The High Court has blocked an attempt to garnish bank accounts linked to the Maritime Safety Authority of Fiji (MSAF), ruling that the funds are protected under the State Proceedings Act.
In a ruling delivered on May 28, Justice Chaitanya Lakshman rejected an application by Sultan Mohammed Khan seeking a Garnishee Order Absolute against BSP, Westpac, ANZ and Bred Bank to recover millions awarded in an earlier judgment.
The case stems from earlier High Court findings that the Official Receiver and MSAF were liable for damages involving Mr Khan’s vessel and issues surrounding unlawful vesting and registration delays.
Justice Lakshman noted that damages assessed in August 2025 included $800,000 for replacement cost of the vessel, $2.223 million for loss of income, interest and legal costs.
Mr Khan sought to obtain garnishee proceedings against monies held by banks on behalf of MSAF to get these amounts paid to him.
However, the Court ruled that while banks can generally be subjected to garnishee proceedings, the funds in question were connected to statutory and public functions carried out by MSAF and were therefore protected.
“The funds sought to be attached arise from and are connected to statutory public functions exercised by MSAF and cannot properly be treated as ordinary commercial monies available for attachment through garnishee execution,” Justice Lakshman ruled.
The Court also relied on Section 20(4) of the State Proceedings Act 1951, which prohibits execution or attachment proceedings against the State and entities functioning in that capacity.
Justice Lakshman found that MSAF continued to perform governmental and regulatory functions under statutory control and ministerial oversight, despite operating as a statutory authority.
The Court acknowledged Mr Khan’s frustration over the lengthy delay in receiving payment but said hardship could not override the law.
“Hardship cannot justify the Court disregarding an express statutory prohibition enacted by Parliament,” the ruling stated.
The Judge said the Mr Khan’s remedy remained through the Certificate for Payment process provided under the State Proceedings Act
