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Vere}{\fs24\insrsid10111936\charrsid5206245 -Counsel for the Plaintiffs \par }{\fs24\insrsid5206245 No Appearance-}{\fs24\insrsid10111936\charrsid5206245 1st Defendant \par }{\fs24\insrsid5206245 Mr. I. Razaak-}{\fs24\insrsid10111936\charrsid5206245 Counsel for 2nd Defendant \par \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\b\fs24\insrsid10111936\charrsid5206245 DECISION \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 By notice of motion dated 12th August 2002 the second defendant is seeking removal of caveat number 491338 registered on 27th January 2001 on Certificate of Title Number 18305.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 The motion is brought pursuant to the High Court Rules and Section 110 of the Land Transfer Act Cap 131. \par }\pard\plain \s5\ql 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\trbrdrv\brdrs\brdrw10 \trftsWidth1\trftsWidthB3\trftsWidthA3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol\tblind918\tblindtype3 \clvertalt\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth3\clwWidth810\clshdrawnil \cellx1620\clvertalt\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth3\clwWidth1080\clshdrawnil \cellx2700\clvertalt \clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth3\clwWidth1993\clshdrawnil \cellx4693\clvertalt\clbrdrt\brdrs\brdrw10 \clbrdrl\brdrs\brdrw10 \clbrdrb\brdrs\brdrw10 \clbrdrr\brdrs\brdrw10 \cltxlrtb\clftsWidth3\clwWidth1877\clshdrawnil \cellx6570\row }\pard\plain \s15\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6958780 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \f0\lang2057\langfe1033\langnp2057\insrsid6958780 \par }\pard\plain \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10111936 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid6958780 (ii)\tab }{ \fs24\insrsid10111936\charrsid10111936 an inquiry as to the beneficial interests in the properties comprised in the Schedule. \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10111936 {\fs24\insrsid10111936\charrsid10111936 (iii)\tab an injunction restraining the Defendant from disposing of or otherwise from dealing in the properties described in the Schedule pending the final determination of these proceedings. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par On the same day they filed an Ex-parte summons for extension of time to withdraw the caveat and obtained an order}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 "}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 extending beyond the 21 days notice in the Registrar of Title notice dated 10th September 2001 to withdraw caveat number 491338 until the determination of this action.}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 "}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par Having obtained the ex-parte order, the plaintiffs lay dormant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 Neither the writ of summons nor the order was served on the first defendant who is the registered proprietor of Certificate of Title 18305 or on the second defendant which holds a mortgage over the said title.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 Up till today over a year later no statement of claim has been filed in this action.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 The second defendant, the mortgagee, found out about the caveat after it attempted to sell the property by virtue of its powers of sale under the mortgage. \par \par On 28th A ugust 2002, when the matter came before the court, this court ordered the plaintiff to serve writ of summons, copy of the motion and affidavit on the defendants within 14 days but this had still not been done till 11th October 2002, when the matter was fo r hearing.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 The writ of summons is now stale, one year having elapsed on 26th September 2002 since its issue. \par \par According to Counsel for the Bank, the Bank only became aware of the caveat after it wanted to exercise its powers under the mortgage and search of title showed the caveat.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 It then, of its own initiative, learnt of existence of this action against the Bank and writ and other process were obtained from the Court registry. \par \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid605219 {\b\fs24\insrsid10111936\charrsid10111936 SERVICE OF WRIT AND APPEARANCE \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 I have no doubts that anyone who is affected by any order of a court in a proceedings need not wait for service of writ and other orders before he may move to have the action or any orders adverse to his interest struck out. \par \par In }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 PIKE v. MICHAEL NAIRN & CO. LTD}{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 . 1960 2 All E.R. 184 at p. 186 Cross J. stated as follows \endash \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10111936 {\b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 The service of the process of the court is made necessary in the interests of the defendant so that orders may not be made behind his back.}{\b\fs24\insrsid5206245\charrsid10111936 }{\b\fs24\insrsid10111936\charrsid10111936 A defendant, therefore, has always been able to waive the necessity of services and to enter an appearance to the writ as soon as he hears that it has been issued against him, although it has not been served on him.}{ \b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 Perhaps, the leading case on this aspect of service and appearance is the }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 GNIEZNO}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 1967 2 All E.R. 738.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 BRANDON J. IN GNIEZNO}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 at p. 744 referred to the above passage from }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 PIKE}{ \fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 and commented as follows \endash \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10111936 {\b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 Looking at the matter as one of principle, it seems to me that a defendant ought to have the right to enter a voluntary appearance in this way so that in any case where an action is hanging over him he may take steps to have it dismissed.