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\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\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 \fs20\cf1\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 { \b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 IN THE SUPREME COURT OF FIJI}{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5003431\charrsid13243399 \par }{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 Appellate Jurisdiction \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 Labasa Civil Appeal No. 3 of 1979 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid5526365 {\fs24\ul\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 BETWEEN}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid12466360 {\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 ABDUL RAHIMAN}{ \b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399\charrsid13243399 A}{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 s/o Jang Bahadur}{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 Appellant \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 (Plaintiff)}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 AND}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 I.S.P PACIFIC}{ \b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid9705419 }{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 LIMITED}{\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399 Respondent \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 (Defendant)}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid13243399\charrsid13243399 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8857050 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par Mr. K.C. Ramrakha and Mr A. Singh for the Appellant \par Mr. D.C}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid4400388 .}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 Maharaj and Mr. J. Singh for the Respondent \par \par }\pard \qc \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid2370165 {\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165\charrsid13243399 JUDGMENT \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid13243399 {\fs24\ul\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }\pard \ql \li0\ri0\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 This is an appeal from a judgment of the Magistrates Court in Labasa dismissing the appellant's (plaintiff's) claim for the return of $2,000 paid as a deposit in respect of an agreement to purchase a tractor and allowing the respondent's (defendant's) cou nterclaim for $750 being the loss suffered by him due to plaintiff's refusal to accept delivery of a sawmilling engine ordered by him. For the sake of clarity I will call the parties}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 }{ \fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 "plaintiff" and }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 "defendant" in this judgment.}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5526365 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 Plaintiff is a sawmiller of Solevu in Vanua Levu. Defendant is an importer of machinery. In 1975 plaintiff wanted to buy a Komatsu tractor. He gave the defendant a cheque for $2,000 by way of deposit but the cheque was not cleared and no order was placed for the tractor. Negotiations, however, continued and in March 1976 the defendant did at last receive $2,000 by way}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid7160372 of deposit. By a letter dated 9th}{ \fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 April 1976 the defendant advised the plaintiff that "the machine has definitely been ordered and is to the following specifications\'85\'85\'85 .. We are advised that this machine will be sent from Japan early in June and we should therefore be able to deliver it to you at approximately the end of July this year." At the end of July or early in August the plaintiff infor med the defendant that he no longer wanted the tractor. This is clear f}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid7160372 rom the defendant's letter of 10th}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 August 976 in which he says: \par \par }\pard \ql \li720\ri7\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin7\lin720\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 "}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 This letter is to note our recent meeting}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 at the premises of A. Hussein & Co. }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 Ltd. whereby}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 you stated that you now do not}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 want to do business with this company, do not want the new D50 Komatsu bulldozer }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 and that you wanted your deposit of $2,000 back."}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5060488 \par }\pard \ql \fi-2160\li2160\ri2199\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin2199\lin2160\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 At the hearing before the Magistrate the plaintiff claimed that time was of the esse nce of the contract and that the defendant had failed to deliver the tractor on time. He was therefore entitled to recover the deposit. The learned Magistrate found against him. He said: \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 \par }\pard \ql \li720\ri7\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin7\lin720\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 "I find on that date (9/4/76) there was a firm order from plaintiff for the D50A, he had paid his deposit of $2,000 and the defendant company was to supply that tractor. There was, however no date for delivery, and even Raghwan said in evidence that there was no date for delivery." \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5526365 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 Raghwan was a witness called by the plai ntiff himself. On the evidence before him the Magistrate was quite correct in finding that no firm date of delivery was, or could have been, given by the defendant as indeed }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid7160372 