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Kumar v Ram [2024] FJHC 84; HBC11.2015 (13 February 2024)


IN THE HIGH COURT OF FIJI
AT LABASA
CIVIL JURISDICTION


Civil Action No. HBC 11 of 2015


BETWEEN : MANOJ KUMAR of Buca, Savusavu, in the Republic of Fiji Island.
1ST PLAINTIFF


AND : ADI NARAYAN of Buca, Savusavu, in the Republic of Fiji Island.
2ND PLAINTIFF


AND : PREM CHAND of Buca, Savusavu, in the Republic of Fiji Island.
3RD PLAINTIFF


AND : AMAR DEO of Buca, Savusavu, in the Republic of Fiji Island.
4TH PLAINTIFF


AND : JAMUNA PRASAD of Buca, Savusavu, in the Republic of Fiji Island.
5TH PLAINTIFF


AND : PRATAP CHAND of Buca, Savusavu, in the Republic of Fiji Island.
6TH PLAINTIFF


AND : SATYA WATI as Administratrix in the Estate of Moti Lal, late of Buca, Savusavu.
7TH PLAINTIFF


AND : ANAND PRASAD of Buca, Savusavu, in the Republic of Fiji Island.
8TH PLAINTIFF


AND : DINESH CHAND of Buca, Savusavu, in the Republic of Fiji Island.
9TH PLAINTIFF


AND : SUMITRA WATI aka SUMITRA as the Administratrix in the Estate of Sugrim Singh, late of Buca, Savusavu.
10TH PLAINTIFF


AND : BAL RAM of Buca, Savusavu, in the Republic of Fiji Island.
11TH PLAINTIFF


AND : VIMAL CHAND of Buca, Savusavu, in the Republic of Fiji Island.
12TH PLAINTIFF


AND : SANT RAM AND SHIU RAM as Executor and trustee of the Estate of Ram Baram, late of Savusavu.
DEFENDANTS


BEFORE : Hon. Justice Vishwa Datt Sharma

COUNSEL: Mr. Sushil Sharma for the Plaintiffs

Mr. Bale A. for the Defendants


DATE OF JUDGMENT: 13th February, 2024


JUDGMENT

[Joint Tenancy, Rights of Survivorship, Defendants to execute application for New Certificate of Title, Breach of Contract and Damages for breach of Contract]


  1. INTRODUCTION
(1) The Plaintiff commenced proceedings against the Defendants and filed an amended Writ of Summons coupled with the Statement of Claim on 11th day of April, 2016 and sought for the following order:
(2) Subsequently, the Defendant’s filed an amended statement of Defence on 29th April 2016.

(3) The Plaintiff’s filed a Reply to the Amended Statement of Defence on 11th May 2016.

(4) Both parties to the proceedings furnished Court with their respective written submissions.
  1. BACKGROUND
(5) The Registered owners and conveyance of the property comprised in the Certificate of Title No. 21230 (“CT 21230”) was to Ram Baran and Ram Jas as ‘Joint Tenants’.

(6) Ram Jas took demise on 02nd August 2000 whereas Ram Baran died on 29th June 2011.

(7) On 26th August 1997, both late Ram Baran and late Ram Jas entered into an Agreement whereas they agreed that one half of CT 21230 belongs to late Ram Baran and the other half belongs to Ram Jas.

(8) In terms of the above agreement, the parties than had the said CT 21230 sub-divided into two (2) equal lots and agreed that Lot 1 should belong to late Ram Baran and Lot 2 shall belong to late Ram Jas.

(9) Under the right of survivorship, the Defendants filed a record of death no. 789183 registered on 13th November 2013 against CT 21230 to record Ram Jas’s death and therefore effective 02nd August 2000, Ram Baran was the sole registered proprietor of CT 21230.

(10) The Defendants as Executor and Trustees of the estate of Ram Baran registered a transmission of death on 13th November 2013 against the CT 21230.

(11) In their capacity as registered proprietors of CT 21230, the Defendants have undertaken steps to subdivided CT 21230 and deal with CT 21230 as they have seen fit.