}{ \b\fs24\insrsid5206245\charrsid10111936 }{\b\fs24\insrsid10111936\charrsid10111936 Under the present rules there is no obligation to serve a writ earlier than within twelve months, and even then a plaintiff may, if he shows cause, obtain a renewal of the writ ex-parte.}{\b\fs24\insrsid5206245\charrsid10111936 }{ \b\fs24\insrsid10111936\charrsid10111936 In this way a defendant may have an action, the existence of which is known to him, hanging over him for a very considerable period.}{\b\fs24\insrsid5206245\charrsid10111936 }{ \b\fs24\insrsid10111936\charrsid10111936 It seems to me desirable in principle that a defendant, faced with such a situation, should be able to obtain some finality.}{\b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\fs24\insrsid10111936\charrsid10111936 So it appear s from above authorities that a defendant is free to enter an appearance to a writ of which he has knowledge even though he is not served with the writ.}{\fs24\insrsid5206245\charrsid10111936 }{\fs24\insrsid10111936\charrsid10111936 That is what the second defendant has done. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid605219 {\b\fs24\insrsid10111936\charrsid10111936 ISSUE OF CAVEAT \endash GROUNDS \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\insrsid10111936\charrsid10111936 \par }{\fs24\insrsid10111936\charrsid10111936 A mortgagee has by virtue of Section 79 of Property Law Act, a statutory power to sell if there is default in payment of mortgage money.}{\fs24\insrsid5206245\charrsid10111936 }{ \fs24\insrsid10111936\charrsid10111936 It is not denied that the first defendant is in arrears of payments.}{\fs24\insrsid5206245\charrsid10111936 }{\fs24\insrsid10111936\charrsid10111936 The mortgagee intends to exercise the power of sale but is met with the caveat registered subsequent to registration of mortgage. \par \par Section 79 of the Land Transfer Act reads \endash \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10111936 {\b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 Upon the registration of any transfer executed by a mortgagee in exercise of a power of sale, the estate and interest of the mortgagor expressed to be transferred therein shall pass to and vest in the purchaser freed and discharged from all liability on account of such mortgage, or of any other estate or interest except an estate or interest created by any instrument which has priority over such mortgage or which by reason of the consent of the mortgagee is binding on him, and the purchaser when registered as the proprietor thereof shall be deemed to be a transferee of such estate or interest.}{\b\fs24\insrsid5206245\charrsid10111936 "}{\b\fs24\insrsid10111936\charrsid10111936 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\insrsid10111936\charrsid10111936 \par }{\fs24\insrsid10111936\charrsid10111936 In light of the above section, one would consider that there would be no need to ask the court to remove the caveat as it was registered subsequent to the mortgage.}{\fs24\insrsid5206245\charrsid10111936 }{ \fs24\insrsid10111936\charrsid10111936 However, the Registrar of Titles takes the view that it is for the court to decide whether the nature of interest protected by the caveat is such that a transfer should not be registered. \par \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5206245 {\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 In }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 RAM DUTT PRASAD v. AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED}{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \endash HBC Civil Action 121 of 1999 Justice Scott looked very closely and succinctly at the problem of caveats registered subsequent to the registration of a mortgage and he recommended certain legislative changes suggesting that the registrar ought to notify n ot only the registered proprietor but all those who had prior interests registered against the title.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 This would include the mortgagee. \par \par Justice Scott\rquote s suggestions make eminent good sense.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 All I wish to add is that one cannot expect a mortgagee to keep goi ng back to the Titles office to check whether subsequent encumbrances have been registered against the title. \par \par The situation, as it is now, causes delays.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 Commercial world does not operate efficiently with delays.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 A mortgagee who has found a buyer and accepted a tender may lose the prospective purchase due to delays and uncertainty.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 If the mortgagee were served with notice of caveat immediately after it was filed as suggested by Justice Scott, such problems would be eliminated and would result in business efficacy. \par \par To succeed in having the caveat to continue, the applicant must impeach the conduct of the mortgagee in some way.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 All the plaintiffs have shown the court is that the first defendant was a signatory to a family Bank account, that he withdrew money from that account and bought a property which he mortgaged to the Bank and obtained a loan.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 They have not shown that the Bank was a party or in any way infected with first defendant\rquote s conduct.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 The mere fact that the first defendant was an employee of the second defendant is by itself not sufficient to impeach the second defendant\rquote s conduct particularly in this case as the first defendant was a signatory to the account. \par \par I am not convinced therefore that the caveat should continue.}{\fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 Hence I order the removal of caveat number 491338 forthwith.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid5206245 }{\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 I also order costs against the plaintiffs to be taxed if not agreed. \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid5206245 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid10111936 Jiten Singh \par JUDGE \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid10111936\charrsid10111936 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10111936 {\fs24\insrsid10111936\charrsid10111936 At Suva \par 1st November 2002 \par }}