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High Court of Fiji |
IN THE HIGH COURT OF FIJI
WESTERN DIVISION
AT LAUTOKA
CIVIL JURISDICTION
Civil Action No. HBC 199 of 2013
VISHWA NAND GOUNDER of Tavua, Fiji.
PLAINTIFF
and
ITAUKEI LAND TRUST BOARD a statutory body duly incorporated under Section 3 of the Native Land Trust Act Cap 134 Laws of Fiji.
DEFENDANT
Counsel : Mr. Niven Padarath for the plaintiff
Mr. Tomasi Duanasali for the defendant
Dates of trial : Tuesday, 25th September and Monday, 01st October, 2018
Date of judgment: Thursday, 18th April, 2019
J U D G M E N T
(A) INTRODUCTION
(1) By a writ issued on 31st October 2013, the plaintiff, Vishwa Nand Gounder, brought an action against the defendant, iTLTB, claiming (i) judgment for damages in the sum of $403,380.00 being for loss of cane proceeds (ii) judgment for refund of all extra rental paid in the sum of $1,400.00 (iii) in the alternative, an order requiring the defendant to take steps and to complete the cancellation of the lease issued to Muttamma.
(B) FACTUAL BACKGROUND
The statement of claim which is as follows sets out sufficiently the facts surrounding this claim from the plaintiff’s point
of view as well as the prayers sought by the plaintiff.
1. The Plaintiff is a Sugar Cane Farmer cultivating sugar cane in area of
Tagitagi.
THE LAND
9. Muttamma no longer resides in Fiji and has migrated overseas.
THE NEW LEASE OVER THE LAND
16. The Plaintiff disputed this.
THE AGREEMENT
BREACH
LOSS AND DAMAGES
22. As a result of the breaches, the Plaintiff has suffered loss and damages.
Particulars
(a) Loss of income from 180 tons of Sugar Cane on the 8 acres of land at the rate of $83.00 per ton under native Lease number 28684 since the surrender of the lease on or about the 14th December 2011 to the date of expiry of new lease being the 1st of July 2038.
(b) Extra rental deducted from the new lease from the Plaintiffs cane proceeds after the surrender of the lease and issuance of 8 acres to Muttamma.
(C) THE DEFENCE
The defendant in its statement of defence pleaded, inter alia;
2. THAT the contents of paragraph 2 of the said claim is admitted.
3. THAT the contents of paragraph 3 of the said claim is admitted.
4. THAT the contents of paragraph 4 of the said claim is admitted.
5. THAT the contents of paragraph 5 of the said claim is admitted.
6. THAT the contents of paragraph 6 of the said claim is admitted.
(D) PRE-TRIAL CONFERENCE
The minutes of the pre-trial conference record, inter-alia, the following:
Admitted Facts
7. On or about the 18th May 2010 Native Lease No. 12122 expired.
8. Mutamma no longer resides in Fiji and has migrated overseas.
Issues for trial
6. Whether the Defendant breached its agreement with the Plaintiff?
Particulars
9.1 Loss of income from 180 tons of Sugar Cane on the 8 acres of land at the rate of $83.00 per tonne under Native Lease number 28684 since the surrender of the lease on or about the 14th December 2011 to the date of expiry of new lease being the 1st of July 2018.
9.2 Extra rental deducted from the new lease from the Plaintiffs cane proceeds after the surrender of the lease and issuance of 8 acres to Mutamma.
