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{\creatim\yr2006\mo2\dy13\hr11\min13}{\revtim\yr2006\mo2\dy13\hr11\min13}{\printim\yr2004\mo7\dy26\hr15\min19}{\version2}{\edmins1}{\nofpages10}{\nofwords3140}{\nofchars17898}{\*\company Judicial Department}{\nofcharsws20997}{\vern16391}} \margl2160\margr2160 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dghspace180\dgvspace180\dghorigin1701\dgvorigin1984\dghshow0\dgvshow0 \jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot13007053 \fet0\sectd \linex0\endnhere\titlepg\sectdefaultcl\sftnbj {\header \pard\plain \s19\ql \li0\ri0\widctlpar \tqc\tx4320\tqr\tx8640\pvpara\phmrg\posxc\posy0\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\field{\*\fldinst {\cs20\insrsid2512946 PAGE }}{\fldrslt { \cs20\lang1024\langfe1024\noproof\insrsid2512946 10}}}{\cs20\insrsid2512946 \par }\pard \s19\ql 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JURISDICTION \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 CIVIL ACTION NO. 205 OF 2001 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Between: \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 RAJENDRA PRASAD BROTHERS LIMITED \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Plaintiff}{\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 and}{\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 FAI INSURANCES (FIJI) LIMITED \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Defendant}{\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Mr. B. C. Patel for the Plaintiff \par Mr. F. Haniff for the Defendant}{\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 DECISION}{\b\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053 \par }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Application}{\b\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 By summons filed on 23 June 2004 returnable for 15 July 2004 the defendant seeks orders that: \par \par }\pard \ql \fi-720\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid13007053 {\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 [1]\tab The execution and all further proceedings to enforce the judgment of the Honourable Mr. Justice Pathik delivered on 19 May 2004 and entered herein on 3 June 2004 in High Court Civil Action No. 205 of 2001 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 be stayed}{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 pending the determination of the appeal by the Defendant to the Court of Appeal.}{ \i\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \fi-720\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid13007053 {\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 [2]\tab That all other proceedings in High Court Civil Action No. 205 of 2001 }{\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 be stayed}{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 pending the determination of the appeal by the Defendant to the Court of Appeal. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid870556 {\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 [3]\tab Such further or other order as the Court sees fit.}{ \i\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 The orders of 19 May 2004}{\b\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The Orders that I made on 19 May 2004 read as follows:}{ \lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93}{\b\i\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is ordered}{\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that the defendant pay to the plaintiff the admitted sum of $2,445,203.00 with interest thereon at 9.25% from 19 September 2000 to the date of payment }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 And it is further ordered}{\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that the defendant pay to the plaintiff }{ \b\i\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 costs}{\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 which is to be taxed unless agreed.}{\b\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Judgment is therefore entered for the plaintiff generally. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 I shall now hear counsel to set a date for hearing to determine the balance of quantum claimed.\'94}{\b\i\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 An affidavit in support of the application}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 has been filed by }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 John Hunt}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 , a Director and Principal Officer of the defendant insurance company on 23 June 2004.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 A reply thereto was filed by }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Rajendra Prasad}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 , the Managing Director of the Plaintiff company on 8 July 2004 followed by a Response thereto by Hunt on 16 July 2004. \par \par I also have for my consideration the written and oral submissions of both counsel.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 I must commend counsel for reducing their comprehensive submissions to writing in the very short time available to them to present their arguments. \par \par The summons was partly heard in the afternoon of 15 July and completed the next day with decision on notice as soon as possible. \par \par This application arises out of the judgment I delivered herein on 19 May 2004.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It was sealed on 3 June 2004.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The defendant has }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 appealed}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 to }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Court of Appeal}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 against the said judgment}{\lang2057\langfe1033\langnp2057\insrsid870556 .}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Defendant\rquote s grounds of stay \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The grounds on which the defendant is seeking a stay of the judgment and of the proceedings are: }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (a)}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that it believes that it has \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 good prospects}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 of success; }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (b) }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that the defendant will be }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 prejudiced}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 if a stay is refused because the plaintiff may not be able to repay the judgment sum and interest should the appeal be successful and }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (c)}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that a successful appeal will save time and expense of an assessment hearing. \par \par The learned counsel for the plaintiff has raised a point that the judgment is an }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 interlocutory judgment}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 and the time for appealing expired on 24 June 2004.