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Supreme Court of Fiji |
IN THE SUPREME COURT OF FIJI
APPELLATE JURISDICTION
CIVIL PETITION NO. CBV 0002 of 2023
Court of Appeal No. ABU 0099 of 2019
BETWEEN
RANGANNA NAICKER
Petitioner
AND
AMI CHAND
First Respondent
AND
THE DIRECTOR OF LANDS
Second Respondent
Coram : The Hon. Justice Brian Keith
Judge of the Supreme Court
The Hon. Justice William Calanchini
Judge of the Supreme Court
The Hon. Justice Terence Arnold
Judge of the Supreme Court
Counsel : Ms V. Cava and Ms S. Ben for the Petitioner
Mr N. R. Padarath for the First Respondent
Mr J. Mainavolau and Mr A. Bauleka for the Second Respondent
Date of Hearing : 5 April 2024
Date of Judgment : 26 April 2024
JUDGMENT
Keith, J
The relevant facts
10. On 20 December 2013, the Ministry of Lands and Mineral Resources (“the Ministry”), being the ministry responsible for the Lands Department, wrote to Mr Naicker in response to that request.[8] It informed Mr Naicker that on the expiry of the current lease a new lease would be issued subject to a number of conditions. It did not say in so many words to whom the new lease would be issued, but since the letter was addressed only to Mr Naicker, the Ministry must be presumed to have decided to issue the new lease to Mr Naicker.
11. A new lease was not issued to Mr Naicker on the expiry of Mr Chand’s lease, despite the Ministry’s letter of 20 December 2013. There was no evidence why that had not happened. Maybe it was just overlooked. We just do not know. Accordingly, on 7 March 2015 Mr Chand wrote to the Minister who he thought – wrongly – was responsible for the Lands Department, The Minister for Local Government, Housing and Environment.[9] Mr Chand set out which of his family members were living in other houses on the land, and ended by requesting the minister in effect to use the authority of his office to cause the lease to be transferred to Mr Naicker. He must have forgotten (or deliberately ignored) that by then the original lease had expired, and that the issue for the Lands Department (who Mr Chand did not realize had already written to Mr Naicker) was whether a new lease should be issued to Mr Naicker. It looks as if Mr Chand did not get a response to that letter because on 10 August 2015 he wrote to the Director of Lands asking for the transfer of the lease to proceed quickly.[10] In the meantime, the Ministry had on 17 April 2015 sent to Mr Naicker an identical letter to the one which had been sent to him on 20 December 2013.[11]
12. Nothing happened for two years. Again, there was no evidence about why that was. Maybe the matter had been overlooked. Maybe something else had happened. Eventually, though, the Ministry wrote to Mr Chand. That was on 26 April 2017.[12] The letter referred to the original application in 2012 for consent for the transfer of the original lease to Mr Naicker – without referring to the fact that the Ministry had twice written to Mr Naicker in the meantime informing him that he would be issued with a new lease of the land. The Ministry said that since the description of the land had changed, it was necessary for Mr Chand to submit “the correct application for consent to transfer with the transfer documents”. So after five years, the parties were back to square one.
The proceedings
14. In those proceedings, Mr Naicker sought specific performance of the agreement under which Mr Chand had agreed that Mr Naicker would be the lessee of the land. His difficulty was how to allege that the Director of Lands had given his consent to the transfer. What his solicitors decided to do was to allege that the Director of Lands’ letter of 26 April 2017 amounted to such consent.[15] The Director of Lands disputed that. In my view, the argument that the Director of Lands had given his consent to the transfer of the lease to Mr Naicker was completely untenable. The letter of 26 April 2017 merely asked for the documents which were needed to enable the Director of Lands to give his consent. Indeed, the judge specifically referred to the evidence of the one witness called on behalf of the Director of Lands, an assistant estate officer in the Lands Department, who had said that consent to the transfer had not been refused, but that the parties had been requested to submit “the correct application for consent to transfer with the transfer documents for further processing”.[16]
15. It might, I suppose, have been possible to argue that the Director of Lands’ consent to the transfer of the lease could have been inferred from the two letters which the Ministry wrote to Mr Naicker – the ones dated 20 December 2013 and 17 April 2015 – in which the Ministry had informed him that on the expiry of the original lease a new lease would be issued to him subject to a number of conditions. Such an argument would not have succeeded. The letters had nothing to do with the transfer of the original lease. They were concerned with the issue of a new lease.
16. So on what basis did the trial judge, Ajmeer J, order specific performance of the agreement to transfer the land to Mr Naicker? The core passage in his judgment was in paragraph 13, which read:
“Section 13 issue does not arise here. [Mr Chand] is not entitled to raise that issue after signing the transfer document with consent to transfer.”
