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\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid8475986 IN THE HIGH COURT OF FIJI
\par AT LAUTOKA
\par CIVIL JURISDICTION
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\fs24\insrsid8475986 CIVIL ACTION NO. HBC214 OF 1996L
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\fs24\insrsid8475986 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 FIJI FOREST SAWMILLING CO. LTD
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 V
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 
\par }\pard \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8326404 {\b\fs24\insrsid8475986 WESTPAC BANKING CORPORATION
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 {\b\fs24\insrsid8475986 
\par }{\fs24\insrsid8475986 Gates J.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5716616 {\fs24\insrsid8475986\charrsid5716616 Mr S.R. Valenitabua for the Plaintiff [Applicant]
\par Mr K. Kumar for the Defendant [Respondent]
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 {\fs24\insrsid8475986 
\par 20 July, 15 October 2001
\par 20 January 2004}{\fs24\insrsid8475986\charrsid8475986 
\par }{\fs24\insrsid8326404\charrsid8475986 
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\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 {\fs24\insrsid8326404\charrsid8475986 
\par Monies ordered to be paid into court; payment out; Order 22 R8(1) and R9 High Court Rules; court\rquote s discretion to be exercised judicially; change in character of litigation; declaration of Supreme Court as to nature}{
\fs24\insrsid8475986\charrsid8475986  }{\fs24\insrsid8326404\charrsid8475986 of items coming within term }{\fs24\insrsid8475986\charrsid8475986 "}{\fs24\insrsid8326404\charrsid8475986 security}{\fs24\insrsid8475986\charrsid8475986 "}{
\fs24\insrsid8326404\charrsid8475986 ; longevity of security; mortgagee\rquote s right to hold sufficient funds pending finalisation; terms of mortgage instrument; need for certificate to be issued by mortgagee; orders appropriate after Supreme Court
\rquote s decision and present circumstances; payment out to bank which must still account to mortgagor.
\par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 {\fs24\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 {\fs24\insrsid8326404\charrsid8475986 [1] \tab The plaintiff applies for payment out of monies held in court.}{
\fs24\insrsid8475986\charrsid8475986  }{\fs24\insrsid8326404\charrsid8475986 Sadal J\rquote s order of 30 August 1996 for payment into court of part of the proceeds of fire insurance and the balance monies of a mortgagee sale 
was taken on appeal by the mortgagee bank [the Respondent].}{\fs24\insrsid8475986\charrsid8475986  }{\fs24\insrsid8326404\charrsid8475986 The appeal was dismissed by the Court of Appeal.}{\fs24\insrsid8475986\charrsid8475986  }{
\fs24\insrsid8326404\charrsid8475986 Because of subsequent events affecting the utility of the primary judge\rquote s orders, further appeal was also dismissed by the Supreme Court.
\par 
\par [2] \tab But in the Supreme Court the bank had its stance as mortgagee more fully recognised and a significant declaration was made in its favour.}{\fs24\insrsid8475986\charrsid8475986  }{\fs24\insrsid8326404\charrsid8475986 
The decision elucidated what could come within the security of a mortgage and for how long that security could be held: W
estpac Banking Corporation v Fiji Forest Sawmilling Co. Ltd. (unreported) Supreme Court, Fiji Civil App No. CBV0003 of 1999S, 17 April 2003; }{\i\fs24\insrsid8326404\charrsid8475986 Bristol & West plc v Bartlett}{\fs24\insrsid8326404\charrsid8475986 
 [2002] 4 All ER 544.}{\fs24\insrsid8326404 
\par }{\fs24\insrsid8475986\charrsid8475986 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 Background
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [3] \tab 
The applicant [Fiji Forest] owned a property on which stood the Sigatoka Hotel, Fiji Forest had mortgaged the property to the bank.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 In 1993 the hotel was destroyed by fire.}{
\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 The bank demanded payment of monies secured by the mortgage, and after default by the mortgagor, the bank sold the property in order to meet the debt.}{
\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 That sale was registered on 13 December 1994.
\par 
\par [4] \tab After applying the sale proceeds to various liabilities secured by the bank\rquote s mortgage, the bank\rquote s solicitors were left with a balance of $13,143.91.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
The mortgage sale and other matters were challenged in different proceedings, and the insurer was also sued by Fiji Forest.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
This last action was settled by the insurer agreeing to pay out $125,000 which was to be paid after the assignment to the bank had been discharged.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 This action
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par [5] \tab On 18 June 1996 Fiji Forest issued an originating summons seeking the discharge and release of the fire policy assigned to the bank.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
The bank opposed the order sought, principally on the ground that:
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 altho
ugh there was a surplus on sale of the mortgaged property, substantial costs were likely to be incurred in defending the pending action by the Respondent and so the Bank wished to hold on to the insurance proceeds as security for those costs especially as
 the Respondent had no other assets but pending claims against it.}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [6] \tab The bank\rquote 
s legal costs were estimated at $47,000 exclusive of VAT and disbursements.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 These costs took into account potential appeals to the Court of Appeal and to the Supreme Court.}{
\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 The Supreme Court subsequently found (at p.26) that }{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
The course which the Bank should have taken was to issue a certificate under clause 21 of the mortgage instrument, and to have released the balance over the amount so fixed to the company.}{\fs24\insrsid8475986\charrsid15421028 " }{
\fs24\insrsid8326404\charrsid15421028 The Court of Appeal had held that it was unreasonable for the bank to hold $138,000 }{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
against a remotely possible future liability of $47,000}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 .}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
The Supreme Court agreed with this criticism.
