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.}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid12669044\charrsid16337932 IN THE HIGH COURT OF FIJI \par AT SUVA \par CIVIL JURISDICTION \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 CIVIL ACTION NO.: HBC 1025 OF 1986 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 BETWEEN:}{\fs24\insrsid16337932 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\fs24\insrsid12669044\charrsid16337932 NANDU BEN SUNDARJI}{\fs24\insrsid12669044\charrsid16337932 d/o}{\fs24\insrsid16337932 }{ \fs24\insrsid12669044\charrsid16337932 Sundarji}{\fs24\insrsid16337932 \par }{\fs24\insrsid12669044\charrsid16337932 Plaintiff \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid16337932 AND}{\fs24\insrsid12669044\charrsid16337932 :}{\fs24\insrsid16337932 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\fs24\insrsid12669044\charrsid16337932 NARBHAY RAM SUNDARJI}{\fs24\insrsid12669044\charrsid16337932 f/n}{\fs24\insrsid16337932 }{ \fs24\insrsid12669044\charrsid16337932 Sundarji}{\fs24\insrsid16337932 \par }{\fs24\insrsid12669044\charrsid16337932 Defendant \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 \par Mr. B.C. Patel-Counsel for Judgment Creditors \par Mr. D. Sharma\tab -Counsel for Garnishee \par }{\b\fs24\insrsid12669044\charrsid16337932 \par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\fs24\insrsid12669044\charrsid16337932 DECISION \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 This is an application on behalf of Nirbhay Ram Sundarji (the Judgment Creditor) for issue of Garnishee Proceedings against the garnishee Dhiraj Lal Hemraj and Chirk Yam who are liquidators of Jethasons Limited.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 On 18th September this Court gave leave to t he Judgment Creditor pursuant to Order 49 Rule 1 to issue summons against the garnishee to show cause why an order absolute ought not to be made.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The action was adjourned to 11th October 2002. \par \par On 4th October the Judgment debtor advised the garnishee to pay out the moneys to the Judgment Creditor and }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 not to incur any legal cost}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 He further asked that the }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 remaining funds}{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 should be immediately distributed thereby suggesting that there would be surplus funds even after the judgment creditor was paid. \par \par The garnishee in its filed affidavit raised three grounds to show cause}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \hich\af0\dbch\af0\loch\f0 (1)\tab}}\pard \ql \li720\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 it does not know how the amount claimed by the creditor was arrived at.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 This ground was abandoned as obviously the amount included interest on the judgment sum. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \hich\af0\dbch\af0\loch\f0 (2)\tab}}\pard \ql \li720\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 that the liquidators have been incorrectly joined as garnishee.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 That the proper garnishee is Jethasons Limited, the company itself. \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \hich\af0\dbch\af0\loch\f0 (3)\tab}}\pard \ql \li720\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pndec\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 That there is no debt in existence because the amount due to the debtor cannot be calculated until }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 disputed items in the company\rquote s books are sorted out, final tax returns are filed and tax clearance obtained and final distribution to shareholders is ready to be paid out}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 . \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par The first issue in these proceedings is WHAT DEBTS ARE ATTACHABLE.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Order 49 Rule 1 states that the court may }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 order the garnishee to pay the judgment creditor the amount of any }{ \b\i\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 debt due or accruing due}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 to the judgment}{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 debtor}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The underlining is mine for emphasis.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 So all debts due or accruing due from any person to the judgment debtor whether legal or equitable may be attached by an order. \par \par Halsbury Volume 17 page 327 at paragraph 527 in considering this states as follows}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 To be capable of attachment there must be in existence, at the date the attachment becomes operative, something which the law recognizes as a debt, and not merely something which may or may not become a debt.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{ \b\i\fs24\insrsid12669044\charrsid16337932 Thus where the existence of a debt depends upon the performance of a condition, there is no attachable debt until the condition has been performed.}{\b\i\fs24\insrsid16337932\charrsid16337932 "}{ \b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 All that is needed for a debt to be attachable is its existence.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 It is not necessary that it should be immediately payable nor is it necessary that the exact amount should have been ascertained \endash }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 O\rquote Driscoll v. Manchester Insurance}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Committee}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 (1913) 3 K.B. 499, where at page 516 to 517 Banks L.J. explained the position as follows}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 It is well established that \lquote debts owing or accruing\rquote include debts debita in praesenti solvenda in futuro.