So the judge did not base his judgment on the footing that the Director of Lands’ consent to the transfer had been obtained. What he was saying was that it was by then too late for Mr Chand to contend that the Director of Lands’ consent had not been sought. That was because Mr Chand had already signed documents in which the Director of Lands had been requested to give his consent to the transfer. It was on that basis that the judge ordered specific performance of what he described as “the agreement to contract between the parties in relation to property land in dispute”, by which he meant the agreement between Mr Chand and Mr Naicker that Mr Chand would transfer the lease to Mr Naicker. The flaw in the judge’s reasoning is obvious. Even if Mr Chand could no longer contend that the Director of Lands’ consent should not be sought, the Director of Lands’ consent to the transfer would still have had to be obtained.
17. This leads to an unfortunate lacuna at the heart of Ajmeer J’s judgment. It is not possible to tell whether he was saying that the Director of Lands’ consent to the transfer of the lease to Mr Naicker was still required. Of course it was, and on one view of his judgment, that was what Ajmeer J thought. I say that because, in addition to making an order for specific performance, he ordered Mr Chand to “do everything necessary for the transfer of the lease ... to [Mr Naicker] within 2 months from the date of this judgment”, ie by 4 December 2019. The judge did not spell out what Mr Chand had to do, but he could have had in mind requiring Mr Chand to complete the prescribed form requesting the Director of Lands to give his consent to the transfer of the lease to Mr Naicker – leaving it to the Director of Lands to decide whether to give his consent. On the other hand, the relief sought in the Statement of Claim had made no reference whatever to the order of specific performance of the agreement for the transfer of the lease having to be subject to the Director of Lands’ consent to its transfer. It had sought an order requiring Mr Chand to execute the transfer of the lease to Mr Chand. That rather suggested that when Ajmeer J ordered Mr Chand to do everything necessary for the transfer of the lease, that was all he had in mind.
The appeal to the Court of Appeal
18. Mr Chand appealed to the Court of Appeal. The leading judgment (with which the other members of the Court agreed) was given by Guneratne P. He thought that the High Court had been wrong to order specific performance. Specific performance of an agreement can only be ordered when the agreement is enforceable. Since the Director of Lands’ consent to the transfer of the lease had not been obtained, the parties’ agreement for the transfer of the lease could not be enforced. The order for specific performance had to be set aside for that reason.
19. Guneratne P was alive to the unfairness which would result. Mr Naicker would have nothing to show for all the improvements he had made to the land, for the repayment of the debt of $15,000 which he had waived, and for the additional $5,000 he had paid to Mr Chand. Accordingly, he held that Mr Naicker was entitled to remain on the land “as a bona fide occupier” until Mr Chand had paid to him the sum of $20,000, and upon such a payment being made, Mr Naicker was required to vacate the land. There was no discussion in Guneratne P’s judgment about the legal basis on which such an order could be made, though the order which the Court of Appeal made referred to “considerations of equity”.
The petition to the Supreme Court
22. The enforceability of the agreement. The grounds of appeal are difficult to follow. For the most part, Mr Naicker’s solicitors rely on the unfairness of the outcome without stating where things went wrong. However, the one argument which they clearly advance for restoring the order for specific performance is that the Director of Lands’ consent was not a precondition for the enforceability of an agreement for the transfer of a lease. I do not agree. The absence of consent meant that the agreement could not take effect. It could only take effect when consent to the transfer of the lease had been obtained. Putting it in another way, its enforceability was subject to a condition subsequent, namely the grant of consent for the transfer. The agreement could not be enforced until then. How could you enforce an agreement which required consent when that consent had not been obtained? Suppose the Director of Lands would not have given his consent to the transfer of the lease to Mr Naicker, could Mr Naicker really have avoided that outcome by arguing that the agreement for the transfer of the lease to him could be enforced nevertheless? So I entirely agree with the Court of Appeal that the order for specific performance sought by Mr Naicker – which ignored the need for the Director of Lands’ consent to the transfer – could not be made.
23. However, that does not mean that a suitably worded order for specific performance could not have been made. If the order for the transfer of the lease had been made subject to the prior consent of the Director of Lands to its transfer having been obtained, there could have been no objection to it. As I have said, it may be that that was what Ajmeer J had in mind. It is unfortunate that he did not spell out his thinking on the topic in both his judgment and the order he made. The lesson to be learned is that when a court makes an order for specific performance, it must spell out in clear and precise language what it is that the defendant is being required to do. The failure to do that in this case has resulted in an appeal which might otherwise have been avoided. For these reasons, I would make an order which has the effect of resurrecting the order for specific performance made by Ajmeer J, but making it clear that it can only take effect once the Director of Lands has given his consent to the transfer of the new lease to Mr Naicker, and I would order Mr Chand to take all steps necessary to enable the Director of Lands to give that consent.
