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\f37\fs22\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\f0\fs24\insrsid13989751\charrsid1460876 IN THE HIGH COURT OF FIJI \par AT LAUTOKA \par CIVIL JURISDICTION \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 Action No. 001 of 2009 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 BETWEEN:}{\f0\fs24\insrsid1460876 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\b\f0\fs24\insrsid13989751\charrsid1460876 NARAIN SAMMI NAIDU}{\b\f0\fs24\insrsid7957105 \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 (father\rquote s name Chinsami Naidu)}{\b\f0\fs24\insrsid7957105 \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 c/o True Blue Hotel, Sigatoka. \par PLAINTIFF \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 AND:}{\f0\fs24\insrsid1460876 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\b\f0\fs24\insrsid7957105 PUSHPA WATI \par (father\rquote s name Devi Prasad) \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 of Nadi. \par DEFENDANT \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 AND:}{\f0\fs24\insrsid1460876 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876 \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\b\f0\fs24\insrsid7957105 ATTORNEY-GENERAL OF FIJI \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 as representative of the Director of Lands and the Registrar of Titles. \par THIRD PARTY \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751 \par }{\b\f0\fs24\insrsid1460876\charrsid1460876 Before: Master Anare Tuilevuka \par }{\f0\fs24\insrsid1460876 \par }{\b\f0\fs24\insrsid1460876\charrsid1460876 Counsels}{\f0\fs24\insrsid1460876 : }{\f0\fs24\insrsid1460876\charrsid1460876 Cromptons for the Plaintiff}{\f0\fs24\insrsid1460876 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid7957105 {\f0\fs24\insrsid1460876\charrsid1460876 Sahu Khan & Sahu Khan for the Respondent \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 Date of Oral Ruling}{\f0\fs24\insrsid13989751\charrsid1460876 : 12th April 2010 \par }{\b\f0\fs24\insrsid13989751\charrsid1460876 Date of Written Reply}{\f0\fs24\insrsid13989751\charrsid1460876 : 21st April 2010 \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 RULIN}{\b\f0\fs24\insrsid13989751\charrsid1460876 G \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 AGREED FACTS \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [1] }{\f0\fs24\insrsid13989751\charrsid1460876 The defendant, Pushpa Wati (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 Wati}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 ) is the registered proprietor of Crown Lease Number 6677 (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 land}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 or \'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 CL 6677}{ \f0\fs24\insrsid13989751\charrsid1460876 \'94). That lease is a protected lease under section 13 of the Crown Lands Act. It comprises 7 acres and 16 perches. \par \par }{\f0\fs24\insrsid1460876 [2] }{\f0\fs24\insrsid13989751\charrsid1460876 As a protected lease, CL 6677 is regulated by section 13 of the State Lands Act (Cap 132) (see further paragraph 19 below). \par \par }{\f0\fs24\insrsid1460876 [3] }{\f0\fs24\insrsid13989751\charrsid1460876 At some point in 2006, Wati started negotiating with one Narayan Sami Naidu (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 Naidu}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 - the plaintiff). She was agreeing to sell to Naidu an acre (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 Lot}{\f0\fs24\insrsid13989751\charrsid1460876 \'94) to be carved out from her seven-a cre land. Naidu was willing to purchase the Lot. They had a common solicitor, Babu Singh & Associates of Nadi who drew up a sale and purchase agreement (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 Agreement}{\f0\fs24\insrsid13989751\charrsid1460876 \'94). \par \par }{\f0\fs24\insrsid1460876 [4] }{\f0\fs24\insrsid13989751\charrsid1460876 On the 6th day of February, 2006, Wati and Naidu signed the agreement which recorded the purchase price of $50,000.00. Immediately upon signing the Agreement, Naidu paid Wati the sum of $15,000. That payment was made to Wati\rquote s son (Rakesh Chand) on Wati\rquote s direction. Nevertheless, it is understood that the payment fulfilled Naidu\rquote s obligation to pay a deposit under }{\b\f0\fs24\insrsid13989751\charrsid1460876 clause 1 (a).}{\f0\fs24\insrsid13989751\charrsid1460876 \par \par }{\f0\fs24\insrsid1460876 [5] }{\f0\fs24\insrsid13989751\charrsid1460876 Meanwhile, the Agreement was signed without the Director of Lands\rquote consent on it. Naidu had every expectation though that Wati would obtain that consent in due course. \par \par }{\f0\fs24\insrsid1460876 [6] }{\f0\fs24\insrsid13989751\charrsid1460876 Mr. Knight would highlight that }{\b\f0\fs24\insrsid13989751\charrsid1460876 clauses 1(a)}{\f0\fs24\insrsid13989751\charrsid1460876 and }{\b\f0\fs24\insrsid13989751\charrsid1460876 10 (i)}{\f0\fs24\insrsid13989751\charrsid1460876 make the Agreement subject to the consent of the Director of Lands. }{\b\f0\fs24\insrsid13989751\charrsid1460876 Clause 7}{\f0\fs24\insrsid13989751\charrsid1460876 expressly obligates Wati to \'93}{ \b\f0\fs24\insrsid13989751\charrsid1460876 execute and perform all acts, deeds and things necessary to vest the said property unto ... [Naidu\rquote s] name}{\f0\fs24\insrsid13989751\charrsid1460876 \'94. Mr. Knight says Wati can still obtain it now. \par \par }{\f0\fs24\insrsid1460876 [7] }{\f0\fs24\insrsid13989751\charrsid1460876 Meanwhile, shortly after signing the Agreement, Naidu took various actions which raise some crucial issues in this case (see paragraphs 30 and 31 below). \par \par }{\f0\fs24\insrsid1460876 [8] }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Firstly}{\f0\fs24\insrsid13989751\charrsid1460876 , he engaged someone to prepare a survey plan (\'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 the plan}{ \f0\fs24\insrsid13989751\charrsid1460876 \'94 ) and later had it registered. A copy of that plan is annexed to his Affidavit. The plan bears the number SO 5668 and marks out Lot 4. The plan appears to have been signed by the Director of Lands and the Director of Town and Country Planning. Naidu says he paid $1,696.75 to the Director of Lands for the premium, stamp duty, registration fee and drawing fee for the preparation of a lease for Lot 4. }{\f0\fs24\insrsid13989751 \par }{\f0\fs24\insrsid1460876\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [9] }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Secondly}{\f0\fs24\insrsid13989751\charrsid1460876 , Naidu got the Director of Lands to consent to a caveat on CL 6677 on 18th day of November 2008 . That caveat has since been noted on CL6677 by the Registrar of Titles. \par \par }{\f0\fs24\insrsid1460876 [10] }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Thirdly}{\f0\fs24\insrsid13989751\charrsid1460876 , towards the end of 2006, Naidu carried out some clearing work on Lot 4. According to him, he did this \'93}{ \b\f0\fs24\insrsid13989751\charrsid1460876 to prepare for the development that [he was] proposing}{\f0\fs24\insrsid13989751\charrsid1460876 \'94. Notably , he had asked Wati and her sons for permission first before he entered the land. They agreed on the condition that Naidu pay $500.00 each to Wati\rquote s two sons. Naidu did oblige to that condition. Copies of the relevant receipts are annexed to his Affidavit. \par \par }{\f0\fs24\insrsid1460876 [11] }{\f0\fs24\insrsid13989751\charrsid1460876 Mr. Knight is on record to have suggested that the Director\rquote s consent to the caveat, by implication, is consent to the Agreement. Doctor Sahu Khan, on the other hand, submits that the Director\rquote s consent was wrong in law. The Director can only consent to a purchaser\rquote s caveat if he has hitherto consented to a related sale and purchase agreement. Otherwise, says Dr. Sahu Khan, what will happen is a situation where no lawful agreement is in place to support the caveat. Both submissions merit further cons ideration which I do so below at paragraphs 40 to 51. The Registrar of Titles, he says, acted unlawfully when he registered the caveat. \par \par }{\f0\fs24\insrsid1460876 [12] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan then submits that, because the Agreement would entail carving out an acre off Wati\rquote s seven-acre p arcel, the consent of the Director of Town and Country Planning to subdivide should also have been obtained first. He also highlights that the consent of the Director of Lands to institute the proceedings herein has not been obtained. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 THE APPLICATION BEFORE ME \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [13] }{\f0\fs24\insrsid13989751\charrsid1460876 Before me is an application dated 28th January 2009 of Messrs Sahu Khan and Sahu Khan seeking the following orders: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 (i) }{\b\f0\fs24\insrsid13989751\charrsid1460876 that caveat number 712307 registered by Naidu on Crown Lease Number 6677 be removed. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 (ii) }{\b\f0\fs24\insrsid13989751\charrsid1460876 that Naidu\rquote s writ of summons and statement of claim be dismissed as disclosing no cause of action and is frivolous and vexatious and/or without merits but that Wati\rquote s counter claim against Naidu and the third party claim against the Director of Lands and the Registrar of Titles do continue. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 (iii) }{\b\f0\fs24\insrsid13989751\charrsid1460876 an Order to restrain Naidu and/or his servants and agents from trespassing on the land comprised in Crown Lease Number 6677 and in particular Lot 4. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 (iv) }{\b\f0\fs24\insrsid13989751\charrsid1460876 such further or other relief as to the Honourable Court deems just. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\f0\fs24\insrsid1460876\charrsid1460876 (v) }{\b\f0\fs24\insrsid13989751\charrsid1460876 that Naidu do pay costs to Wati on indemnity basis and/or on solicitor/client basis. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 ISSUES \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [14] }{\f0\fs24\insrsid13989751\charrsid1460876 I will consider first the issue whether the claim should be struck out as disclosing no cause of action or is frivolous or vexatious. Then I will conside r the application for the removal of the caveat. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 DOES NAIDU\rquote S CLAIM DISCLOSE A REASONABLE CAUSE OF ACTION? \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [15] }{\b\f0\fs24\insrsid13989751\charrsid1460876 Order 18 Rule 18(1)}{\f0\fs24\insrsid13989751\charrsid1460876 of the }{\b\f0\fs24\insrsid13989751\charrsid1460876 High Court Rules}{\f0\fs24\insrsid13989751\charrsid1460876 provides as follows:- \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 \'93The Court may at any stage of the proceedings order to be struck out or am ended any pleading of the indorsement of any writ in the action, or anything in any pleading or in the indorsement, on the ground that \endash \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li1440\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid1460876\charrsid1460876 (a) }{\b\i\f0\fs24\insrsid13989751\charrsid1460876 It discloses no reasonable cause of action or defence, as the case may be \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [16] }{\f0\fs24\insrsid13989751\charrsid1460876 The jurisdiction to strike out is sparingly exercised and only in clear cases where the case is so