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High Court of Fiji |
IN THE HIGH COURT OF FIJI
AT SUVA
CIVIL JURISDICTION
Civil Action No. HBC 124 of 2024
BETWEEN:
VIMLESH PRAKASH
PLAINTIFF
AND:
IFRAZ ALI
DEFENDANT
BEFORE:
Acting Master L. K. Wickramasekara
COUNSELS:
Parshotam Lawyers for the Plaintiff
Messrs. Maqbool Lawyers for the Defendant
Date of Hearing:
By way of Written Submissions
Date of Ruling:
28th March 2025
RULING
01. The Defendant on 18/11/2024 filed Summons to Strike Out the Writ of Summons and the Statement of Claim filed by the Plaintiff on the 18/04/2024. This Summons has been made pursuant to Order 18 Rule 18 (1) (a) of the High Court Rules 1988, on the ground that the Plaintiff’s Statement of Claim discloses no reasonable cause of action, and that the Plaintiff’s claim is statute barred.
02. Both parties were directed by the Court to file written submissions regarding this application. Accordingly, the Plaintiff filed its written submissions on 24/12/2024 and in response, the Defendant filed a comprehensive written submission on 06/01/2025.
03. Having considered the written submissions by the parties along with the pleadings in the matter, I now proceed to make my Ruling on the Summons to Strike Out as follows.
04. The Plaintiff’s claim is arising out of a business agreement between the Plaintiff and the Defendant for occupying the Defendant’s business property (the yard) to ‘build and operate’ a business from the said premises and in lieu of rent, the Plaintiff was to assist with all accounting matters in the Defendant’s business.
05. It is further alleged that sometime after, the relationship between the parties grew sore and the Plaintiff was demanded to leave the said yard. Plaintiff alleges that when he vacated the yard of the Defendant, all the Plaintiff’s items that were on the said yard were inventoried, jointly by the Plaintiff and the Defendant and that the Plaintiff only removed some of the movable items whereas the rest was left behind. Defendant had thereafter expressed his intention of buying the remaining items of the Plaintiff, but the same had not eventuated. It is further alleged that although the Plaintiff thereafter attempted to liaise with the Defendant on removing the remaining items, the Defendant had not entertained the Plaintiff in this regard. As such the Plaintiff claims that the Defendant is holding the remaining items of the Plaintiff in a trust.
06. The Plaintiff in its Statement of Claim seeks the following orders,
- A declaration that Defendant holds the items listed in paragraph 9 herein in trust for the Plaintiff.
- An order that the Defendant return the items listed in paragraph 9 herein to the Plaintiff forthwith and the condition and value of such items be determined by a registered valuer appointed by the Chief Registrar.
- The Defendant pay damages to the Plaintiff in the sum of $ 96000.00 less the value of the items as determined by the valuer.
- Alternatively, an order that the Defendant pay the Plaintiff the sum of $ 96000.00 as damages as compensation for the items specified in paragraph 9 herein.
- Interest on the judgment sum.
- Costs of this action.
- Such further and other relief as this Honurable Court considers appropriate.
07. The Defendant, in its Statement of Defence had denied that the Plaintiff build and operate a business from his property. He had submitted that the business the Plaintiff is referring to was owned by one Mohammed Rafiq and the items claimed by the Plaintiff belongs to the said Mohammed Rafiq and the Defendant’s father. Accordingly, the Defendant has prayed in his Statement of Defence for the following orders,
- To strike out the claim as it is out of time (Limitation Act 1971-Part 2 (Sec 4-7) as claim should be within 6 years.
- A declaration that the pending items be returned to the owner, Estate of Mohammed Rafiq.
- The Plaintiff to pay my solicitors costs and all our running around costs together with all the harassment we have had to go through since 2017.
- Any such other relief that this Honourable Court considers just and appropriate.
08. In its reply to the Statement of Defence, the Plaintiff has denied the allegations that the Plaintiff did not build and operate a business from the Defendants yard and that the items claimed do not belong to the Plaintiff. He has further submitted that the Defendants actions in taking an inventory of the property belonging to the Plaintiff and retaining part of those items has created a constructive trust regarding the retained items. It is alleged by the Plaintiff that this trust was to the effect that the Defendant would hold the Plaintiff’s property in trust until such time the Plaintiff removes those items or that the Plaintiff is adequately compensated by the Defendant for these items.
09. There was no affidavit evidence filed in support of the Summons to Strike Out as it was made pursuant to Order 18 Rule 18 (1) (a) of the High Court Rules 1988. However, the Court notes that the Defendant in its written submissions referred to all the alleged evidence on behalf of its case. As the counsel for the Plaintiff has correctly pointed out, this is unacceptable as the written submissions should not consist of evidence which has not been tendered to the Court, in a viva voce examination of witnesses and/or by affidavit.
