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\fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs16\insrsid8421204 \tab Steven Pradeep Singh v Martin Mining & Tunnelling Incorporated & Anor (HC)         }{\fs16\insrsid8421204\charrsid933470 \tab }{\field{\*\fldinst {
\cs18\fs16\insrsid8421204\charrsid12604364  PAGE }}{\fldrslt {\cs18\fs16\lang1024\langfe1024\noproof\insrsid3476787 7}}}{\cs18\fs16\insrsid8421204\charrsid933470 
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{\*\bkmkend Steven_Singh_v_Martin_Mining_Limited}INCORPORATED & MARTIN MINING (FIJI) LIMITED
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High Court Civil Jurisdiction
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22-23 April 1998, 27 February, 2001\cell }\pard \s15\ql \li2880\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin2880\pararsid10844358 {\f0\lang2057\langfe1033\langnp2057\insrsid10844358\charrsid10844358 HBC 0261J/97L\cell }\pard\plain 
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\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Contract \endash 
 part performance - whether valid shareholder agreement for formation of company \endash  company incorporation - whether Plaintiff}{\i\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
s equity intended to be included in shareholder agreement \endash  counterclaim of misrepresentation \endash D1}{\i\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
s subscription to memorandum of association invalid without ministerial consent \endash  whether Plaintiff discharged burden of proof - Exchange Control Act s10(2)
\par }{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
\par }{\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Evidence \endash  parole evidence rule \endash  whether implied or other terms allowed in a company formation agreement - construction against the maker of a document \endash 
 rectification \endash  D1}{\i\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s omission of Plaintiff}{\i\lang2057\langfe3081\langnp2057\insrsid10844358 '}{
\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s equity not central to his business plans at the time \endash  whether D1 relied on Plaintiff}{\i\lang2057\langfe3081\langnp2057\insrsid10844358 '}{
\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s promise of equity for expending monies sought in counterclaim}{\i\lang2057\langfe3081\langnp2057\insrsid10844358  }{\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 

\par }{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
The Plaintiff and D1 executed a co
mpany formation agreement, which intended the incorporation of a company limited by shares having an authorised share capital of $250,000.00 divided into 250,000 shares of $1.00 each; the name of the entity to be D2; that D1 would subscribe 50% shares and
 the Plaintiff 49% on the Plaintiff contributing $400,000 in equity; the parties would use their best endeavours to procure an assignment of a contract D1 had with another mining company to D2, and to draw up a contract of employment for the Plaintiff.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 D1, being foreign, required Fiji Trade and Investment Board approval, and Reserve Bank of Fiji approval, which were granted.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff and D1 fell out over the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s contribution. The Plaintiff brought an action against D1 for loss of employment, breach of agreement, general damages and costs, 
alternatively a derivative action for indemnity costs and order on behalf of D2 that D1 assign benefit of contract to D2, and a further alternative action for assessment of damages for breach and default by D1 
in failing to seek the transfer and assignment of a contract between D1 and Emperor Gold Mining Company Limited to D2 for its absolute benefit. He relied on part performance of the contract. D1 pleaded he relied on Plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s representation about the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s $400,000.00 equity and was induced to execute the company formation agreement. He claimed it was an implied term the parties were to be honest in their dealings, hence, as a result, t
he company formation agreement was unenforceable because of breach of the Exchange Control Act, the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s 
misrepresentation, breach of a fundamental term to provide equity, breach of implied term (i.e. honesty) and recission by D1. He sought rectification on the basis that the company formation agreement failed t
o contain all the terms, especially in respect of the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s equity contribution. The Court applied the parol evidence rule and refused rectification. The Court found that D1 failed to obtain ministerial approval for subscription to D2}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s memorandum of
 association and never became a shareholder in D2. It also found that the Plaintiff had not discharged the burden of proving his damages or actual loss and his action must fail. The Court found that the ends of justice are met, as the Plaintiff would have
 had a windfall for a $49 investment. The Court did not find merit in D1}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s counterclaim on misrepresentation and did not believe that D1 expended monies claimed in reliance on a promise that the Plaintiff would put in $400,000 equity when it was obvious the
 Plaintiff did not have the means, and the parties were seeking banking accommodation.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
The Court concluded this was a tale of two would-be business partners whose reciprocal conduct was deserving of each other.