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 The matter is well put in the Annual Practice 1915 p. 808.}{ \b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 \lquote But the distinction must be borne in mind between the case where there is an existing debt, payment whereof is deferred, and the case where both the debt and its payment rest in the future.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{ \b\i\fs24\insrsid12669044\charrsid16337932 In the former case there is an attachable debt, in the latter case there is not\rquote .}{\b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 If, for instance, a sum of money is payable on the happening of a contingency, there is no debt owing or accruing.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 But the mere fact that the amount is not ascertained does not show that there is no debt.}{\b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par Hence where there is an existing debt due and payable by future instalments, an application for garnishee summons may be made and a garnishee order may be made to become operative as and when such instalments become payable. \par \par A debt due is one which is due and payable now.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 And debt accruing is a debt, which is due, but payment of it is in the future whether it is ascertained sum or unascertained is immaterial. \par \par The second issue is who is the proper garnishee \endash the company or the liquidators of the company?}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The liquidators in the present case were appointed by the court on application by one of the shareholders.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The company is still solvent.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The purpose of appointment of liquidators was to enable them to sell assets of the company and to distribute proceeds after payment of liabilities which were rates to Nausori Town Council and tax to Inland Revenue Department.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Both have been done and there is only about $8,400.00 left to be paid to the Inland Revenue due to some adjustments. \par \par The affidavit in support of the motion paragraph 7 says that a sum of $70,411.89 was due to the judgment debtor from moneys held by the liquidators.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The affidavit in reply says that the figure represents what the final outcome could be once all matters relating to the company are worked out.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 There is no denial but in fact a tacit admission that the liquidators are holding surplus funds due to the judgment debtor and adequate to meet the garnishee order.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The liquidators are the ones who should have all the figures at hand and yet they failed to disclose by proper accounting how much they have.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 It appears from affidavits that it is the judgment creditor who is doing all the reconciliation of accounts for the liquidators.} {\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Nowhere do the liquidators depose that those reconciliation figures given by the judgment creditors are incorrect.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 The second affidavit sworn by Mr. Chen Bunn Young effectively buries any doubts about surplus funds.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 He attached a letter from solicitors of the liquidators dated 10th October 2000 which says}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 Since both living parties now agree that your client to be paid out of Natwar\rquote s entitlements in Jethasons Limited and they have both dropped their respec tive claims for rental and management fees we would suggest that an order be moulded in court tomorrow for payout to Nirbhay Sundarji.}{\b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 This letter of 10th October was copied to the liquidators and yet they did not act upon it on the pretext that it is the company which should be named as the garnishee.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 They are the liquidators.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Normally a company acts through its directors.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 However, once liquidators are appointed, those duties are discharged by the liquidators.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 Section 242(2)(h) of the Companies Act gives the liquidators the necessary powers to distribute the assets.}{\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 }{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 It reads}{ \fs24\lang2057\langfe1033\langnp2057\insrsid16337932 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par \par }\pard \ql \li720\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 S.243 (2)\tab The liquidator in a winding up by the court shall have power}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932\charrsid16337932 \par {\pntext\pard\plain\b\i\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \hich\af0\dbch\af0\loch\f0 (h)\tab}}\pard \ql \li720\ri0\nowidctlpar\wrapdefault{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pnlcltr\pnstart8\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid16337932 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 to do all such other things as may be necessary for winding up the affairs of the company and distributing its assets.}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid16337932 "}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid12669044\charrsid16337932 It is the liquidators who are in control of the finances of the company.}{ \fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 They also have a duty to distribute the funds.