(12) On 30th June 2014, Mishri Prasad Jas as executor and trustee of the Estate of Ram Jas instituted a High Court proceedings in Labasa against the Defendants seeking a Declaration that the late Ram Baran and Late Ram Jas has held the freehold Land comprised in CT 21230 as ‘Tenants in Common’ and not as ‘Joint Tenants’. However, the Court has refused to grant the declaration sought and the application to sever the ‘Joint Tenancy’ was accordingly dismissed on 11th March 2015.
  1. EVIDENCE
(13) At trial of the current proceedings, the Plaintiff called 13 witnesses and the Defence called 2 witnesses, the Defendant (DW1) Sant Ram and (DW2) Sailesh Viren Prasad.

(14) All witnesses evidence have been audio recorded as well as hand written and can be referred to the same on the Court file rather than reproducing them herein.
  1. ANALYSIS AND DETERMINATION
(15) The current substantive matter and the nature of the remedies sought, is more or less a duplication of the two (2) earlier actions which means that the Applicant/Plaintiff is a third time, attempting to seek the same remedies that have been considered and determined by the Court twice. Lot 8 which is the subject of this case is where all of the twelve (12) Plaintiffs currently are in occupation and has now become the certificate of title no. 415232 on 13th November 2013.

(16) These actions are:

‘it appears clear to the Court that the party’s legal rights, that is, the Plaintiff’s from its assertions that the Agreement is sufficient to sever the joint Tenancy and the Defendant’s right, that is, its right to the property through survivorship of land held as joint tenants has been determined and could not be determined any further.’


(17) Further, at paragraph 39, the Learned Master added:

‘I am therefore of the view that the issue of severance of the joint tenancy lies at the base of the issue to be determined in both the matters, for without the severance of the joint tenancy, the remedies sought could not be obtained. The issue has already been determined in Civil Action No. 34 of 2014.’


(f) Paragraph 40 and 41 of the Master’s Ruling confirms that the law requires a formal registration of any investment that will ‘create, vary, extinguish or pass any estate or interest or encumbrances in on or over any land subject to this act...’ Section 37 of Land Transfer Act Refers.

(g) The current substantive matter filed by the Plaintiff’s therefore hinges around the same instrument referred to in paragraph 19 of the Statement of Claim (That the Defendant’s father Ram Baran also entered into agreements with various purchases ‘whereby Ram Baran has sold his share of land to various purchasers and the Defendants have obtained separate titles for the respective purchased) and paragraph 41 of the Masters Ruling [The purpose of the agreement entered between the parties and to which the Plaintiff relies in both actions was an attempt to create, vary or pass any estate or interest over the land in Certificate of Title No. 21230, and this could only be achieved by the registration of the instrument which shows the intention of the parties to the severance of the Joint Tenancy. The Plaintiff is therefore estopped from raising the same issues again in another action] in HBC No. 18 of 2015.

(18) The Plaintiff’s argued that:

(19) The Defence argued that:

“Transfer pursuant to a will no. 852741 registered on 05th November 2017 to Sant Ram and Shiu Ram.”

(20) Ownership or proprietorship of land in Fiji in the absence of any contrary intention is held as tenancy in common, to preserve survivorship of the right to the land in the event of death on one party; Section 34 (a) of the Land Transfer Act. Hence, the key aspect of this kind of tenancy is the right of survivorship, sub-section (b) ensures that this right is held in equal shares.

(21) Joint Tenancy in the other hand is characterized by what is termed ‘the four unities”:

Unity of title means that co-ownership must be created by the same deed or instrument whilst Unity of time depicts the simultaneous vesting of interest on the land. In a similar way, the Unity of Possession means that each tenant has equal right to possession (similar to Tenants in Common) and lastly, Unity of Interest means that each party must have the same type of interest, that is, one party cannot have a life interest whilst the other an estate in fee simple.


(22) The two (2) basic difference which distinguishes ‘Joint Tenancy’ and secondly neither is there a Right of Survivorship. It is the second feature which is, the most striking feature of ‘Joint Tenancy’, that is, the right of survivorship or ius accrescendi”.

What this means is that ‘one of the joint tenant dies, the whole of the land held remains in the hands of the surviving joint tenant and is wholly seized (or possessed) by the surviving tenant.’ Hence, ‘ius accrescendi’ may appear to give an unfair advantage to the accident of a longer life which could only be defeated by deposition by one of the parties. In Fiji as in most common law jurisdictions, for this disposition to be lawful, it must be a registered instrument.


