{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman{\*\falt Times New Roman};} {\f179\froman\fcharset0\fprq2{\*\panose 00000000000000000000}CG Times{\*\falt Times New Roman};}{\f182\froman\fcharset238\fprq2 Times New Roman CE{\*\falt Times New Roman};}{\f183\froman\fcharset204\fprq2 Times New Roman Cyr{\*\falt Times New Roman};} {\f185\froman\fcharset161\fprq2 Times New Roman Greek{\*\falt Times New Roman};}{\f186\froman\fcharset162\fprq2 Times New Roman Tur{\*\falt Times New Roman};}{\f187\froman\fcharset177\fprq2 Times New Roman (Hebrew){\*\falt Times New Roman};} {\f188\froman\fcharset178\fprq2 Times New Roman (Arabic){\*\falt Times New Roman};}{\f189\froman\fcharset186\fprq2 Times New Roman Baltic{\*\falt Times New Roman};}{\f190\froman\fcharset163\fprq2 Times New Roman (Vietnamese){\*\falt Times New Roman};}} {\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255;\red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0; \red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0;\red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 \styrsid11144908 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\* \ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}{\s15\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \f179\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext15 \styrsid11144908 Body Text;}{\s16\ql \li0\ri0\sa120\sl480\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 \sbasedon0 \snext16 \styrsid11144908 Body Text 2;}{\s17\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \sbasedon0 \snext17 \styrsid11144908 header;}{\*\cs18 \additive \sbasedon10 \styrsid11144908 page number;}{\*\ts19\tsrowd\trbrdrt\brdrs\brdrw10 \trbrdrl\brdrs\brdrw10 \trbrdrb\brdrs\brdrw10 \trbrdrr \brdrs\brdrw10 \trbrdrh\brdrs\brdrw10 \trbrdrv\brdrs\brdrw10 \trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \sbasedon11 \snext19 \styrsid9571426 Table Grid;}}{\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\rsidtbl \rsid402525 \rsid811014\rsid862776\rsid933470\rsid1009808\rsid1598413\rsid1650032\rsid1972231\rsid2034693\rsid2193419\rsid2309175\rsid2371452\rsid2504626\rsid2506087\rsid2916121\rsid3176464\rsid3369787\rsid3422714\rsid3810279\rsid3822112\rsid3831056\rsid4089084 \rsid4160285\rsid4329331\rsid4331392\rsid4744076\rsid4815830\rsid4855016\rsid4931203\rsid5052173\rsid5062183\rsid5123780\rsid5592493\rsid5643559\rsid6060947\rsid6160848\rsid6192071\rsid6514138\rsid6782860\rsid6953338\rsid7341447\rsid7366506\rsid7483118 \rsid7818236\rsid7870752\rsid7958375\rsid8016262\rsid8083724\rsid8270074\rsid8421204\rsid8524331\rsid8598875\rsid8790013\rsid8866877\rsid9189166\rsid9452663\rsid9455426\rsid9571426\rsid9776131\rsid9979947\rsid10355983\rsid10712439\rsid10749241 \rsid11014019\rsid11144908\rsid11292607\rsid11355540\rsid11404427\rsid11880640\rsid11928628\rsid12015529\rsid12063525\rsid12081942\rsid12211158\rsid12604364\rsid12921552\rsid12931985\rsid12983114\rsid13198352\rsid13654509\rsid14055906\rsid14105686 \rsid14108652\rsid14496123\rsid14510136\rsid14695321\rsid14967201\rsid15032169\rsid15159555\rsid15297671\rsid15405516\rsid15541791\rsid15560408\rsid15864576\rsid15945946\rsid16592213\rsid16597937\rsid16671932}{\*\generator Microsoft Word 11.0.5604;}{\info {\title \'93this is a quote, has said, of me saying \'91this is a quote\'92\'94}{\author raikatalau_l}{\operator raikatalau_l}{\creatim\yr2011\mo6\dy15\hr11}{\revtim\yr2011\mo6\dy15\hr11\min4}{\version3}{\edmins7}{\nofpages8}{\nofwords3708} {\nofchars17951}{\*\company Pacific Legal Information Institue}{\nofcharsws21522}{\vern24689}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\hyphcaps0\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440 \dgvorigin1008\dghshow1\dgvshow1\jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot11144908\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9571426 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9571426 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9571426 \chftnsep \par }}{\*\aftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid9571426 \chftnsepc \par }}\sectd \linex0\endnhere\sectlinegrid360\sectdefaultcl\sftnbj {\header \pard\plain \s17\ql \li0\ri0\widctlpar\brdrb\brdrs\brdrw15\brsp20 \tqc\tx3553\tqr\tx7293\tqr\tx8789\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid1650032 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs16\insrsid8421204 \tab Eloni Goneyali v State (HC)}{\fs16\insrsid8421204\charrsid933470 \tab }{\field{\*\fldinst {\cs18\fs16\insrsid8421204\charrsid12604364 PAGE }}{\fldrslt { \cs18\fs16\lang1024\langfe1024\noproof\insrsid9571426 8}}}{\cs18\fs16\insrsid8421204\charrsid933470 \par }\pard \s17\ql \li0\ri0\widctlpar\tqc\tx4320\tqr\tx8640\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 {\insrsid8421204 \par }}{\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}} {\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8 \pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkstart Eastern_Express_Limited_v_Merchant_Bank}EASTERN EXPRESS LIMITED v MERCHANT BANK OF FIJI LIMITED & CREDIT CORPORATION (FIJI) LIMITED \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkend Eastern_Express_Limited_v_Merchant_Bank} \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 High Court Civil Jurisdiction \par }\trowd \irow0\irowband0\lastrow \ts19\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid9571426\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt \clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1728\clshdrawnil \cellx1620\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7128\clshdrawnil \cellx8748\pard \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid13450023 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 7 August 2001\cell }\pard \ql \li4320\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin4320\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 HBC 0026/01B\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \trowd \irow0\irowband0\lastrow \ts19\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid9571426\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1728\clshdrawnil \cellx1620\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7128\clshdrawnil \cellx8748\row }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }{\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Injunction \endash dissolution \endash restraining Defendants from advertising winding up action against Plaintiff \endash summary dissolution of injunction to return buses belonging to another company - whether Plaintiff directors authorised any borrowing \endash whether company benefited from purported borrowing \endash lack of capacity to borrow - internal management rule \endash existence of guarantee -}{\i\lang2057\langfe3081\langnp2057\insrsid9571426 }{\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 validity of directors}{ \i\lang2057\langfe3081\langnp2057\insrsid9571426 '}{\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 acts \endash pre-emptive strike against D2 a gross abuse of power \endash full and frank disclosure required for ex parte injunction - Companies Act ss8(1), (2), 108(1), 36(1)(a), 182, 202, 221 \par }{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 D1 had earlier issued a s221 Notice under the Companies Act and proceeded to repossess 2 buses secured to it for monies lent. The High Court, acting upon an ex-parte application, granted injunction restraining the Defendant s from advertising any winding up proceedings against the Plaintiff, from taking possession of any more buses or other assets, and to immediately release 2 buses seized by D1. The injunction prevented the each Defendant from enforcing their registered Bills of Sale held over Plaintiff}{\lang2057\langfe3081\langnp2057\insrsid9571426 '}{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 s a ssets, charged to secure loan facilities, even though D2 had not taken any of the actions taken by D1. The Defendants applied to dissolve the injunction. The Plaintiff claimed that signatories of various security documents were not of proper authorised per sons. The company claimed it had not benefited from the loan facilities, but the Court found it had not denied ownership of 35 buses covered by the security, nor disclosed how and in what circumstances the company acquired them and why it claims that they are unencumbered assets. Further, the Court found the Plaintiff had not suggested the Defendants had not acted in good faith, or that the securities were acquired fraudulently, or that the Plaintiff had no power to borrow monies, thus the one could assume the company had implied power to borrow monies for the purposes of its business, and charge all property to secure the money borrowed. As there was no inexplicable reason for the Plaintiff having standing to contest a s221 notice on behalf of Ram Bali Prasad & Sons Limited or to secure an ex parte injunction for the return of 2 buses seized under a Bill of Sale, the injunction relating to the 2 buses was summarily dissolved by consent. The Court found no legal or factual reason why D2 was dragged into the action, and dissolved parts of the injunction binding D2. The Court further found the ex parte injunction was obtained without full and frank disclosure and dissolved the entire injunction. \par }{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par Held\endash }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (1) Two directors of the Plaintiff company signing the security documents and corresponding with the Defendant s up to and after the execution of the security documents must be presumed, in the absence of any contrary evidence, to be entitled to act on behalf of the Plaintiff and the company must have had knowledge o f this. The Companies Act s182 validates acts of directors notwithstanding a defect may be later discovered in their appointments or qualifications. Being a commercial enterprise, one may assume the Plaintiff has implied power to borrow monies for the purpose of its business and to mortgage or charge all or any part of its property to secure the money so borrowed.}{\lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (2) A company, signing under common seal, is not entitled to an interim injunction until the Defendants prove the nature and extent of any dealings between their companies, including verifying any loan amounts involved, together with the validity of the security documents relied upon.\~ Such a submission would offen}{\lang2057\langfe3081\langnp2057\insrsid9571426 d the internal management rule.}{ \lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\b\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Royal British Bank v Turquand}{\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (1856) 6 E & B 327 appl.}{\lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\i\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (3) A company must make full and frank disclosure in an }{\lang2057\langfe3081\langnp2057\insrsid9571426 ex parte}{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 application for injunction, notwithstanding its deponent is woefully ignorant of the company}{\lang2057\langfe3081\langnp2057\insrsid9571426 '}{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 s affairs, so as not to defeat the principle of great antiquity that no injunction will stand which has been obtained ex parte without the fullest and frankest disclosure.