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High Court of Fiji |
IN THE HIGH COURT OF FIJI
AT SUVA
CIVIL JURISDICTION
Civil Action No.: HBC 27 of 2016
IN THE MATTER of sections 109 and 114 of the Land Transfer Act, Cap 131.
AND
IN THE MATTER of an application to remove Caveat No. 820306 lodged by Simione Valenitabua as agent for Ratu Joseva Vatunitu and placed on iTaukei Lease No. 13796, the property of Barton Limited and for compensation related thereto.
BETWEEN : DUBBO LIMITED a company incorporated in Fiji and having its registered office at c/-Pricewaterhouse Coopers, 52 Narara Parade, Lautoka.
PLAINTIFF
AND : RATU JOSEVA VATUNITU aka RATU JOSEVA SAMUDUNATUA VATUNITU, whose stated address for service is c/-Toganivalu & Valenitabua, 30 High Street, Toorak, Suva.
DEFENDANT
Counsel : Mr. J. Apted, Mr. R. Naidu and Ms. Chang W. for the Plaintiff
Mr. J. Moti for the Defendant
Date of Hearing : 11th May, 2016
Date of Judgment : 20th November, 2017
JUDGMENT
INTRODUCTION
FACTS
ANALYSIS
“Any such applicant or registered proprietor, or any other person having any registered estate or interest in the estate or interest protected by the caveat, may, by summons, call upon the caveator to attend before the court to show cause why the caveat should not be removed, and the court on proof of service of the summons on the caveator or upon the person on whose behalf the caveat has been lodged and upon such evidence as the court may require, may make such order in the premises, either ex parte or otherwise as to the court seems just, and, where any question of right or title requires to be determined, the proceedings shall be followed as nearly as may be in conformity with the rules of court in relation to civil causes.” (emphasis added)
‘In Re Peyachers Caveat [1954] NZLR 285 at pa 286 Archer J said that:
‘Section 138 of the Land Transfer Act, 1952, provides that the caveat shall state with sufficient certainty the nature of the estate or interest claimed by the caveator, and that would appear to prevent a caveator from claiming to retain the caveat on some ground other than that set out in the caveat itself. It would accordingly seem that in order to justify the retention of his caveat, the caveator is entitled to rely only upon his claim to have an interest in the property by virtue of a trust. Provided, however, that the nature of the interest claimed is described with reasonable certainty. I do not think the caveator is necessary to be bound by the precise form of words used.’ (emphasis added)
“106. Any person –
(a) claiming to be entitled or to be beneficially interested in any land subject to the provisions of this Act, or any estate or interest therein, by virtue of any unregistered agreement or other instrument or transmission, or of any trust expressed or implied, or otherwise howsoever; or
(b) transferring any land subject to the provisions of this Act, or any estate or interest therein, to any other person to be held in trust, may at any time lodge with the Registrar a caveat in the prescribed form, forbidding the registration of any person as transferee or proprietor of, and of any instrument affecting, such estate or interest either absolutely or unless such instrument be expressed to be subject to the claim of the caveator as may be required in such caveat.” (emphasis added)
Particulars to be stated in and to accompany caveat
107. Every caveat shall state the name, address and description of the person by whom or on whose behalf the same is lodged and, except in the case of a caveat lodged by order of the court or by the Registrar, shall be signed by the caveator or his agent and attested by a qualified witness and shall state with sufficient certainty the nature of the estate or interest claimed and how such estate or interest is derived.(emphasis added)
‘1. Ratu Joseva Vatunitu aka Ratu Joseva Samudunatua Vatunitu is a member of Yavusa Nabati [Yakuilau] being the iTaukei Land Owning Unit of Native Lease No. 13796 being Denarau Island Lot No 1 Nadi, Ba, which land is now vested in iTLTB as Trustee and Ratu Joseva Vatunitu aka Ratu Joseva Samudunatua Vatunitu being beneficiary under the iTaukei Land Trust Act, Cap 134. This trustee/beneficiary relationship is the 1st caveatable interest.
The 2nd caveatable interest is as Native Owner being a member of Yavusa Nabati [Yakuilau], such ownership is acknowledged and accepted by all stakeholders including but not limited to the Trustee iTLTB, the current registered lessee or tenant of NL 13796, DUBBO Limited by itself, its predecessors through history in all dealings.
