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{\flomajor\f31508\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flomajor\f31509\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\flomajor\f31511\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
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{\fdbmajor\f31523\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fdbmajor\f31524\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fdbmajor\f31525\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}
{\fdbmajor\f31526\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhimajor\f31528\fbidi \froman\fcharset238\fprq2 Cambria CE;}{\fhimajor\f31529\fbidi \froman\fcharset204\fprq2 Cambria Cyr;}
{\fhimajor\f31531\fbidi \froman\fcharset161\fprq2 Cambria Greek;}{\fhimajor\f31532\fbidi \froman\fcharset162\fprq2 Cambria Tur;}{\fhimajor\f31535\fbidi \froman\fcharset186\fprq2 Cambria Baltic;}
{\fhimajor\f31536\fbidi \froman\fcharset163\fprq2 Cambria (Vietnamese);}{\fbimajor\f31538\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbimajor\f31539\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
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{\fbimajor\f31544\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbimajor\f31545\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbimajor\f31546\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}
{\flominor\f31548\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\flominor\f31549\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\flominor\f31551\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}
{\flominor\f31552\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\flominor\f31553\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\flominor\f31554\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}
{\flominor\f31555\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\flominor\f31556\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fdbminor\f31558\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}
{\fdbminor\f31559\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}{\fdbminor\f31561\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fdbminor\f31562\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}
{\fdbminor\f31563\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}{\fdbminor\f31564\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fdbminor\f31565\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}
{\fdbminor\f31566\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}{\fhiminor\f31568\fbidi \fswiss\fcharset238\fprq2 Calibri CE;}{\fhiminor\f31569\fbidi \fswiss\fcharset204\fprq2 Calibri Cyr;}
{\fhiminor\f31571\fbidi \fswiss\fcharset161\fprq2 Calibri Greek;}{\fhiminor\f31572\fbidi \fswiss\fcharset162\fprq2 Calibri Tur;}{\fhiminor\f31575\fbidi \fswiss\fcharset186\fprq2 Calibri Baltic;}
{\fhiminor\f31576\fbidi \fswiss\fcharset163\fprq2 Calibri (Vietnamese);}{\fbiminor\f31578\fbidi \froman\fcharset238\fprq2 Times New Roman CE;}{\fbiminor\f31579\fbidi \froman\fcharset204\fprq2 Times New Roman Cyr;}
{\fbiminor\f31581\fbidi \froman\fcharset161\fprq2 Times New Roman Greek;}{\fbiminor\f31582\fbidi \froman\fcharset162\fprq2 Times New Roman Tur;}{\fbiminor\f31583\fbidi \froman\fcharset177\fprq2 Times New Roman (Hebrew);}
{\fbiminor\f31584\fbidi \froman\fcharset178\fprq2 Times New Roman (Arabic);}{\fbiminor\f31585\fbidi \froman\fcharset186\fprq2 Times New Roman Baltic;}{\fbiminor\f31586\fbidi \froman\fcharset163\fprq2 Times New Roman (Vietnamese);}}
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{\author senikuraciri_r}{\operator baleimatuku_l}{\creatim\yr2016\mo1\dy25\hr15\min13}{\revtim\yr2016\mo1\dy25\hr15\min13}{\version2}{\edmins0}{\nofpages8}{\nofwords3725}{\nofchars18065}{\nofcharsws21747}{\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.m
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\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 PYARA SINGH}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par 
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[COURT OF APPEAL, 1977 (Gould V. P., Marsack J.A., Henry J. A.)}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
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\par }\pard \ltrpar\qc \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 [Civil Jurisdiction]}{
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validity - transfer of possession of Crown land without consent of Director of Lands - whether loan agreement made in consideration of such transfer tainted with illegality - whether lender able to recover repayment of loan on a promissory note - Crown La
nds Ordinance (Cap. 113) ss.13 (l), 32.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
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Crown land - transfer of possession without consent of Director of Lands - whether loan agreement made in consideration of such transfer tainted with illegality - whether monies lent recoverable - Crown Lands Ordinance (Cap. 113) ss. 13(1), 32.}{
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\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
After a written contract was signed by the parties, but prior to the consent being obtained of the Director of Lands to the transfer, the appellant loaned the respondent $1,000.00 in consideration of his being allowed into p
ossession. At a later date the appellant paid off the respondent's mortgage to the Bank and received the Crown Lease.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Held}{\rtlch\fcs1 
\af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 : 1. Delivery of possession of land without the consent of the Director of Lands rendered the agreement for sale null and void, and 
the purchase null and void and illegal. A loan transaction supporting such delivery was tainted with illegality and could not, therefore, be enforced.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 2. Different considerations applied to the second payment which was made 12 months after the first. 
