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Supreme Court of Papua New Guinea |
PAPUA NEW GUINEA
[IN THE SUPREME COURT OF JUSTICE]
SCA NO. 13 OF 2022
KALGREGOS ELECTRICAL LIMITED
Appellant
AND
MAMUN INVESTMENTS LIMITED
First Respondent
AND
NATIONAL COUNCIL OF YOUNG MEN’S CHRISTIAN ASSOCIATION OF PAPUA NEW GUINEA INC.
Second Respondent
AND
AUSTRALIA AND NEW ZEALAND BANKING GROUP (PNG) LIMITED
Third Respondent
Waigani: Kandakasi DCJ, Auka J & Miviri J
2022: 26th September
2024: 29th October
PRACTICE & PROCEDURE - Objection to competency of appeal - Notice of appeal -appealing against two separate decisions, not in correct from and filed out of time - Claims of objection to competency being incompetent to being filed and served out of time - Competency of proceeding always open before final decision - Grounds of objection made out - Objection upheld, and proceedings dismissed.
Cases Cited:
Michael Kuman & Ors v. Digicel (PNG) Ltd (2017) SC1638
Independent State of Papua New Guinea v. Namah (2020) SC2037
Barry v. Luma (2017) SC1639
Lady Ni Cragnolini v. Teddy Taison & Anor (2023) SC2464
Christopher. M. Smith v. Ruma Constructions (2002) SC695
Rea Joseph v Manau Sereva & Ors (2011) SC1152
PK Investments Ltd v. Mobil Oil New Guinea Ltd (2015) SC1456
Gigmai Awal v. Salamo Elema [2000] PNGLR 288
Counsel:
Mr. Y. Awi, for the Appellant
Mr. N. L Ako for the First Respondent
29th October 2024
Grounds for the Objections
KEL’s objection
Relevant principle governing objection to competencies
“Objections to competency of appeals, applications for leave to appeal and references and or other applications or process brought to the Supreme Court is a well-trodden road in Papua New Guinea. The principles governing such objections are well settled. I note as did the Supreme Court in Talibe Hegele v. Tony Kila (2011) SC1124 (per Cannings, David and Sawong JJ), the “law on the scope and purpose of an objection to competency of an appeal was reviewed by the Supreme Court in Turia & McKay v. Nelson (2008) SC949, per Kirriwom, Cannings, Yagi JJ. These have been elaborated and complimented upon by other decisions. According to these decisions, an objection to competency would properly be in Court if it raises issues that:
(1) draws the Court’s attention to a question of jurisdiction: See Waghi Savings and Loan Society Ltd v. Bank of South Pacific Ltd (1980) SC185; Jeffrey Turia v. Gabriel Nelson (supra) and Talibe Hegele v. Tony Kila (supra).
(2) there are serious threshold issues concerning legality or viability of the appeal: See PNG Forest Authority v. Securamax Ltd (2003) SC717.
(3) leave has not being sought and obtained separately in cases where some of the grounds of appeal require leave and some do not: See Yakham & The National v. Merriam & Merriam (1997) SC533, per Amet CJ, Kapi DCJ and Los J.
(4) an application for leave or notice of appeal’s ground is false, misleading or is vague or not adequately stating the nature of the case, the questions involved and the reasons why leave should be given: See PK Investments Ltd v. Mobil Oil New Guinea Ltd (2015) SC1456, per Batari, David and Makail, JJ; Gigmai Awal v. Salamo Elema [2000] PNGLR 288, per Amet CJ, Kapi DCJ and Sevua J.
To validly plead the grounds, they must briefly state but:
(a) specifically make grammatical and legal sense and be intelligible.
(b) if it is alleged that a judgment is against the evidence or the weight of the evidence, the notice must specify with particularity the ground relied on to demonstrate that.
(c) if it is alleged that the judgment is wrong in law, the notice must specify with particularity the ground relied on to demonstrate the specific reasons why the judgment is alleged to be wrong in law: See Jimmy Lama v. NDB Investments Ltd (2015) SC1423, per Cannings, Collier and Geita JJ.
(5) an application for leave or notice of appeal has been filed outside the 40 days period allowed by s. 17 of the Supreme Court Act without leave of the Supreme Court: See The State v. John Tuap (2004) SC765, per Sawong, Mogish and Cannings JJ.
(6) an application for leave includes questions of law or fact not raised in the National Court: See Chief Inspector Robert Kalasim v. Tangane Koglwa (2006) SC828, Kapi CJ, Injia DCJ and Hinchliffe J.
