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High Court of Fiji |
IN THE HIGH COURT OF FIJI
WESTERN DIVISION
AT LAUTOKA
[CIVIL JURISDICTION]
Civil Action No. HBC 105 of 2011
BETWEEN
AZAM ALI father’s name Rahim Tullah
trading as R. AZZAM INVESTMENTS of Moto, Ba,
Postal Address, P.O. Box 2987, Ba, Businessman
Plaintiff
AND
MERCHANT FINANCE & INVESTMENT COMPANY LIMITED a limited liability company having its registered address at Level 1, 91 Gordon Street, Suva.
Defendant
Before : Acting Master U.L. Mohamed Azhar
Counsel : Mr. Mark Anthony for the Plaintiff
Mr. K. Patel for the Defendant
Date of Ruling : 2nd March 2018
RULING
01. This is the summons dated 08th November 2016 and filed by the defendant pursuant to Order 25 rule 9 of the High Court Rules and the inherent jurisdiction of this court. The defendant based this summons on the following grounds:
- The plaintiff failed to prosecute the proceedings expeditiously without any real interest in bringing the matter to trial; and /or
- The plaintiff had abused the process of the court; and/or
- The plaintiff caused prejudice to the defendant; and/or
- The delay by the plaintiff has created a substantial risk that there will not be a fair trial.
02. The summons was supported by an affidavit sworn by the manager of Lautoka branch of the defendant company. The plaintiff filed series of affidavits and all were opposed by the defendant on the basis of irregularity. Finally, this court, having heard the counsels for both parties on 23.05.2017 on the said alleged irregularity, by its ruling dated 24.05.2017 ordered the plaintiff to file a proper affidavit on the following date i.e. on 25.05.2017 and the plaintiff complied with the said order.
03. The fact of the case, albeit brief, is that, the plaintiff took out the writ of summons issued by this registry on 11.07.2011 against the defendant, seeking general and special damages together with the interest and cost based on two different causes of action. One is that, the defendant company, through its employee, acted negligently and/or in bad faith in respect of plaintiff’s loan contract and thereby failed to transfer certain machineries to the plaintiff, which caused the loss and damages to the latter. The second cause of action was on the alleged breach of Commerce Commission Act 2010 by making misrepresentation in respect of the hire purchase agreement. The defendant filed the defence and counter claim and thereafter the plaintiff filed the reply to the defence. The parties then filed their respective affidavits verifying list of documents after the directions were given by the court. They finalized the pre-trial conference and filed the minutes on 24.05.2013. In between there were some injunctions on the delivery of certain vehicles. Thereafter, there was no appearance for the plaintiff on three consecutive dates, namely on 29.08.2013, 14.10.2013 and 22.11.2013, though the defendant was duly represented. Therefore, the matter was taken out of the cause list on 22.11.2013. Since then, the plaintiff took no step in the matter until the defendant filed its first summons for striking out under Order 25 rule 9. The said summons was dismissed on the alleged irregularity of the supporting affidavit. The defendant having rectifying the alleged regularity filed the instant summons.
04. The Order 25 rule 9 provides for the jurisdiction of the court to strike out any cause or matter for want of prosecution or as an abuse of process of the court if no step has been taken for six months. The said rule reads;
"If no step has been taken in any cause or matter for six months then any party on application or the court of its own motion may list the cause or matter for the parties to show cause why it should not be struck out for want of prosecution or as an abuse of the process of the court.
Upon hearing the application the court may either dismiss the cause or matter on such terms as may be just or deal with the application
as if it were a summons for directions".