is clear from his letter dated 9th}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid15415630 April 1976. \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5526365 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 The learned Magistrate also found that the plaintiff's plans for raising finance had fallen through and he was in fact in no position to pay for the tractor when he told the defendant that he no longer wanted it. He said: \par \par }\pard \ql \li720\ri7\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin7\lin720\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 "One thing that is quite clear is that plaintiff did not have, and never did have, the finance to buy the tractor let alone the tractor and sawmilling engine as well. He never had the cash and he never had the credit." \par }\pard \ql \li0\ri3099\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin3099\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 \par }\pard \ql \li0\ri39\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin39\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 I see no reason to disturb the Magistrate's finding that the failure to complete the contract was the plaintiff's and not the defendant's. That being so he applied the law correctly. \par \par With regard to forfeiture of deposit the law is stated as follows in }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid3299722 34 Halsbury's Laws of England, 3rd}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 Edn. P. 118: \par \par }\pard \ql \li720\ri7\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin7\lin720\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 "A deposit is }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5526365 paid primarily as security that }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 the buyer will duly accept and pay for the goods, but, subject thereto, forms part of the price. Accordingly, if the buyer is unable or unwilling to accept and pay for the goods, the seller may repudiate the contract and retain the deposit. If the seller is unable or unwilling to deliver the goods, or to pass a good title thereto, or the contract is voidable by th}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid16220090 e buyer for any reason, the buyer may repudiate the contract and recover the deposit."}{ \fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12810386 \par }\pard \ql \li0\ri3009\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin3009\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid16220090 \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid16220090 In this case, as the learned Magistrate held, it was the plaintiff w ho was both unable and unwilling}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid3299722 ing}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid16220090 to accept and pay for the tractor. He was therefore not entitled to recover the deposit. The plaintiff's appeal relating to the disallowance of his claim is therefore dismissed. \par \par The defendant's counterclaim relates to a n entirely different transaction. At about the same time as the plaintiff was negotiating the purchase of the Komatsu tractor he was also interested in acquiring a re-conditioned engine for his sawmill. He requested Raghwan who was, at that time, working a t Labasa as the defendant's sales agent to look for a suitable engine for him. Raghwan who travelled a great deal in connection with the defendant's business agreed to do so and found an engine at the store of Kumar's Motor Spares at Lautoka which he cons i dered suitable. Upon returning to Labasa he informed the plaintiff about this engine and the plaintiff himself telephoned Kumar's Motor Spares and closed the deal. At his request the defendant paid the purchase price of this engine to Kumar's Motor Spares and shipped it to Labasa where the defendant refused to take delivery on the ground that it was not the kind of engine he had ordered. \par \par There was ample evidence before the Magistrate to show that the defendant had nothing to do with the selection of the engine and that the deal was made entirely between the plaintiff and Kumar's Motor Spares. }{ \fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 Raghwan, while inspecting the engine, was working not on behalf of the defendant but on that of the plaintiff. This is also clear fro}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid7491422 m the defendant's letter dated 9th}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 of April 1976 in which he mentions the sawmill engine and informs the plaintiff that he was to deal direct with Kumar's Motor Spares. The only agreement between the plaintiff and the defendant in relation to this engine was for the latter to pay for, and ship, it to Labasa at the plaintiff's expense. The learned Magistrate, in my view, correctly held that Raghwan, in inspecting and selecting the engine, was acting as the plaintiff's agent.}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid16220090 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 \par The amount of loss incurred by the defendant as a result of the pl aintiff's failure to take delivery was not in dispute. The learned Magistrate, therefore, was correct in allowing the counterclaim and the plaintiff's appeal in relation to it is therefore also dismissed. \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 The plaintiff will pay the costs of this appeal wh ich will be taxed in default of agreement. \par \par }\pard \qc \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\b\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031\charrsid9705419 (Sgd.) G. Mishra \par JUDGE. \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid9705419 {\fs24\ul\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 \par }{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid12466360 Suva,}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 \par }\pard \ql \li0\ri-51\nowidctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin-51\lin0\itap0\pararsid12466360 {\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid7491422 20th}{\fs24\cf0\lang2057\langfe1033\langnp2057\insrsid5528031 September, 1979}{ \fs24\cf0\lang2057\langfe1033\langnp2057\insrsid2370165 \par }}