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High Court of Fiji |
IN THE HIGH COURT OF FIJI
AT LAUTOKA
CIVIL JURISDICTION
CIVIL ACTION No. HBC 70 of 2015
BETWEEN
PUNGANTHI aka PUNANGAWNTHI MANIKAM of Nanuku, Rakiraki, and DINESH NARAYAN, of Australia, both in their personal capacities as executors and trustees of the Estate of Manikam and as beneficiaries in the Estate
of Lachmaiya aka Latchmaiya and ultimate beneficiaries in the Estate of Manikam, deceased, testate, and of SAT NARAYAN, as beneficiary in the Estate of Lachmaiya aka Latchmaiya and as ultimate beneficiary in the Estate of Manikam. | ||
PLAINTIFFS AND | ||
DHAN LACHMI aka DHAN LATCHMI of Nanuku Settlement, Rakiraki, Ra, Fiji, Domestic Duties, as the sole Executrix and Trustee in the Estate of SATYA NARAIN aka SATYA NARAYAN, late of Nanuku Settlement, Rakiraki, Ra, Fiji AND AS THE PERSONAL REPRESENTATIVE of Sat Narayan aka Satya Narayan aka Satya Narain as the sole executor and the trustee of the ESTATE OF LACHMAIYA AKA LATCHMAIYA, late of Nanuku, Rakiraki. | ||
1ST DEFENDANT AND REGISTRAR OF TITLES of Titles Office, Civil Towers, Suva, Fiji. | ||
2ND DEFENDANT AND | ||
ATTORNEY GENERAL OF FIJI of Attorney General’s Chambers, Suvavou House, Suva, Fiji. | ||
| | 3RD DEFENDANT |
| | |
Appearances : Mr S Krishna with Mr N. Kumar for the plaintiffs
: No appearance for the first defendant
: Mr J. Mainavolau for the second and third defendants
Date of Hearing : 05 February 2018
Date of Submissions: 27 February 2018 (the plaintiffs)
Date of Judgment : 16 April 2018
J U D G M E N T
Introduction
[01] The plaintiffs, Ms Punganthi and Dinesh Narayan filed a lawsuit in the High Court against the first defendant, Dhan Lachmi alleging two claims: breach of fiduciary duty and fraud on the part of first defendant. The plaintiffs seek relief as follows:
[02] The claim is founded on the breach of the trustee’s duty by the first defendant. It is alleged that the first defendant as the trustee failed to transfer the property, Lot 1 on DP 6448, containing 2 rods 3 perches being residential site together with the dwelling house and improvement thereon (the property) to the plaintiff in accordance with the last Will of late Mr Lachmaiya, which was executed on 10 June 1999; and that the first defendant by deceit, malice, dishonesty and/or through fraud and in breach of his trusteeship partially transferred the property under his name.
[03] The first defendant filed an amended statement of defence, which was struck off by the Master on 21 July 2017 for failing to meet an unless order made by the court in respect of affidavit verifying the list of witnesses and documents.
[04] The matter came on before me for hearing on 5 February 2018. At the hearing, the plaintiff called three witnesses namely: 1. Ms Punganthi, the plaintiff (PW1), 2. Mr Dinesh Narayan, second named plaintiff (PW2) and 3. Mr Ashok Naidu (PW3) and produced 16 documents marked ‘PEx-1 to PEx-16’. I have had the benefit of the written submissions filed by the plaintiff.
[05] The first defendant did not call any witnesses to give evidence on their behalf.
[06] The second defendant, Registrar of Titles and the third defendant, Attorney General of Fiji had been made parties to this action as nominal defendants. No specific relief has been sought against them. Therefore, I do not intend to make any order against the nominal defendants.
Background Facts
[07] Ms Punganthi, first named plaintiff is the wife of Mr Manikam. Mr Dinesh Narayan, second named plaintiff and Mr Sat Narayan, are the sons of Mr Manikam. Mr Manikam died testate on 18 June 1997, leaving behind a Will executed on 25 July 1990.
[08] The plaintiffs are the beneficiaries in the Estate of the late Mr Manikam (the deceased). The deceased bequeathed all his real and personal property and ready cash unto his wife (Punganthi) for her life or for as long as she does not stay with another man whichever is earlier and bequeathed the residue unto his two sons (Sat Narayan and Dinesh Narayan) in equal shares absolutely. A probate was obtained on 10 September 1997, in the Estate of Manikam.