12. Whether Native Lease No. 12122 was renewed or;
(E) ORAL EVIDENCE
The plaintiff’s case ---- * The plaintiff
*Kavitesh Gounder
The defendant’s case --- *Savenaca Bola
Estate Officer
iTLTB
(F) DOCUMENTARY EVIDENCE
List of Exhibits
Exhibit No. | Description of Exhibits | Tendered by: |
1 | Copy of a lease No. 28684 | Plaintiff |
2 | Lease Offer | “ |
3 | Mishra Prakash & Associates – Letter dated 31/05/2011 | “ |
4 | Surrender of iTaukei Lease-28684 | “ |
5 | Mishra Prakash & Associates – Letter dated 21/09/2011 | “ |
6 | FSC Growers Statement | “ |
6 (a) | Letter dated 03/08/2017.- 5 year production history. | “ |
7 | Instrument of Tenancy -11941 | “ |
8 | Native Land Trust Board Application to Lease – Agricultural | “ |
(G) THE CONSIDERATION AND THE DETERMINATION
(1) The plaintiff is a sugar cane farmer. The defendant, iTLTB, is the lessor of the subject land, Native Lease No. 12122 described as ‘Nakavika’ S/D lot-8 on RR 915 in the Tikina of Tavua, in the province of Ba containing an area of 27 acres, 1 rood 8 perches. The land was leased by the iTLTB to Mr Narayan Samy, the father of the plaintiff, who in a deed executed on 06th December, 1980 granted licences to his brothers, Arjun Gounder and Sagedewan Gounder over certain portions of the land. Under the deed, Arjun Gounder was permitted to occupy and cultivate eight acres of Native lease 12122. The recitals of the deed show that three brothers, namely Narayan Samy, Arjun Gounder and Sagedewan Gounder all contributed to the deposit price of the lease which was registered in the name of Narayan Samy. Narayan Samy granted irrevocable licences to his two brothers and their respective families, executors or administrators to occupy and cultivate the land in question. The land was divided into three parts in the deed and each brother worked in his own portion and contributed towards paying off the lease and the annual rentals. Narayan Samy passed away and Pushpa Kant became the registered proprietor of Native Lease 12122 as the Executor and Trustee of the Estate of Narayan Samy. The plaintiff was registered as the lessee of Native Lease No. 12122 on 19th April, 2000.
(2) Arjun Gounder died on 24th April, 1997. On or about 23rd October, 2003, the Agricultural Tribunal at Lautoka declared a tenancy over 08 acres of land from Native Lease 12122 in favour of ‘Mutamma’ as the Trustee of the Estate of Arjun Gounder. The decision expressly provided that ‘the new tenancy will expire when the tenancy issued to Arjun Gounder would have expired under the provisions of iTLTB’. On or about 18th May 2010 the native Lease 12122 expired.
(3) The plaintiff on or about 2nd July, 2008 made an application for a new lease since the Native Lease 12122 was due to expire on 18th May, 2010. On or about 29th August, 2008, the plaintiff and the defendant executed Native Lease Number 28684 which leased the land to the plaintiff. The lease was executed for a period of 20 years commencing on 01st July, 2008. On or about 22nd October, 2009 ,the plaintiff through his previous solicitors wrote to the defendant enquiring about the refusal to issue the executed copy of the new lease. On 27th October, 2009 the defendant wrote to the plaintiff saying that the lease was issued for the incorrect area of the land and that they had not taken into account the decision of the Agricultural Tribunal.
(4) The defendant says that the new lease should not have been issued to the plaintiff considering ‘Mutamma’s’ interest over part of the said land. The defendant further says that it refused to release the said lease to the plaintiff when it became aware of ‘Mutamma’s subsisting legal interest over the part of the land in question.
(5) The essence of the plaintiff’s claim is that: (reference is made to paragraph 17 to 21 of the statement of claim).
BREACH
(Emphasis added)
(6) The defendant in its statement of defence says; (reference is made to paragraph 14, 15, and 16 of the statement of defence).
(7) Therefore, the essence of the matter for determination by this court is; (reference is made to agreed issues 4 to 8 on pre-trial minutes).
ORAL AGREEMENT
(8) By its defence the defendant pleaded that no oral agreement subsisted between the plaintiff and itself to give away only residential site from the land to Mutamma. The defendant denied the plaintiff’s claim in toto. The defendant’s entire case is that there was no such oral agreement. The defendant’s version in the matter is that “as a matter of the operation of law by virtue of the averred orders of the Agricultural Tribunal, the plaintiff is not entitled to further expect a tenancy over the whole of the land in question in view of Mutamma’s legal interest to the said 8 acres of the same” and it resisted the plaintiff’s claim to enforce the alleged verbal agreement. The defendant says that the Agricultural Tribunal decision is binding on the parties and therefore, Mutamma is entitled to 8 acres of land from Native Lease 12122. On the other hand the plaintiff contends that on 18th May 2010 the Native Lease expired and upon expiry of the lease the interest of Mutamma in the lease ceased to be effective.
PROVING THE EXISTENCE OF AN ORAL AGREEMENT
(9) The Plaintiff is suing on an oral agreement. He is seeking to enforce an oral agreement. If an oral agreement becomes the subject of legal proceedings a court is unlikely to uphold that agreement if the essential elements of a contract are not satisfied. The real problem is overcoming the burden of proof. Where a person alleges the existence of an oral contract, that party has the burden of proving the assertion to the satisfaction of the court. The onus is upon the plaintiff to prove the existence of the essential elements of a contract. When considering whether an oral contract has been formed, it is important to determine whether or not the fundamental elements of a contract have been satisfied. If the elements are satisfied, a disputing party will have a difficult task in trying to disprove the existence of a contractual relationship. First and foremost, the plaintiff has to prove the alleged oral agreement.