\par 
\par [7] \tab On 30 August 1996 Sadal J had ordered inter alia that one sixth of the fire insurance proceeds and one sixth of the $13,143.11 balance mortgage sale proceeds be paid into court.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 Accordingly this was done.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 This application
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par [8] \tab Fiji Forest took out a summons on 21 June 2000 seeking payment out to itself of $23,023.98 and interest.
\par 
\par [9] \tab Order 22 Rule 8(1) of the High Court Rules provides:
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
Subject to paragraph (2) money paid into Court under an order of the Court or a Certificate of the Registrar shall not be paid out except in pursuance of an Order of the Court.}{\fs24\insrsid8475986\charrsid15421028 "}{
\fs24\insrsid8326404\charrsid15421028 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par [10] \tab Rule 9 provides that:
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
Payment out of moneys in Court shall be made to the person entitled \'85}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par [11] \tab Of the court\rquote s discretion in the matter the Supreme Court Practice states:
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
The Court has a complete discretion, to be exercised judicially, whether to allow a payment into Court to be paid out back to the Defendant, and if so on what terms, and it will do so where since the date of the notice of payment in the c
haracter of the litigation has entirely changed (}{\i\fs24\insrsid8326404\charrsid15421028 Peal Furniture Co. Ltd. v. Adrian Share (Interiors) Ltd.}{\fs24\insrsid8326404\charrsid15421028  [1977] 2 AllER 211.C.A.}{\fs24\insrsid8475986\charrsid15421028 "}{
\fs24\insrsid8326404\charrsid15421028 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [12] \tab 
It is sufficient to say in summary that there must be good reasons for seeking an order for payment out: }{\i\fs24\insrsid8326404\charrsid15421028 Cumper v Pothecary}{\fs24\insrsid8326404\charrsid15421028  [1941] 2 All ER 516 at p.522.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 Applicant\rquote s case
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [13] \tab 
Fiji Forest claims that the bank has received payment for all of its debt.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 Further it says the mortgage being discharged all terms and conditions are now of no effect.}{
\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 This argument was firmly rejected by the Supreme Court.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
The company claimed there is no impediment to a payment out to itself of the balance proceeds from the insurance and from the mortgagee sale.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
Fiji Forest does not support that part of the High Court order that appeared to hold up the result of this action until a probate matter was first decided amongst former shareholders of the company.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 This part was not supported by the bank either.
\par 
\par [14] \tab Mr Valenitabua for Fiji Forest argues that the $23,023.98, if due to the company, could not form part of the deceased shareholder\rquote s estate, and therefore should not influence the court\rquote s discretion.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 The Bank\rquote s case
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [15] \tab 
The bank maintained that it was empowered by clause 23 of the mortgage instrument to retain balance monies until all expenses in connection with the enforcing of its security had been recovered.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 Clause 23(b) viii provided:
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid75270 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
(viii) the assisting or defending of the title of the Mortgagor or the Bank in relation to this security; }{\fs24\insrsid8326404 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid15421028\charrsid15421028 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
and in relation to any actions or proceedings arising out of or concerned with any of the above matters or any other matter connected with this security and whether or not the Debtor or the Mortgagor are parties thereto shall include not only all legal co
s
ts charges disbursements and expenses incurred by the Bank against which the Mortgagor or the Debtor may by any order of any court be liable to indemnify the Bank but also notwithstanding any such order or any order of any court under which the Bank would
 not otherwise be entitled to recover the same all legal costs charges disbursements and expenses which the Bank has paid or may pay to its solicitors or to any other person including the Debtor and the Mortgagor and in the case of payments to the Bank
\rquote s}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 solicitors on a solicitor and own client basis.}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [16] \tab Clause 27 also provided:
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8475986\charrsid15421028 "}{
\fs24\insrsid8326404\charrsid15421028 27.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
THAT those presents shall be a continuing security and shall not be considered as wholly or partially discharged by the payment at any time hereafter of any of the moneys 
hereby secured or by any settlement of account or by any other matter or thing whatsoever and shall apply to the present or any future balance of the moneys hereby secured until a final discharge hereof has been given to the Mortgagor.}{
\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par [17] \tab The Supreme Court held that:
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8475986\charrsid15421028 "}{
\fs24\insrsid8326404\charrsid15421028 the Bank was entitled to retain sufficient of the disputed moneys to cover the amount of the }{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 moneys hereby secured}{
\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028  as defined by the mortgage, but no more.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 The }{\fs24\insrsid8475986\charrsid15421028 "}{
\fs24\insrsid8326404\charrsid15421028 moneys hereby secured}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028  would include the liability of the Company arising under clause 23 of the mortgage.}{
\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [18] \tab 
The bank has incurred substantial legal costs in relation to the mortgagee sale proceedings and the subsequent litigation.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
Jone Vuli, a loans manager with the bank, deposed that the company has not traded for more than 10 years, a fact not challenged by the company in its affidavit material.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
If paid out to the company, there would be a risk the monies held in court could not be recovered.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 That was the position prior to the Supreme Court appeal.