(23) Registration is the key to legal disposition of the right to the property held as Joint Tenants to successfully dispose of this right it must be done by an Instrument registered with the Registrar of Titles.

(24) Section 37 of the Land Transfer Act states that:

Instrument not effectual until registered

37. No instrument until registered in accordance with the provisions of this Act shall be effectual to create, vary, extinguish or pass any estate or interest or encumbrance in, on or over any land subject to the provisions of this Act, but upon registration the estate or interest or encumbrance shall be created, varied, extinguished or passed in the manner and subject to the covenants and conditions expressed or implied in the instrument.”


(25) Upon my perusal of the provisions of the Land Transfer Act, I find that none of the provisions provide that ‘not registering agreement to sever joint tenancy makes that Agreement Void or invalid.’

(26) The purpose of registering instruments like Agreement to sever Joint Tenancy, or mortgage under Torrens System is to notify third parties who intend to deal with that property, its ownership or interest registered against the Title/Lease.

(27) If for example, the Agreement to sever Joint Tenancy was not recorded on the Title [as in the Current Case], and the third party deals with the survivor in good faith and without fraud on the third party’s’, then the third party’s title would be indefeasible against the word.

(28) In the Current Case, the Certificate of Title No. 21230 on Lot No. 2 on DP No. 5321, shows no evidence to ascertain that Agreement of the owners Ram Jas and Ram Baran were registered in order to show that there was any ‘severance of joint tenancy’ which existed between them at anytime.

(29) It is not disputed by the parties to the proceedings that an agreement was entered between Ram Jas and Ram Baran on 26th August 1997. The Agreement is headed as Provisional Boundary Agreement for subdivision of Certificate of Title No. 21230.

(30) However, the question that arises for determination is ‘whether the Agreement entered into between Ram Jas and Ram Baran on 26th August 1997 should be considered an effective or actual alienation, sufficient to enable the ‘Severance of the Jointure?’

(31) PW4 Mohd Sadiq in his capacity as the Barrister and Solicitor gave evidence that:

(32) The Counsel in carriage of the Plaintiff’s Case submits that the Common understanding and common intentions of Ram Jas and the Plaintiff’s became imminent when Inoke surveyor was hired and the Plaintiff’s paid the surveyor’s fees. This survey was done so that the Legal Owner Ram Jas and Ram Baran could transfer the lots to the Individual Plaintiffs. He added further that the PW4, Mr. Sadiq confirmed that the signature of Ram Jas on the Sale and Purchase Agreement is sufficient and binding to both Ram Jas and Ram Baran and the Agreement between Ram Jas and the individual Plaintiffs is not Null and Void.

(33) Prima Facie, it is clear from the Title to the Agreement that this Agreement of 26th August 1997 is merely an Agreement to sub-divide Certificate of Title No. 21230. The usage of the word ‘Provisional’ means Temporary, conditional and/or providing or serving for the time being only. It is conditional until the sub-division of Certificate of Title No. 21230 has been completed by Messrs. Inoke Consultant Surveyors.

(34) That both parties agree to the sub-division and are bound by the Sub-division and agree to have separate lots as Lot 1 and Lot 2 respectively.

(35) However, upon a careful read of the Agreement, it cannot be ascertained that there is a clear intention to separate the lots into different titles. Paragraph 5 of an Agreement reads ‘Any party that seek to obtain Registered Title over his share shall pay for relevant expenses to obtain such.’ This paragraph is not clear enough to form a basis that there was a ‘Mutual understanding and/or Intention of the parties, Ram Jas and Ram Baran to create and/or sever the existence of the Joint Tenancy between them.’ It is left to each party to determine whether to obtain a Registered Title over his share, and that neither Ram Jas nor Ram Baran can compel either of them to sever the jointure. This Agreement does not have any enforcement provisions in order to enforce the Agreement. This Agreement merely temporary with no clear intentions to sever the joint tenancy and is not an effective alienation of the parties’ rights under the joint tenancy.