ESSENTIAL ELEMENTS OF A CONTRACT
(10) The creation of a binding contract requires the contracting parties to meet a number of requirements that are prescribed by common law. These requirements are referred to as the elements of a valid contract and consist of the following:
* Offer
* Acceptance
* Consideration
* Intention to create legal relations
* Capacity to contract.
OFFER
(11) An offer is an expression of readiness to contract on the terms specified by the offeror which, if accepted by the offeree, will give rise to a binding contract. It is by acceptance that an offer becomes a contract.
(12) The plaintiff at the trial relied on a correspondence dated 21st September, 2011, written by the plaintiff’s previous solicitor, Mr Vipul Mishra to the defendant. The correspondence is in these terms; (PE-5)
OUR Ref: MKY
21st September, 2011
The Manager- North Western Region
iTaukei Land Trust Board
P O Box 73
LAUTOKA, FIJI.
WITHOUT PREJUDICE OTHER THAN AS TO COSTS
Dear Sir,
FARM NO. 221/02936 – AGRICULTURAL TRIBUNAL ORDER REF NO. WD : 25 OF 1993 – NLTB NO. 4/4/50039794 – VISHWA NANDAN GOUNDER F/N NARAIN SAMI
We refer to the discussions held by your Legal Officer, Ms. Nellie with our Mr Vipul Mishra in order to resolve this matter quickly. The proposal of the legal officer was put to our client. Our client has agreed that the house site area be subdivided and given to the Estate of Arjun Gounder. The Estate of Arjun Gounder is to bear all costs of subdivision, payment of partial surrender fees and any other premiums to be paid to either iTaukei Land Trust Board or to the Registrar of Titles Office.
All documents to be signed by our client is to be forwarded to us for perusal and confirmation before execution. Our client has said that our costs will also have to be paid by the Estate of Arjun Gounder which we will keep on the lower side.
The effort taken by the Board to resolve this matter satisfactorily is appreciated by this Office.
Yours faithfully,
MISHSRA PRAKASH & ASSOCIATES
Per: (Signed)
For Vipul M Mishra
(13) The correspondence relied on by the plaintiff contain the written acceptance of the alleged oral offer. The defendant has not replied to the correspondence relating to the communication of acceptance.
The crucial paragraph in the correspondence is;
“We refer to the discussions held by your Legal Officer, Ms. Nellie with our Mr Vipul Mishra in order to resolve this matter quickly. The proposal of the legal officer was put to our client. Our client has agreed that the house site area be subdivided and given to the Estate of Arjun Gounder.”
The defendant stoutly denied there was any such proposal or offer. To form a contract there must be an offer by one party. The onus is upon the plaintiff to prove the offer. Mr. Mishra plays an important role in proving the version of the plaintiff. He seems to be in a position to cast light on how, when and where offer was made and what the terms were. The absence of Mr. Mishra, (the person to whom the alleged offer is made) from the witness box to give oral evidence of what transpired and what are the terms of the offer (if any) leads to an inference that the evidence of the absent witness, if called, would not have assisted the plaintiff and leads me to a finding that the plaintiff has not discharged the civil burden of proof on the factual issue of offer. If the story about the offer is true, the plaintiff should have examined Mr. Mishra. I am unable to see how any finding can be reasonably made about how, when and where offer was made and what the terms were in the absence of Mr. Mishra from the witness box. There is no evidence of an offer made by or on behalf of the defendant to give away residential site from the land to Mutamma. The whole edifice of (the plaintiff’s case) collapses in the absence of Mr.Mishra from the witness box. I reject out of hand the claim by the plaintiff that there was an oral contract for the “surrender of the new lease in return for an issuance of a fresh lease being residential site for Mutamma and the balance of the lease to be granted to the plaintiff”. That is the end of the matter. There has been a suggestion by counsel for the plaintiff that “since the defendant took the position that there was no agreement it was important for the defendant to call the witness Ms. Nellie.” What is the evidentiary consequence of the failure of the defendant to call (Ms) Nellie off iTLTB? Of course, the fact that the defendant has not called (Ms) Nellie to give evidence does not entitle the plaintiff to an automatic finding in his favour on the factual issue of offer. The plaintiff had the onus of proof and the fact that the defendant does not call oral evidence of (Ms) Nellie does not absolve the plaintiff from proving his case. The onus is upon the plaintiff to prove the alleged oral offer. Her evidence would not help the plaintiff’s case. She is a witness to rebut the evidence of Mr Mishra, the person to whom the alleged offer is made. Reliance was placed by counsel for the plaintiff on the decision of “Gaskell v Denkas Building Services Pty Limited 2008 NSWCA 35. As regards counsel for the plaintiff’s submission, he, counsel, did not refer to any passage in the judgment in that case which supports his contention and I see none on referring to it.
