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National Court of Papua New Guinea |
PAPUA NEW GUINEA
[IN THE NATIONAL COURT OF JUSTICE]
WS (Comm) NO. 34 OF 2004
BETWEEN
STEAMSHIPS LIMITED
Plaintiff
V
LEONARD SABADI
First Defendant
AND
HENRY WASA as REGISTRAR OF TITLES
Second Defendant
AND
LOA VANI PETER
Third Defendant
Lae: Sawong, J.
2013: 07th & 08th, 27th November
PRACTICE & PROCEDURE – Land Law – Special Agriculture and Business Lease – Cancellation of Title by Registrar of Title – Effect of Cancellation – Title no longer in existence – Land becomes customary land –
PRACTICE & PROCEDURE – Land Law – Cancellation of Title by Registrar of Titles – Claim against Registrar of Titles – Claim against State – Claims By & Against State Act 1996
PRACTICE & PROCEDURE – Claims against State –Notice of claim given outside of time prescribed – S.512) Claim By and Against State Act 1996 – Claim against state dismissed – claims against first defendant shows a reasonable cause of action – First defendant admits the plaintiff claim – Claim for specific performance incapable of being performed by First defendant as Title Cancelled. Judgment internal for plaintiff agent first defendant
Facts
The dispute between the parties was over a piece of land located at Burns Peak in the National Capital District. The land was originally customary land. Subsequently the State entered into a lease arrangement with the first defendant who claimed to be the customary owner of that land. Thereafter the State issued a Title Deed over the land to the first defendant. The first defendant then entered into a Contract for the Sale of the land to the plaintiff. The Contract was stamped and approved. In the meantime there had been complaints lodged by the third defendant with the Registrar of Titles. The Registrar of Titles cancelled the Title. As a result the contract between the plaintiff and the first defendant could not be completed.
As a result the plaintiff instituted proceedings by a Writ of Summons against the first defendant and the Registrar of Title as second defendant. The second defendant did not file its defence.
By a Notice of Motion the plaintiff sought default judgment against the second defendant. The second defendant then applied for leave to file a defence out of time. The third defendant applied to dismiss the proceedings as against the second defendant on the basis, inter alia, that the plaintiff had not given a notice to the State pursuant to section 5 of the Claims By and Against the State Act 1996.
Held
1. The plaintiff did not give Section 5 Notice to the State. As such the proceeding against the second defendant cannot be allowed to continue. The claim against the second defendant was dismissed.
2. As the claim against the second defendant was dismissed, the motions by the plaintiff for default judgment against the second defendant was rendered nugatory and was dismissed.
3. The motion by the second defendant for leave to file a defence out of time was also rendered nugatory and was dismissed.
4. Judgment was entered for the plaintiff against the first defendant for damages to be assessed.
5. As the title to the land had been cancelled, the claim by the plaintiff for specific performance by the first defendant could not be granted as it was incapable of performance.
Cases Cited:
John Kami v Dept of Works & The Independent State of PNG (2010) N4144
NCDC v Jim Reima & Balus Sokele & Robame Pisimi (2009) SC 993
Paul Tohian v Tau Liu [1998] SC566
Counsel
M. Goodwin, for the Plaintiff
B. Ovia, for the First Defendant
R. Avuti, for the Second Defendant
T.Yai, for the Third Defendant
RULING
27th November, 2013
2. As to the motion by the third defendant for the substitution of the name of the third defendant, this has been consented to by all the parties. An order settling this was made on 7th November 2013.
Background
9. On or about 15 November 2010, the plaintiff and the first defendant entered a Contract for the sale of the land.
10. On 23rd November 2010, the Registrar of Titles entered the cancellation of the Title Deed on the Register.
11. On 25 November 2010 the Contract for Sale of land and the Transfer Instrument were duly approved by a delegate of the Minister for Lands.
12. After the said approvals were given, the parties to the agreement could not settle because the first defendant could not deliver the Title on settlement.
13. On 23 January 2012, the plaintiff instituted proceedings WS (Comm) No. 34 of 2012 by filing a Writ of Summons and a Statement of Claim.
14. On 24 January 2012, a sealed copy of the Writ of Summons and statement of claim, were served on second defendant at the Office of Solicitor General.
15. On 20 January 2012, the lawyers for the plaintiff served a notice of claim on the Solicitor General.
Course to Take
16. There are three applications to consider. Having heard the submissions and having read the various affidavit evidence relied on by each of the parties, I propose to deal with the application by the third defendant to dismiss the proceedings first. I do so, because if that application is accepted, then it would be unnecessary to consider the applications by the plaintiff and the second defendant.