Striking out pleadings and indorsements (O.18, r.18)
18.- (1) The Court may at any stage of the proceedings order to be struck out or amended any pleading or the indorsement of any writ in the action, or anything in any pleading or in the indorsement, on the ground that–
(a) it discloses no reasonable cause of action or defence, as the case may be; or
(b) it is scandalous, frivolous or vexatious; or
(c) it may prejudice, embarrass or delay the fair trial of the action; or
(d) it is otherwise an abuse of the process of the court;
and may order the action to be stayed or dismissed or judgment to be entered accordingly, as the case may be.
(2) No evidence shall be admissible on an application under paragraph (1)(a).
(3) This rule shall, so far as applicable, apply to an originating summons and a petition as if the summons or petition, as the case may be, were a pleading.
“At a glance, this rule gives two basic messages, and both are salutary for the interest of justice and encourage the access to justice which should not be denied by the glib use of summery procedure of pre-emptory striking out. Firstly, the power given under this rule is permissive which is indicated in the word “may” used at the beginning of this rule as opposed to mandatory. It is a “may do” provision contrary to “must do” provision. Secondly, even though the court is satisfied on any of those grounds mentioned in that rule, the proceedings should not necessarily be struck out as the court can, still, order for amendment. In Carl Zeiss Stiftung v Rayner & Keeler Ltd (No 3) [1970] Ch. 506, it was held that the power given to strike out any pleading or any part of a pleading under this rule is not mandatory but permissive and confers a discretionary jurisdiction to be exercised having regard to the quality and all the circumstances relating to the offending plea. MARSACK J.A. giving concurring judgment of the Court of Appeal in Attorney General v Halka [1972] FJLawRp 35; [1972] 18 FLR 210 (3 November 1972) held that:
“Following the decisions cited in the judgments of the Vice President and of the Judge of the Court below I think it is definitely established that the jurisdiction to strike out proceedings under Order 18 Rule 19 should be very sparingly exercised, and only in exceptional cases. It should not be so exercised where legal questions of importance and difficulty are raised”.
“To establish that the pleadings disclose no reasonable cause of action, regard cannot be had to any affidavit material [Order 18 r.18(2)]. It is the allegations in the pleadings alone that are to be examined: Republic of Peru v Peruvian Guano Company [1887] UKLawRpCh 186; (1887) 36 Ch.D 489 at p.498”.
“A reasonable cause of action means a cause of action with some chance of success, when only the allegations in the statement of case are considered” Drummond-Jackson v British Medical Association [1970] 1 ALL ER 1094 at 1101, [1970] 1 WLR 688 at 696, CA, per Lord Pearson. See also Republic of Peru v Peruvian Guano Co. [1887] UKLawRpCh 186; (1887) 36 ChD 489 at 495 per Chitty J; Hubbuck & Sons Ltd v Wilkinson, Heywood and Clark Ltd [1898] UKLawRpKQB 176; [1899] 1 QB 86 at 90,91, CA, per Lindley MR; Hanratty v Lord Butler of Saffron Walden (1971) 115 Sol Jo 386, CA.
“The power to strike out is a summary power “which should be exercised only in plain and obvious cases”, where the cause of action was “plainly unsustainable”; Drummond-Jackson at p.1101b; A-G of the Duchy of Lancaster v London and NW Railway Company [1892] UKLawRpCh 134; [1892] 3 Ch. 274 at p.277.”
“It is clear from the authorities that the Court's jurisdiction to strike out on the grounds of no reasonable cause of action is to be used sparingly and only where a cause of action is obviously unsustainable. It was not enough to argue that a case is weak and unlikely to succeed, it must be shown that no cause of action exists (A-G v Shiu Prasad Halka [1972] 18 FLR 210; Bavadra v Attorney-General [1987] 3 PLR 95. The principles applicable were succinctly dealt by Justice Kirby in London v Commonwealth [No 2] [1996] HCA 14; 70 ALJR 541 at 544 - 545. These are worth repeating in full:
1. It is a serious matter to deprive a person of access to the courts of law for it is there that the rule of law is upheld, including against Government and other powerful interests. This is why relief, whether under O 26 r 18 or in the inherent jurisdiction of the Court, is rarely and sparingly provided (General Street Industries Inc v Commissioner for Railways (NSW) [1964] HCA 69; (1964) 112 CLR 125 at 128f; Dyson v Attorney-General [1910] UKLawRpKQB 203; [1911] 1 KB 410 at 418).
2. To secure such relief, the party seeking it must show that it is clear, on the face of the opponent's documents, that the opponent lacks a reasonable cause of action (Munnings v Australian Government Solicitor [1994] HCA 65; (1994) 68 ALJR 169 at 171f, per Dawson J.) or is advancing a claim that is clearly frivolous or vexatious; (Dey v. Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62 at 91).
3. An opinion of the Court that a case appears weak and such that it is unlikely to succeed is not alone, sufficient to warrant summary termination. (Coe v The Commonwealth [1979] HCA 68; (1979) 53 ALJR 403; (1992) 30 NSWLR 1 at 5-7). Even a weak case is entitled to the time of a court. Experience reaches that the concentration of attention, elaborated evidence and argument and extended time for reflection will sometimes turn an apparently unpromising cause into a successful judgment.