There was no evidence that this payment was to be applied towards the purchase price of the land, and, therefore, it was recoverable.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Cases referred to:}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li720\ri431\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin431\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
Hemns. v. Wheeler}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16727996 
HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1948%5d%202%20KB%2061" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 [1948] 2 K.B. 61}}}\sectd \ltrsect
\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid4072094\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 ;\~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16727996 
HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=64%20TLR%20236" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 64 T.L.R. 236.}}}\sectd \ltrsect
\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid4072094\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Harman Singh v. Bawa Singh}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~[1958/9] F.L.R. 31}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri431\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin431\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
Chalmers v. Pardoe}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~[1963] 3 All E.R. 552; [1963] 1 W.L.R. 677.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Alexander v. Rayson}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~[1936] 1 K.B. 169;\~}
{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid16727996 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1935%5d%20All%20ER%20185" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 
\ul\cf2\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 [1935] All E.R. 185.}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid4072094\sftnbj {\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Jai Kissun Singh v. Sumintra\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 16 F.L.R. 165.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
Edler v. Auerback}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~[1949] 2 All E.R. 692; [ 1950] 1 K.B.359.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
Appeal from the judgment of the Supreme Court allowing an appeal from a decision of the Magistrate's Court holding that two loans were not tainted with illegality.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 K. C. Ramrakha}
{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~for the appellant.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
H. A. Marquardt - Gray}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~for the respondent.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 

\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
The following judgments were read (22nd July 1977)-}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 MARSACK J.A.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
This is an appeal from a judgment of the Supreme Court sitting at Suva, delivered on the 12th January 1977, allowing an appeal, from a decision of the Magistrate's 
Court at Labasa dated 30th June 1976. Under the provisions of Section 12 (i) (d) of the Court of Appeal Ordinance, the present appeal is limited to questions of law only.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
The relevant facts may be shortly stated. The appellant was the lessee, under Crown
 Lease No. 92059, of approximately 40 acres of land at Dreketi, Macuata. On the 28th July, 1971, the appellant and the respondent entered into a written agreement for sale and purchase whereby the appellant agreed to sell and the respondent to purchase th
e
 whole of the appellant's interest under Crown Lease No. 92059, together with all improvements thereon, for the sum of $4,400. The agreement was made subject to the consent of the Lands Department, and, provided that of the purchase money, $2,000, should 
be paid upon receipt of the consent of the Director of Lands to the transfer, and the balance secured by promissory note payable 12 months \'93from the date of the implementation of the transfer transaction.\'94
 One clause of the agreement provided that the purch
aser - the respondent - would allow the vendor - the appellant - to reside on the lands concerned without payment of rent until the 31st December 1971. The consent of the Director of Lands to the transfer was never obtained.}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Two sums of money were paid b
y the respondent: $1,000 on the 22nd January 1972 to the appellant personally, and $997 to the Bank of New Zealand for the credit of the appellant on the 9th February 1973. The finding of the magistrate as to the payment of the $1,000, was referred to in 
the Supreme Court judgment in these terms:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li576\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin576\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
The respondent was in financial difficulties at the time and anxious for the sale to be expedited. In January 1972 the respondent told the appellant he needed money and wanted to vacate the land. The magistrate 
found as a fact that the appellant then advised the respondent he could not proceed with the sale until consent had been obtained but that he would lend the respondent $1,000 free of interest repayable on demand. The $1,000 was advanced and the respondent
 
gave the appellant the promissory note dated 22nd January 1972. The magistrate was of the view that at the same time as the loan was made the parties agreed that the respondent would vacate the land and the appellant would go into possession. He went into
 possession about 10 days later.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
