The High Court in Suva has ruled in favour of K Naidu Investment Proprietary Limited, awarding the Labasa-based company more than $1.4 million in damages after Merchant Finance & Investment Company Limited unlawfully seized and sold 13 of its vehicles and machines.
Presiding over the matter, Justice Vishwa Datt Sharma found that Merchant Finance acted in “contumelious disregard” of the plaintiff’s rights, seizing more assets than authorised and failing to issue a lawful demand notice before enforcement.
The ruling was delivered on October 2.
K Naidu Investment Proprietary Limited , which had operated a successful trucking, logging, and heavy machinery hire business since 2004, had borrowed $744,416.54 from the finance company, secured by a Bill of Sale.
However, flooding in Labasa in 2008 significantly impacted the business, resulting in missed repayments.
Despite attempts to restructure the loan, the defendant repossessed and auctioned 13 of the plaintiff’s assets, eight more than it was authorised to seize, without prior notice or an opportunity to rectify the default.
The Court declared the seizure premature, unreasonable, and unlawful, awarding $322,430 in general damages for conversion, $150,000 under the Fair Trading Decree, $190,000 for breach of contract, $50,000 in exemplary (punitive) damages, $60,000 for humiliation and distress, $600,000 for loss of future income/profits, $50,000 in indemnity costs plus interest from the filing date in 2009 to trial in 2017
The Court also dismissed Merchant Finance & Investment Company Limiteds counterclaim in full.