}{\fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 The shareholders additionally are asking them to distribute the funds. \par \par In Shaw Saville & Albion Company Ltd v. Inland Revenue Commissioner (1956) N.Z.L.R. 211 at 217 the position is explained as follows}{\fs24\insrsid16337932\charrsid16337932 :}{\fs24\insrsid12669044\charrsid16337932 \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4865861 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par }\pard\plain \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid4865861 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\fs24\insrsid16337932\charrsid16337932 "}{ \b\i\fs24\insrsid12669044\charrsid16337932 Th e legal title was not in the liquidator, who was merely a person invested with statutory powers and charged with statutory duties which did not, up to the time when the demand or request was made, include a duty to transfer any property to appellant.}{ \b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 The c ompany, on the other hand, though the legal title was still vested in it, had no longer any powers exercisable otherwise than by the liquidator, and all its property was subject to his powers.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{ \b\i\fs24\insrsid12669044\charrsid16337932 I do not think it necessary to consider whether, during the nor mal course of the liquidation, it would have been correct to speak either of the liquidator or of the company, or of the two of them together, as holding this property in trust, whether for the appellant or otherwise.}{ \b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 But I am clearly of opinion that, once the appellant made it clear, that, as it was in the circumstances entitled to do, it required the property to be transferred to it, the situation changed, and there immediately arose a trust for the appellant.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{\b\i\fs24\insrsid12669044\charrsid16337932 No longer was it permissible for the liquidator or the company to do anything with the property but to transfer it to the appellant.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{ \b\i\fs24\insrsid12669044\charrsid16337932 The functions of the liquidator in relation to the property were then at an end, save only that there remained the duty to transfer.}{\b\i\fs24\insrsid16337932\charrsid16337932 }{ \b\i\fs24\insrsid12669044\charrsid16337932 As for the company, it became a bare trustee of the legal title, its only power \endash exercisable at the moment by the liquidator \endash being to transfer it to the appellant.}{ \b\i\fs24\insrsid16337932\charrsid16337932 "}{\b\i\fs24\insrsid12669044\charrsid16337932 \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid4865861 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\f0\lang2057\langfe1033\langnp2057\insrsid16337932\charrsid16337932 \par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid12669044\charrsid16337932 Having looked at the Companies Act and the various authorities, it is quite clear that the liquidators were properly named as the garnishee. \par \par It is for the garnishee to show cause why a garnishee order absolute ought not to be made.}{\fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 The onus is on the garnishee to bring to courts notice of any facts which militate against the court making the order absolute.}{\fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 They have not done so here. \par \par The amount owing to the creditors as at 15th September was $23,820.04.}{\fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 Interest accrued at rate of}{\fs24\insrsid16337932\charrsid16337932 }{ \fs24\insrsid12669044\charrsid16337932 $2.41 per day.}{\fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 See paragraph 8 of Chen Bunn Young\rquote s first affidavit. \par \par I therefore order that the garnishee forthwith pay the judgment creditor the sum of $23,820.04 plus all accrued interest to date and costs which I summarily fix costs at $600.00. \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid12669044\charrsid16337932 \par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid12669044\charrsid16337932 The garnishee therefore is to pay following sums}{\fs24\insrsid16337932\charrsid16337932 :}{\fs24\insrsid12669044\charrsid16337932 \par \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid4410206 (i)}{\insrsid16337932 \tab }{\fs24\insrsid12669044\charrsid4410206 the sum of $23,820.04 which is judgment and accrued interest to 15/02/2002. \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid4410206 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid4410206 (ii)\tab }{\fs24\insrsid12669044\charrsid4410206 Interest at $2.41 per day from 15/02/01 to date of payment. \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid4410206 \par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16337932 {\fs24\insrsid16337932\charrsid4410206 (iii)\tab }{\fs24\insrsid12669044\charrsid4410206 Costs $600.00. \par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 {\insrsid12669044\charrsid16337932 \par }{\fs24\insrsid12669044\charrsid16337932 As far as costs of garnishee are concerned I note that on 4th October 2002 the debtor had requested the liquidators to pay the sum to the creditors as he did not want to incur costs.}{ \fs24\insrsid16337932\charrsid16337932 }{\fs24\insrsid12669044\charrsid16337932 The liquidators failed to heed the request of the debtor so it is only fair that they suffer their own costs. \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid16337932 \par }\pard\plain \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid16337932\charrsid16337932 Jiten Singh}{ \b\fs24\insrsid12669044\charrsid16337932 \par JUDGE \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \f1\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid16337932\charrsid16337932 \par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16337932 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid12669044\charrsid16337932 At Suva \par 20th November 2002 \par }}