With regard to the payment of $997, this sum was owing to the Bank of New Zealand by the appellant and was secured by a mortgage in favour of the Bank over Crown Lease No. 92059. The Bank was pressing for payment; and at 
the request of the appellant the respondent paid this money to the Bank, whereupon the Bank Manager handed over the Crown lease to the respondent.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 

\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
After the respondent entered into possession, in late January 1972, he cultivated the crops on the land, 
received the proceeds from the sale of the crops, built a house on the land and planted a number of pine trees. He remained in possession until the month of April 1974.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 This present appeal concerns the two sums of $1,000 and $997. In the Magistrate's Cou
rt, the respondent sued the appellant for repayment of these two sums; the learned magistrate held that the respondent could not recover, on the grounds that his claim was based on an illegal transaction. On the appeal to the Supreme Court the learned jud
ge held that the two payments in issue were not tainted by illegality; that they were loans and entirely separate transactions from the land dealing. His finding was expressed in these words:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
In my view neither of the two sums were tainted by illegality.
 As the magistrate stated in his judgment the appellant when making the loan of $1,000 to the respondent specifically stated he could not proceed with the sale until consent was obtained but he would lend the respondent $1,000 on agreed terms. The loan wa
s an entirely separate transaction from the land dealing.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 It is against that judgment of the Supreme Court that this present appeal is brought.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 There was only one ground put forward in the notice of appeal. This reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
The learned trial judge ought not to have disturbed the findings of the learned trial magistrate that the transaction between the parties was illegal.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Counsel clearly recognised that this Court cannot on this appeal overrule the findings of fact made in the Court below; but, as was stated in\~}{\rtlch\fcs1 
\ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Hemns v. Wheeler}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\field\fldedit{\*\fldinst {\rtlch\fcs1 \af0 
\ltrch\fcs0 \insrsid16727996 HYPERLINK "http://www.paclii.org.vu/cgi-bin/LawCite?cit=%5b1948%5d%202%20KB%2061" \\o "View LawCiteRecord"}}{\fldrslt {\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\cf2\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
[1948] 2 K.B. 61}}}\sectd \ltrsect\linex0\endnhere\sectlinegrid360\sectdefaultcl\sectrsid4072094\sftnbj {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
, it is a question of law whether the inferences which the judge has drawn are possible inferences from the facts as found by him. In counsel\rquote 
s submission, the magistrate drew the correct inferences from the proved or admitted facts, but the learned judge on appeal failed to do so. This point has particular relevance with regard to the two payments of $1,000 
and $997 respectively. With reference to the payment of $1,000, the magistrate says:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
In my judgment possession would not have changed hands if the loan had not been made. In that event the loan, if not illegal in itself, in that one of its objects was t
o achieve an illegal purpose was certainly tainted by the Illegal Land Agreement itself.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \fi-144\li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \fi-144\li144\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin144\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
The learned judge, however, takes a different view. The relevant passage in his judgment reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri144\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin144\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
The loan may not have been made if the appellant was not 
purchasing the land nor possession given by the respondent, but the facts are clear that the parties intended the $1,000 to be a simple loan and not part payment of the purchase price of the land, and to evidence the separate nature of the loan transactio
n a promissory note was given by the respondent to the appellant. It was to be torn up if consent to the sale was obtained. In other words the $1,000 was on consent being obtained to be credited to the purchase price of the land.\'94}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 As I see it, the conclus
ions reached by the magistrate and by the learned judge on appeal can properly be considered to be inferences from the established facts. As was said in\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 
\i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Hemns v. Wheeler (supra),}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~
this Court is entitled to examine, as a matter of law, whether these are possible inferences from the proved facts.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
With regard to the payment of $997, the learned judge held that this sum has been paid to the Bank of New Zealand by the respondent at the request of the appellant and that there was no evidence upon which the trial
 magistrate could have found that this payment was on account of the purchase price of the land. The mere delivery of the lease by the Bank Manager to the respondent did not, the judge said, establish that the delivery constituted an equitable mortgage; a
nd I can see no reason in law or in fact for the magistrate\rquote s finding that it did. The learned judge\rquote s finding appears in his judgment in these words:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
