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SB Holdings Ltd v Hussain [1997] FJHC 41; Hbc0067d.96b (20 March 1997)

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Fiji Islands - SB Holdings Ltd v Hussain - Pacific Law Materials

IN THE HIGH COF FIJI

AT LABASA

CIVIL JURISDICTION

CIVIL ACTION 67 OF 1996 (LABASA)
Civil Action No. 408 of 1996 (Suva)

p class=MsoNormal alal align=center style="text-align: center; margin-top: 1; margin-bottom: 1"> BETWEEN:

SOLDINGS LIMITED
Plaintiff

AND:

1. MOHAMMED TAHIR HUSSAINs/o Gulam Hussain
2. LIAKAT HUSSAIN
s/o Mohammed Tahir Hussain
3. LABASA BLUE METAL LIMITED
4. MOHAMMED ABDUL
s/o Sheikh Mohammed Hanif
5. SEREMAIA RAMOCE No. 1
6. SEREMAIA RAMOCE No. 2
7. DOBUI RAILALA
8. LAISIASA WAQAMOCE
Defendants

Mr. H. Nagin for the Plaintr> Mr. A. Sen for the Defendants

DECISION

ass=MsoNormal stal style="margin-top: 1; margin-bottom: 1"> This is the Plaintiff's motion filed 16 Decemb96 seeking the following orders:

1. AN ORDER that the Defendants be restrained by themselves and/or through servants and/or agents ands and/or howsoever from interfering with Plaintiff's operations at Korotari River of extracting river gravel until the hearing and determination of this action.

2. AN ORDER restraining the Defes by themselves and/or through their servants and/or agentsgents and/or howsoever from extracting or removing any river gravel, sand, stones or lime from the Plaintiff's licensed area at Korotari River, Labasa until the hearing and determination of this action.

The facts

The Plaintiff (hereafter referred to as the "Company") carrys e business of earth-moving,ving, civil engineering and supply of crushed metal, river gravel and sand.

On 9 August 1996 the company wanted by the Director of Lands a Licence No. 2/96 for the removal of sand, lime and common smon stones from Korotari River, Labasa.

It is alleged by the Company that since 23 August 1996 the fifth, seventh and eighth defendants have been preventing the Company from removing river gravel from Korotari River. But first, second and fourth defendants have been illegally and without any colour of right extracting river gravel from the licensed site.

The Divisional Surveyor Northern wrote to D5 directing him to move to his owa but the defendants have nave not taken any heed of that and they continue interfering with the Company's operations consequently the Company has suffered substantial and irreparable loss and it is not able to perform its contracts to supply river gravel.

Subsely, because of not following the Director of Land's directions, on 13 September 1996 the Mahe Mataqali Mataniwai's licence was cancelled.

Then on 18 September 1996 the Fiji Court of Appeal granted an ex parte injunction restraining the defendants from interfering with the Company's operations at Korotari River.

The Company alleges that immediately after the dissolution of the injunction grantethe Fiji Court of Appeal thal the defendants, contrary to assurance given, illegally commenced gravel extraction in Korotari River and started interfering with the Company's operations and are not allowing it to carry out its gravel extraction work. Consequently, the Company says that it is suffering irreparable damage to its business and is therefore seeking injunction orders.

The Compays that D5 applied for leave for Judicial Review in respect of the Director of Lands cancelancelling his licence to extract gravel from Korotari River and also against the Director of Lands issue of a licence to the Company to extract gravel from the Korotari river. The decision refusing the grant of leave was given by the Honourable Chief Justice on 21 January 1997.

The Defendants' contention

In the written submission filed by Mr. Sen are contained the grounds on which thendants rely in opposing thig this application for an injunction.

Mr. Sen for the defendants submits that the basis of the "Plafs claim is that he has a ls a licence while the defendants don't." He says that because the letters from the Lands Department have been considered by Scott J and Fiji Court of Appeal, it is an abuse of the process of the Court to make this application.

Consideration of the issue

Mr. Sen is arguing that because Scott J. had refused interlocutory injunction before on an ical application and the Fihe Fiji Court of Appeal has also dissolved the interim injunction, the matter is res judicata and that the same issue cannot be relitigated. He says that there is also an appeal by the Plaintiff pending in the Fiji Court of Appeal against the refusal of injunction by Scott J. Further, he says that Motion of Appeal dated 7 February 1996 (should be 1997) has been lodged against the Chief Justices's refusal

of leave to defendant for Judicial Review on 21 January 1997 in Judicial Review No. 27/96.

As far as the matter of Judicial Review by the fifth defendant (Seremaia Ramoce No. 1) is concerned, it dealt firstly, with leave to file judicial review of the decision of the Director of Lands to issue licence to the Company in this action to extract gravel from Korotari river and secondly, decision by the Director of Lands cancelling licence issued to the fifth defendant on 13 August 1996 to extract gravel from Korotari river with effect from 13 September 1996. The Chief Justice refused the application for leave to apply for Judicial Review and Notice of Appeal has been lodged against such refusal.