}{\lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\b\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (4) The very existence of the Guarantee suggests knowledge in the guarantor}{\lang2057\langfe3081\langnp2057\insrsid9571426 '}{ \lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 s part of the debt being guaranteed, moreso where the guarantor is a businessman.}{\lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (5) A pre-emptive strike to injunct D2 form proceeding on winding up proceedings when it had not issued a s221 Notice under the Companies Act, nor acted upon its security document to repossess vehicles secured under it is a gross abuse of power and will b e reflected in the costs award. Where there is no legal or factual basis for an order to bind D2, that part of the order is dissolved. \par \par Injunction dissolved with costs against. \par \par }{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Other cases referred to in Ruling}{\b\lang2057\langfe3081\langnp2057\insrsid11144908 \par }{\b\lang2057\langfe3081\langnp2057\insrsid9571426\charrsid9571426 \par }{\b\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Bank of Mellat v Nikpour}{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (1985) F.S.R. 87 \par }{\b\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Byron v Metropolitan Saloon Omnibus Co Ltd.}{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (1853) 3 De G & J 123}{ \i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }{\b\i\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 R. v Kensington Income Tax Commissioners, ex p. Princess Edmond de Polignac }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 (1917) 1 KB 486 \par }{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Amrit Sen for the Plaintiff \par Ronald Gordon for the First Defendant \par Viren Kapadia for the Second Defendant \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 Editor}{\lang2057\langfe3081\langnp2057\insrsid9571426 '}{\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 s note: this case was struck out for non-prosecution on 27 June 2006.] \par }{\b\lang2057\langfe3081\langnp2057\insrsid11144908\charrsid9571426 \par }\trowd \irow0\irowband0\lastrow \ts19\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid9571426\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt \clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1908\clshdrawnil \cellx1800\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6948\clshdrawnil \cellx8748\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid6586349 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 7 August, 2001 \cell }\pard \ql \li1872\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin1872\pararsid9571426 {\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 RULING}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \trowd \irow0\irowband0\lastrow \ts19\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid9571426\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt \brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth1908\clshdrawnil \cellx1800\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6948\clshdrawnil \cellx8748 \row }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Fatiaki, J}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 This is an application to dissolve an interlocutory injunction granted }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex-parte}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 by Pathik J. on 25th May 2001 in the follo}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 wing terms:}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (1)}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 . }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 That the Defendants either by itself or by its servant or agents be restrained from advertising any winding up proceedings against the Plaintiff;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (2)}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 . }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 That the Defendants be restrained from taking into possession any more buses of the Plaintiff company or any other assets;}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (3)}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 . }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 That the Defendants do forthwith release to the Plaintiff its buses Registration No: CO759 and CL370.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \~ \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 In effect, the injunctions prevented the Defendant s from enforcing registered security documents (Bills of Sale) each held over separate\~ assets of the Plaintiff company that had been charged to secure loan facilities provided at different times to the Plaintiff company in order to e nable it to acquire the assets in question. \par \~ \par In particular, by a loan contract dated 29th April 2000 the 1st Defendant company lent the Plaintiff company in excess of $250,000 to finance the purchase by it of seven (7) buses which were then charged under a Bill of Sale executed by the Plaintiff company and further secured by a guarantee executed by an associated company namely Ram Bali Prasad and Sons Limited with which the 1st Defendant company also had dealt. \par \~ \par The 2nd Defendant company for its part whilst not annexing any primary documentation evidencing a lending contract or asset purchase agreement(s), nevertheless provides duly executed copies of a registered Company Debenture and Bill of Sale both dated 20 th January 2001 with the latter securing a loan facility of $300,000 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 now due and owing}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 and charging some twenty eight (28) buses. \par \~ \par The sole basis for its claim to relief advanced by the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 company is its claim:}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 That the lawful directors of the Plaintiff company have neither authorised any borrowing on behalf of the company nor has the Plaintiff ever benefited from purported borrowing.