[09] Mr Sat Narayan who died testate on 15 February 2001, leaving a Will executed on 16 June 1999. Ms Dhan Latchmi, the first defendant is the Sole Executor and Trustee of the Estate of Lachmaiya. A probate was obtained accordingly. Lachmaiya’s last Will was challenged and on 17 September 2010, Fiji Court of Appeal under Civil Appeal No. ABU 00100 of 2009 from Civil Action No. HBC 296 of 2003 held that the Will of 16 June 1999 was valid and the probate obtained thereunder was also valid. Late Mr Lachmaiya bequeathed among other things as follows: ‘Lot 1 containing 2 roods 3 perches being residential site together with the dwelling house and improvement thereon as presently occupied by Estate of Manikam to the beneficiaries of the estate of Manikam absolutely.’ Mr Lachmaiya’s Will also carries a conditional clause, i.e. Clause 7 of the Will states: in the event of any beneficiaries desires to sell his share the first such offer is to be made to other beneficiary but shall not sell the same to any person other than the beneficiary. If any beneficiary decides to migrate or leave the place he or she shall leave the share and go.
[10] The plaintiffs allege that Mr Sat Narayan as the sole trustee and executor fraudulently transferred Lot 1 unto him without allocating it to the plaintiffs. Mr Sat Narayan claims that he had done so as the plaintiffs had migrated or left the place. He relies on clause 7 of the Will.
[11] The plaintiffs among other thing seek to cancel and rescind the transfer of Lot 1 to Sat Narayan with a declaration that they are entitled to Lot1 on Certificate of Title No. 20895 (now being Certificate of Title No.41920 by virtue of being beneficiaries in the Estate of Lachmaiya and ultimate beneficiaries in the Estate of Manikam). The plaintiffs also seek a permanent injunction restraining the first defendant from dealing with, transferring, selling, alienating or otherwise disposing of Certificate of Title No.41920.
The Law
[12] Section 41 of the Land Transfer Act (“LTA”) is relevant to these proceedings. That section states:
“Instrument etc void for fraud
Any instrument of title or entry, alteration, removal or cancellation in the register procured or made by fraud shall be void as against any person defrauded or sought to be defrauded thereby and no party or privy to the fraud shall take any benefit therefrom”
The Evidence
[13] PW1 and PW2 gave affidavit evidence in support the plaintiffs’ claim. They both confirmed, under oaths, as true each and every statement deposed in their affidavits sworn on 2 February 2018.
[14] PW1 testified that:
[15] PW1 was not cross-examined.
[16] PW2 in evidence states that:
[17] PW 2 was not cross-examined either.
[18] PW3 testified that: he has been staying in Nanuku, Rakiraki since his birth. He is one of the beneficiaries of the estate of Lachmaiya. Dhan Latchmi is his father’s younger brother’s wife. My auntie Punganthi, Dinesh Narayan and Sat Narayan were staying at the property. It was my father’s eldest brother’s (Manikam’s) piece of land. Punganthi never left the property. She goes to Australia for medical treatment and when she returns she lives on the property. The property was not transferred to us according to Lachmaiya’s Will.
[19] PW3’s evidence remains unchallenged as well.
[20] The defendant did not give evidence nor did he call any witnesses at the trial.
Discussion
[21] The plaintiffs’ claim arises out of a last Will of Lachmaiya (Lachmaiya Will (PM5)). The validity of the Lachmaiya Will was challenged and the Fiji Court of Appeal under No. ABU 0010 of 2009 confirmed that it is a valid Will.
[22] The validity of the Lachmaiya Will was not put in dispute in these proceedings.
[23] The late Mr Sat Narayan was the executer and trustee of the Lachmaiya Will. Sat Narayan had died. His wife, Dhan Latchmi (the defendant) is the sole executor and trustee of the Estate of Sat Narayan.
[24] Para 3 (i) (a) of Lachmaiya Will bequeaths as follows:
“(a) Lot 1 containing 2 roods and 3 perches being residential site together with the dwelling house and improvements thereon as presently occupied by Estate of Manikam to the beneficiaries of the estate of Manikam absolutely.” [Emphasis provided]
[25] By clause 3 of his Will, Lachmaiya had bequeathed Lot 1 (the property) to the beneficiaries of the Estate of Manikam absolutely. The plaintiffs are the beneficiaries of the estate of Manikam.
[26] The late Mr Sat Narayan as the executor and trustee of the Estate of Lachmaiya was under a duty to transfer of the property to the plaintiffs, the ultimate beneficiaries of the Estate of Manikam.