clearly untenable that it cannot possibly succeed (}{ \b\f0\fs24\ul\insrsid13989751\charrsid1460876 Takaro Properties Ltd \endash v- Rowling}{\b\f0\fs24\insrsid13989751\charrsid1460876 [1978] 2 NZLR 314 at 317}{\f0\fs24\insrsid13989751\charrsid1460876 ). In exercising this jurisdiction, the Court wi ll assume as factually true all the allegations in the claim. If the facts as pleaded do raise a legal issue, then the courts will not strike out a pleading. \par \par }{\f0\fs24\insrsid1460876 [17] }{\f0\fs24\insrsid13989751\charrsid1460876 The absence of the Director of Lands\rquote consent to the Agreement is at the heart of all the i ssues raised in the pleadings and affidavits. However, the statement of claim filed by Naidu makes no mention of it. This was only to surface in Wati\rquote s defence. Be that as it is, Naidu readily concedes though in his affidavit that the Agreement was signed without the Director of Lands consent. To this day, that consent has neither been given nor refused as neither of the parties has sought it. \par \par }{\f0\fs24\insrsid1460876 [18] }{\f0\fs24\insrsid13989751\charrsid1460876 So, is the Agreement null and void and of no effect because of the lack of any consent to it by the Director of Lands? \par \par }{\b\i\f0\fs24\insrsid13989751\charrsid1460876 Section 13 of the State Lands Act (Cap 132) \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par Section 13 provides as follows:- \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 \'93Whenever in any lease under this Act there has been inserted the following clause:- \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 This lease is a protected lease under the provisions of the Crown Lands Act \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid1460876\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 (hereinafter called a protected lease) it shall not be lawful for the lessee thereof to alienate or deal with the land comprised in the lease of any part thereof, whether by sale, transfer or sublease or in any other manner whatsoever, nor to mortgage, charge or pledge the same, without the written consent of the Director of Lands first had and obtained, nor, except at the suit or the written consent of the Director of Lands, shall any such lease be dealt with by any Court of law or under the process of any Court of Law, nor, without such consent as aforesaid, shall the Registrar of Titles register any caveat affecting such a lease. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 Any sale, transfer, sublease, assignment, mortgage or other alienation or dealing effected without such consent shall be null and void\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [20] }{\f0\fs24\insrsid13989751\charrsid1460876 It appears to be well settled in Fiji that section 13 is not necessarily infringed when two parties enter into a contract subject to the Director of Lands\rquote consent. Such a contract, if it remains unperformed pending the necessary consent, is \'93}{\b\f0\fs24\insrsid13989751\charrsid1460876 inchoate}{\f0\fs24\insrsid13989751\charrsid1460876 \'94\chftn {\footnote \pard\plain \s20\ql \fi-284\li284\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin284\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\super\insrsid1460876 \chftn }{\insrsid1460876 \tab }{ \f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 See }{\b\f83\fs16\ul\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Chalmers v Pardoe}{\b\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 [1963] 3 All E.R. 552}{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 and }{\b\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Jai Kissun Singh v Sumintra (1970) 16 F.L.R. 165}{ \f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 .}} in that sense. However, it still binds whoever is so obligated under the contract to take all reasonable steps to obtain consent (see Fiji Supreme Court decision in }{ \b\f0\fs24\ul\insrsid13989751\charrsid1460876 Guiseppe Reggiero \endash v- Nabuyoski Kashiwa}{\b\f0\fs24\insrsid13989751\charrsid1460876 Civil Appeal No. CBV0005 of 1997S}{\f0\fs24\insrsid13989751\charrsid1460876 ). \par \par }{\f0\fs24\insrsid1460876 [21] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan relies on }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Gonzalez v Akhtar & Ors}{\f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s15\qj \fi-284\li284\ri-360\widctlpar\tx284\tx1701\aspalpha\aspnum\faauto\adjustright\rin-360\lin284\itap0\pararsid13989751 \f37\fs22\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{ \f83\fs16\insrsid1460876\charrsid12679132 \tab }{\f83\fs16\lang2057\langfe1033\langnp2057\insrsid1460876\charrsid12679132 See paragraph 117. \par }\pard \s15\qj \fi-284\li284\ri1138\widctlpar\tx1701\aspalpha\aspnum\faauto\adjustright\rin1138\lin284\itap0\pararsid13989751 {\b\i\f83\fs16\lang2057\langfe1033\langnp2057\insrsid1460876\charrsid12679132 \par }} where the Supreme Court held that the formation of a contract for the sale of land to a non-resident without the prior written consent of the Minister under }{\b\f0\fs24\insrsid13989751\charrsid1460876 section 6(1)}{ \f0\fs24\insrsid13989751\charrsid1460876 of the }{\b\f0\fs24\insrsid13989751\charrsid1460876 Land Sales Act (Cap 137)}{\f0\fs24\insrsid13989751\charrsid1460876 is prohibited by statute. However, }{\b\f0\fs24\insrsid13989751\charrsid1460876 Guiseppe Reggiero}{\f0\fs24\insrsid13989751\charrsid1460876 (supra) is distinguishable in my view from }{\b\f0\fs24\insrsid13989751\charrsid1460876 Gonzalez}{\f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s15\qj \fi-284\li284\ri-360\widctlpar\tx284\tx1701\aspalpha\aspnum\faauto\adjustright\rin-360\lin284\itap0\pararsid13989751 \f37\fs22\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{ \f83\fs16\insrsid1460876\charrsid12679132 \tab }{\f83\fs16\lang2057\langfe1033\langnp2057\insrsid1460876\charrsid12679132 