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\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 (1) The First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s subscription to a memorandum of association of the }{\caps\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 econd Defendant was clearly invalid
 and unenforceable for breach of statutory provision of the Exchange Control Act section 10(2). It never became a shareholder. The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s subscription was therefore invalid. The Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s action must fail, as he has not proved his damages or actual loss as was his burden to discharge.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3476787 {\fs24\lang2057\langfe1033\langnp2057\insrsid3476787 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 (2) The company formation agreement and shareholder}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s agreement was properly concluded and contained all the terms of agreement between the parties. It is trite law that the parol evidence rule proscribes recourse to external considerations for interpretation of a signed contract.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 No exceptions exist to deviate from this rule, and to imply other terms, especially when the document was drafted on the maker}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s instructions, and used as the basis for the incorporation of the Second Defendant. The First Defendant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s omission of the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s equity in the company formation agreement, because it was not central to his plans at that time, cannot form the basis of an order for rectification. 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
\par }{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 First Defendant}{\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s claim for rectification of the terms 
of a company formation agreement denied. Plaintiff}{\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s action in substantive and alternative form dismissed. Defendant}{
\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 s counterclaim dismissed. 
\par 
\par }{\b\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Cases referred in Judgment}{\b\lang2057\langfe3081\langnp2057\insrsid8482277 
\par }{\b\lang2057\langfe3081\langnp2057\insrsid3476787\charrsid10844358 
\par }{\b\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Chettiar v Chettiar}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358  [1962] 1 All ER 494
\par }{\b\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Goss v Nugent}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358  1833-53 Ad 53
\par }{\b\i\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Re Transatlantic Life Assurance Company Ltd}{\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358  [1979] 3 All ER 352
\par }{\b\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
Abhay K. Singh and Vipul M. Mishra for the Plaintiff 
\par Bhupendra C. Patel and Chen B. Young for the Defendants 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
\par }\trowd \irow0\irowband0\lastrow \ts20\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3476787\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt
\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6588\clshdrawnil 
\cellx8748\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid5646068 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid3476787 
27 February, 2001\cell }\pard \ql \li1440\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin1440\pararsid3476787 {\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid3476787 judgment}{
\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid3476787 \cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid3476787 
\trowd \irow0\irowband0\lastrow \ts20\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid3476787\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt
\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2268\clshdrawnil \cellx2160\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6588\clshdrawnil \cellx8748
\row }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Madraiwiwi, J
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff Steven Singh has instituted proceedings against Martin Mining & Tunnelling Incorporated the First Defendant
 seeking damages for loss of employment at $60,000.00 per year, damages for breach of agreement in the sum of $1,520,632.00, general damages and costs.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff relies on a company formation agreement dated 29 June 1997 which the Plaintiff by its authorised attorney Mr Angus Charles Martin and First Defendant executed 
in which it was agreed }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 inter alia}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  that:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 {\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid10844358 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 1.\tab 
The parties shall forthwith procure the incorporation of a company limited by shares under the Companies Act and having an authorised share capital of $250,000.00 divided into 250,000 shares of $1.00 each.
\par 
\par }\pard\plain \s19\ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid3476787 \f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 2.\tab The
 company shall be called MARTIN MINING (FIJI) LIMITED.
\par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par {\listtext\pard\plain\s19 \lang2057\langfe3081\langnp2057\langfenp3081\insrsid8482277\charrsid10844358 \hich\af0\dbch\af0\loch\f0 3.\tab}}\pard\plain \s19\ql \li720\ri0\nowidctlpar\faauto\ls1\rin0\lin720\itap0\pararsid3476787 
\f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 
The Memorandum of Articles of Association shall be subscribed by the parties hereto or their respective nominees each of whom shall agree in the Memorandum to take up shares of 50% for MMTI and 49% for Singh respectively in the capital of the company.

\par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par {\listtext\pard\plain\s19 \lang2057\langfe3081\langnp2057\langfenp3081\insrsid8482277\charrsid10844358 \hich\af0\dbch\af0\loch\f0 4.\tab}}\pard\plain \s19\ql \li720\ri0\nowidctlpar\faauto\ls1\rin0\lin720\itap0\pararsid3476787 
\f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 The parties hereto shall within 30 days of the incorporation of the company execute a shareholders}{
\f0\lang2057\langfe3081\langnp2057\insrsid10844358 '}{\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358  agreement in the form and the terms provided in the schedule to this agreement and shall procure that the company is a party hereto.

\par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par {\listtext\pard\plain\s19 \lang2057\langfe3081\langnp2057\langfenp3081\insrsid8482277\charrsid10844358 \hich\af0\dbch\af0\loch\f0 5.\tab}}\pard\plain \s19\ql \li720\ri0\nowidctlpar\faauto\ls1\rin0\lin720\itap0\pararsid3476787 
\f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Each of the parties hereto will exercise his voting rights immediately after incorporation and will take steps within 
their power to procure that the company enters into a contract of employment with Singh in terms of the draft attached hereto.