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \~}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par This is further expanded in the affidavit of Ram Bali Prasad a director of the Plaintiff company who deposed in his affidavit that the Plaintiff company never authorised any borrowing nor anyone to borrow on its behalf from the Defendant companies and accordingly the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 purported charge over the said buses are void and of no effect}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 . \par \~ \par In essence, the deponent claims that any loan transactions concluded with and securities issued therefor by the Plaintiff company are }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ultra vires}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 the company and unenforceable as such. \par \~ \par Ram Bali Prasad accepts however that }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 the signatures on the documents securing purported advances to the Plaintiff are of my sons }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (who) }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 do not have a share in the Plaintiff company as they live separately and operate a different company}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 .\~ Shareholdings are not however a prerequisite to a directorship unless specifically required by Articles. \par \~ \par Furthermore the Company Search record dated 24.5.01 annexed to the affidavit discloses, on its face, that the Directors of the Plaintiff company were the deponent, and his son Pradeep Chand and not the deponent}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s\~brother Sadhu Prasad as claimed in the affidavit.\~ On that rather basic fact the deponent appears to be ignorant. \par \~ \par Plainly the deponent}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s professed ignorance of the affairs of the Plaintiff company cannot be equated with the state of knowledge of the company itself, since the other two (2) directors who signed the security documents and who corresponded throughout with the Defendant companies leading up to and after the execution of the documents must be presumed in the absence of any contrary evidence to be entitled to act on behalf of the Plaintiff company. \par \~ \par Indeed, having heard Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s counsel it appears that the Plaintiff company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s entire claim to relief is premised on the professed complete ignorance on the part of the deposing director of any relevant dealings having ever occurred between the Plaintiff company and either Defendant company and, because of that, the Plaintiff company it is claimed, is entitled to an injunction until such time as the Defendants are able to prove or establish the nature and extent of any dealings that may have passed betwee n the companies, including verifying any loan amounts involved, together with the validity of the security documents relied upon.\~ That cannot be correct. \par \~ \par Counsel}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s submission which is }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 not}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 a case of }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 non est factum}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 , conveniently ignores the undeniable fact that all relevant security documents are signed by the deponent}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s sons and bears the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s common seal.\~ Furthermore, it ignores the fact that since 26th May 1998 according to the particulars lodged under Section 202 with the Registrar of Companies, the Directors of the Plaintiff company were}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 The deponent, and his two sons, Pradeep Chand and Vinay Chand. \par \~ \par The submission also offends the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 internal management rule}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 enunciated in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkstart Royal_v_Turquand_Eastern_v_Merchant}Royal British Bank v Turquand}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkend Royal_v_Turquand_Eastern_v_Merchant} (1856) 6 E & B 327 to the effect that third parties dealing with a company, although assumed to have notice of the contents of the company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s memorandum and articles, are nevertheless, not required to satisfy\~themselves that all the internal regulations of the company have been complied with. \par \~ \par Furthermore a company, not being a physical person, can only act by its agents or officers such as its directors, and, in this regard, {\*\bkmkstart s8_Companies_Act_Eastern_v_Merchant}Section 8{\*\bkmkend s8_Companies_Act_Eastern_v_Merchant} of the Companies Act 1983 (}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 the Act}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 ') provides:}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 No act of a company }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (including the entering into an agreement)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 and no conveyance}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ... by a company, shall be invalid by reason o nly of the fact that the company was without capacity or power to do the act or execute ... the conveyance.