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Suva City Council v Ratulevu [2000] FJHC 35; Hba0001J.99s (3 March 2000)

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Fiji Islands - Suva City Council v Ratulevu - Pacific Law Materials

IN THE HIGH COURT OF FIJI

At Suva

Appellate Jurisdiction

p class=MsoNormal alal align=center style="text-align: center; margin-top: 1; margin-bottom: 1"> CIVIL APPEAL NO. 0001 OF 1999

Between:

SUVA CITY COUNCIL

Appellant

- and -

MANASA RATULEVU

Respondent

Mr. R. Gopal for the Appellant

Appellant in Person

JUDGMENT

The brief facts of this case are that the respondent is the registered proprietor of a pry at Sukanaivalu Road, Nad, Nabua within the boundaries of the Suva City for which he is liable to pay to the appellant council rates under the provisions of the Local Government Act (Cap.125). By a claim dated 23rd October 1996 issued out of the Small Claims Tribunal the appellant Council claimed the sum of $1,063.33 for outstanding rates and interest owed by the respondent on his aforesaid property and accumulated since 1988.

On 11th March the Small Claims Tribunal (nal (`the Tribunal’) having heard the parties made the following Order :

`That the respondent Manasa Ratulevu, pay the Suva City Council the sum of ... ($526.81) being full and final settlement of rate arrears to 31.12.96. This sum includes interest and Vat.

That payment be made in consecutive monthly instalments of (0) until such times as the stated sum is paid in full commecommencing March, 1997.

That in settlement of this Order, the Suva City Council waives the rig charge further interest for the period 1991-1996 that may may have accumulated since 23rd October 1996.

The claim for arrears prior to 1991 is dism.’

It is clear from the above Order and the Report prepared by the Tribunal for appeal purposes that the Tribunal had confined the Council’s claim for arrears of rates to those accumulated from 1991 and not since 1988 on the basis that pre-1991 arrears `exceeded the statutory limitation of time’. Further `that compounding interest will not be considered’ by the Tribunal which had as its purpose the establishment of `(a) quick and just and viable settlement based on common sense’ and further `that the issue of an Order based solely on settlement of the amount owing at the time the claim was lodged would not fully resolve and clear the slate for either party’. It was also made clear to counsel for the appellant Council that `if they disagree with the above policy they are at liberty to withdraw the case and place them before the Civil Court’.

From this Order the appellant Council appealed to the Magistrate Court on the ground:

`(1) &nThe Tribunal exce exceedeceeded its jurisdiction in ordering that the respondent (sic) waived its right to charge further interest for the period 1991-1998 ; and

(2) & p; &nsp;&nbssp;&ssp;  p;nbssp;&nbp; The Tribunceedxceeded its jurisdiction in ordering that the claim for arrears pri 1991ismis

: 1">

On 8th September 1998 the Magistrate Court dismissed ssed the appeal on the basis that `... the appeal does not fall within S.33(1) of the Small Claims Tribunal Decree 1991'. In her judgment the learned magistrate noted the Council’s grounds of appeal and set out the provisions of Section 33(1) of the Small Claims Tribunal Decree 1991 (``the Decree’) and says at p.10 (of the record) :

`According to the above there are two grounds of appeal from the Small Claims Tribunal and they a

(1) &nnbsp; &nnbsp; &nbp; &nbp; Procedfaal ess whic which prejudicially affects the

outcome.

(2) Jurisdi tionexas dedee S.8- S.8 of the Decree conferred on the Tribunal the jurisdiction in respect of any claim which dot ex$2,00in va

Then after setting out the statutory limitation of the Tribunal’s jurisdiction under `the Decree’ (none of which were applicable to the council’s claim in the case) the learned magistrate states :

`Now considering the appellant’s two grounds of appeal and whether they fall within the ambit of S.33f the Small Claims Tribunalbunal Decree of 1991. I find they do not. The grounds of appeal in the Decree are very narrow. The claim was within $2,000 and the proceedings were conducted by the referee in a fair manner.’

Quite plainly in dismissing the appeal the learned Magistrate consi that the appeal was incompetent in not coming within eitheeither of the allowable grounds of appeal provided for in `the Decree’. It was therefore unnecessary for her to consider the appeal on its merits.

In arguing the present appeal, counsel for the Council confined himself tond (2) above which dealt with the decision by the Trhe Tribunal limiting the Council’s claim to arrears of rates accumulated for six (6) years (i.e. 1991 to 1996 inclusive).