\par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par {\listtext\pard\plain\s19 \lang2057\langfe3081\langnp2057\langfenp3081\insrsid8482277\charrsid10844358 \hich\af0\dbch\af0\loch\f0 6.\tab}}\pard\plain \s19\ql \li720\ri0\nowidctlpar\faauto\ls1\rin0\lin720\itap0\pararsid3476787 
\f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid8482277\charrsid10844358 Immediately after incorporation the MMTI will use its best
 endeavours to expedite the takeover by the company of its operations in Fiji and in particular the benefits and obligations with its contract dated 30th
 December, 1996 with Emperor Gold Mining Company Limited for the provision of mine contract sums as provided therein.
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par In the alternative the Plaintiff seeks an order that he is entitled to institute a derivative action on behalf of the Second Defendant against the First Defendant, an order for indemnity for costs for instituting and prosecuting the action,
 an order that the First Defendant take immediate steps to seek a transfer and or assignment of the contract dated 30 December 1996 between the First Defendant and Emperor Gold Mining Company Limited to the Second Defendant for its absolute benefit.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Alternatively, the Plaintiff seeks an order for assessment of damages for the breach and for default by the First Defendant
 in failing to seek the transfer and assignment of the said contract as aforesaid, such other order as the court deems just to transfer and assign the said contract to the Second Defendant, damages and costs.
\par 
\par In its amended statement of defence, the First Defendant claims that the shares in the Second Defendant have not been properly subscribed and paid for by the Plaintiff.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The proposed shareholders agreement annexed to the company formation agreement was in draft and intended to be finalised by the parties.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 If the said agreement is in final form (which is not admitted) such agreement is affected by mistake in not reflecting the parties
}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  intentions about the shareholders}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  advances particularly in relation to the $400,000.00 equity to be given by the Plaintiff.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It was as the result of such misrepresentation that the First Defendant Mr Angus Martin was induced to execute the company formation agreement.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It was an implied term the parties were to be honest in their dealings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The company formation agreement is unenforceable because of breach of the Exchange Control Act Cap 211, misrepresentation by the Plaintiff, breach of a fundamental term
 to provide the said equity, breach of implied term (i.e. honesty) and recission by the First Defendant on 5 August 1997.
\par }\pard \ql \fi720\li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff and the chief executive of the First Defendant
, Mr Angus Martin first met in April 1997.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The latter was interested in 
establishing a joint venture in Fiji to provide mining and tunnelling services and had signed a contract with Emperor Gold Mining Company Limited dated 30 December 1996 to provide the same.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The First Defendant sought to raise funds locally both for the local venture and to assist its operations in Canada hence the need for a local partner.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 In the course of purchasing a vehicle from the Plaintiff
 who was then in the business of selling motor vehicles, the latter expressed an interest in the proposal.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 In l
ate May 1997 the parties met Mr J Lal of J Lal and Company, a firm of chartered accountants, to discuss the proposed business venture.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Discussions continued intermittently until late June 1996 when Mr Martin returned to Fiji.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The parties visited Messrs A..K. Narayan and a company formation agreement and shareholders}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  agreement was drawn up on Mr Martin}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s instructions.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 They included the terms set out above.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The joint venture also required Fiji Trade and Investment Board approval as well as Reserve Bank of Fiji approval as the First Defendant was a foreign company.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Approval in principle by the latter was given on 1 July 1997 and the former on 22 July 1997.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Mr Martin and the Plaintiff subsequently fell out over allegations by the latter that Mr Singh had 
failed to provide the equity he had supposedly promised.
\par 
\par Mr Martin has since alleged that the company formation agreement did not contain all the terms of the agreement and has sought rectification of the document.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It only makes reference to incorporation of a company limited by shares having an authorised share capital of $250,000.00 divided into 250,000.00 shares of $1.00 each.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Much of the extensive evidence given by the Plaintiff and Mr Martin centered on this issue.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It is the First Defendant}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s contention that the requirement Steven Singh contribute $400,000.00 to the joint venture was crucial to the company formation agreement.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It is trite law that the parol evidence rule proscribes recourse to external considerations when a signed contractual docum
ent is being interpreted.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Learned counsel for the First Defendant
 have made strenuous efforts to incline the court to make an exception in present circumstances.