See paragraph 117. \par }\pard \s15\qj \fi-284\li284\ri1138\widctlpar\tx1701\aspalpha\aspnum\faauto\adjustright\rin1138\lin284\itap0\pararsid13989751 {\b\i\f83\fs16\lang2057\langfe1033\langnp2057\insrsid1460876\charrsid12679132 \par }}. \par \par }{\f0\fs24\insrsid1460876 [22] }{\f0\fs24\insrsid13989751\charrsid1460876 The difference between the two cases is as follows. }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Guiseppe Reggiero}{\f0\fs24\insrsid13989751\charrsid1460876 concerned the interpretation of section 13 of the Land Transfer Act whilst }{\b\f0\fs24\ul\insrsid13989751\charrsid1460876 Gonzalez}{\f0\fs24\insrsid13989751\charrsid1460876 concerned the interpretation of section 6 of the Land Sales Act. \par \par }{\f0\fs24\insrsid1460876 [23] }{\f0\fs24\insrsid13989751\charrsid1460876 Section 13 has been interpreted to preclude merely the enforcement of a contract for the sale and purchase of a piece of state land without Director of Lands\rquote consent. The pendency of that consent, does not necessarily outlaw a contract already signed, as long as the parties have not implemented or performed the contract (see paragraphs 30 and 31 below). \par \par }{\f0\fs24\insrsid1460876 [24] }{\f0\fs24\insrsid13989751\charrsid1460876 Section 6 on the other hand, has been interpreted literally to mean what it says, that is, without the Minister\rquote s prior consent, no contract for the sale of land to a non-resident is to be allowed. \par \par }{\f0\fs24\insrsid1460876 [25] }{\f0\fs24\insrsid13989751\charrsid1460876 The difference in approach between the interpretation that has been given to section 13 and that given to section 6 is made clear in paragraph 117 of }{ \b\f0\fs24\insrsid13989751\charrsid1460876 Gonzalez}{\f0\fs24\insrsid13989751\charrsid1460876 (supra). \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid1460876 {\b\i\f0\fs24\insrsid13989751\charrsid1460876 117 ........Legislation that prohibits the formation or performance of particular contracts must be distinguished from legislation that precludes the enforcement of specific contracts, or provides that they are invalid or void. Such contracts are not necessarily illegal, and the rules that apply to illegal contracts do not apply to them\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid1460876 [26] }{\f0\fs24\insrsid13989751\charrsid1460876 To reiterate, an inchoate contract pending a section 13 cons ent still binds whoever the contract says is so obligated, to take all reasonable steps to obtain it. Otherwise, if consent is not obtained within a reasonable time, the party not in default may rescind the contract and recover any payment made under the contract (see also Mr. Justice Inoke\rquote s application of this principle in }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Sheela Wati v Krishna Dalip Limar & FSC}{\f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s20\ql \fi-284\li284\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin284\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{ \f83\fs16\insrsid1460876\charrsid12679132 \tab }{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Civil Action No. HBC 78 of 2004L.}}). \par \par }{\b\i\f0\fs24\insrsid13989751\charrsid592667 Counsels\rquote submissions on section 13 \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid592667 [27] }{\f0\fs24\insrsid13989751\charrsid1460876 I have read clauses 1(a), 7 and 10(i) of the Agreement and agree with Mr. Knight\rquote s submissions that it is incumbent on Wati to obtain the consent (see paragraph 7 above). \par \par }{\f0\fs24\insrsid592667 [28] }{\f0\fs24\insrsid13989751\charrsid1460876 That obligation, according to Mr. Knight, is an ongoing one. Accordingly, a pl ea of illegality by Wati should not be allowed if the illegality relied on results from her own wilful non-performance of her obligations and especially if allowing the plea of illegality will allow Wati to evade those obligations. \par \par }{\f0\fs24\insrsid592667 [29] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan takes the issues further. He submits that the \'93illegality\'94 in the whole deal has resulted from }{\b\f0\fs24\insrsid13989751\charrsid592667 Naidu\rquote s performance}{\f0\fs24\insrsid13989751\charrsid1460876 of the yet inchoate Agreement\chftn {\footnote \pard\plain \s20\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\super\insrsid1460876 \chftn }{\insrsid1460876 }{\f83\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid5522231 Whilst consent remains outstanding.}} rather than from Wati\rquote s non-performance of her obligations. \par \par }{\f0\fs24\insrsid592667 [30] }{\f0\fs24\insrsid13989751\charrsid1460876 The principle that underlies Doctor Sahu Khan\rquote s submissions is well supported in various authorities. It is law in Fiji that section 13 is infringed if, without the prior consent of the Director of Lands, action in performance of an agreement is taken. Such contr ary action, coupled with the agreement itself, constitutes a \'93}{\b\f0\fs24\insrsid13989751\charrsid592667 prohibited dealing}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 (see }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Guiseppe Reggiero}{ \f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s20\qj \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{\f83\fs16\insrsid1460876\charrsid12679132 }{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 \'93 We think these authorities show that the relevant section is infringed if, without the prior consent of the Director of Lands or the Board, as the case may be, action contrary to the policy of the section is taken in performance of an agreement\'94 \endash as per Supreme Court of Fiji in }{\b\f83\fs16\ul\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Guiseppe Reggiero}{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 (supra) referring to }{ \b\f83\fs16\ul\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Chalmers v Pardoe}{\b\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 [1963] 3 All E.R. 552}{ \f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 and }{\b\f83\fs16\ul\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Jai Kissan Singh v Sumintra}{ \b\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 (1970) F.L.R. 165}{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 ..