“any sale, transfer, sublease, assignment, mortgage or other alienation or dealing effected without such consent shall be null and void.”
The mere fact that the consent of the Director of Lands to the transfer had not been obtained could not on its own have rendered the transfer null and void. As the Privy Council said in Chalmers v Pardoe [1963] 1 WLR 677, a decision of the Privy Council on appeal from the Court of Appeal of Fiji concerning section 12 of the iTaukei Land Trust Act 1940 (which was the equivalent provision for iTaukei land as section 13 of the State Lands Act is for State land)
“ ... it would be an absurdity to say that a mere agreement to deal with land would contravene Section 12, for there must necessarily be some prior agreement in all such cases. Otherwise there would be nothing for which to seek the Board’s consent.”
26. Could it be said that there had been some other “dealing” with the land which had had the effect of rendering the agreement for the transfer of the lease null and void because consent to the transfer had not been obtained – for example, the various things which Mr Naicker had done to improve the land? In my view, such an argument cannot succeed. The judge made no findings, one way or the other, whether the improvements which Mr Naicker had made to the land had been made for himself in anticipation of the lease being transferred to him, or for Mr Chand pursuant to the power of attorney and in his capacity as the caretaker of the farm. In any event, what constitutes “dealing” with land within the meaning of section 13 is not spelled out in the State Lands Act, but however wide it is, I do not believe that what Mr Naicker did can be regarded as the sort of dealing with the land which required the prior consent of the Director of Lands.
Conclusion
Calanchini, J
Arnold, J
Order:
(i) Leave to appeal granted.
(ii) The order of the High Court dated 19 October 2019 and the order of the Court of Appeal dated 25 November 2022 are set aside, save for paragraph 3 of the order of the High Court dated 19 October 2019.
(iii) Within 28 days of the date of this order, the petitioner, Ranganna Naicker (“Naicker”), and the first respondent, Ami Chand (“Chand”), shall apply on the prescribed form to the second respondent, the Director of Lands, for the Director of Lands’ consent to the transfer to Naicker of the State lease for the land originally known as Lot 4 on Plan BA 2357, and later known as Lot 1 – BDSW 1443 Balance Lot 4 on Plan BA 2357, (“the said lease”) issued to Chand on 2 May 2017 for a term of 99 years from 1 January 2015.
(iv) Within 2 months of the Director of Lands giving his consent to the transfer of the said lease to Naicker by Chand, Chand shall execute all such documents as may be necessary to effect the transfer of the said lease to Naicker.
(v) In the event of the Director of Lands refusing to consent to the transfer of the said lease to Naicker, Naicker shall have liberty to apply to the High Court for such further or additional relief as the High Court thinks just.
(vi) Chand shall pay to Naicker Naicker’s legal costs in the Court of Appeal and in the Supreme Court summarily assessed at $10,000.
The Hon. Justice Brian Keith
Judge of the Supreme Court
The Hon. Justice William Calanchini
Judge of the Supreme Court
The Hon. Justice Terence Arnold
Judge of the Supreme Court
[1] The relevant affidavits are at pages 24-38 (Naicker), 44-60 (Chand) and 61-65 (Naicker) of the Record of the High Court.
[2] The original lease is at pages 277-280 of the Record of the High Court.
[3] See paragraph 10 of Mr Chand’s affidavit of 27 November 2017 and paragraph 10 of Mr Naicker’s affidavit of 12 January
2018 (pages 45 and 62 of the Record of the High Court).
[4] The letter of engagement is at page 349 of the Record of the High Court.
[5] The application for permission is at pages 347-348 of the Record of the High Court.
[6] The completed form is at pages 282-283 of the Record of the High Court.
[7] The letter of 22 July 2013 is at page 284 of the Record of the High Court.
[8] The letter of 20 December 2013 is at page 292 of the Record of the High Court.
[9] The letter of 7 March 2015 is at page 285 of the Record of the High Court.
[10] The letter of 10 August 2015 is at page 291 of the Record of the High Court.
[11] The letter of 17 April 2015 is at page 290 of the Record of the High Court.
[12] The letter of 26 April 2017 is at page 287 of the Record of the High Court.
[13] The new lease is at pages 294-298 of the Record of the High Court.
[14] It was never suggested that this was anything other than merely a change of description of the land. In other words, it was not
disputed that both the original lease and the new lease related to the same land.
[15] See para 7 of the Statement of Claim.
[16] See para 36 of the trial judge’s judgment of 4 October 2019.
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