That six (6) year limitation counsel submits is a clear reference by the Tribunal to the statutory limitation permposed under Section 4(1n 4(1) of the Limitation Act (Cap.35) for`(a) actions founded on simple contract ...’ ; and `(d) actions to recover any sum recoverable by virtue of any Act, other then a penalty or forfeiture ...’

In so limiting the Coun claim counsel submits that the Tribunal erred in law in failing to `have regard to t to the law’ (See : Section 15(4) of (`the Decree’), in particular, the provisions of Section 8(1) of the Limitation Act (Cap.35) which imposes a twenty (20) year limitation period for any `action brought to recover any principal sum of money secured by ... a charge on property’. In this latter regard Section 75(1) of the Local Government Act (Cap.125) makes it clear that `... rates assessed and recorded in a rate book ... shall be a first charge on the land rated ...’ [See also : the judgment of Byrne J. in S.C.C. v. K.W. March Limited Civil Action No. 957 of 1982 (unreported)].

That submission however is one that necessarily addresses the merits of the appeal and wouldbe available in this appealppeal unless it could be first shown that the learned magistrate erred in dismissing the Council’s appeal as incompetent.

In this latter regard counsel’s brief submission is that the learned magistrate erred in confining her consideration of the `jurisdiction’ of the Tribunal to being `merely and solely a question of the quantum of the claim before it’ and since the Council’s claim was for less than $2,000 therefore the Tribunal had `jurisdiction’ to hear and determine it [See : Section 8(1) of `the Decree’].

In other words whilst accepting that Section 33 of `the Decree’ only recog two (2) grounds of s of appeal counsel nevertheless submits ,that the term `jurisdiction’ in ground (b) of Section 33(1) `means more than just the monetary value of the claim and includes legal jurisdiction’ (whatever that may mean).

In Garthwaite v. Garthwaite (1964) PD 356 Diplock L.J. distinguished between the two senses in which the term `jurisdiction’ is used when he said at p.387 :

`In its narrow and strict sense the `jurisdiction’ of a validly constituted court connotes the limits whichimposed upon its power to h to hear and determine issues between persons seeking to avail themselves of its process by reference (1) to the subject-matter of the issue or (2) to the persons between whom the issue is joined or (3) to the kind of relief sought, or to any combination of these factors. In its wider sense it embraces also the settled practice of the court to hear and determine issues which fall within its `jurisdiction’ (in the strict sense) or as to the circumstances in which it will grant a particular kind of relief which it has `jurisdiction’ (in the strict sense) to grant, including its settled practice to refuse to exercise such powers or to grant such relief in particular circumstances.’

Having carefully considered the scheme of `the Decree’ I am satisfied `jurisdiction’ in Section 33(1)(b) i/b> is used in the strict sense and comprises not only the monetary restriction on claims provided for in Section 8(1) but also includes the orders that a small claims tribunal is empowered to make under Section 16(1) of `the Decree’ in giving effect to its determination of the dispute before it.

In this case there can be no dispute the monetary value of the Council’s claim was well within the `jurisdiction’< of the Tribunal to entertain and determine and no complaint can be nor was any raised on that score. Counsel complains however that the various orders of the Tribunal are beyond the powers given it under Section 16 and are appealable as being in excess of its `jurisdiction’.

Whatsmore in determining a dispute before it the small claims tribunal is required in terms of Section 15(4), amongst other things, `(to) have regard to the law’ and, although `not bound to give effect to strict legal rights or obligations ...’, nevertheless, counsel argues, a determination that ignores or misapplies relevant legal principles cannot be said to have been arrived at `... according to the substantial merits and justice of the case’.

This argument of counsel for the Council has thankfbeen addressed in the context of similar legislation in New Zealand which includes an identidentical provision to Section 15(4) of `the Decree’ in the case of NZI Insurance v. Auckland District Court (1993) 3 NZLR 453.

Thorp J. in conceding the difficulty of interpreting the Section said at p.459 :

`Section 18(6) [which is identical to our Section 15(4)]> is not an easy provision to construe. It can properly be y be contended that, in the ordinary sense of the term, a person would not be said to have `had regard’ to something if he or she did not know of its existence. On the other hand, other provisions of the Act, such as those which make it unnecessary for referees to have professional legal qualifications and disqualify persons with such qualifications from appearing before Tribunals, when taken in the context of the very broad spectrum of disputes referable to tribunals, point the other way. At the least it is difficult to accept any interpretation which placed an obligation on referees to know all relevant legal principles, or which would disqualify any referee who was not so informed.’

and later in rejecting the submission his lop said at p.460 :

`... my view is that the formulation of the right of appeal ...... has too plain and definite a meaning to yield to the inferences which might otherwise be drawn from the requirement in Section 18(6) that tribunals `shall have regard to the law’ particularly when due regard is had to the qualified nature of that requirement and to the clear intention of the Act that referees need not have legal training and should not be assisted by professional advocates. But that analysis ...... as to the normal construction of the relevant provisions is not intended to deny or disregard the awkwardness of marrying the provisions of Section 18(6) to an interpretation which accepts that errors of law on the part of referees will, in the ordinary event, remain uncorrected’.