}}). \par \par }{\f0\fs24\insrsid592667 [31] }{\f0\fs24\insrsid13989751\charrsid1460876 However, actions taken in performance of an agreement must be distinguished from actions which are merely \'93}{\b\f0\fs24\insrsid13989751\charrsid592667 preparatory to performance of the contract}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 or actions of \'93}{\b\f0\fs24\insrsid13989751\charrsid592667 part performance}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 under \'93}{ \b\f0\fs24\insrsid13989751\charrsid592667 a binding but necessarily conditional contract}{\f0\fs24\insrsid13989751\charrsid1460876 \'94 . Whilst the former will offend the policy of section 13, the latter do not necessarily have the same effect. This appears to be the view (see below) of the Supreme Court in }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Guiseppe Reggiero}{ \f0\fs24\insrsid13989751\charrsid1460876 (supra) and on which Mr. Knight relies: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 \'93In the his tory of this case the issue of illegality has been allowed undeserved prominence. There was no illegality in paying the 10 million yen, which would be recoverable if provisional registration was not obtained in reasonable time. If there was any illegality on the part of the vendor in using part of this sum to secure an extension of his option - and certainly we do not say that there was, the question not having been argued before us - the purchaser was not implicated in it}{ \b\i\f0\fs24\ul\insrsid13989751\charrsid592667 . As we have already indicated, the parties are to be treated as having contemplated a legal course of proceeding, rather than an illegal. Such steps as were taken by the vendor, or on his instructions, towards obtaining the approval of the Director of Lands and planning and subdivisional approval were, so far as they went, part performance of the vendor\rquote s obligations to take all reasonable steps to achieve a lawful transfer for the purposes of the development intended by the purchaser. None of them violated the policy of section 13(1) of th e State Lands Act. There was no illegality which could prevent the purchaser from recovering his payment. The same applies to whatever clearing of the land the vendor had carried out, although, as the Court of Appeal said, there was no evidence of when an y was done.\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\ul\insrsid13989751\charrsid592667 The Court of Appeal reached the same result by saying that the vendor\rquote s acts were preparatory to performance of the contract and not in implementation of it. They spoke of the agreement as still inoperative and inchoate. As already explained, we consider that the preferable analysis or mode of expression is that they were acts in part performance of the vendor\rquote s obligations under a binding but necessarily conditional contract. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\ul\insrsid13989751\charrsid592667 \par }{\b\i\f0\fs24\insrsid13989751\charrsid592667 So \endash did Naidu act in performance of the Agreement such as to violate the policy of section 13? \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid592667 [32] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan argues that Naidu\rquote s actions amount to a violation of section 13. He points to various instances recorded in Naidu\rquote s own Affidavit. These I ex tract below. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Example:}{\f0\fs24\insrsid13989751\charrsid1460876 paragraph 12 of Naidu\rquote s Affidavit for example deposes the following: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 12. .... Towards the end of 2006, I wanted to do s ome work on the said land to prepare for the development that I was proposing on the said land. I asked the Defendant and her sons for permission to do so. They agreed on my paying $500-00 to each of the Defendant\rquote s sons Vimal Chand and Rakesh Chand..... \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\f0\fs24\insrsid13989751\charrsid592667 Example}{\f0\fs24\insrsid13989751\charrsid1460876 : a further affidavit of Naidu sworn on 5th May 2009 deposes the following: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 3. My statement in paragraph 1 of the said Statutory Declaration that \'93 I have resided on the property since 14th August 1996\'94 refers to my residence at 81, South Street, Granville, NSW 2142, Australia being my address in Australia referred to in the first sentence of the said Statutory Declaration. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 4. I have never resided on the property situated in the District of Nadi as comprised in Crown Lease 6677 ...... \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 5. ......................... \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 6. }{\b\i\f0\fs24\ul\insrsid13989751\charrsid592667 I have not built a house on the property so there is nowhere on the property for me to live. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid592667 {\b\i\f0\fs24\insrsid13989751\charrsid592667 7. }{\b\i\f0\fs24\ul\insrsid13989751\charrsid592667 The only work I have done on the property is to put some fill onto the property with the approval of the Defendant as referred to in paragraph 12 of my earlier Affidavit \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\f0\fs24\insrsid13989751\charrsid592667 Example}{\f0\fs24\insrsid13989751\charrsid1460876 : see also paragraphs 8 to 12 above. \par \par }{\f0\fs24\insrsid592667 [33] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan then submits that the above instances show that the Agreement purported to give Naidu a right to immediate possession. Hence, in conferring that right, the A greement is contrary to the policy of section 13. He adds that the above instances show that Naidu has acted in performance of the Agreement without the Director\rquote s consent. \par \par }{\f0\fs24\insrsid592667 [34] }{\f0\fs24\insrsid13989751\charrsid1460876 He also submits that Naidu\rquote s act of paying $15,000 as part of the purchase p rice was in fact an implementation of the Agreement. I find it hard to accept this. The same principle of part-performance as applied by the Supreme Court in }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Guiseppe Reggiero \endash v- Nabuyoski Kashiwa}{ \f0\fs24\insrsid13989751\charrsid1460876 (see paragraph 30 above)) may be applied in relation to deposits paid. \par \par }{\b\i\f0\fs24\insrsid13989751\charrsid592667 Comments \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid592667 [35] }{\f0\fs24\insrsid13989751\charrsid1460876 To conclude, all I am being asked to do now is to assess whether Naidu\rquote s claim is so clearly untenable that it cannot possibly succeed. Based on the above authorities, I find that Naidu has a reasonable cause of action. To avoi d any doubt, though I have discussed various authorities, I have not made any substantive finding of fact. I have assumed as fact all that is pleaded in the statement of claim against the obviously established fact (though not raised in the claim) that th e Director of Lands\rquote consent to the Agreement has, to date, not been sought. Naidu still bears the burden of proving his claim when the substantive matter is heard by Mr. Justice Inoke. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 APPLICATION TO REMOVE THE CAVEAT \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid592667 [36] }{\f0\fs24\insrsid13989751\charrsid1460876 In an application to remove a caveat, the appropriate factors to be considered were canvassed by the Fiji Court of Appeal in }{\b\f0\fs24\ul\insrsid13989751\charrsid592667 Bahadur Ali \endash v- Fiji Development Bank}{\f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s20\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{\f83\fs16\insrsid1460876\charrsid12679132 Court of Appeal Civil Appeal No. ABU 0057 of 2004S High Court Civil Action No. HBC 494 of 2003S.}} as follows: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid592667\charrsid16461623 (i) }{\i\f0\fs24\insrsid13989751\charrsid16461623 whether there is a serious issue to be tried. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid592667\charrsid16461623 (ii) }{\i\f0\fs24\insrsid13989751\charrsid16461623 where the balance of convenience lies. \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid592667 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid592667\charrsid16461623 (iii) }{\i\f0\fs24\insrsid13989751\charrsid16461623 the overall justice of the case (adopting the approach in} {\f0\fs24\insrsid13989751\charrsid1460876 }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Klisser \endash v- Harvest Bakeries (1985) 2 NZLR 142) \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [37] }{\f0\fs24\insrsid13989751\charrsid1460876 The above suggests that the validity or otherwise of a caveat may be postponed as an issue if the pleadings raise serious issues to be tried and if the balance of convenience so favours. This is the approach that Mr. Justice Singh for example took in }{ \b\f0\fs24\ul\insrsid13989751\charrsid16461623 Deans Signs Limited v Hemant Sharma & Registrar of Titles}{\f0\fs24\insrsid13989751\charrsid1460876 \chftn {\footnote \pard\plain \s20\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13989751 \f37\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\cs22\f83\fs16\super\insrsid1460876\charrsid12679132 \chftn }{ \f83\fs16\insrsid1460876\charrsid12679132 }{\f83\fs16\lang5129\langfe1033\langnp5129\insrsid1460876\charrsid12679132 Civil Action No. HBC 588 of 2005.}} when faced with an application for the removal of a purchaser\rquote s caveat:}{ \f0\fs24\insrsid13989751 \par }{\f0\fs24\insrsid16461623\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid13989751\charrsid16461623 \'93 At this stage of proceedings it is not appropriate for a Court to determine the respective rights of the parties summarily particularly where there are conflicting affidavits }{\i\f0\fs24\ul\insrsid13989751\charrsid16461623 or where the caveatble interest is a distinctly arguable one}{\i\f0\fs24\insrsid13989751\charrsid16461623 \endash }{\i\f0\fs24\ul\insrsid13989751\charrsid16461623 Narain v Malley}{\i\f0\fs24\insrsid13989751\charrsid16461623 \endash 34 FLR 118\'94 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [38] }{\f0\fs24\insrsid13989751\charrsid1460876 So, whether Naidu\rquote s caveat is sustainable, I will have to consider in terms of the }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Bahadur Ali }{ \f0\fs24\insrsid13989751\charrsid16461623 test.}{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\i\f0\fs24\insrsid13989751\charrsid16461623 Whether there is a serious issue to be tried? \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [39] }{\f0\fs24\insrsid13989751\charrsid1460876 The remedies which Naidu seeks in his statement of claim are as follows: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\f0\fs24\insrsid16461623 (i) }{\f0\fs24\insrsid13989751\charrsid1460876 specific performance of the Agreement.}{\f0\fs24\insrsid13989751 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\f0\fs24\insrsid16461623 (ii) }{\f0\fs24\insrsid13989751\charrsid1460876 damages in lieu of or in addition to specific performance.