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{\*\generator Microsoft Word 10.0.6764;}{\info{\title IN THE HIGH COURT OF FIJI}{\author Gurmeet}{\operator blake_r}{\creatim\yr2005\mo12\dy17\hr15\min5}{\revtim\yr2005\mo12\dy17\hr15\min5}{\printim\yr2003\mo1\dy8\hr9\min15}{\version2}{\edmins1}
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\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 IN THE HIGH COURT OF FIJI
\par AT LABASA
\par CIVIL JURISDICTION
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 WINDING UP ACTION NO. }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 HBE000}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 3 OF 2002
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Between:
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 FIJI BANDAG
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Petitioner
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 and
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 VUNIMOLI SAWMILLS LIMITED
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Respondent
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par Ms. R. Lal for Petitioning Creditor
\par Mr. A. Kohli for the Debtor Company
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 JUDGMENT
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par This is an opposed winding-up Petition.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 By Petition dated 28 June 2002 }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Fiji Bandag}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  (the \'93}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Petitioner\'94}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
) has petitioned the Court to wind up }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Vunimoli Sawmills Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  (the \'93}{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Company\'94}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 ) for the debt in the sum of $11,890.91 being balance monies outstanding and o
wing by the Company in respect of goods sold and services rendered}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 at its request.
\par }\pard\plain \s18\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The Petitioner filed Memorandum of}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
Due Compliance on 1 August 2002 and the hearing of the Petition was set down for 26 August at High Court at Labasa.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 On 26 August Mr. Kohl
i opposed the Petition by filing an affidavit.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The Petitioner was ordered}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 to file Affidavit in Reply within 21 days but it was filed late on 26 September.
\par }{\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 By}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 consent argument was presented by way of written submissions.}{
\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The Petitioner filed its submissions on 30 September but the Company\rquote s}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Solicitors failed to file theirs despite a reminder on 23 October.}{\lang2057\langfe1033\langnp2057\insrsid16713849 
\par }{\lang2057\langfe1033\langnp2057\insrsid10224142\charrsid10224142 
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Company\rquote 
s contention
\par }\pard\plain \s18\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 In the absence of any written legal submissions from counsel for the Company, the gist of the Company\rquote s reason for opposing the Pe
tition is as set out in its affidavit in opposition in that it does not owe the Petitioner the sum claimed on any sum at all.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
It further states in its affidavit that while it had dealings with the Petitioner, the latter has failed to furnish further and be
tter particulars of the claim and that it was merely supplied with statements giving a summary of invoices without copies of invoices.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
It further states that certain defective goods were supplied and these were returned but no credit had been given to the Company.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
Therefore, the Company says that the \lquote whole amount is in dispute\rquote .}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
It says that it is able to pay debts if due and hence no winding-up order should be made.}{\lang2057\langfe1033\langnp2057\insrsid16713849 
\par }{\lang2057\langfe1033\langnp2057\insrsid10224142\charrsid10224142 
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Petitioner\rquote 
s reply to Company\rquote s contention
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 In the affidavit of }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Vinesh Kumar Maharaj,}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  the Financial Controller of}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
the Petitioner, sworn 25 September 2002, is contained the response to the Company\rquote s contention.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Mr. Maharaj says that the Company still owes the debt and sets out in his affidavit how the debt came to be about.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 He says that full particulars have been supplied and he has also attached them to h}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 is said affidavit as annexures.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142\charrsid10224142 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Consideration of the issue
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The issue for the Court\rquote s determination is whether the Company has a bona fide dispute to prevent the Petitioner from obtaining a winding-up order.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142\charrsid10224142 
\par }\pard\plain \s19\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
I have carefully considered the affidavits filed herein.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The Petitioner has responded to the Company\rquote 
s affidavit and has given details of how the amount owing is made up.}{\lang2057\langfe1033\langnp2057\insrsid10224142  }{\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The Company has failed to respond to the said Reply either by filin
g an affidavit or by its counsel filing a written submission although it was ordered to do so.
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par In }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Palmer\rquote s Company Law}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
 Vol 3 15.214 is set out the principles involved in considering disputes as to debt and I have borne these in mind in considering the matter before me.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 There it is stated:
\par 
\par }\pard\plain \s15\ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10224142 \b\i\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 \'93
To fall within the general principle the dispute must be bona fide in both a subjective and an objective sense.}{\i0\lang2057\langfe1033\langnp2057\insrsid10224142  }{\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
Thus the reason for not paying the debt must be honestly believed to exist and must be based on substantial or reasonable grounds.}{\i0\lang2057\langfe1033\langnp2057\insrsid10224142  }{\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\'93Substantial\'94 means having substance and not frivolous, which disputes the court should ignore.}{\i0\lang2057\langfe1033\langnp2057\insrsid10224142  }{\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
There must be so much doubt and question about the liability to pay the debt that the court sees that there is a question to be decided.}{\i0\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 The onus is on the company \'93
to bring forward a prima facie case which satisfies the court that there is something which ought to be tried either before the court itself or in an action, or by some other proceedings.\'94
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par The Court has a }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 discretion}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  when seized of a winding-up petition.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 In }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Bateman Television (In Liquidation)}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 and Another v Coleridge Finance Company Limited}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  [1971] NZLR 929 the Judicial Committee stated:
\par 
\par }\pard\plain \s15\ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10224142 \b\i\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
The general rule is that an order for winding up will not be made on disputed debt but a Judg
e has discretion to make a winding up order on disputed debts which is not reviewable unless exercised on a wrong principle or the Judge included or omitted consideration of a rele}{\i0\lang2057\langfe1033\langnp2057\insrsid10224142 
vant fact or was wholly wrong\'94.}{\i0\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par All that is required for a Petition to be struck out is that there is a dispute on \lquote substantial grounds\rquote .}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
The question therefore is \lquote }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Is there a substantial dispute as to the debt upon which the petition is allegedly found?}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 \rquote }{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 [}{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Herman J}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  in }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Re a Company}{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  (No. 60 1946 of 1991) ex p }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Fin Soft Holding SA}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 (1991) BILL 737 at 740].
\par 
\par On the totality of the evidence I find that neither are there any triable issues nor is the dispute based on substantial grounds.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10224142  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 In fact I am convinced that the alleged balance debt is owed to the Petitioner.
\par 
\par For these reasons, on the affidavit evidence before me, in the exercise of my discretion I refuse the opposition application with costs against the Company in the sum of $500 to be paid within 7 days.
\par 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 It is ordered}{\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142  that conditional upon the Company paying the alleged balance 
debt in full within 7 days from the date of this judgment, the Company is hereby Ordered to be wound up.
\par 
\par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 D. Pathik
\par }{\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 Judge}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 
\par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10224142 {\fs24\lang2057\langfe1033\langnp2057\insrsid16713849\charrsid10224142 At Suva
\par 13 February 2003
\par }}