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par and Subsection {\*\bkmkstart s8_2_Companies_Act_Eastern_v_Merchant}(2){\*\bkmkend s8_2_Companies_Act_Eastern_v_Merchant} relevantly provides that:}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ...any such lack of capacity or power may be asserted or relied upon }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 only}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 in }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 \endash }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (a)}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 proceedings against the company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 by a member of the company ...;\~\~\~ or \par (b)}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 . }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 proceedings by the company}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 , or by a member of the company, }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 against the present or former officers}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 of the company;}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (my underlining for emphasis) \par \par In this latter regard, by no stretch of the imagination can it be said that the present action, as constituted, comes within either of the above exclusive limbs for which complaint of }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 lack of capacity}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 to act, may be made. \par \par Finally {\*\bkmkstart s182_Companies_Act_Eastern_v_Merchant}Section 182 {\*\bkmkend s182_Companies_Act_Eastern_v_Merchant}of the Act protects and validates the acts of a director }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ... notwithstanding any defect that may afterwards be discovered in his appointment or qualification}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 . \par \par As is said in Gowers }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Principles of Modern Company Law}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (6th edn.)}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 at p.224:}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Where the person through whom the third party dealt occupies a position in the company such that it would be usual for an occupant of that position to have authority to bind the company in relation to the transaction concerned, the company will be bound. \~ The third company dealing with the company in good faith will be entitled to assume that the person has authority unless he knows the contrary or knows of facts which would put him on inquiry.\~ Thus if the person acting for the company is its (CEO) or managing director, then, ..., he may safely be assumed to be authorised.\~ In practice he will probably have actual authority, but, even if he has not, he will have ostensible authority and his acts will bind the company.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par [}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 See also}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 : {\*\bkmkstart s36_1_a_Companies_Act_Eastern_v_Merchant}Section 36(1)(a) {\*\bkmkend s36_1_a_Companies_Act_Eastern_v_Merchant}of the Companies Act 1983] \par \par In the present case, it is nowhere suggested in the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s affidavit material that the Defendant companies had not acted in good faith, or that the securities were acquired fraudulently, or that the Plaintiff company had no power to borrow monies, and accordingly, the Plaintiff company, being a commercial enterprise, may be assumed to have an implied power to borrow monies for the purpose of its business and to mortgage or charge all or any part of its property to secure the money so borrowed: }{ \b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkstart Byron_v_Metropolitan_Eastern_v_Merchant}Byron v Metropolitan Saloon Omnibus Co Ltd.}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkend Byron_v_Metropolitan_Eastern_v_Merchant}(1853) 3 De G & J 123. \par \par Needless to say, other than a bald claim to not having benefited at all from any of the several loan facilities granted by the Defendants, the Plaintiff company has nowhere denied ownership of the thirty five (35) buses covered by the security documents nor has it in any way, shape, or form explained how and in what circumstances it acquired them and why it claims that they are unencumbered assets.\~ That is certainly a relevant fact that must have been within its knowledge yet nothing is disclosed. \par \par Whatsmore the deponent,\~Ram Bali Prasad appears to have conveniently over-looked the Guarantee dated 29th November 1999 that he personally signed guaranteeing the repayment }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 of all sums of money .... which shall for the time being be owing or unpaid by (the Plaintiff company) to (the 2nd Defendant company) ....}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \~ This was an intentional non-disclosure of a material fact for which the Plaintiff company must suffer the consequences.