Application by the third defendant to dismiss
17. By an amended notice of motion dated 28th August 2012 and filed 29th August 2012 the third defendant seeks the following orders:
18. In support of this application, the applicant relies on the affidavit of Loa Vani Peter sworn on 9th July 2012 and filed 10 July 2012, and the affidavit of Loa Vani Peter sworn and filed on 19th April 2013.
19. The application is supported by the second defendant.
20. The plaintiff and the first defendant oppose the application. They too rely on a number of affidavits.
21. All parties have filed written submissions and made oral submissions in respect of this particular application. I have read and considered carefully the evidence and the submissions regarding this application.
22. The submissions raise a number of issues to resolve. In my view these are:
Whether the plaintiff complied with the requirements of Section 5 of the Claims By and Against the State Act.
24. The essential facts leading to this applications are set out in the submissions of Mr. Yai and Ms Avuti. I adopt these for the purposes of resolving this issue.
25. There is no issue that the Registrar of Titles cancelled the Title on 10th October 2010 and such cancellation was recorded on the Register on 23rd November 2010.
26. There is also no dispute that the plaintiff gave notice to make a claim against the Registrar and the State on 20 January 2012.
27. It has been submitted by Mr. Yai and supported by Ms Avuti that the plaintiff has not given notice within the time prescribed
by section 5 of the Act. They submit that as the notice given was outside the time limit prescribed, and no leave having being sought
and obtained from the Court, or from the Principle Legal Adviser for an extension of time with which to give notice, the plaintiff's
claim against the second defendant is time barred and ought to be dismissed.
28. Mr Goodwin for the plaintiff conceded that the notice given was outside the time limit prescribed. However, he then made a submission
that the Court should exercise its powers under section 5 (2) (ii) of the Act and ratify the plaintiff's action on the basis that
the time lapse was by a month only. He also submitted that the defendant's had not pleaded this particular ground and he was therefore
caught by surprise.
29. Mr. Ovia did not make any submissions on this issue.
30. The submissions require consideration of Section Section 5 of the Act. It reads:
"1. No action to enforce any claim against the State lies against the State unless notice in writing of intention to make a claim is given in accordance with this section by the claimant to-
(a) The Departmental Head of the Department responsible for justice matters; or
(b) The Solicitor-General
on sufficient cause being shown, allows......"
31. This provision has been considered by the Supreme Court and the National Court on many occasions (See John Kami v Dept of Works & The Independent State of PNG (2010) N 4144, NCDC v Jim Reima & Balus Sokele & Robane Pisimi [2009] SC 993, Paul Tohian v Tau Liu [1998] SC566.
32. In Paul Tohian & Others v Tau Liu the Supreme Court,
"The purpose of the requirement to give notice remains the same whether or not the notice is required to be given within the 6 months or within such further period as may be granted by the Principal Legal Adviser or the Court. It is clear to us that the notice of intention to make a claim is a condition precedent to issuing a writ of summons in all circumstances."
33. In my view, the authorities that I have referred to and many others makes it abundantly clear that no proceedings are to be instituted against the state (except in judicial proceedings), unless a claimant gives a prior written notice of a claim to the State as prescribed under section 5 of the Act. This requirement is a condition precedent to the instituting of proceedings.
34. In this case it is clear from the evidence, and there is no dispute between the parties as to the facts in regard to this issue. The Registrar of Titles cancelled the Title on the State Lease on 13 October 2010 and the cancellation was recorded in the Register on 23 November 2010. The cause of action against the defendant arose either on 13 October 2010 or on 23 November 2010.
35. The plaintiff's claim as against the second defendant is at best based on section 5 (2)(a) of the Act. That being the case, the plaintiff was required to give notice within six (6) months after the occurrence out of which the claim arose. The occurrence or the event which gave rise to the plaintiff's claim against the second defendant was the act of cancellation of the title which occurred on 13 October 2010. That was when the cause of action of arose as against the second defendant. However, and even if it said to have occurred on 23 November 2010, when the cancellation was entered in the Register, and the cause of action was said to have occurred then, this is of no assistance to the plaintiff. In either event, the six months time period ended on or about April or May 2011. The Notice of Claim was given on 20 January 2012, which is a period of over seven months.
36. It is clear and I so find that the plaintiff did not give proper notice to the State within the meaning of s.5 (2)(a) of the Act. The Plaintiff did not seek any extension of time from either the Principal Legal Advisor or the Court. The notice that was given was a 'nullity ab initio.' As no notice was given within the time stipulated under section 5(2)(a) of the Act, the proceedings against the second defendant cannot continue. As the condition precedent has not been complied with, I conclude that the claims against the second defendant must be dismissed.