(36) In any Agreement the intention must be clear and straight to ensure that it is binding upon the parties and is legally binding and enforceable in law.

(37) In this Agreement, although both Ram Jas and Ram Baran agreed to sub-divide their respective portion of the land into Lot 1 and Lot 2, the very aspect of the survivorship remains and was not addressed in this Agreement. Further, the Agreement was never registered with the Registrar of Titles to be endorsed onto the Certificate of Title No. 21230 according to law. Alternatively, since the sub-division, the parties did not make any effort and/or application to sever the joint tenancy.

(38) The conclusion that can only be drawn herein is that ‘the surviving joint tenant becomes entitled to an estate or interest in land upon the death of the other Tenant and that entitlement is a precondition to registration [Case of Tirikula vs Tirikula 2012 FJHC 1034].

(39) In the Current case, Ram Jas took demise on 02nd August 2000 and therefore Ram Baran as the surviving tenant became entitled to the entire piece of land. Subsequently, Ram Baran died on 25th December 2010, left a will and his sons Sant Ram and Shiu Ram became the Executor and Trustees of Ram Baran’s estate. It can be ascertained from the affidavits herein that both late Ram Jas and Ram Baran had plans to sub-divide the land (as per the Provisional Agreement) as far back as 1997 and the sub division had proceeded as could be ascertained from the affidavits. It is also true that during then attempt to sub-divide the land, the land was still held by both as joint tenants. However, there is no evidence to establish that there was any attempt to sever the joint tenancy and/or was lodged for registration during this period.

(40) I find that the conveyance of the property comprised in Certificate of Title No. 21230, Ram Baran and Ram Jas was as ‘Joint Tenants’.

(41) Under the Right of Survivorship, the Defendants Sant Ram and Shiu Ram as Executors/Trustees of the estate of Ram Baran filed a Record of death no. 789183 registered on 13th November 2013 against Certificate of Title No. 21230 to record Ram Jas’s death and therefore effective 02nd August 2000, Ram Baran (survivor) was the sole registered proprietor of Certificate of Title No. 21230.

(42) The Defendants have taken steps after the death of Ram Baran, registered a transmission of death on 13th November, 2013.

(43) In their capacity as Executor/Trustees and subsequently as registered proprietors of Certificate of Title No. 21230, the Defendants have taken steps to sub-divide Certificate of Title No. 21230 and dealt with it as they had seen fit.

(44) It will be noted that on 30th June, 2014, Mishri Prasad Jas as executor/trustee of the estate of Ram Jas instituted High Court Civil Action No. 34 of 2014 against the Defendants, SANT Ram and Shiu Ram where the court disallowed the application to sever the joint tenancy by its Ruling delivered on 11th March 2015.
  1. CONSTRUCTIVE TRUST
(45) A Constructive Trust that arises by operation of law where it would be unconscionable for a person (A) who holds an asset to deny the beneficial interest of another person in the asset.

(46) In the current case, the Plaintiff’s Contention and argument is that the Certificate of Title No. 21230 is held in trust by the two Defendants, Sant Ram and Shiu Ram for the Plaintiffs’ benefit and that their beneficial interest is now being denied by the two Defendants, Sant Ram and Shiu Ram.

(47) The Plaintiff Contention that by virtue of Joint Tenancy after the death of Ram Jas and Ram Baran, the property was transferred to the Defendants, Sant Ram and Shiu Ram. The Defendants are new legal owners of Certificate of Title No. 21230. This completely changed the Defendant’s position and acted to the detriment of the Plaintiff’s rights and interest. The Defendants engaged the surveyors to sub-divide the Lots after the death of Ram Baran in 2010 which was completed in 2012 by Wood and Jepsen.

(48) The Defendants Sant Ram and Shiu Ram are the new owners, of Certificate of Title No. 21230. The conduct, common intentions and understanding of Ram Jas and the Plaintiff’s which created the Constructive Trust is binding to the new legal owners Sant Ram and Shiu Ram. Sant Ram is a trustee by virtue of a creation of a Constructive Trust created between the last registered owner, Ram Jas and the Plaintiffs. The change of the legal owner of title from Ram Baran to Sant Ram does not defeat the Plaintiff’s claim to be declared as beneficial owners of the lots. The Defendants contention is misconceived in relation to constructive trust and change of ownership. The Provisional Boundary Agreement of 26th August 1997, clearly states that the intention of Ram Jas and Ram Baran and subsequently surveying by Inoke Surveyors demonstrate the conduct and understanding of Ram Jas and Ram Baran to sub-divide the individual lots and allocate to the individual Plaintiffs. There was severance of joint tenancy to tenancy in common.