}{ \f0\fs24\insrsid13989751 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\f0\fs24\insrsid16461623 (iii) }{\f0\fs24\insrsid13989751\charrsid1460876 a declaration that Naidu is entitled to a lien over the land for all payments made by him pursuant to the Agreement (together with interest thereon) and any damages or costs awarded in this action.}{\f0\fs24\insrsid13989751 \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\f0\fs24\insrsid16461623 (iv) }{\f0\fs24\insrsid13989751\charrsid1460876 alternatively, damages for breach of contract \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\b\i\f0\fs24\insrsid13989751\charrsid16461623 Specific Performance \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [40] }{\f0\fs24\insrsid13989751\charrsid1460876 Generally, one who purchases land under a binding and unconditional contract of sale, of which she is entitled to obtain specific performance, is regarded as the owner of the land in equity. A legal estate will later vest in her upon payment in full of the purchase money and execution of a formal transfer document. \par \par }{\f0\fs24\insrsid16461623 [41] }{\f0\fs24\insrsid13989751\charrsid1460876 In other words, a purchaser acquires an equitable interest in the land. She later acquires a legal estate upon the formal transfer to her of the land. \par \par }{\f0\fs24\insrsid16461623 [42] }{\f0\fs24\insrsid13989751\charrsid1460876 Tra ditionally, the view is that unless a purchaser is entitled to specific performance of her contract of sale, she does not have an equitable interest in land. And her equitable interest is commensurate only with her ability to obtain specific performance. In }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Legione v Hateley}{\b\f0\fs24\insrsid13989751\charrsid16461623 (1993) 152 CLR 406}{\f0\fs24\insrsid13989751\charrsid1460876 for example, Mason and Dean JJ in their joint judgment stated at p.446: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid13989751\charrsid16461623 "In this Court it has been said that the purchaser\rquote s equitable interest under a contract of sale is commensurate only with her ability to obtain specific performance (Brown v Heffer (1967) }{\i\f0\fs24\ul\insrsid13989751\charrsid16461623 116 CLR 344}{\i\f0\fs24\insrsid13989751\charrsid16461623 , at p.349). \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [43] }{\f0\fs24\insrsid13989751\charrsid1460876 In }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Stern v McArthur}{\b\f0\fs24\insrsid13989751\charrsid16461623 [1998] HCA 51; (1988) 165 CLR 489}{ \f0\fs24\insrsid13989751\charrsid1460876 , Deane and Dawson JJ in their joint judgment stated at para 2: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\f0\fs24\insrsid13989751\charrsid1460876 "}{\i\f0\fs24\insrsid13989751\charrsid16461623 As Dean J pointed out in Kern Corporation v Walter Reid Tradin g Pty Ltd (1987) }{\i\f0\fs24\ul\insrsid13989751\charrsid16461623 163 CLR 164}{\i\f0\fs24\insrsid13989751\charrsid16461623 , at p.191, it is not really possible with accuracy to go further than to say that the purchaser acquires an equitable interest in the land sold and to that extent the beneficial interest of the vendor in the land is diminished. The extent of the purchaser\rquote s interest is to be measured by the protection which equity will afford to the purchaser. That is really what is meant when it is said that the purchaser\rquote s interest exists only so long as the contract is specifically enforceabl e by him. Specific performance in this context does not mean specific performance in the strict or technical sense of requiring the contract to be performed in accordance with its terms. Rather it encompasses all of those remedies available to the purchas er in equity to protect the interest which he has acquired under the contract. In appropriate cases it will include other remedies, such as relief by way of injunction, as well as specific performance in the strict sense." \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [44] }{\f0\fs24\insrsid13989751\charrsid1460876 Similarly, the New Zealand position is explained in }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Sale of Land}{\b\f0\fs24\insrsid13989751\charrsid16461623 (2000) 2nd ed by DW McMorland}{\f0\fs24\insrsid13989751\charrsid1460876 at page 299: \par \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\i\f0\fs24\insrsid13989751\charrsid16461623 "In broad terms, the passing of the equitable estate to the purchaser depends upon the availability, at least at a theoretical level and without consideration of any defence which might be available to the vendor, of specific performance, or possibly of a n injunction. There must be a contract, either directly for the sale of the land or for an option to purchase, such that the purchaser can take all of the necessary steps to obtain specific performance of that contract, the vendor cannot legally prevent th o se steps being taken, and the circumstances are such that, if the purchaser did take those steps, specific performance would not be unavailable for jurisdictional as opposed to discretionary reasons. It is the ultimate ability in equity to compel the vend or to transfer the estate or interest which gives the purchaser the equitable estate or interest." \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623 \par [45] }{\f0\fs24\insrsid13989751\charrsid1460876 It is trite that specific performance can only be obtained if a vendor and a purchaser have entered into a }{\b\f0\fs24\insrsid13989751\charrsid16461623 binding contract}{ \f0\fs24\insrsid13989751\charrsid1460876 . Usually, one of the many factors to be considered is }{\b\f0\fs24\insrsid13989751\charrsid16461623 whether damages are inadequate}{\f0\fs24\insrsid13989751\charrsid1460876 in lieu of specific performance. If not, then the court may order specific