As regards the $997, in his Statement of Defence the respondent denied all knowledge of this payment. H
e did not contend that this payment was on account of the purchase price of the land which on the facts would have made this sum irrecoverable. There was no evidence on which the trial magistrate could have found that his payment of $997 was on account of
 the purchase price of land. It appears the magistrate assumed payment was on account of the purchase price as there are no other grounds for holding that this payment was tainted by the illegal land sale transaction.\'94}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 The learned judge proceeded to hold 
that the sum of $997 was properly recoverable by the appellant against the respondent, and gave judgment accordingly. This finding by the learned judge must, in my opinion, stand. The appellant had for over twelve months been in possession of the land, an
d
 there can be no suggestion that this payment was in anyway part of the consideration for the granting of possession. There is nothing in the evidence to show, or to justify the conclusion, that it was paid as part of the purchase price. It was a repayabl
e loan, as I see it, and was no part of an unlawful contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
With reference to the payment of $1,000 it must first be determined if the transaction between the parties was an illegal one; and if not illegal\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
ab initio}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 , did the taint of illegality attach to it later? It is common ground that the Crown Lease held by the appellant was a \'93protected\'94
 lease under the provisions of the Crown Lands Ordinance. Clause 13 (1) of that Ordinance provides that in the case of a protected lease:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
It shall not be lawful for the lessee thereon to alienate or deal with the land comprised in the lease or any part thereon, whether by sale, transfer or sub - lease, or in any other manner whatsoever .... without the written consent of the Director of Lan
ds first had and obtained.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
As has already been held by this Court in, for example.\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Harnam Singh and another v. Bawa Singh}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 , [1958/59] F.L.R. 31, the execution by the parties of an agreement for sale and purchase, made subject to the consent of the Director of Lands, is not in itself a \'93dealing in land\'94
. In normal circumstances, it becomes a dealing in land only when the consent of the Director of Lands is notified. There are, however, other circumstances which may constitute a dealing in land. For example, in\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 
\i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Chalmers v. Pardoe\~}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
(P.C.) [1963] 3 All E.R. 352, a grant by the lessee to another person to enter on the lands and carry out certain work - such as the erection of a building - thereon constituted \'93a dealing in land\'94, in that it was a licence to occup
y coupled with possession. It is quite clear in the present case that in January 1972, the respondent, by agreement with the appellant, entered into possession of the land, worked the ground and erected a house. This, in accordance with the doctrine laid 
down in\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Chalmers v. Pardoe}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~constituted a \'93
dealing in land\'94 and was therefore unlawful under Section 13 of the Crown Lands Ordinance. For that reason, the respondent would be unable to recover from the appellant the value of any improvements put by him on the land, in the same way that\~}{
\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Chalmers}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~
was held not entitled to recover the cost of the dwelling house and accessory buildings which he had erected on the land in that case. It is clear that, in this case the granting of the licence to occupy, coupled with 
possession, in January 1972, constituted a dealing in land which was unlawful under Section 13.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 The crucial question, in my view, is whether or not the payment of $1,000 was tainted with that illegality.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 There is one aspect of the matter to which, in m
y respectful opinion, the learned judge has not given full consideration. The magistrate expressed himself as satisfied that when the loan of $1,000 was made, and the promissory note signed, \'93
it was agreed at the same time that the defendant would vacate the land and that the plaintiff take possession\'94. The learned judge in his judgment says:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
The magistrate considered the loan would not have been made if possession of the land had not changed hands. The sale and purchase agreement followed by the taking of possession by the appellant of the land without the Director of Lands\rquote 
 consent was an illegal transaction. The magistrate held that the loan of $1,000 was on the facts tainted by the illegal land transaction and was irrecoverable.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 In other words, the
 magistrate's finding was that the making of the loan represented the consideration, moving from the appellant to the respondent, for the grant of possession to the appellant of the lands concerned. The authorities cited establish beyond question that thi
s
 grant of possession was in the circumstances an unlawful transaction. The question requiring determination by this Court is whether the loan transaction was thereby rendered unlawful to the extent that the appellant cannot recover on the promissory note.