(14) The plaintiff said in evidence that the officer of iTLTB (Ms) Nellie brought the documents to his farm to surrender his iTAUKEI Lease No. 28684. The plaintiff exhibited the document he signed as PE-4, the ‘surrender of Lease No- 28684 ’. The plaintiff also said in his evidence that he did not have an opportunity to read the document. He said he put his signature to the document on the understanding and belief that he was surrendering only the house site.
The plaintiff’s exhibit PE-4, the surrender is in these terms;
SURRENDER
The following ITAUKEI LEASE No. 28684 dated 10th day of September, 2008 containing 27A. IR. 09P is hereby WHOLLY surrendered as from the 31st day of December, 2011.
Title | Number | Name of Land | Tikina | Province | Area |
TL | 28684 | NAKAVIKA S/D LOT 8 ON RR 915 | Tavua | Ba | 27A.IR.09P |
(a) ................................. (sgd)
Signature of Lessee
The Signature by mark of (a) V.N. Gounder was made in my presence and I verily believe that such signature is of the proper handwriting of the person described as VISHWA NADAN GOUNDER of Nakavika, Tavua, Farmer the lessee and I certify that I read over and explained the contents to the lessee in the English language and he appeared fully to understand the meaning and effect thereof.
(b) .......................................(sgd)
Witness
In witness whereof the Seal of the Board is hereunto affixed this 28th day of February, 2012.
The Common Seal of the iTaukei Land Trust Board
was hereunto affixed in pursuance of a resolution of the Board
by and in the presence of
......................................... (sgd)
Member of the Board
The plaintiff contended that he was induced to sign the surrender (PE-4) by the misrepresentation that it was only a partial surrender and not a whole surrender of land.
The suggestion does not sound reasonable and proper.
I need not pronounce a finding as to the alleged fraud or misrepresentation. Fraud or misrepresentation is not mentioned in the pleadings. I need not deal with the allegation of fraud or misrepresentation where fraud or misrepresentation is not expressly pleaded. I cannot resist in saying that it is not the function of the trial judge in the context of an adversarial trial to assist a party to overcome the problems consequent to the position taken by that party in the pleadings. The function of pleadings is to give fair notice of the case which has to be met so that the opposing party may direct his evidence to the issue disclosed by them.
Two further matters may be added to the scales in the defendant’s favour.
SUBDIVISION OF LAND ACT (Cap 140)
(15) If there was an oral agreement to give away residential site from the land to Mutamma it would be unenforceable at law. By virtue of section 4 of the Subdivision of Lands Act, no subdivision may take place without the prior approval of the Director of Town and Country Planning. The subdivision of the property here could not be made without such prior consent. It does not come within any of the exceptions. As such the alleged oral agreement, since it included such a term, was made in contravention of the Act, and was illegal. Application must be made in writing to the Director first, by the person seeking to subdivide the land. [Section 5].
The statutory provisions need not be pleaded for the court to consider them.
NO MEMORANDUM
(16) Besides, if there was an oral agreement to give away residential site from the land to Mutamma it would be unenforceable at law anyway since it fails to comply with Section 59 of the Indemnity, Guarantee and Bailment Act, Cap 232.
Section 59 relevantly provides;
Promises or agreements by parol
*59. No action shall be brought-
(a) wh to charge any executor otor or administrator upon any special promise to answer damages out of his own estate; or
(b) whereby to charge the defendant upon any special promi answer for the debt, defaudefault or miscarriage of another person; or
(c) to charge any person upon any agreement madn consideration of marriage; or
(d) upon;upon any act or sale oale of lands, tenements or hereditaments or any interest in or concerning them; or
(e) upon any agreethat is not tnot to be performed within the space of one yeom the making thereof,<
unless the agreement upon which such action is to be brought or some memorandum or note theis in writing and signed byed by the party to be charged there or some other person thereunto by him lawfully authorized.
Clearly there is no note or memorandum of the alleged oral agreement within the terms of section 59 of the Act.
(H) ORDER
The plaintiff’s claim is dismissed.
In the circumstances of the case, I make no order as to costs.
Jude Nanayakkara
[Judge]
At Lautoka,
Thursday, 18th April, 2019
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