performance. }{\b\f0\fs24\insrsid13989751\charrsid16461623 Part-performance}{\f0\fs24\insrsid13989751\charrsid1460876 is usually also relevant, but does this include "part-performance" in the sense in paragraph 31 above? \par \par }{\f0\fs24\insrsid16461623 [46] }{\f0\fs24\insrsid13989751\charrsid1460876 Doctor Sahu Khan submits that, as the Director of Lands\rquote consent has not been sought, there is no binding contract between Wati and Naidu. It follows then that Naidu, as yet, cannot rightly be said to be a "purchaser" in the sense contempla ted by the above authorities. Hence, no equitable interest can be said to vest in him as yet. The inevitable final result, according to Doctor Sahu Khan, is that the remedy of specific performance is not available to Naidu. \par \par }{\f0\fs24\insrsid16461623 [47] }{\f0\fs24\insrsid13989751\charrsid1460876 In }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Re CM Group Pty Ltd\rquote s Caveat}{\b\f0\fs24\insrsid13989751\charrsid16461623 [1986] 1 Qd R 381}{ \f0\fs24\insrsid13989751\charrsid1460876 , it was held that property did not pass in equity until the required municipal council approval was obtained. In }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Brown v Heffer}{ \b\f0\fs24\insrsid13989751\charrsid16461623 (1967) 110 CLR 344}{\f0\fs24\insrsid13989751\charrsid1460876 , an interest in equity did not pass because the required consent of the Minister had not been obtained. Mr. Knight relies on }{ \b\f0\fs24\ul\insrsid13989751\charrsid16461623 Guiseppe Reggiero}{\f0\fs24\insrsid13989751\charrsid1460876 (supra).}{\f0\fs24\insrsid13989751 \par }{\f0\fs24\insrsid16461623\charrsid1460876 \par }\pard \ql \li720\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid16461623 {\b\i\f0\fs24\insrsid13989751\charrsid16461623 "Provisions such as section 13(1) are not construed so as to prevent the making of a contract by the lessee to alienate subject to the written consent of the Director of Lands first had and obtained. }{\b\i\f0\fs24\ul\insrsid13989751\charrsid16461623 When a contract is so made there are binding contractual obligations on the parties, or such of the parties as is appropriate, to take all reasonable steps to obtain the Director\rquote s consent}{\b\i\f0\fs24\insrsid13989751\charrsid16461623 ". \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid16461623\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [48] }{\f0\fs24\insrsid13989751\charrsid1460876 Is the remedy of specific performance then available to make Wati at least obtain the Director\rquote s consent as she is obliged to? [I leave this question open for full argument at trial if Mr. Knight wishes to pursue it. \par \par }{\b\i\f0\fs24\insrsid13989751\charrsid16461623 Balance of Convenience \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [49] }{\f0\fs24\insrsid13989751\charrsid1460876 Following from the above, I am convinced that Mr. Naidu has an arguable case. Nothing has been put before me to suggest that the balance of convenience should favour Wati. \par \par }{\b\i\f0\fs24\insrsid13989751\charrsid16461623 Overall Justice of the Case \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [50] }{\f0\fs24\insrsid13989751\charrsid1460876 I am convinced also that the overall justice of the case is in favour of ext ending the caveat until further orders of the Court when the same substantive issues I have raised above have been tested against the body of full trial evidence. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 IS THE DIRECTOR\rquote S CONSENT REQUIRED BEFORE PROCEEDINGS CAN BE INSTITUTED? \par }{\f0\fs24\insrsid13989751\charrsid1460876 \par }{\f0\fs24\insrsid16461623 [51] }{\f0\fs24\insrsid13989751\charrsid1460876 I agree with Mr. Knight\rquote s submission that consent is not required prior to the issue of proceedings as long as it is obtained before the Court deals with the lease (see }{ \b\f0\fs24\ul\insrsid13989751\charrsid16461623 Mohammed Rasul v Jeet Singh & }{\f0\fs24\ul\insrsid13989751\charrsid16461623 Ano}{\f0\fs24\insrsid13989751\charrsid16461623 r \endash }{\b\f0\fs24\insrsid13989751\charrsid16461623 10 FLR 16; }{ \b\f0\fs24\ul\insrsid13989751\charrsid16461623 Deans Signs Limited v Hemant Sharma}{\f0\fs24\insrsid13989751\charrsid1460876 (supra)). In other words, consent can be obtained at any time before the Court delivers judgement. \par \par }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 CONCLUSION \par }{\f0\fs24\insrsid16461623 \par [52] }{\f0\fs24\insrsid13989751\charrsid1460876 The approach I have taken throughout this ruling has been merely to highlight the serious issues raised by the pleadings. I have done this to make the poi nt that the pleadings do raise some complex issues which merit a full trial of the evidence. It is not clear how far Mr. Knight will want to pursue specific performance which his client seeks in the statement of claim. He has an uphill battle but may wish to test it in light of }{\b\f0\fs24\ul\insrsid13989751\charrsid16461623 Guiseppe Reggiero}{\f0\fs24\insrsid13989751\charrsid1460876 . In the end, his client may or may not simply end up being compensate in damages. \par \par }{\f0\fs24\insrsid16461623 [53] }{\f0\fs24\insrsid13989751\charrsid1460876 I dismiss all the plaintiffs\rquote applications and adjourn the case to }{\b\f0\fs24\insrsid13989751\charrsid16461623 26th April 2010 at 9.00 a.m}{ \f0\fs24\insrsid13989751\charrsid1460876 for mention before me. I award costs in the sum of $250-00 in favour of the plaintiff to be paid in 14 days. \par \par }\pard \qc \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid16461623 {\b\f0\fs24\insrsid13989751\charrsid16461623 Mr. Anare Tuilevuka \par MASTER \par }\pard \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1460876 {\f0\fs24\insrsid13989751\charrsid1460876 \par 12th of April 2010 \par At Lautoka}{\f0\fs24\insrsid1972231\charrsid1460876 \par }}