\par 
\par It is not persuaded.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Irrespective of what transpired between the parties on 28 May 1996 at 
the offices of J. Lal & Company and the discussions that followed subsequently at the Waterfront Hotel, the decisive element is the signing of the company formation agreement by the parties on 29 June 1996.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 That and related documents were drawn up on Mr Martin}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s instructions.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
His contention that the solicitors failed to incorporate all the terms and that the documents were drafts does not bear close scrutiny.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Both parties signed the same and they were used as the basis for the incorporation of the Second Defendant on 2 July 1996.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Besides, Mr Martin was a businessman with vast experience in mining.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The court cannot believe that he would have omitted such an allegedly pivotal consideration by design.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It is satisfied in considering all the circumstances of the case including the evidence of Mr Jay Lal the accountant, that the $400,000.00 equity share by the Plaintiff
 was intended to be incorporated in the company formation agreement.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
The court respectfully adopts the principle annunciated by Lord Denman in the leading case of }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 {\*\bkmkstart Goss_v_Nugent_S_Singh_v_Martin_Mining}Goss v Nugent}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  {\*\bkmkend Goss_v_Nugent_S_Singh_v_Martin_Mining}1833-53 Ad 53 at 64 in these terms:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid10844358 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
If there is a contract which has been reduced into writing, verbal evidence is not allowed to be given of w
hat passed between the parties, either before the written instrument was made, or during the time that it was in a state of preparation, so as to add to or subtract from, or in any manner to vary or qualify the written contract.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par The court does not believe that Mr Martin thought the Plaintiff could personally raise the amount required.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
This is because at various stages of their relationship, the parties hoped to raise the required capital from different sources such as Westpac, Bank of Hawaii and the Fiji Development Bank using the First Defendant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s equipment as security.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It is only when it became apparent that these overtures were unsuccessful that Mr Martin sought to pursue the $400,000.00 equity participation by the Plaintiff.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Moreover it was clear the Plaintiff
 was not flush with funds as evidenced by the fact that Mr Martin had to provide funds for trips to Australia as well as operating expenses as reflected in his counterclaim.
\par 
\par The court therefore finds that the company formation agreement and shareholder}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s agreement dated 29 June 1996 was properly concluded and contains all the terms of agreement between the parties and there will be no order for rectification of its terms as sought by the First Defendant.
\par 
\par The Plaintiff has relied on several factors to allege the contract has been part performed by the Defendants.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
Accordingly they cannot resile from that position and must accept the consequences thereof.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Specific reference is 
made to the balance sheet prepared by Messrs Jay Lal & Associates on 4 July 1997 (Exhibit P4) for presentation to the Bank of Hawaii for the purposes of raising loan funds.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 This bears the signature of Mr Angus Martin.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
Then there is a letter by the Second Defendant signed by Mr Martin as President dated 5 July 1997 (Exhibit P11) in which it tenders for a mining contract with Mount Kasi Mines.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 A letter dated 8 July 1997 (Exhibit P12) seeking a visa for the Plaintiff and asserting he is employed by the Second Defendant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff also relies on the Articles of Association and Memorandum of Association of the Second Defendant (Exhibits P7, P7A).}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  
}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The conclusion that suggests itself is that having been incorporated on 2 July 1997, the Second Defendant was apparently functioning as a business entity.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It appeared to possess considerable assets (Exhibit P4) and was actively engaged in business ventures.