The 3rd caveatable, interest is as Participant Native Owner through iTLTB under Clause 15 of the Memorandum of Lease duly registered at the office of the Registrar of Titles on 11th April 1974. Members of Yavusa Nabati [Yakuilau] including Ratu Joseva Vatunitu aka Ratu Joseva Samudunatua Vatunitu through iTLTB are entitled to be issued and hold shares in Commercial Investments Properties Limited (the 1st lessee or tenant), Nadi Beach Hotel Limited (the 2nd lessee or tenant) and the current lessee DUBBO Limited (the 3rd lessee or tenant).
The 4th caveatable interest is beneficial shareholder. All the above companies were to have made iTLTB as lessor the shareholders in trust for the native land owners including members of Yavusa-e-tolu being Yavusa Navatalevu, Yavusa Sila and Yavusa Nabati [Yakuilau] of which Ratu Joseva Vatunitu aka Ratu Joseva Samudunatua Vatunitu is the member currently holding the title of Tui Nabati, the Turaga ni Yavusa Nabati [Yakuilau]”
23. At the outset it should be noted that alleged caveatable interest were not claimed by the Plaintiff in representative capacity but as an individual of a one land owning unit. This cannot be done in terms of the Fiji Court of Appeal decision Narawa v Native Land Trust Board [2002] FJCA 9; ABU0012.99S (decided on 31 May 2002). In that decision it was held that all the members of land owning units have common interest as regard to the proper administration of such lands by the trustee. Since unanimity among the members of the land owning unit is rare a member could institute a representative action, even without majority approval. There is no recognition of individual right relating to iTaukei Land recognized in law.
24. The Court of Appeal in Narawa v Native Land Trust Board [2002] FJCA 9; ABU0012.99S (decided on 31 May 2002) held,
‘First, all the members of the mataqalis have a common interest in ensuring that the agreements are being properly administered by the Trust Board, and that they receive whatever is due to them from the agreements. If, as the appellants allege, the agreements have not been properly administered and Timber Fiji is guilty of breaches for which damages are payable but have not been claimed, the members will also have a common grievance. Whether in fact that is so can only be determined at the trial. Similarly, if the causes of action are made out, the relief obtained is likely to be beneficial to the members or at least most of them.
Secondly, it is apparent from the affidavits filed that a substantial number of the members of the mataqalis support the appellants in their action. It is also apparent that a substantial number do not. But they appear not to be advocating a different course of action, rather they favour taking no action at all. If the action succeeds, they will share in the fruits of it. It if does not, they will not be liable for costs.
Thirdly, as we have pointed out, the appellants have no other course open to them. They cannot sue personally. They cannot bring an action as an unincorporated association because they would not obtain unanimity. As Megarry J pointed out in John v Rees (above) the representative action is a procedure the purpose of which should be to achieve justice. In the absence of any other remedy available to the appellants, the interests of justice will be served by allowing the action to proceed..........’
25. If an iTaukei owner cannot sue personally, that person cannot lodge a caveat in personal capacity. A caveat is an interim measure and cannot sustain on its own. In my judgment, a member of the land owning unit has no individual caveatable interest to the land belonging to the land owning unit.
26. It is in the representative capacity that such person could lodge a caveat. Perusing through alleged caveatable interests indicate that his solicitors had lodged the caveat on behalf of Defendant as an individual member and not in representative capacity, though there are two annexed documents to the caveat that indicate that some authority was granted to the Plaintiff and to another person for some specific actions. These specific actions that are authorized in the said letter, did not specify lodgment of caveats. In any event in the absence of any explanation as to the said documents that is contrary to the interests claimed in the caveat, they cannot form part of the interest or claim stated in the caveat for consideration in this matter for removal of the caveat.
27. Since there is no affidavit in opposition these documents remain unexplained by the Defendants. The Caveat No. 820306 is lodged by his solicitors against NL 13796 in his personal capacity. What needs to be considered is the Caveat and it had not indicated that lodgment was in representative manner.
28. So, the caveat should be removed in limine without considering any merits as the Defendant could not lodge a caveat for interests stated therein in personal capacity through his solicitors in terms of Court of Appeal decision in Narawa v Native Land Trust Board [2002] FJCA 9; ABU0012.99S (decided on 31 May 2002)
29. Without prejudice to the above, I would venture to consider caveatable interests claimed by the Defendant in the said Caveat No 820306, for removal of the same.