 In}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Alexander v. Rayson}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~
[1936] 1 K. B. 169 the Court of Appeal affirmed the principle that where it appears that the subject matter of an agreement is intended to be used for an unlawful purpose the Court will refuse to enforce it. In the present case it is 
clear that the making of the loan of $1,000 constituted a transaction entered into for an unlawful purpose, in that the unlawful entry into possession would not have been granted if the loan had not been made. As was stated on\~}{\rtlch\fcs1 \ai\af0 
\ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Chitty on Contracts}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~23rd Edition at page 808:}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
Neither party can sue on a contract if both knew that it necessarily involves the commission of an act which, to their knowledge, is legally objectionable, that is illegal, immoral, or otherwise against public policy.\'94}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 The contract or agreement between to parties as to this particular transaction might, in my view, be shortly set out in these terms: \'93
in consideration of the granting of a loan for $1,000, repayable on demand, by the appellant to the respondent, the respondent agrees to allow the appellant to enter into and take possession of the respondent\rquote s Crown leasehold land\'94
. Expressed in these words it is clear that both parties knew that what was contemplated between them was the commission of a unlawful act, namely the entry into
 possession of Crown lands without the consent of the Director of Lands. Therefore, in accordance with the principle set out in the passage cited from\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
Chitty on Contracts}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 , neither party can sue on it. Accordingly, though the matter is one of some difficult
y, I would hold that the transaction is tainted with illegality, and the appellant cannot recover the moneys which he paid out in respect of that unlawful contract.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri288\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin288\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 In the result I would allow the appeal with regard to the stmt of $1,000 and reduce the j
udgment of the Supreme Court in respondent's favour to $997. As to costs, I would allow appellant one - half of his taxed costs of the appeal, and the respondent (appellant in the Supreme Court) $35 as his costs in the Supreme Court.}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 GOULD V.P.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
There is no need for me to repeat the facts, which are set out in the judgment of Marsack J. A. I agree that the appeal, so far as it relates to the $1,000, lent upon the promissory note of the 22nd January 1972, must be allowed. The finding, common to bo
t
h Magistrate's Court and Supreme Court judgments, was that this loan would not have been made if it had not been agreed that possession of the land would be given. It is probable that the agreement for sale and purchase of the Crown Lease contemplated tha
t
 possession would only be given when the consent of the Director of Lands was forthcoming, as before that such a step would render the agreement unlawful. But whether or not that is so, it is clear that the arrangement actually to give and take possession
 was bound up with and dependent upon the otherwise lawful transaction of the loan of the $1,000. The making and acceptance of the loan was in consideration of the giving and taking of possession.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
The delivery of possession of the land without the consent
 of the Director of Lands rendered the agreement for sale and purchase null and void and illegal; the judgment of Marsack J. A. has dealt with the authorities on that point and to the references he has given I would add only the case of\~}{\rtlch\fcs1 
\ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Jai Kissun Singh v. Sumintra}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~
[16 FLR 165] a decision of this Court. The loan transaction could be said to have induced this illegal contract and to be tainted on that ground. More simply, I think, the loan transaction enabled the respondent to perform the illegal act of beco
ming a trespasser on Crown land, both parties being privy to this. Under section 32 of the Crown Lands Ordinance (Cap. 113) this is an offence. So far as relevant, the section reads:}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
Any person not claiming bona fide under a subsisting lease or licence 
or otherwise under any Ordinance relating to the occupation of Crown land who is found occupying any Crown land or is found residing or erecting any hut or building, depasturing stock or cutting any timber grown there, or clearing, digging up, enclosing o