\par 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 Appeal to the Supreme Court
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [19] \tab 
Meanwhile the Supreme Court delivered its judgment on the original orders of Sadal J.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
After an extensive review of the nature, effect and longevity of the security held by the bank the court concluded (at p.27):
\par 
\par }\pard \ql \li720\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid15421028 {\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 We have
 been informed from the Bar Table that pursuant to the orders of the trial judge, and other orders of the High Court, the Bank has already paid to or on account of the company all the disputed moneys.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 Other information in the Record Book suggests that the company is presently insolvent.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
In these circumstances any order of this Court in relation to the disputed moneys is not likely to have any practical consequence.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
Nonetheless the Bank is entitled to have its legal rights appropriately recognised.}{\fs24\insrsid8475986\charrsid15421028 "}{\fs24\insrsid8326404\charrsid15421028 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par }\pard \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid6640975 {\b\fs24\insrsid8326404\charrsid15421028 Conclusion
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 [20] \tab 
Clearly the bank was entitled to hold onto a proportion of the balance monies so as to meet further expenses associated with enforcement of its security and to resist legal challenges.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 In deciding the issues this way the Supreme Court disagreed with the primary judge\rquote s reasons for the payment in, and to some extent those also of the Court of Appeal.}{\fs24\insrsid8475986\charrsid15421028  }{
\fs24\insrsid8326404\charrsid15421028 However these financial needs should have been quantified and a certificate issued.}{\fs24\insrsid8475986\charrsid15421028  }{\fs24\insrsid8326404\charrsid15421028 
But the bank is entitled to have the monies presently in court, to deal with them, and then to submit its final account of the further expenses to the company.
\par 
\par [21] \tab In the result I believe the appropriate and just order to be made now is as follows:
\par 
\par {\listtext\pard\plain\insrsid8326404\charrsid15421028 \hich\af0\dbch\af0\loch\f0 1)\tab}}\pard \ql \li720\ri0\widctlpar\jclisttab\tx720\wrapdefault\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid15421028 {
\fs24\insrsid8326404\charrsid15421028 The plaintiff\rquote s application is dismissed.
\par }\pard \ql \li0\ri0\widctlpar\jclisttab\tx720\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par {\listtext\pard\plain\insrsid8326404\charrsid15421028 \hich\af0\dbch\af0\loch\f0 2)\tab}}\pard \ql \li720\ri0\widctlpar\jclisttab\tx720\wrapdefault\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid15421028 {
\fs24\insrsid8326404\charrsid15421028 The balance mon
ies held in court consisting of insurance proceeds and mortgagee sale proceeds are to be paid out to the respondent, these to be accounted for to the mortgagor in the usual manner appropriate at the conclusion of a mortgagee sale.
\par }\pard \ql \li0\ri0\widctlpar\jclisttab\tx720\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 {\fs24\insrsid8326404\charrsid15421028 
\par {\listtext\pard\plain\insrsid8326404\charrsid15421028 \hich\af0\dbch\af0\loch\f0 3)\tab}}\pard \ql \li720\ri0\widctlpar\jclisttab\tx720\wrapdefault\aspalpha\aspnum\faauto\ls2\adjustright\rin0\lin720\itap0\pararsid15421028 {
\fs24\insrsid8326404\charrsid15421028 There will be no order as to costs.
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid8326404\charrsid15421028 Orders accordingly. 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \qc \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid15421028 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\insrsid8326404\charrsid15421028 A.H.C.T. GATES
\par }{\b\fs24\ul\insrsid15421028\charrsid15421028 JUD}{\b\fs24\ul\insrsid8326404\charrsid15421028 GE
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8475986 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\lang2057\langfe1033\langnp2057\insrsid8326404\charrsid8475986 
\par }\pard\plain \ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9530568 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\insrsid9530568\charrsid9530568 Solicitors for the Plaintiff}{
\fs24\insrsid8326404\charrsid9530568 :}{\fs24\insrsid9530568\charrsid9530568  }{\fs24\insrsid8326404\charrsid9530568 S.R. Valenitabua Esq., Suva
\par Solicitor}{\fs24\insrsid9530568\charrsid9530568 s for the Defendant}{\fs24\insrsid8326404\charrsid9530568 :}{\fs24\insrsid9530568\charrsid9530568  }{\fs24\insrsid8326404\charrsid9530568 Messrs Young & Associates, Lautoka
\par }}