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Counsel submits that as }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 no leave to appeal}{\b\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 was obtained in terms of }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 s12(2)(f)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 of the }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Court of Appeal Act}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 , the appeal filed on 17 June 2004 is invalid and of no effect. \par \par Be that as it may, Mr. Patel does not expect}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 the Court to deal with this matter on this application but he is content to leave it to be decided on the Summons to Fix Security for Costs on appeal which is p}{\lang2057\langfe1033\langnp2057\insrsid870556 ending before the Appeal Court.}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par \par So the parties are agreeable that I proceed to determine the stay application as if the appeal is proper.}{\lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Defendant\rquote s submission \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (i)\tab Arguable case for appeal \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par I shall state briefly the submissions of the learned counsel for the defendant. \par \par He submits that the defendant has made out an \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 arguable case}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote for appeal mainly because \'93}{ \i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 had the learned Judge given sufficient weight to the overt acts and the conviction of George Speight for treason the Court should have found that whatever damage suffered by the plaintiff was occasioned by or through}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94 etc as alleged in its Defence in the trial of the action. \par \par }\pard \ql \fi-720\li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (ii)\tab Defendant fears that Appeal would be nugatory if it succeeds }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par The defendant fears that its appeal will be nugatory if it paid the judgment sum to the plaintiff because it has no prospect of recovering this sum from the plaintiff in the event of its appeal succeeding. \par \par The reasons given for this proposition are: }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (a)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 the plaintiff has }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 assigned}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 the insurance proceeds to the Fiji Development Bank (\'93}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 F D B}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94) and to the Westpac Banking Corporation (\'93}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 W B C}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94) about which the defendant has notice of; }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (b)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 if the Court orders that judgment sum to be paid to the two assignees the defendant will not be able to recover as the assignees are the mortgagees of the plaintiff and they would have priority over the insurance proceeds; and }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (c)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 the plaintiff is heavily in debt to both the assignees as well as to ANZ Banking Group Limited. \par \par The defendant submits that because the judgment sum does not belong to the plaintiff, the defendant therefore should not be ordered to pay the judgment sum to the plaintiff. \par \par Also counsel submits that if the judgment is ordered to be paid to the assignees the appeal would be rendered nugatory if it is successful on appeal. \par \par He further submits that the plaintiff has not put the true liquidity position of itself.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 If the said sum is paid to plaintiff it will be used to pay the plaintiff\rquote s debts and hence the defendant will not be able to recover if it is successful on appeal thereby rendering its appeal nugatory. \par \par {\pntext\pard\plain\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (iii)\tab}}\pard \ql \fi-720\li720\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls1\pnrnot0\pnlcrm\pnb1\pnstart3\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Stay of Proceedings}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The Court has already set down }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 3}{\b\lang2057\langfe1033\super\langnp2057\insrsid870556\charrsid13007053 rd}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 , }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 4}{\b\lang2057\langfe1033\super\langnp2057\insrsid870556\charrsid13007053 th}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 and }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 5}{\b\lang2057\langfe1033\super\langnp2057\insrsid870556\charrsid13007053 th}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 August 2004}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 to determine the balance of the quantum claimed by the plaintiff.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par \par It seeks a stay of this hearing from the reasons that: }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (a)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 in the event the appeal is successful the costs associated with the hearing on the above dates would have been wasted; }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (b)}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 there will be no prejudice to the plaintiff as any award for further damages would not go to the plaintiff because of the said assignments and the defendant will not be able to recover from the assignees. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Plaintiff\rquote s submission \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 After stating the principles governing a stay application the learned counsel for the plaintiff made his submissions on the various grounds argued by Mr. Haniff. \par \par On the defendant\rquote s statement that the defendant has \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 good prospects}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote of s uccess on appeal, Mr. Patel stated that the defendant has \lquote }{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 merely regurgitated their earlier defence, which has been rejected by the Court without adding anything new to cast doubt on the correctness of the judgment}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote .}{ \lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 He says that this is no help to the Court in determining the issues before it.