(49) The Defence contended otherwise that:

Whether the Defendants are holding the Lots 1-8 in Certificate of Title Nos. from 41516 to 41523 for the benefit of the Plaintiff by virtue of a Constructive Trust or alternatively the Plaintiff’s are the beneficial owners of the separate lot which are occupied by them?


(50) Initially on 06th April 1982, Ram Baran and Ram Jas held the proprietorship in Joint Tenancy in Certificate of Title No. 21230, Lot 2 on DP No. 5321.

(51) Both entered into a Provisional Boundary Agreement for the sub-division of Certificate of Title No. 21230 on 26th August 1997 as per the condition and terms enumerated in the Agreement.

(52) Based on this Agreement, PW4 Mohd Sadiq drafted and prepared Sales and Purchase Agreement with Ram Jas and the Plaintiffs whereby the Plaintiff’s agreed to purchase individual lots from Ram Jas.

(53) However, Ram Jas took demise on 2nd August 2000. The Certificate of Title No. 21230 was subsequently on 13th November 2013 by transmission of death was automatically passed onto Ram Baran as the surviving joint tenant.

(54) Upon Ram Baran’s death on 25th December 2010, Transmission of death was registered onto the Certificate of Title No. 21230 on 13th November 2013 to Sant Ram and Shiu Ram as the executors and trustees of the estate of Ram Baran.

(55) Lot 8 which is the subject of this case as it is where all the twelve (12) Plaintiffs currently occupy has now become Certificate of Title No. 415232 on 13th November 2013 and which according to the memorial on the said title reads:

‘Transfer pursuant to Will no. 852741 registered on 05th November 2017 to Sant Ram and Shiu Ram.’


(56) Above means that the Defendants are no longer holding the said properties as Executors/Trustees of the Estate of Ram Baran but as joint tenants of the Certificate of Title No. 41523 as at 05th October 2017.

(57) The Defendants in fact inherited Certificate of Title No. 21230 on Lot 2, DP no. 5321 in equal shares absolutely.

(58) The situation is not where Constructive Trust arises since the indefeasibility of title to beneficiaries Sant Ram and Shiu Ram cannot be defeated. Transfer pursuant to a Will to Lot 8 in Certificate of Title No. 41523 registered on 05th October 2017 no. 852741, cannot be defeated by the Constructive Trust in favor of the Plaintiffs’ unless any of the exceptions by rights in personam will apply to indefeasibility.

(59) Therefore, Section 39 of the Land Transfer Act 1985 would not defeat the creation of a beneficial interest in equity.

(60) There is absolutely no circumstances that would arise herein where it would be unconscionable for them to retain their registered interest in Certificate of Title No. 21230 as per the rights in personnam.

(61) The registration to the Certificate of Title No. 21230 by Defendants Sant Ram and Shiu Ram was acquired through inheritance of the Will of their father Ram Baran dated 22nd July 2022. There is no evidence to suggest that the registration to the Certificate of Title No. 21230 was obtained by fraud.

(62) Having said above, I find that there is no existence of any Constructive Trust in the circumstances and that the Defendants, Sant Ram and Shiu Ram are the registered proprietors of Certificate of Title No. 21230 accordingly.
  1. COSTS
(63) The case proceeded to full 4-5 days Trial with a number of witnesses testifying in Court.

(64) Taking into consideration of the length of the Hearing and filing of Written Submission, it is only appropriate, just and fair that the losing party; the Plaintiffs to pay the Defendants a summarily assessed costs of $3,000 within 14 days timeframe.


  1. ORDERS

Dated at Suva this 13th day of February , 2024.


...........................................

Vishwa Datt Sharma

JUDGE


CC: Samusamuvodre Sharma Lawyers, Labasa
Lal/Patel/Bale Lawyers, Labasa


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