05. The court’s power under the above rule has been discussed in many cases and the law on striking out an action is well settled now. This, therefore, does not warrant a lengthy discussion. However, for the benefit of the discussion in the instant case, I briefly point out the law as this court held in some other cases before. The grounds provided in the above rule are firstly, want of prosecution and secondly, abuse of process of the court. This rule was introduced to the High Court Rules for the case management purpose and is effective from 19 September 2005. The main characteristic of this rule is that, the court is conferred with power to act on its own motion in order to agitate the sluggish litigation (see: Trade Air Engineering (West) Ltd v Taga [2007] FJCA 9; ABU0062J.2006 (9 March 2007). Even before the introduction of this rule, the courts in Fiji exercised this power to strike out the cause for want prosecution following the leading English authorities such as Allen v. McAlpine [1968] 2 QB 229; [1968] 1 All ER 543 and Birkett v. James [1978] AC 297; [1977] 2 All ER 801. Justice Scott, striking out of plaintiff’tion in Hussein v Pacv Pacific Forum Line Ltd [2000] Fiji Law Report 24; [2000] 1 FLR 46 (6 March 2000), stated that;
“The principles governing the exercise of the Court's jurisdiction to strike out for want of prosecution are well settled. The
leading English authorities are Al. McAlpine 60; [1968] 2 QB 229;
06. The Court of Appeal of Fiji in Trade Air Engineering (West) Ltd v Taga (supra) reiterated that, the new rule (Or 25 r 9) does not confer any additional or wider power to the court except the power to act on its own motion. It was held in that case that;
“In our view the only fresh power given to the High Court under Order 25 rule 9 is the power to strike out or to give directions of its own motionle this powerpower may very valuably be employed to agitate sluggish litigation, it does not in our opinion confer any additionawidersdiction on the Court to dismiss or strike out on grounds which differ from thosethose alre already established by past authority”.
07. The above decision of the Court of Appeal made it abundantly clear that the principles set out in Allen v. McAlpine (supra) and Birkett v. James (supra) are still applicable to strike out any cause where no step is taken for six months, despite the introduction of new rule (Or 25 r 9). Lord Diplock, whilst articulating the principles for striking out the actions for want of prosecution and abuse of the court process in Birkett v. James (supra), explained the emerging trend of English courts in exercising the inherent jurisdiction for want of prosecution. His Lordship held that;
“Although the rules of the Supreme Court contain express provision for ordering actions to be dismissed for failure by the plaintiff to comply timeously with some of the more important steps in the preparation of an action for trial, such as delivering the statement of claim, taking out a summons for direction and setting the action down for trial, dilatory tactics had been encouraged by the practice that had grown up for many years prior to 1967 of not applying to dismiss an action for want of prosecution except upon disobedience to a previous peremptory order that the action should be dismissed unless the plaintiff took within a specified additional time the step on which he had defaulted.
To remedy this High Court judges began to have recourse to the inherent jurisdiction of the court to dismiss an action for want of prosecution even where no previous peremptory order had been made, if the delay on the part of the plaintiff or his legal advisers was so prolonged that to bring the action on for hearing would involve a substantial risk that a fair trial of the issues would not be possible. This exercise of the inherent jurisdiction of the court first came before the Court of Appeal in Reggentin vs Beecholme Bakeries Ltd (Note) [1968] 2 Q.B. 276 (reported in a note to Allen v Sir Alfred McAlpine & Sons Ltd [1968] 2 Q.B. 229) and Fitzpatrick v Batger & Co Ltd [1967] 1 W.L.R. 706
The dismissal of those actions was upheld and shortly after, in the three leading cases which were heard together and which, for brevity, I shall refer to as Allen v McAlpine [1968] 2 Q.B. 229, the Court of Appeal laid down the principles on which the jurisdiction has been exercised ever since. Those principles are set out, in my view accurately, in the note to R.S.C, Ord. 25, R. 1 in the current Supreme Court Practice (1976). The power should be exercised only where the court is satisfied either (1) that the default has been intentional and contumelious, e.g. disobedience to a peremptory order of the court or conduct amounting to an abuse of the process of the court; or (2) (a) that there has been inordinate and inexcusable delay on the part of the plaintiff or his lawyers, and (b) that such delay will give rise to a substantial risk that it is not possible to have a fair trial of the issues in the action or is such as is likely to cause or to have caused serious prejudice to the defendants either as between themselves and the plaintiff or between each other or between them and a third party”.(emphasis added)
08. As Lord Diplock clearly explained in his judgment, the above principles were set out in the notes to Order 25 rule 1 of Rules of Supreme Court 1976 which is equivalent to our Order 25 rule 4 under the Summons for Directions. However those principles of prophesy had caused to the development of the new rule such as Order 25 Rule 9. The first limb in the above case is the intentional and contumelious default. Lord Diplock in his wisdom did not leave the first limb unexplained, but, His Lordship gave two examples for that first limb. One is disobedience to a peremptory order of the court and the other is conduct amounting to an abuse of the process of the court. Thus the second ground provided in Order 25 Rule 9, which is ‘abuse of the process of the court’, is a good example for ‘the intentional and contumelious default’ as illustrated by Lord Diplock in Birkett v. James (supra). According to Lord Diplock abuse of the process of the court falls under broad category of ‘the intentional and contumelious default’ However, Lord Diplock did not explain what act does exactly amount to an abuse of the process of the court.