Returning then to Counsel’s complaint that theunal had wrongly limited the Council’s claim to six (6) years of rate arrears based ased on a pre-determined albeit declared `policy’ which plainly misinterprets the law as set out in Section 8 of the Limitation Act (Cap.35) read with Section 75(1) of the Local Government Act (Cap.125).

In this regard Section 16 empowers a small claims tribunal soas relevant for present purposes to :

p class=MsoNormal stal style="text-align: justify; margin: 1 36.0pt"> `make one or more of the following orders and may include therein such stipulations and conditions (whether to the time for, or the mode of, compliance or otherwise) as it thinks fit :

(a)  p;&nbbsp;&nsp; &nsp;  p; &nnsp;& the Trie Tribunal may order a party to the proceedings to oney y other party;

(b) &nnsp;&nbp;&&nbp;;&nbpp;&nbp; the Tribuny mmae anke an order declaring that a person is not liable to another in respect of a claim or demand for money ...d

(g) &nnbsp;; &bsp; the Tri unal may maay make an order dismissing taim.’

In the present case the Tribunal’s orders were plainly within its jurisdiction to insofar as it :

(1) &nnsp;&&nsp;;&nspp;&nssp;&nsp; ordered the respondent `to pay’ the Council $526.81 vi: order (a) above ; and

(2)  p; &nnsp;&&nsp; &nbp;  &nbbs;&nspan>stipulated the `mode of compliance’ with (1) by the `payment in cutivthly lments of $3of $30.00'0.00'< ; and finally,

(3)  p;&nbbsp;&nsp; &nsp;  p; &nnsp;& withoutthout exactly saying so, declared that the respondent is not liable to pay compound interest or rate rs ded or ed by the Councior to 1991 and which claims aims were were dismidismissed ssed viz : orders (b) & (g) above.

In support of his submissions how Counsel relies upon the judgment of Hammond J. in Auckland City Council v. Hev. Henderson District Court [1997] NZHC 1103; (1998) 1 NZLR 253 (the ACC Case) where, in rejecting the jurisdiction of the Disputes Tribunal (the New Zealand equivalent of our Small Claims Tribunal) to decide a dispute in respect of a penalty claimed by a local authority under the Rating Powers Act, his lordship said at p.256 :

`Whether a statutory debt is properly due will often depend upon the interpretation of difficult tory provisions and it is i is inappropriate to endeavour to resolve those in an equity and good conscience jurisdiction. Further I think that the Rating Powers Act is to be considered a taxing statute : in matters of taxation there requires to be a high degree of certainty as to the rights and obligations of the parties : issues of that kind can only be determined strictly in accordance with the law.’

p class=MsoN=MsoNormal style="text-align: justify; margin-top: 1; margin-bottom: 1"> That however was a case where the ratepayer challenged the Council’s penalty notice by invoking the Disputes Tribunal’s processes and which the Court said on appeal was `inappropriate’. In the present case and despite the clear `policy’ indication and invitation by the Tribunal for the Council’s claim to be taken up in the Magistrates Court, the claim was willingly and intentionally pursued by the Council before the Tribunal. It cannot now be heard to cry foul!

Furthermore in the ACC case tpowering provision confined the Disputes Tribunal to `... a claim or demand fond founded on contract or quasi contract ...’ which a claim for rating penalties was plainly not. Here the Tribunal is empowered to make orders under Section 16(1)(b) `in respect of a claim or demand for money ‘ which is exactly the Council’s claim against the respondent albeit that it was for overdue rates and interest thereon. In other words the claim in the ACC case was clearly outside the jurisdiction of the tribunal to deal with whereas the Council’s claim in this case is clearly within its jurisdiction. On this basis alone the ACC case is plainly distinguishable from the present case.

In light of the foregoing I am fied that the learned magistrate’s judgment was correct. The appeal is accordingly dismissemissed.

(D.V. Fatiaki)

Judge

At Suva,

3rd March, 2000.

HBA0001J.99S


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