The High Court in Lautoka has ruled a decision by the Taukei Land Trust Board (TLTB) to increase the annual rent on an iTaukei land from $300,000 to $510,000 for Mana Island Resort (Fiji) Pte Ltd (MIRL) was invalid.
Mana Island Resort (Fiji) Pte Ltd had claimed the TLTB had failed to comply with Clause 3 of the Native Lease 13835 it held that stated the unimproved capital value must be ascertained by TLTB on the expiry of every decade on the 99-year lease while determining rental charges.
“I accept that it is open to the parties to enter into negotiations to vary the method of assessment, however, the manner in which the TLTB approached the issue gives one the impression that it was a thinly veiled attempt to lock MIRL into such a variation,” stated Justice Anare Tuilevuka in his August 10 ruling.
“The notice therefore cannot be said to be a step towards negotiating the UCV value. Rather, it is an attempt to negotiate a variation of the contract to substitute the UCV method with the OMR approach.”
Justice Tuilevuka noted that, according to the TLTB, the lease did not stipulate a particular timeline for rental assessment and that it was still open to the parties to negotiate.
“I declare that the reassessment of rent under Native Lease 13835 can only be done in terms of clauses 2 (b) and 3 thereof and that Regulation 13 (1) of iTaukei (Leases and Licences) Regulation 1984 has no application.
“I declare that the Notice of Reassessment of Rent dated 5 October, 2021 issued by the defendant to the plaintiff in respect of Native Lease 13835 is invalid.”
Justice Tuilevuka stated if the parties are not able to agree on a UCV, then they can proceed to arbitration.