4. Summary relief of the kind provided for by O 26, r 18, for absence of a reasonable cause of action, is not a substitute for proceeding by way of demurrer. (Coe v The Commonwealth[1979] HCA 68; (1979) 53 ALJR 403 at 409). If there is a serious legal question to be determined, it should ordinarily be determined at a trial for the proof of facts may sometimes assist the judicial mind to understand and apply the law that is invoked and to do so in circumstances more conducive to deciding a real case involving actual litigants rather than one determined on imagined or assumed facts.
5. If notwithstanding the defects of pleadings, it appears that a party may have a reasonable cause of action which it has failed to put in proper form, a court will ordinarily allow that party to reframe its pleadings. (Church of Scientology v Woodward [1982] HCA 78; (1980) 154 CLR 25 at 79). A question has arisen as to whether O 26 r 18 applies only part of a pleading. (Northern Land Council v The Commonwealth [1986] HCA 18; (1986) 161 CLR 1 at 8). However, it is unnecessary in this case to consider that question because the Commonwealth's attack was upon the entirety of Mr. Lindon's statement of claim; and
6. The guiding principle is, as stated in O 26, r 18(2), doing what is just. If it is clear that proceedings within the concept of the pleading under scrutiny are doomed to fail, the Court should dismiss the action to protect the defendant from being further troubled, to save the plaintiff from further costs and disappointment and to relieve the Court of the burden of further wasted time which could be devoted to the determination of claims which have legal merit”.
[LIM 4] Limitation of Actions of Contract and Tort, and Certain Other
Actions
4 (1) The following actions shall not be brought after the expiration of 6 years from the date on which the cause of action accrued, that is to say—
(a) actions founded on simple contract or on tort;
(b) actions to enforce a recognizance;
(c) actions to enforce an award, where the submission is not by an instrument under seal;
(d) actions to recover any sum recoverable by virtue of any Act, other than a penalty or forfeiture or sum by way of penalty or forfeiture, provided that—
(i) in the case of actions for damages for negligence, nuisance or breach of duty (whether the duty exists by virtue of a contract or of provision made by or under any Act or independently of any contract or any such provision) where the damages claimed by the plaintiff for the negligence, nuisance or breach of duty consist of or include damages in respect of personal injuries to any person, this subsection shall have effect as if for the reference to 6 years there were substituted a reference to 3 years; and
(ii) nothing in this subsection shall be taken to refer to any action to which section 6 applies.
(2) An action for an account shall not be brought in respect of any matter which arose more than 6 years before the commencement of the action.
(3) An action upon a specialty shall not be brought after the expiration of 12 years from the date on which the cause of action accrued, provided that this subsection shall not affect any action for which a shorter period of limitation is prescribed by any other provision of this Act.
(4) An action shall not be brought upon any judgment after the expiration of 12 years from the date on which the judgment became enforceable, and no arrears of interest in respect of any judgment debt shall be recovered after the expiration of 6 years from the date on which the interest became due.
(5) An action to recover any penalty or forfeiture, or sum by way of penalty or forfeiture, recoverable by virtue of any Act or Imperial enactment shall not be brought after the expiration of 2 years from the date on which the cause of action accrued, provided that for the purposes of this subsection the expression “penalty” shall not include a fine to which any person is liable on conviction of a criminal offence.
(6) Subsection (1) shall apply to an action to recover seamen’s wages, but save as aforesaid this section shall not apply to any cause of action within the Admiralty jurisdiction of the High Court which is enforceable in rem.
(7) This section shall not apply to any claim for specific performance of a contract or for any injunction or for other equitable relief, except in so far as any provision thereof may be applied by the court by analogy in like manner as has, prior to the commencement of this Act, been applied.
[LIM 9] Limitation of Actions in respect of Trust Property
9 (1) No period of limitation prescribed by the provisions of this Act shall apply to an action by a beneficiary under a trust, being an action—
(a)in respect of any fraud or fraudulent breach of trust to which the trustee was a party or privy; or
(b)to recover from the trustee, trust property or the proceeds thereof in the possession of the trustee or previously received by the trustee and converted to his or her use.
(2) Subject as aforesaid and to the provisions of the Trustee Act 1966, an action by a beneficiary to recover trust property or in respect of any breach of trust, not being an action for which a period of limitation is prescribed by any other provision of this Act, shall not be brought after the expiration of 6 years from the date on which the right of action accrued, provided that the right of action shall not be deemed to have accrued to any beneficiary entitled to a future interest in the trust property, until the interest fell into possession.
(3) No beneficiary as against whom there would be a good defence under the provisions of this Act shall derive any greater or other benefit from a judgment or order obtained by any other beneficiary than he or she could have obtained if he or she had brought the action, and this Act had been pleaded in defence.”
“once it appears that there is a real question to be determined whether of fact or of law and that the rights of the parties depend upon it, then it is not competent for the court to dismiss the action as frivolous and vexatious and an abuse of process”
(as per Dixon J in Dey v.Victorian Railways Commissioners [1949] HCA 1; (1949) 78 CLR 62, 91
L. K. Wickramasekara,
Acting Master of the High Court.
At Suva,
28/03/2025.
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