30. Though the Plaintiff had filed this action for removal of the caveat, the burden of proof is with the Defendant to establish caveatable interest. In Ball v Fawcett (1997) 1 NZLR 743 at page 746 it was held;
‘The onus is on the caveator to show he had an arguable case in claiming an interest in land. Castle Hill Run Ltd v NZI Finance Ltd [1985] 2 NZLR 104, 106’
Further at p 747
‘In Guardian Trust and Executors Co of New Zealand Ltd v Hall [1938] NZLR 1020 at p 1025 Callan J said,
“A caveat is the creature of statute and may be lodged only by a person upon whom a right to lodge it has been conferred by the statute. It is not enough to show that the lodging and continued existence of the caveat would be in some way advantageous to the caveator. He must bring himself within s. 146 of the Land Transfer Act.”
31. So, Defendant should be able to establish a caveatable interest as stated in Section 106 of LTA. He needs to state a claim that can be included in Section 106(a) or Section 106(b) of LTA. The lands that are subject to LTA is contained in Section 5 of LTA and accordingly lands of ‘all leases of iTaukei land granted pursuant to the provisions of the iTaukei Land Trust Act 1940...’ are included. It should be noted that though no caveat could be lodged for all iTaukei land, when such land is leased under iTaukei Land Trust Act 1940 a caveat can be lodged against the said land. When a caveat is lodged against such a lease, caveator should establish an interest in the land as the prohibition is in relation to land.
32. The Plaintiffs in its submission state that the Caveator has not met the burden of proving:
(a) that he has any form of caveatable interest in the two Leases on which he has lodged the Caveats (the Plaintiffs’ Main Submissions set out a number of separate alternative arguments on why his claims fail) or
(b) that the balance of convenience is best served by maintaining the Caveats.
33. There are 4 separate interests stated in the caveat and they are dealt separately below.
1st Caveatable Interest
34. The Plaintiff cannot lodge a caveat as a beneficiary under iTaukei Land Trust Act, personally as stated previously in this judgment. Even if the caveat is lodged in representative capacity, the Plaintiff needs to explain precisely as to how the interest had accrued to lodge a caveat for land described in NL 13796. Being an iTaukei owner does not derive an interest for a caveat over a leased land.
“Counsel for the respondent [caveator] sought to maintain the caveats by various arguments, all of which come to substantially the same. It was said for instance that in sec 137(a) the words “beneficial interest” have a wider scope than equitable interest; that a caveat is supportable if the caveator has some “potentially” enforceable right; and again that, although the respondent [caveator] had to accept that this was not an equitable charge, nevertheless it was an equitable interest. No authority was cited supporting any of these interpretations of sec 137(a). In my opinion, for all purposes material to the present case the words “beneficial interest” refer to equitable interest and the section cannot be stretched to include mere potentialities which have not ripened into interest in any particular properties.”
2nd Caveatable interest – as Native Owners
“4.-(1) The control of all iTaukei land shall be vested in the Board and all such land shall be administered by the Board for the benefit of the iTaukei”
3rd Caveatable interest
“The [Caveator] must however, bring itself within the provisions of Section 106 and in order to do this must satisfy the court that the following are fulfilled.
(1) That it is a person claiming to be entitled to or to be beneficially interested in any land estate or interest under the act; and
(2) That is it so claiming by virtue of any unregistered agreement or other instrument or transmission or any trust expressed or implied or otherwise howsoever.
...
"Before a person can caveat under this section he must be a person who claims to be entitled to the land, or any estate or interest in the land, or to be "beneficially interested" in the land, or in any estate or interest in the land, and the person in either event must claim "by virtue of any unregistered agreement, or other instrument or transmission" (transmission meaning acquirement by title or estate consequent on death, will, intestacy, bankruptcy, &c) or of any trust expressed or implied, or otherwise howsoever".
4th Caveatable Interest
CONCLUSION
FINAL ORDERS
Dated at Suva this 20th day of November, 2017
......................................
Justice Deepthi Amaratunga
High Court, Suva
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URL: http://www.paclii.org/fj/cases/FJHC/2017/880.html