\~ Needless to say the very existence of the Guarantee suggests knowledge in the guarantor}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s part of the debt being guaranteed, moreso where the guarantor is a businessman. \par \par Then something needs to be said about the two (2) buses the subject matter of the mandatory injunction i.e. Order (3) above which was granted by Pathik J. ordering the immediate return of the buses Registration Nos: CO 759 and CL 370 to the Plaintiff company. \par \par The basis for the grant of the injunction, as deposed in Ram Bali Prasad}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s primary affidavit, is to the effect that the First Defendant does not have a charge}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (over the buses CO 759 & CL 370) and therefore, presumably, they were improperly seized. \par \par The indisputable evidence provided by the 1st Defendant company however, establishes that these two 60 seater Hino buses are owned by Ram Bali Prasad and Sons Limited and were purchased from a loan provided by the 1st Defendant company and secured under a registered Bill of Sale executed under the common seal of Ram Bali Prasad and Sons Limited. \par \par In other words as correctly deposed by the 1st Defendant company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 's Manager Northern:}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ... at all material times CO 759 and CL 370 was and is owned by Ram Bali Prasad and Sons Limited and was legally and validly encumbered and mortgaged and charged to the First Defendant.\~ When Ram Bali Prasad and Sons Limited default ed under the Loan Contract executed by it the First Defendant was legally and validly entitled to seize and/or repossess CO 759 & CL 370.}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par Furthermore the 1st Defendant company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Section 221 Notices}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 which triggered the injunction application is directed not only to the Plaintiff company but also to Ram Bali Prasad and Sons Limited and one can only wonder how?\~ the Plaintiff company acquired the necessary standing (1) to contest the Notice relating to Ram Bali Prasad and Sons Limited;\~ and (2) to recover possession of the two buses CO 759 & CL 370 when neither ever belonged to the Plaintiff company. \par \par Indeed, so convincing was the 1st Defendant company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s affidavit and annexures on this aspect of the Plaintiff company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s claim that counsel was constrained, at the end of the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 inter partes}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 hearing to dissolve the injunction,\~ to consent to the summary dissolution of item (3) of the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex-parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 injunction order. \par \par Accordingly, it is hereby formally recorded that Order (3) of the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex-parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 injunction granted on 25th May 2001 is dissolved forthwith and the buses Registration Nos: CO 759 & CL 370 are ordered to be released forthwith into the possession and custody of the 1st Defendant company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s\~Manager, Labasa. \par \par Likewise the reason(s) why the 2nd Defendant company was joined in the action at all\~remains unclear, since there has been no equivalent statutory demand notice issued by it against the Plaintiff company, nor has any correspondence emanating from the 2nd Defendant company, threatened enforcement of the securities held by it over the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s buses, nor has any actual seizure or repossession of the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s buses taken place. \par \par If I may say so, the 2nd Defendant company appears to have been dragged into the proceedings by way of a pre-emptive strike on the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s part and as a matter of convenience, since the Plaintiff company was challenging the 1st Defendant company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s security documents.\~ That is a gross abuse of process and will be reflected in the costs awarded. \par \par Accordingly, in so far as Order (1) purports to bind the 2nd Defendant company, I find that on the existing materials it is unwarranted, has no legal or factual basis and is hereb}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 y dissolved.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Similarly, in so far as Order (2) as worded, purports to refer to further seizures by the 2nd Defendant company of the Plaintiff company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s assets, there is no legal or factual basis for such an injunction and it too is hereby dissolved as regards the 2nd Defendant company. \par \par Finally, I turn to consider the principal plank urged by both defence counsels in their oral and written submissions for the dissolution of the injunction namely, material non-disclosure on the Plaintiff company}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s part in seeking and obtaining the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 injunction. \par \par The principle requiring full and frank disclosure in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 applications has recently been enunciated and reaffirmed in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkstart Bank_v_Nikpour_Eastern_v_Merchant}Bank of Mellat v Nikpour}{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkend Bank_v_Nikpour_Eastern_v_Merchant}(1985) F.S.R. 87 where Donaldson, L.J. said: }{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li561\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin561\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 This principle that no injunction obtained ex parte shall stand if it has been obtained in circumstances in which there was a breach of the duty to make the fullest and franke st disclosure is of great antiquity.