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Weight should be given to the judgment of the Court. \par \par On \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 prejudice}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote counsel submits that there will be no prejudice to the defendant if \lquote stay\rquote is refused as its concern is adequately answered by the Affidavit of Rajendra Prasad showing plaintiff\rquote s ability to repay and in any event that concern is taken care of by the plaintiff\rquote s offer to provide }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Bank quarantee}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 as security for the repayment.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par \par On \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 saving of time and costs}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote he says that there is no merit in this groun d because it could equally delay assessment of the claim and cause extra cost of a second appeal if the first appeal fails. \par \par There has to be also \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 special circumstances}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote to justify a need to depart from the normal rule that the plaintiff is entitled to the fruits of the judgment.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The defendant he says has not shown any special circumstances to make out a case for a \lquote stay\rquote . \par \par It is the plaintiff\rquote s submission that if the Court were to grant a stay in the exercise of its discretion then it should be }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 on terms}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 . \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Consideration of the issue \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par {\pntext\pard\plain\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (i)\tab}}\pard \ql \fi-720\li720\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pnlcrm\pnb1\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Principles governing \lquote stay\rquote }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In the decision delivered this morning in the case of }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Tappoo Holdings Limited and Tappoo Limited v Robert Arthur Stuchbery }{\lang2057\langfe1033\langnp2057\insrsid870556 (Civil Action No. HBC0}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 355 of 2001/s) where a similar application was made, I dealt with the principles governing \lquote stay\rquote .}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 For the sake of completeness and at the risk of being lengthy I reproduce hereunder what I said therein on the principles as it is}{\lang2057\langfe1033\langnp2057\insrsid870556 pertinent to this application.}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par Both counsel stated quite clearly and in considerable detail with authorities principles governing stay and interim payment. \par \par The principles on stay are fully set out in the notes to Or.59 r.13/1 (}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The Supreme Court Practice 1979 p.909}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 ).}{ \lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It states, inter alia, that the Court does not \'93}{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 make a practice of depriving a successful litigant of the fruits of his litigation, and locking up funds to which prima facie he is entitled}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote , pending an appeal.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The Annot Lyle }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1886) 11 P.D. at p.116, C.A.; }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Monk v Bartram}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1891) 1 Q.B. 346).}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 White Book}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 states that \'93}{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 thi s applies not merely to execution but to the prosecution of proceedings under the judgment or order appealed from \'85}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 However, it also has to be considered that \'93}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 when a party is appealing, exercising his undoubted right of appeal, this Court ought to see that the appeal, if successful, is not nugatory}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Wilson v Church}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (No. 2) (1879), 12 Ch.D at pp 458, 459 C.A.).}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Here there is a risk that the appeal will prove abortive if it is successful and a stay is not granted, in that case the Court will normally exercise its discretion in favour of granting a stay [}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Scarborough v Lew\rquote s Junction Stores Pty., Ltd }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1963) VR 129 at 130].}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Therefore, where it is apparent that unless a stay is granted an appeal will be rendered nugatory, this will be a substantial factor in favour of the grant of a stay (}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Wilson v Church}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (No. 2) (1879) 12 Ch.D. 454). \par \par The grant or refusal of a stay is a }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 discretionary}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 matter for the Court [}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 AG v Emberson}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1889), 24 Q.B.D., pp 58,59].}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It will be granted where the special circumstances of the case so require.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In exercising its discretion the Court will weigh considerations such as balance of convenience and the competing rights of the parties before it [Emberson (supra)].}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Also where there is a risk that if a stay is granted and the assets of the applicant will be disposed of, the Court may, in the exercise of its discretion refuse the application.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Furthermore, it was stated in }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Atkins v G.W. Ry}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1886), 2 T.L.R. 400 that}{\lang2057\langfe1033\langnp2057\insrsid870556 \par \par }\pard \ql \li720\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 as a general rule the only ground for a stay of execution is an affidavit show ing that if the damages and the costs were paid there is no reasonable probability of getting them back if the appeal succeeds}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 .