09. There is a latest judgment by the House of Lords in Grovit and Others v Doctor and Others (1997) 01 WLR 640[1997] UKHL 13; , 1997 (2) ALL ER, 417, where Lord Woolf held that, commencing an action without real intention of bringing to conclusion amounts to an abuse of the process of the court. It was held as follows;
“The court exists to enable parties to have their disputes resolved. To commence and to continue litigation which you have no intention to bring to conclusion can amount to abuse of process. Where this is the situation the party against whom the proceedings is brought is entitled to apply to have the action struck out and if justice so requires (which will frequently be the case) the courts will dismiss the action. The evidence which was relied upon to establish the abuse of process may be the plaintiff's inactivity. The same evidence will then no doubt be capable of supporting an application to dismiss for want of prosecution. However, if there is an abuse of process, it is not strictly necessary to establish want of prosecution under either of the limbs identified by Lord Diplock in Birkettmes <160; [1978] A.C 297.his this case once the conclusion was reached that the reason for the delay was one which involved abusing the process of turt intaining proceedings where there was no intentionntion of carrying the case to trial the cohe court was entitled to dismiss the proceedings".
“During the course of his careful and comprehensive ruling the judge placed considerable emphasis on the judgment of the House of Lords in GrovitOrs v Doctor [1997]L ER 417. That was anas an important decision and the judge was perfectly right to take it into account. It should however be noted that Felix Grovit's action was struck out not because the acd tests for striking out esut established in Birkett v Jam>b> [1977] 2 ALL ER 801;&[1978] AC 297 been satisfied, ied, but because the court found that he h he had commenced and continued the proceedings without any intention of bringing them to a conclusion. In those circumstances the court was entitled to strike out the action as being an abuse of the process of the Court. The relevance of the delay was the evidence that it furnished of the Plaintiff's intention to abuse the process of the Court"
"There is however, in my view another aspect of this matter. An action may also be struck out for contumelious conduct, or abuse of the processhe Court or because a fair fair trial in action is no longer possible. Conduct is in the ordinary way only regarded as contumelious where there is a deliberate failure to comply with a specific order of the court. In my view however a series of separate inordinate and inexcusable delays in complete disregard of the Rules of the Court and with full awareness of the consequences can also properly be regarded as contumelious conduct or, if not that, to an abuse of the process of the court. Both this and the question of fair trial are matters in which the court itself is concerned and do not depend on the defendant raising the question of prejudice."
“The meaning of "inordinate and inexce dela delay" was considered by the Court of Appeal in Oweve Potter v Turtleurtle Airways Limited v Anor Civil Appo. 49 of 1992 (unr (unreported) where the Court held that inordinate meant "so long that prjustice may not be able to be done between the parties"" and xcusable" meant that that there was no reasonable excuse for it, so that some blame for the delay attached to the plaintiff”.