\~ Indeed, it is so well enshrined in the law that it is difficult to find authority for the proposition; we all know it; it is trite law.\~ But happily we have been referred to a dictum of Lord Justice Warrington in the case of }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 {\*\bkmkstart R_v_Kensington_Eastern_v_Merchant}R. v Kensington Income Tax Commissioners, ex p. Princess Edmond de Poligna{\*\bkmkend R_v_Kensington_Eastern_v_Merchant}c}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (1917) 1 KB 486 at p.509.\~ He said}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 It is perfectly well settled that a person who makes an ex parte application to the court - that is to say, in the absence of the person who will be affected by that which the court is asked to do - is under an obligation to the court to make t he fullest possible disclosure of all material facts within his knowledge, and if he does not make that fullest possible disclosure, then he cannot obtain any advantage from the proceedings, and he will be deprived of any advantage he may have already obt ained by means of the order which has thus wrongly been obtained by him}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \~}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par Furthermore, Lord Cozens-Hardy M.R. in dealing with the consequences of non-disclosure in }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 applications aptly summed it up when he said in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 R. v Kensington Income Tax Commissioners}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 (op.cit) at p.505:} {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426\charrsid9571426 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 .... the court ought not to go into the merits of the case, but simply say, }{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 we will not listen to your application because of what you have done}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 \~ \par In this regard mindful of the very full and comprehensive affidavits and numerous annexures filed on behalf of the Defendant companies in seeking the dissolution of the }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 injunction and counsel}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s submissions, I am convinced that there has been numerous material non-disclosures on the part of the Plaintiff company in obtaining the grant of the injunction }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 . \par \~ \par Needless to say all the correspondence exchanged between the Plaintiff company and the Defendant companies points irresistibly to a long standing business relationship between them and the various security document s are all registered company charges duly executed under the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s seal, and were\~ available for inspection by any member or director should he wish to do so (See: {\*\bkmkstart s108_1_Companies_Act_Eastern_v_Merchant}Section 108(1){\*\bkmkend s108_1_Companies_Act_Eastern_v_Merchant} of the Act). \par \~ \par The mere fact that the deponent who has chosen, in this case, to depose the primary affidavit, is woefully ignorant of the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s affairs does not and can not obviate the Plaintiff company}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s duty to make full and frank disclosure in an }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 application.\~ If such a deponent was accepted then this principle }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 of great antiquity}{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 would be rendered nugatory by the easiest ploy of getting the least knowledgeable officer or member of the compa ny to swear the affidavit.\~ That cannot be countenanced in an }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 ex parte}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 application. \par \~ \par In this regard, given the almost complete lack of any knowledge of Ram Bali Prasad of the affairs of the Plaintiff company, it is remarkable that no affidavit has been provided by either of the deponent}{ \fs24\lang2057\langfe1033\langnp2057\insrsid9571426 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 s sons who had signed the security documents and who would undoubtedly have had a good deal more knowledge about the affairs of the Plaintiff company than their father. \par \~ \par The entire injunction must be and is hereby dissolved with costs which are separately and summarily assessed as follows: \par \~ \par To the First Defendant company -}{\fs24\lang2057\langfe1033\langnp2057\insrsid9571426 }{\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 $750.00 \par }\pard \ql \fi-5040\li5040\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin5040\itap0\pararsid9571426 {\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 To the Second Defendant company - $500.00. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid11144908\charrsid9571426 Application granted. \par \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9571426 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\insrsid11144908\charrsid9571426 Marie Chan}{ \lang2057\langfe3081\langnp2057\insrsid1972231\charrsid9571426 \par }}