\'94 \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par It was held in }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Linotype-Hell Finance Ltd v Baker }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1992), 4 All ER p.887 that:}{ \b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard\plain \s15\ql \li720\ri720\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid13007053 \b\i\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93Where an unsuccessful defendant seeks a stay o f execution pending an appeal to the Court of Appeal, it is a legitimate ground for granting the application that the defendant is able to satisfy the court that without a stay of execution he will be ruined and that he has an appeal which has some prospe ct of success\'94. \par }\pard\plain \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (ii)\tab}}\pard \ql \fi-720\li720\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls2\pnrnot0\pnlcrm\pnb1\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid13007053 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Dealing with the application}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The issues for the Court\rquote s determination are whether \lquote stay of execution\rquote and \lquote stay of proceedings\rquote ought to be granted in all the circumstances of this case or not. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par I have considered the arguments put forward by both counsel. \par \par It is to be noted that the judgment in this case has been given for the amount which}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 has actually been admitted by the defendant after a long trial of the action in which the Court held that the exclusionary clause in the Policy in question did not apply in favour of the defendant. \par \par I agree with Mr. Patel that nothing new has been introduced in the Grounds of Appeal which has not been thoroughly argued and adjudicated upon by the Court.}{\lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is not this Court\rquote s function to assess the merits of the appeal but \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 if prima facie it is obvious that the appeal is wholly unmeritorious or wholly unlikely to succeed then it would be appropriate for me to say so}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote [}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Sir Moti Tikaram }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 RJA in }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Reddy\rquote s Enterprises Limited and The Governor of the Reserve Bank of Fiji}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (Civil Appeal No. 67/90 FCA). \par \par In this regard the following passage attributed to }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Mahoney J.A}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 in }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Re Middle Harbour Investment Ltd}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 quoted at p694 of the report of }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Alexander v Cambridge Credit Corporation}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Receivers Appointed}{\lang2057\langfe1033\langnp2057\insrsid870556 )(1985) 2 N.S.W.}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 L.R. 685 is pertinent: \par }\pard \ql \li0\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }\pard \ql \li720\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid13007053 {\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \lquote Where an application is made for a stay of proceedings, it is necessary that the applicant demonstrate an appropriate case.}{\b\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{\b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Prima facie, a successful party is entitled to the benefit of the judgment obtained by him and is entitled to commence with the presumption that the judgment is correct.}{\b\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \b\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 These are not matters of rigid principle and a court asked to grant a stay will consider each case upon its merits, but where an applicant for a stay has not demonstrated an appropriate case but has lef t the situation in the state of speculation or of mere argument, weight must be given to the fact that the judgment below has been in favour of the other party.\rquote }{\i\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 That I consider is the way to approach a stay application.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 \par \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is my view that the defendant has not made out a case that it has \lquote good prospects\rquote of succeeding on appeal. \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Stay in \lquote special circumstances\rquote \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par A \lquote stay\rquote will be granted where the special circumstances of the case so require. \par \par In }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Federal Commissioner of Taxation v Myer Emporium Ltd}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (No. 1) (1986) 160 C.L.R. 220, }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Dawson J}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 said at pp 222-3: \par \par }\pard\plain \s16\ql \li720\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid13007053 \b\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93 It is well established by authority that the discretion which it confers to order a stay of proceedings is only to be exercised }{\i\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 where special circumstances exist}{ \i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 which justify departure from the ordinary rule that a successful litigant is entitled to the fruits of hi}{\i\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 s}{ \i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 litigation pending the determination of any appeal: see e.g. The Annot Lyle (1886) 11 P.D. 114, at}{\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 p. 116; Scarborough v. Lew\rquote s Junction Stores Pty. Ltd. [1963] V.R. 129, at p.130.}{\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Special circumstances justifying a stay will exist where it is necessary to prevent the appeal, if successful, from being nugatory: see Wilson v Church (No. 2) (1879) 12 Ch. D. 454, at p.458; Klinker Knitting Mills Pty. Ltd. v L'Union Fire Accident and General In surance Co. Ltd. [1937] V.L.R. 142.}{\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Generally that will occur when, because of the respondent\rquote s financial state, there is no reasonable prospect of recovering moneys paid pursuant to the judgment at first instance.}{\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 However, special circumstances are not lim ited to that situation and will, I think, exist where for whatever reason, there is a real risk that it will not be possible for a successful appellant to be restored substantially to his former position if the judgment against him is executed: see McBrid e v. Sandland (No.2) (1918) 25 C.L.R. 369, at p.375,\'94}{\i\lang2057\langfe1033\langnp2057\insrsid13007053 }{\b0\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (emphasis added)}{\b0\i\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \s16\ql \li0\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid870556 {\b0\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In the present case the defendants have not shown any \lquote special circumstances\rquote for a stay.