37. Before, I finish I should add a further comment on the oral application by Mr. Goodwin for the Court to exercise it's powers under s.5 (2) (c) of the Act. As to that submission, in my view, there are two courses open to a claimant. First he or she can apply to the Principle Legal Advisor for an extension of time to give notice. The second option is for the claimant to apply to the National Court by Originating Summons, a Notice of Motion and affidavit material seeking an extension of time within which to give notice of an intended claim to the State.
38. In the present case, I decline to grant Mr. Goodwin the relief he seeks because there is no basis shown to exercise my discretion.
In any case there is no proper application and no evidence before me to exercise my discretion.
39. As to his complaint that he was not given adequate notice of this particular ground, it is mischievous. He was served with the
third defendant's amended Notice of Motion filed 29 August 2012 which pleaded this particular ground to challenge the proceedings.
For those reasons I come to the conclusion that the proceedings against the second defendant cannot stand and is dismissed.
40. This then brings me to the related motions by the plaintiff for default judgment against the second defendant and the motion by the second defendant seeking leave to file its defence out of time.
41. As the proceedings against the second defendant has been dismissed, it follows that motions by the plaintiff and the second defendant are rendered nugatory. I would therefore dismiss the application by the plaintiff for default judgment.
Whether The Entire Proceedings Should Be Dismissed Either As Being Abuse Of Court Process Pursuant To Order 12, Rule 40 (1) ( C) Or For Disclosing No Reasonable Cause Of Action Pursuant To Order 8, Rule 27.
42. Order 12, Rule 40 (1) ( c) reads:
"Where in any proceedings it appears to the Court that in relation to the proceedings generally or in relation to any claim for relief in the proceedings-
( c) the proceedings are an abuse of the process of the Court.
the Court may order that the proceedings be stayed or dismissed generally or in relation to any claim for relief in the proceedings."
" Where a pleading—
(a) discloses no reasonable cause of action or defence or other case appropriate to the nature of the pleading; or
(c) is otherwise an abuse of the process of the Court,
the Court may at any stage of the proceedings, on terms or otherwise, order that the whole or any part of the pleading be struck out."
"Acquisition of Customary Land for the grant of special agricultural and business lease
(1) The Minister may lease customary land for the purpose of granting a special agricultural and business lease of the land.
(2) Where the Minister leases customary land under Subsection (1) an instrument of lease in the approved for, executed by or on behalf of the customary landowners, is conclusive evidence that the State has a good title to the lease and that all customary rights in the land, except those which are specifically reserved in the lease, are suspended for the period of the lease to the State."
"(1) The Minister may grant a lease for special agriculture and business purposes of land acquired under Section 11.
(2) A Special Agriculture and Business Lease shall be granted-
(a) to a person or persons; or
(b) to a land group, business group or other incorporated body, to whom the customary landowners have agreed that such a lease should be granted.
(3) A statement in the instrument of lease in the approved form referred to in Section 11(2) concerning the person, land group, business group or other incorporated body to whom a special agriculture or business lease over the land shall be granted, is conclusive evidence of the identity of the person (whether natural or corporate) to whom the customary landowners agreed that the agriculture and business lease should be granted.
(4) A Special Agriculture and Business Lease may be granted for such period, not exceeding 99 years, as to the Minister seems proper. "(Emphasis added).
"ACQUISITION OF CUSTOMARY LAND FOR THE GRANT OF SPECIAL AGRICULTURE AND BUSINESS LEASE.
(i) The Minister may lease customary land for the purpose of granting a special agriculture and business lease of the land.
(ii) Where the Minister leases customary land under Subsection (1), and instrument of lease in the approval form, executed by or on behalf of the customary rights in the land, except those which was specifically reserved in the lease, are suspended for the period of the lease to the State....."
"Protection registered proprietor.
(1) The registered proprietor of an estate or interest holds it absolutely free from all encumbrances except-
(a) In the case of fraud; and
See; the often cited cases of Mudger –v- Secretary for Lands [1983] PNGLR 387 & Emas Estate Development Pty ltd –v- John Mea [1993] PNGLR 215.
81. As the proceedings against the second defendant have been dismissed, these submissions based as they are on claims against the second defendant cannot be sustained.
___________________________________________
O'Briens Lawyers: Lawyers for the Plaintiff
Ketan Lawyers: Lawyers for the First Defendant
In house Lawyers: Lawyers for the Second Defendant
Bristle Lawyers: Lawyers for the Third Defendant
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