r cultivating any part thereof, shall be liable to immediate eviction and shall be guilty of an offence against this Ordinance.\'94}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 It is clear from the evidence (and the learned magistrate so found) that the parties were aware of the illegality of implement
ing their agreement in advance of the consent of the Director of Lands and they were\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 in pari delicto}{\rtlch\fcs1 \af0 \ltrch\fcs0 
\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 ; there was therefore no question of claiming bona fide under a subsisting lease.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
The loan transaction was entered into to enable this state of affairs to be reached and, being tainted with the illegality, cannot be enforced by the respondent. As was said by Devlin J. (as he then was) in\~}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 
\i\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Edler v. Auerback}{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~[1949] 2 All E.R. 690, 695 \endash }{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li720\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \'93
It is well settled that an agreement may be unenforceable either because on the face of it it cannot be performed without breaking the law, or because, although capable of being performed legally, it was made with the object of breaking the law.\'94}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 In my opinion the learned judge in the Supreme Court erred in law in this matter and the appeal should be allowed on this point.}{\rtlch\fcs1 \af0\afs27 
\ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
As to the other transaction, the advance of $997 by way of payment off of a mortgage to the bank, different considerations arise. The learned magistrate found from the evidence that this transaction was 
also tainted by the illegal agreement for sale and purchase and further, that the retention by the respondent of the lease constituted an equitable mortgage which without consent, was an illegal act in itself. In the Supreme Court the learned judge held t
h
at the only way in which the magistrate could have held that this advance of $997 was tainted by the land transaction was by finding that the money was to be applied towards the purchase price of the land. I would agree with the learned judge's finding th
at there was no evidence that such was the case.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
As to the equitable mortgage question, the learned judge also disagreed with the magistrate, whose opinion appears to have been based on the appellant's admission that lie was holding the lease document as 
security. The learned judge found that there was no evidence that the parties agreed that the lease should be so deposited as security and this is undoubtedly correct. The respondent claimed to have been given the lease by the bank manager and the evidenc
e
 as a whole is confused and the circumstances equivocal. The Supreme Court was sitting as an appellate court both on fact and on law whereas on this second appeal we are limited to questions of law. I am unable to say from my perusal of the evidence, that
 it contained no material which supported the learned judge\rquote s finding, and it is not therefore a case for interference by this court.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 

\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
As all members of the court are agreed as to the orders to be made there will be the order as to judgment and costs proposed in the judgment of Marsack J. A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 HENRY. J A.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 
I have read the judgment of the other members of the Court. I agree with the findings made and the reasons given is sufficient. I agree that an order be made as proposed in the judgment of Marsack J. A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Appeal allowed with regard to first loan of $1,000.00; judgment of Supreme Court reduced to $997.00.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 
\fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qj \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \af0 \ltrch\fcs0 \cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 \~}{\rtlch\fcs1 
\af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\qc \li0\ri0\sb15\sa15\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8147827 \cbpat8 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Gould V.P.}{
\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Marsack J.A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\cf1\lang2057\langfe1033\langnp2057\insrsid8147827\charrsid8147827 Henry J.A.}{\rtlch\fcs1 \af0\afs27 \ltrch\fcs0 \fs27\cf1\lang1033\langfe1033\langnp1033\insrsid8147827\charrsid8147827 
\par }\pard \ltrpar\ql \li0\ri0\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid1972231 
\par }{\*\themedata 504b030414000600080000002100828abc13fa0000001c020000130000005b436f6e74656e745f54797065735d2e786d6cac91cb6ac3301045f785fe83d0b6d8
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