\par 
\par Such activities as were conducted on behalf of the Second Defendant were performed largely prior to its incorporation.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
They are consequently of no account.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The balance sheet upon which the Plaintiff has placed great store is a projection.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Second Defendant was incorporated on 2 July 1997, it is clear from the figures that what was presented was a best p
ossible scenario of a company}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s anticipated performance.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Even if it were no so, the court is of opinion that the company function formation agreement is invalid for breach of a statutory provision.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff in seeking to dispose of this argument submitted that the First Defendant
 was seeking to take advantage of such conduct and urged the court not to lend it comfort }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 {\*\bkmkstart Chettiar_v_Chettiar_Steven_v_Martin}Chettiar v Chettiar}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  {\*\bkmkend Chettiar_v_Chettiar_Steven_v_Martin}[1962] 1 All ER 494.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 However, it matters not that {\*\bkmkstart s10_2_Exchange_Ctrl_Singh_v_Martin_Minin}section 10(2) {\*\bkmkend s10_2_Exchange_Ctrl_Singh_v_Martin_Minin}
of the Exchange Control Act Cap.211 coincidentally aids the First Defendant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
In as much it is the law of the land, the court is obliged to give effect to it irrespective of clause 11.07 of the company formation agreement which states:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid3476787 {\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid10844358 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 11.07\tab }{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
If any provision of this agreement shall be or become illegal or unenforceable in whole or in part, the remaining provisions shall nevertheless be valid, binding and subsisting.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par Section 10(2) of the Exchange Control Act provides:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid10844358 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
The subscription of the memorandum of association of a company to be formed under the Companies Act, by a person resident outside Fiji, or by a nominee for another person so resident, shall,
 unless he subscribes the memorandum with the permission of the Minister, be invalid}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
in so far as it would, on registration of the memorandum, have the effect of making him a member or shareholder in the company, so, however, that this provision shall not}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 render invalid}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 the incorporation of}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 the company; and, if, by virtue of}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 this subsection, the number of the subscribers of the memorandum who, on its registration, become members of the company is less than the minimum number required to subscribe the m
emorandum, the provisions of the said Act relating to the carrying on of business of a company the number of whose members is reduced below the legal minimum shall apply to the company as if the number of its members had been so reduced.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par Although the provision appears to preserve the incorporation of the Second Defendant, the fact that the First Defendant has failed to fulfill the stipulated requirements (i.e. obtain ministerial approval) means it nev
er became a shareholder in the Second Defendant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Secti
on 4 and the fourth schedule to the Exchange Control Act were also relied upon by the Plaintiff to validate the company formation agreement.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 However, the court adopts the approach taken by Slade J in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
{\*\bkmkstart Re_Transatlantic_S_Singh_v_Martin_Mining}Re Transatlantic Life Assurance Company Ltd}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358  {\*\bkmkend Re_Transatlantic_S_Singh_v_Martin_Mining}[1979] 3 All ER
 352 at 355 where His Lordship was considering the effect of an identical provision in the English Act as follows:}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3476787\charrsid10844358 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
This subsection therefore expressly provides for the invalidity of the subscription to this extent and in these circumstances.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 

\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid10844358 {\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 That being the case, the Plaintiff
 cannot enforce the provisions of the company formation agreement against the First Defendant. Its subscription to the memorandum of association of the Second Defendant was clearly invalid.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It follows that the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
s alternative cause of action must also fail for the same reason.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
In coming to this conclusion the court is satisfied that the ends of justice have been met.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The success of the Plaintiff
 would have meant a windfall for him on the basis of an investment of $49.00 for he has not proved his damages or actual loss as was his burden to discharge.
\par 
\par The First Defendant has counterclaimed against the Plaintiff alleging misrepresentation on his part and claiming the amount of $20,250.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 This consists of travel and hotel expenses of $16,550 (Exhibit D13(a) (b) and (c) for $2500 paid to the Plaintiff on 25 June 1997, air fare to Australia to obtain the Plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s Australian visa ($700) and pocket expenses of $500.00 for the Australia trip.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The First Defendant alleges that it was induced to expend these monies on the strength of the Plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s commitment to provide $400,000.00 equity in the proposed joint venture.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }
{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 While the court accepts that this issue was raised throughout the parties negotiations, it does not believe that the First Defendant
 by Mr Angus Martin expended those monies in reliance on that promise.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 He was a canny businessman.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 It was apparent that the Plaintiff did not
 have that kind of money and his claim to be able to raise that money was more a matter of bravado and wishful thinking rather than fact.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Mr Martin forebore to include it in the company formation agreement because it was not then central to his plans.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Only when it appeared to him that the raising of capital from whatever source was becoming an issue did he move against the Plaintiff.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 This is a tale of two would-be business partners whose reciprocal conduct was deserving of each other.
\par 
\par The court therefore holds the company formation agreement was properly concluded but unenforceable.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 The Plaintiff}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 s suit in its substantive form and in the alternative is accordingly dismissed.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 There being no misrepresentation on the part of the Plaintiff, the counterclaim is also dismissed.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 There will be no order as to costs.
\par 
\par It is nearly three years since this matter was heard and judgment rendered.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
The parties have made justified complaints to the Fiji Law Society.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 What can the court say other than to admit
 its fallibility in relation to the inordinate delay in determining the matter?}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
Small comfort though it is to the parties, the court can only apologise for its considerable failings in this regard.}{\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 
Perhaps it is now appropriate for the relevant authorities to give some consideration to setting time limits on the delivery of judgments and for appropriate sanctions to be considered where they are exceeded.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid10844358  }{\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 This may sound like a pious utterance but it is no less true for being that.
\par 
\par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8482277\charrsid10844358 Action dismissed.
\par 
\par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid3476787 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\insrsid8482277\charrsid10844358 Marie Chan}{
\lang2057\langfe3081\langnp2057\insrsid1972231\charrsid3476787 
\par }}