As I see it, the Company's licen not affected by such refusal. It is still valid and stands as against the defendants who hwho have no licence at all and this fact has been admitted by them. The question that arises now is what right have they to interfere with the Plaintiff's operations? None whatsoever in my view on the facts and circumstances of this case. The fact that there is an appeal does not affect the Company's licence.

As far as Scott J's decision of 4 September 1996 is concerned, it has to be looked at in the light of the facts

that werere His Lordship. He said in his decision, inter alia, that:

"having seen the documents presented by the parties it is perfeperfectly clear to me that it was the intention of the native owners of the land in question that the 1st Defendant and not the Plaintiff should be allowed to remove gravel from the site in question."

It is to be noted thasequently leave for judicial review was refused in respect of the area in question by the Cthe Chief Justice.

Scott J goes on to say:

"On the basis of the incomplete information and materials placed beforbefore me I do not think I would be justified in interfering on the side of one party at this stage. It is evident to me that the native owners in both mataqali must sit down with the Director of Lands and sort out this muddle. If all attempts to resolve the dispute administratively fail then the matter can be restored in Labasa next month. The present application is dismissed."

It is clear from the above the bon which the application was refused. The information before Scott J was incomplete. I have have before me the full facts including the Plaintiff's licence about which there can be no dispute. The decision of the Director of Lands still stands as Judicial Review has been refused on the fifth defendant's application.

One further matter that ought to be considered is that although the intenjunction was discharged byed by the Fiji Court of Appeal, the fact that the defendants are again interfering with the Company's operations there is nothing to stop the Company from coming to this Court and making the very same type of application to Court and this is what the Company is doing now. I am therefore required to consider the application on the affidavit evidence before me.

It is my view that any appeals or proposed appeals do not in any way affect the present application being made. When the facts are so clear that it is the Company which has the licence and not the defendants, the Court will come to the Company's aid and allow it to continue with its operations under the said licence.

The defendants know very well that the licence in question is for one yely and there is only a few few months to go for it to expire. It is abundantly clear from the discussion I had with the parties concerned at Labasa in my Chambers, that the defendants have no licence at all and they have admitted that that is so. Then what right have they to interfere? If they want to contest this action it is entirely upon them but they cannot prevent the Company from operating under the licence. No amount of threat of violence, which some of them indicated to Court, erupting from allowing the Company to operate should or will thwart the Company's operations.

In view of what I have said hereabove in regard to the previocisions, I reject the defendants' counsel's submission that that the principle of res judicata applies to the facts and circumstances of this case.

The decisions were interlocutory decision with liberty reserved to parties to apply to Court. None of the cases cited by Mr. Sen has any relevance to the facts of this case. I have already stated how Scott J came to his decision but still left it open to them to come before the Court on three days' notice. The decision on the Judicial Review means that there is only one valid licence and it is that of the Company. In Chambers on 20 January 1997 the fourth defendant Abdul told the Court that he has no licence saying "but I am extracting gravel and stone under permission granted to me by the Mataqali:" and as it has come out in evidence that the Mataqali's licence has been cancelled.

To conclude, it is abundantly clear that the defendao not possess any licence in respect of Korotari River over over which there is this dispute. It is the Company which holds Licence No. 2/96 over Korotari River.

I find that on the facts and circumstances of this case, the Company is entitled to the injunction. The guiding principles in the granting or refusal of an interlocutory injunction have been borne in mind by me as stated by LORD DENNING in HUBBARD v VOSPER (1972) 2 WLR 389 at p.396. He said:

"nsidering whether to grant an interlocutory injunction, the right course for a judge is to s to look at the whole case. He must have regard not only to the strength of the claim but also to the strength of the defence, and, then, decide what is best to be done. Sometimes, it is best to grant an injunction so as to maintain the status quo until the trial. At other times, it is best not to impose a restraint upon the defendant but leave him free to go ahead. For instance, in Fraser v Evans [1969] 1 QB 349, although the plaintiff owned the copyright, we did not grant an injunction because the defendant might have a defence of fair dealing. The remedy by interlocutory injunction is so useful that it should be kept flexible and discretionary. It must not be made the subject of strict rules."

On a balance of convenience between the parties, when one party has the licence and the otht, there ought to be an injn injunction restraining the defendants from interfering with the Company's operations. In coming to this conclusion I have not lost sight of the following passage from the judgment of LORD DIPLOCK in AMERICAN CYANAMID CO v ETHICON LTD [1975] UKHL 1; (1975) AC 396 at p.406:

"... to protect the plaintiff againjury by violation of his right for which he could not be adbe adequately compensated in damages recoverable in the action if the uncertainty were resolved in his favour at the trial; but the plaintiff's need for such protection must be weighed against the corresponding need of the defendant to be protected against injury resulting from his having been prevented from exercising his own legal rights for which he could not be adequately compensated under the plaintiff's undertaking in damages if the uncertainty were resolved in the defendant's favour at the trial. The court must weigh one need against another and determine where "the balance of convenience" lies".

For these reasons the Company is in the circumstances entitled to Orders for injun which are granted as pray prayed. The defendants are ordered to pay costs which is to be taxed unless agreed.

D. Pathik
JUDGE

At Suva
20 March 1997

Hbc0067d.96b


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