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 What are }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 not}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \lquote special circumstances\rquote have been stated in }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Monk v Bartram}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (1891) 1 Q.B. 346 where it was held: \par \par }\pard\plain \s17\ql \li720\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid870556 \b\i\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93 Where a stay of execution has been refused by the judge at the trial, an application made to the Court of Appeal for a stay pending an appeal }{\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 must be supported by special circumstances}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 , and allegations that there has been misdirection, that the verdict or judgment was against the weight of evidence, or that there was no evidence to support the verdict or judgment, are not special circumstances on which the Court will grant the application.\'94 \par }\pard\plain \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid870556 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid870556 (emphasis added)}{ \lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid13007053 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The principles governing a stay has been stated thus in }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Halsbury\rquote s Laws of England }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 4}{\b\lang2057\langfe1033\super\langnp2057\insrsid870556\charrsid13007053 th}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Ed Vol 37 para 699}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 ): \par \par }\pard\plain \s15\ql \li720\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin720\itap0\pararsid13007053 \b\i\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'93 Two principles have to be balanced against each other as to whether a stay of execution pending the appeal should be granted: first, that a successful litigant should not be depr ived of the fruits of his litigation, and secondly, that an appellant should not be deprived of the fruits of a successful appeal.\'94}{\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \s15\ql \li0\ri720\widctlpar\aspalpha\aspnum\faauto\adjustright\rin720\lin0\itap0\pararsid870556 {\b0\i0\lang2057\langfe1033\langnp2057\insrsid13007053\charrsid870556 \par }\pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 On the question of prejudicial effect on the defendant if the judgment sum was paid out to the plaintiff, I have considered the financial standing of the plaintiff not ignoring at the same time its alleged indebtedness to various Banks as stated by the defendant.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The plaintiff says that it has the ability to pay back if the defendant is successful and is prepared to give a Bank Guarantee as security. \par \par There is no doubt that if the defendant was successful on appeal and moneys have been paid out there is always that danger that it may not be recoverable.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is a large sum of money to pay out without adequate security. \par \par The defendant\rquote s counsel has laboured the point that recovery will be difficult if payment is ordered to be made thereby resulting in the appeal rendered nugatory.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 I take note of his arguments in this regard particularly the point that he makes in regard to the assignment of insurance monies to the Banks he mentioned. \par \par Mr. Haniff when asked by the Court whether the defendant is in a position to deposit the sum into Court, he was non-committal. \par \par Although Mr. Haniff has painted a gloomy picture of the plaintiff\rquote s financial position as if to say that it is up}{\lang2057\langfe1033\langnp2057\insrsid870556 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 to the neck in debt to various Banks, he should not forget that it is the plaintiff who wants to enjoy the fruits of the judgment in its favour which it has been deprived of for four years and on top of that the jud gment is for an amount admitted by the defendant. \par \par Mr. Haniff neither admits nor denies that the defendant is in a position to pay the judgment sum in Court.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In the circumstances I can only presume that it is capable of paying the said sum in Court.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 There is a mention however in Rajendra Prasad \rquote s affidavit at page 3 item 8 that the \lquote }{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 defendant has ceased trading in Fiji having sold its business to Queensland Insurance (Fiji) Limited.}{ \i\lang2057\langfe1033\langnp2057\insrsid13007053 }{\i\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The defendant has not disclosed its ability to meet the judgment debt and interest if stay is granted and the appeal is unsuccessful. \rquote \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par In all the circumstances of this case the plaintiff will suffer greater prejudice than the defendant if stay was granted. \par \par To allay the fear that the defendant has about recovery of the sum if paid out, I am inclined to grant a stay on }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 condition}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 by ordering payment of the sum into Court pending the hearing and determination of the appeal.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In the circumstances of this case I do not favour payment out of this sum to plaintiff upon furnishing a Bank Guarantee as submitted by Mr. Patel. \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Conclusion \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 To conclude, for the reasons stated by me, upon hearing both counsel on their submissions and applying the principles governing \lquote stay\rquote , I consider that I ought to grant a \lquote }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 conditional stay}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \rquote .}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 This way after doing a balancing exercise and bearing in mind the facts of this case particularly the \lquote liquidity\rquote aspect of both the companies which has been highlighted so much, neither party will be prejudiced with the plaintiff having the assurance that the judgment i n its favour is secure and the defendant will have the peace of mind that it will be able to recover the money if it is successful on appeal. \par \par In all the circumstances of this case it is intended to order payment into Court the judgment sum of }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 $2,445,203.00}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 with interest thereon at 9.25% from 19 September 2000 to the date of payment.