In the High Court of Kiribati
Civil Jurisdiction

Held at Betio
Republic of Kiribati

High Court Civil Appeal 31 of 2010

Between:

ANZ Bank (Kiribati) Ltd
Appellant

And:

Mamaua Kirata
Respondent

For the Appellant: Mr Aomoro Amten
For the Respondent: Ms Debrah Merucio 

Dates of Hearing: 2 November 2010

JUDGMENT
(Ex Tempore)

Only a short point in this appeal. The respondent had a loan from the Bank. One of the special conditions in the loan agreement provided for a fee of $10.00 to be debited to the account if repayment be not paid on the due date each month. The plain meaning of that is a monthly deduction of $10.00 for late repayment. The condition continues, "….. fees which sum is payable government paydays (called instalments due date)". The appellant has been interpreting that to mean a deduction of $10.00 on each pay day. Pay days come each two weeks. The Bank has been debiting $10.00 each pay day – a little more than twice the $10.00 each month as provided in the special condition. Te Bank's interpretation is in error. The correct interpretation is a deduction of $10.00 each month to be debited on a pay day – on one of the pay days in each month. That interpretation may be tested in this way. Suppose the custom were suddenly to change and instead of having pay days each two weeks there were to be a pay day every week. It would be ridiculous to suggest that the Bank could make a deduction every week.

The Single Magistrate came to the correct conclusion. The appeal is dismissed. 

THE HON ROBIN MILLHOUSE QC
Chief Justice