“#8220;Where principle (2) is relied on, both grounds need to be established before an action is struck out. There must be both delay of the kind described and a risk of an unfair trial or serious prejudice to the defendants. In Dment of Transport v Smallemaller (Transport) Limited [1989[1989] 1 All ER 897 the House of Lords dt accepaccept a submisubmission that the decision in Birkettuld be reviewed ewed by holding that where there had been inordinate and inexcusable delay, the action should be struck outn if can still be a fe a fair trial of the issues and even if the defendant has suffered no preo prejudice as a result of the delay. Lord Griffiths, after a review of the authorities and relevant principles, said at 903 that he had not been persuaded that a case had been made out to abandon the need to show that post-writ delay will either make a fair trial impossible or prejudice the defendant. He went on to affirm the principle that the burden is on the defendant to establish that serious prejudice would be caused to it by the delay”.
"The applicant must show that the Plaintiff hiff has been guilty of inordinate delay, that such delay is inexcusable and that it has seriously prejudiced the defendants. Although these considerations are not necessarily exclusive and at the end one must always stand back and have regards to the interests of justice. In this country, ever since NZ Industrial Gases Ld vted v. Andersons Limited [1970] NZLR 58 it has been accepted that if the application is to be succl the Applicant must commence by proving the three factors tors listed."
“The prejudice to a defendant by delay is not to be found solely in the death or disappearance of witnesses or their fading memories or in the loss or destruction of records. There is much prejudice to a defendant in having an action hanging over his head indefinitely , not knowing when it is going to be brought to trial; like the prejudice to Damocles when the sword was suspended over his head at the banquet. It was suspended by a single hair and the banquet was a tantalizing torment to him. So in the President of India case, [1977] Court of Appeal Transcript 383, which we heard the other day. The business house was prejudiced because it could not carry on its business affairs with any confidence, or enter into forward commitments, whilst the action for damages was still in being against it”.
“It was urged that we ought not to strike out a man’s action without trial because it meant depriving him of his right to come to the Queen’s Courts. Magna Carta was invoked against us as if we were in some way breaking its provisions. To this there is a short answer. The delay of justice is a denial of justice. Magna Carta will have none of it. “To no one will we deny or delay right or justice.
All through the years men have protested at the law’s delay and counted it as a grievous wrong, hard to bear. Shakespeare ranks it among the whips and scorns of time. Dickens tells how it exhausts finances, patience, courage, hope. To put right this wrong, we will in this court, do all in our power to enforce expedition; and, if need be, we will strike out actions when there has been excessive delay. This is a stern measure. But it is within the inherent jurisdiction of the court. And the Rules of Court expressly permit it. It is the only effective sanction they contain. If a plaintiff fails within the specified time to deliver a statement of claim, or to take out a summons for directions, or to set down the action for trial, the defendant can apply for the action to be dismissed...”
(3) Every person charged with an offence and every party to a civil dispute has the right to have the case determined within a reasonable time.(Emphasis added)
(2) Every party to a civil dispute has the right to have the matter determined by a court of law or if appropriate, by an independent and impartial tribunal.
(3) Every person charged with an offence and every party to a civil dispute has the right to have the case determined within a reasonable time.(Emphasis added)
Fourthly, it constitutes as a serious prejudice to the other party as justice may not be able to be done between the parties if the matter is pending idle without any steps being taken by the relevant party. Therefore, the power of the court under Order 25 rule 9 neither prevents anyone coming before the court, nor it is detrimental to the right of any party under the Constitution, but it is a preventive and punitive measure on the party who abuses the process of the court and constitutional rights with the malice to prevent other party enjoying the right (to have the mater determined within reasonable time) guaranteed under the Constitution. Thus, the misleading argument of the counsel for the plaintiff is rejected.
U.L. Mohamed Azhar
Acting Master
At Lautoka
02/03/2018
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URL: http://www.paclii.org/fj/cases/FJHC/2018/152.html