}{\lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 This type of order was made in }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Mohammed Nasir Khan and Tahira Begum}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (Civil Appeal No. 36/83, FCA) where it was stated that the plaintiffs \'93}{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 being at this stage the successful litigant cannot be expected to let time pass by without assurance that the amount owing under the judgment is secure.}{ \b\lang2057\langfe1033\langnp2057\insrsid13007053 }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Her interests have to be fully protected}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \'94.}{ \lang2057\langfe1033\langnp2057\insrsid13007053 }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 There a stay was granted pending appeal }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 on condition}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that \'93}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 the whole amount owing under the judgm ent i.e. $52,789.00 be paid into Court within 14 days of the date of this decision}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 .\'94 \par \par The learned counsel for the plaintiff has urged on me that if payment into court is ordered, a further order be made that it be paid out to plaintiff upon the plaintiff giving a }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Bank Guarantee}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that the money would be paid back if the dependant is successful on appeal. \par \par I do not look at this proposition with any favour in the circumstances of this case although payment out in this manner is quite in order in the Court\rquote s discretion [}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Rosengrens Ltd v Safe Deposit Centres Ltd}{\lang2057\langfe1033\langnp2057\insrsid870556 [1984] 3 All }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 E.R 198, }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 McLeod v N.Z. Pine Co}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 [1892] 11 NZLR 493 at 495 and }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Plowman v Dillon}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (unreported 11 August 1986, Auckland, A496/83]. \par \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 Orders \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par }{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 I therefore make the following orders:- \par \par }\pard \ql \fi-720\li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 1.\tab }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 An interim stay of execution}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 of judgment entered for }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 $2,445,203.00}{\b\lang2057\langfe1033\langnp2057\insrsid870556 }{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 on }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 19 May 2004}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 is granted on the following conditions \endash \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (i)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls3\pnrnot0\pnlcrm\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1440\itap0\pararsid13007053 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is ordered}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that the defendant pays into Court the said sum of }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 $2,445,203.00}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 together with interest thereon at }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 9.25%}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 from 19 September 2000 t o the date of this decision (which interest is to be calculated by counsel for the plaintiff) within }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 21 days}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 from the date of this Decision to await the outcome of the appeal herein. \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (ii)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls3\pnrnot0\pnlcrm\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1440\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The said sum to be placed by the Chief Registrar into an interest bearing account. \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (iii)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls3\pnrnot0\pnlcrm\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1440\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Payment out of the sum deposited together with any interest earned to be in accordance with the directives of the Court. \par }\pard \ql \li0\ri0\widctlpar{\*\pn \pnlvlcont\ilvl0\ls0\pnrnot0\pndec }\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 (iv)\tab}}\pard \ql \fi-720\li1440\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls3\pnrnot0\pnlcrm\pnstart1\pnindent360\pnsp120\pnhang {\pntxtb (}{\pntxta )}}\aspalpha\aspnum\faauto\ls3\adjustright\rin0\lin1440\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 In the event of the defendant failing to deposit the said sum and interest into Court as ordered, the stay order will laps e and the plaintiff will be entitled to execute its judgment together with any costs ordered without any further order of this Court. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \fi-720\li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (v)\tab }{\b\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 It is further ordered}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 that if the defendant fails to deposit the said sum as ordered in 1(i) above the plaintiff will be at liberty to apply to Court to restore the hearing of the \lquote balance of quantum\rquote to the list. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par {\pntext\pard\plain\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \hich\af0\dbch\af0\loch\f0 2.\tab}}\pard \ql \fi-720\li720\ri0\widctlpar{\*\pn \pnlvlbody\ilvl0\ls4\pnrnot0\pndec\pnstart2\pnindent360\pnsp120\pnhang {\pntxta .}} \aspalpha\aspnum\faauto\ls4\adjustright\rin0\lin720\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 The defendant is ordered to pay the plaintiff\rquote s solicitors the }{ \b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 costs}{\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 of this application in the sum of }{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 $1500.00}{ \lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 (one thousand five hundred dollars) within 21 days.}{\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\lang2057\langfe1033\langnp2057\insrsid13007053 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid870556 {\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 D. Pathik \par }{\b\ul\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 Judge}{\b\lang2057\langfe1033\langnp2057\insrsid870556\charrsid13007053 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13007053 {\lang2057\langfe1033\langnp2057\insrsid870556\charrsid870556 \par At Suva \par 27 July 2004 \par }}