Real Estate Niugini Ltd v Luna [2005] PGDC 101; DC411 (4 August 2005)

DC411

PAPUA NEW GUINEA
[IN THE DISTRICT COURT OF JUSTICE]

CASE NO 2543 OF 2003

BETWEEN

Real Estate Niugini Limited
Complainant

V

Justine Luna
Defendant

Port Moresby: Bidar, Pm
2005: 4th August 2005.

Claim for payment of unsecured loan and interest - Oral agreement - Judgement for Complainant.

Cases Cited
There are no cases cited.

DECISION

BIDAR, PM: Complainant filed Default Summons upon a Complaint for a civil debt against the defendant on the 3rd September 2003. Complaint lent an unsecured loan of K3,00.00 to the defendant on or about 7th December 2000. Together with accrued interest he claims the sum of K10,000.00.

These proceedings had been on foot for sometime. In October 2003, an ex parte judgement was entered for complainant in the sum of K10,000.00 This judgement was subsequently set aside on application.

The matter remained on foot until it came before me on 11th April 2005. The matter was again adjourned several times until 3rd June 2005, when it was dealt with ex parte. The complainant, through Alfred Olongo gave evidence orally and also relied on his affidavit which he filed earlier. Since the previous ex parte order was set aside the defendant had not been making any appearances, until he did so on 16th June 2005, when the Court was to announce its decision. Since the Court was not ready with the decision on the 16th June it was adjourned to today.

When money was lent to the defendant, it was a team of the oral contract that the principal sum would be repaid with agreed interest. The complainant, Real Estate Niugini Limited is a company and it was un business like to grant unsecured loan to an individual.

On the evidence it is clear and the defendant does not dispute receiving K3,000.00. He blames someone else for failure of the business venture he was negotiating. In all the circumstances, I am satisfied that the defendant is liable.

As to the quantum of damages, as I alluded to, the principal sum lent was K3,000.00. The alleged team of oral agreement was that certain interest was to be paid on top of the principal sum. The principal sum was only K3,000.00, and the interest component is more than twice the principal sum, which is K7,000.00. I am unable to accept that in the absence of evidence to justify such an exorbitant interest.

In all the circumstances, I award the sum of K3,000.00 being the principal sum lent. I award interest at the rate of 8% from date of summons to judgement, which calculates to K460.00.

There shall be judgement for complainant in the sum of K3,460.00. Complainant’s costs shall be paid by defendant to be taxed if not agreed.

Nasi Lawyer: Complainant
In Person: Defendant.