\'94}{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 no interlocutory injunction should normally be granted however strong the plaintiffs claim appears to be at the interlocutory stage.\'94 \par (White Book the Supreme Court Practice 1985 Ed.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 p.454). \par \par The plaintiffs\rquote submit that damages will be an inadequate}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 remedy and that if injunction is not granted, their b usiness will be lost forever. \par \par The defendants position is that that to grant the injunction would result in the complete shut-down of the business.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Also, according to their affidavit, all the six defendants are financially capable to pay for any damages likely to be awarded by the Court.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 In addition the wrong alleged by the plaintiffs\rquote that is, the illegal transfer of their shares in the Company, is not irreparable.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 It is something that can be made good, by consequent, sale and/or transfer, if the Court so ruled. \par \par I now turn to consider whether the defendants could be adequately compensated in damages if the injunction were granted.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Quite clearly, the grant of injunction will have some negative impact on the operations of the Company.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The plaintiffs are aski ng for the first to sixth defendants all current shareholders of the Company to be restrained from operating the business operations; this include the second defendant who is also the Company\rquote s Managing Director.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The business appears to be thriving albeit under clouds of allegations of illegal transfer of shares as well as illegal workers. \par \par The balance of convenience principle as enunciated in the }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 American Cyanamid case}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (supra) allow the Court to weigh the need of one party against the other and to consider whether more harm will be done by granting or refusing the injunction. \par \par It is true that the plaintiffs have been dispossessed of shares in the Company that they claim rightfully belong to them.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 But should they succeed in their action against the defendants, then they have a very good chance of not only getting back their lost shares but more. \par \par On the other hand the defendants are not confined necessarily to the parties directly implicated in the share transactions.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 As the Counsel for the defendant submitted, the third to sixth defendants to whom the shares had been sold were not privy to any share allocations and money transaction that}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{ \lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 occurred earlier on.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Their interests would be adversely affected should the injunction be granted. \par \par As I have already stated, in considering whether to grant the relief sought, the governing consideration is the balance of convenience.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Donaldson MR in }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Francome V. Mirror Group of Newspapers}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (1984) 1 WLR 892 at 898 }{ \lang2057\langfe1033\langnp2057\insrsid15947486\charrsid12602704 said:}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin720\itap0\pararsid5314491 {\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \'93We can and must disregard fanciful claims by either party.}{ \b\i\lang2057\langfe1033\langnp2057\insrsid12602704 }{\b\i\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Subject to that, we must contemplate the possibility that either party may succeed and must do our best to ensure that nothing occurs pending the trial which will prejudice his rights.\'94}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid5314491 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 It would s eem to me that in the circumstances of the present case, the balance of convenience lies with the defendants. For to allow the injunction sought by the first and second plaintiffs would severely disadvantaged the defendants much more so than the refusal o f it would the plaintiffs.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 At any rate, the business the Company is involved in appears to be a thriving going concern and it would seem perfectly sensible to me that it is in the interest of all the parties both the plaintiffs and as well as the defendants that the success of the Company is protected.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Such success cannot be guaranteed if the management and the daily operations of the Company were disrupted by the Court\rquote s intervention at this stage. \par \par There is also the matter of the plaintiffs\rquote undertaking as to damages.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The general principle that will guide the Court is as stated by Byrne J in }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 David Gilmore}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 ,}{ \ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Fiji Water LLC, Natural Waters of Viti}{\ul\lang2057\langfe1033\langnp2057\insrsid12602704 }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Limited vs. Janusz Kubs }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (Unreported HBC No. 0655/1998).}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 The Court must ensure that the}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Defendant is not left without a remedy for damages suffered should the interlocutory order made found wanting at the end.}{ \lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Counsel for the defendants has also referred me to two very useful Australian Court\rquote s decision : }{ \ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 National Australia Bank Limited & Ors vs. Bond Brewing Holders Ltd. (1991)}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 1 VR 386 AND }{ \ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 Air Express Limited}{\ul\lang2057\langfe1033\langnp2057\insrsid12602704 }{\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 vs. Ansett Transport Industries (Operation) Pty Limited}{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 (1981) 146 CLR 249, both of which underlined the importance of the imposition of adequate safeguard by way of undertaking as to damages, when the Court make s an order at the interlocutory stage and before the final determination of the rights of the parties. \par \par In the present case, while the plaintiffs have made an undertaking as to damages to this Court, they have yet to show that they do have the financial capabilities and indeed the ability to pay for damages.}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 This is especially important given the fact that the third to sixth defendants who, as I had earlier stated are not directly implicated in the allegations, will necessarily be affected by the grant of the}{\lang2057\langfe1033\langnp2057\insrsid12602704 }{\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 relief sought. \par \par Taking everything into consideration, I see no alternative but to refuse the plaintiffs\rquote application for injunction. \par \par Costs are in the cause. \par \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid5314491 {\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid5314491 F. JITOKO \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid5314491 JUDGE}{\b\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid5314491 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\faauto\rin0\lin0\itap0\pararsid12602704 {\lang2057\langfe1033\langnp2057\insrsid12926340\charrsid12602704 \par At Suva \par 11th July 2002 \par }}