[27] Mr Sat Narayan as executor and trustee of Lachmaiya Will was under fiduciary duty towards the plaintiffs, the beneficiaries of the Lachmaiya Will. The evidence shows that Mr late Sat Narayan had failed to act in good faith. He had transferred the property into his name, instead of transferring it to the beneficiaries (the plaintiff) in accordance with the Lachmaiya Will.
[28] In Britol West Building’s Society v Mathew (1998) Chancery Div. P.1 (a case cited by the Supreme Court in Singh v Singh [2018] FJSC 48; CBV 006. 2015 (23 June 2011), the Court applied the following tests in determining any breach of fiduciary duty:-
(i) Failure to act in good faith
(ii) Acts, omissions or concealment which may be deemed to constructive fraud.
[29] I, applying the same tests the Supreme Court of Fiji adopted in Singh’s case (above), find that the late Mr Sat Narayan had committed a constructive fraud by transferring the property into his name instead of transferring the same to the plaintiffs, the beneficiaries who were entitled to under the Lachmaiya Will.
[30] There is evidence before the Court that the plaintiffs are still in occupation and possession of the property through their caretaker. Further, the plaintiffs are paying the utility bills such as water and electricity. The first plaintiff is in and out of the property. She frequently goes to Australia for medical check-ups and visiting her son there. She produced a medical report and her Fijian passport with travel history in order to prove that she is Fijian and not migrated leaving the property which she was entitled to by virtue of the Lachmaiya Will.
[31] The first plaintiff is one of the ultimate beneficiaries in the Estate of Manikam. Manikam in his Will states:
”I GIVE DEVISE AND BEQUEATH all my real and personal property of whatsoever kind and wheresoever situate including any property over which I may have a disposing power and ready cash unto my wife namely PUNGANTHI daughter of Latchman Mudliar for her life or for as long as she does not stay with another man whichever is earlier, I GIVE DEVISE AND BEQUEATH the residue unto my two sons namely SAT NARAYAN and DINESH NARAYAN in equal shares absolutely.
[32] This condition ‘for her life or for as long as she does not stay with another man whichever earlier’ is only relevant to the Manikam Will. There is no such condition in the Lachmaiya Will. The condition in the Manikam Will is not applicable to the Lachmaiya Will. The Lachmaiya Will simply says that Lot 1 (the residential site) had to be given to the beneficiaries of the estate of Manikam absolutely.
[33] PW3 testified that the first named plaintiff had always lived in the property and not left it.
[34] The evidence adduced on behalf of the plaintiffs shows that the plaintiffs had at all the times had been requesting the first defendant (Mr Sat Narayan) to transfer the property to the estate of Manikam and that the first defendant had been saying that he was in the process of transferring the property but never did.
[35] I am, on the balance of probability which is the civil standard of proof, satisfied that the first named plaintiff had never left or renounced her interest in the property which she was entitled to under Lachmaiya Will.
[36] Further, on the evidence that was put before the Court and having been satisfied with the evidence on the balance of probability, I have come to a conclusion that the plaintiffs had proved their claims that the first defendant had breached the fiduciary duties and; that with their constructive fraud and dishonest had transferred the property (Lot 1) to his own name causing loss and damages to the plaintiffs or the estate of Manikam.
[37] Section 41 of the Land Transfer Act states: Any instrument of title or entry, alteration, removal or cancellation in the register procured or made by fraud shall be void as against any person defrauded or sought to be defrauded thereby and no party or privy to the fraud shall take any benefit therefrom”
[38] The transfer No 808124 to the first defendant on Certificate of Title No.41920 is tainted with fraud. Therefore, it must be declared to be void pursuant to section 41 of the LTA. So I do. Accordingly, I order that the transfer No.808124 to the first defendant on Certificate of Title No. 41920 be cancelled and rescinded.
[39] The plaintiffs seek a permanent injunction restraining the first defendant from dealing with, transferring, selling, alienating or otherwise disposing of Certificate of Title No.41920. They are entitled to such a relief since I have declared that the transfer on Certificate of Title No. 41920 is void.
[40] The plaintiffs did not give sufficient evidence on the issue of damages. I consider that the plaintiffs had abandoned their claim of damages.
Conclusion
[41] For the foregoing reasons, I give judgment in favour of the plaintiffs. The plaintiffs are entitled to the relief they are seeking.
Final Outcome
DATED THIS 16 DAY OF APRIL 2018 AT LAUTOKA.
.......................................
M.H. Mohamed Ajmeer
JUDGE
Solicitors:
For the plaintiffs: M/s Krishna & Co, Barristers & Solicitors
For the first defendant: M/s Qarcia Barristers & Solicitors
For the second and third defendants: Office of the Attorney General
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