(7) an applicant for leave does not have sufficient interest in the subject matter of the National Court’s decision that it wishes to appeal against: See Porgera Joint Venture v. Joshua Siapu Yako (2008) SC691, per Kapi CJ, Kirriwom and Lay JJ.
(8) the notice of appeal raises factual questions for which leave had not been first sought and obtained separately: Peter Neville v. National Executive Council of Papua New Guinea (2015) SC1431, per Gavara-Nanu, David and Murray JJ.
(9) an application for leave has been filed unnecessarily, that is, where the objecting party points out that leave to appeal was not actually required and leave is being sought. Earlier decisions of the Court held this could not be a valid ground to object: See Boyepe Pere v. Emmanuel Ningi (2003) SC711, per Los, Kandakasi and Mogish JJ; Oio Aba v. MVIL (2005) SC779, per Injia DCJ, Sawong and Lay JJ; The State v. John Talu Tekwie (2006) SC843, per Salika, Lay and Gabi JJ. This later changed to make it a valid ground for objection to competency: See Paul Bari v. John Raim (2004) SC768, per Salika, Mogish & Cannings, JJ; Timothy Neville v. IPBC (2012) SC1193, per Salika, DCJ and Batari J. and Rea Joseph v. Manau Sereva (2011) SC1152, five-member bench comprising of Cannings, Manuhu, Gabi, Hartshorn and Yagi JJ.
(10) the appeal, leave or review or an application or a process before the Court fails to strictly comply with the mandatory procedures and requirements of the Supreme Court Rules: See National Capital Ltd v. Loi Bakanio (2014) SC1392, per Injia CJ, Gavara-Nanu and Kawi JJ; Dr Arnold Kukari v. Don Polye & Ors (2008) SC 907, per Kapi CJ, Gavara-Nanu and Cannings JJ.; Ipili Porgera Investments Ltd v. Bank South Pacific Ltd (2007) SC1322; Felix Bakani v Rodney Daipo SC659; Haiveta v. Wingti (No.2) [1994] PNGLR 189 and Tsang v. Credit Corporation (PNG) Ltd [1993] PNGLR 112). Any such defect cannot be fixed by any amendments as the originating process is not properly before the Court. This is not an exercise in the court nitpicking, but is something that goes into the validity of the process: See In the Matter of Section 19 of The Constitution of the Independent State of Papua New Guinea – Reference by Fly River Provincial Executive (Ref. No. 3 of 2006) (2007) SC917; Special Constitutional Reference No. 4 of 1987; Re Central Provincial Government and National Capital District Interim Commission [1987] PNGLR 249 and Special Reference by Morobe Provincial Executive (2010) SC1089.
(11) it is also clear that, the above list is not exhaustive. It simply shows the types of grounds that would properly be before the Court raising questions of the Court’s jurisdiction to deal with a matter brought before it. At the same time, it is clear that, following grounds of objection are not proper grounds for taking an objection as to the competency of a matter before the Court:
- (1) That an application for leave to appeal was not served on the respondent: See Gigmai Awal v. Salamo Elema (supra), where the Supreme Court pointed out that the Rules do not require an application for leave to appeal to be served on other parties;
- (2) That the proposed grounds of appeal referred to in an application for leave to appeal, lack merit. This is to say, where an objection raises an argument around the grounds of appeal having any merit or are not likely to succeed is not a proper ground to object because such arguments can only be raised at the hearing of the substantive matter. See The State v. John Talu Tekwie (2006) SC843; and PNG Forest Authority v. Securimax Ltd (2003) SC717.
“...The obvious weight and import of all of these decisions is this. A notice of appeal, an application for leave to appeal or any application or a process brought before the Supreme Court must strictly meet the requirements of the Supreme Court Act and Supreme Court Rules in order for such a process to be properly before the Court. A failure to strictly meet these requirements amounts to incompetence by reason of which, the process could be dismissed.”
“...the only case that has departed from the above well-established position at law was the decision in Coca Cola Amatil (PNG) Ltd v. Yanda...In that case, the Court essentially said, as long as there is one ground of appeal that invokes the Courts’ jurisdiction, the notice of appeal could safely proceed to a hearing. That judgment with respect, did not consider the long line of cases I referred to. The long line of cases I referred to and the principles they stand for do two things. First, they govern the issue of how a process can properly or competently invoke the Supreme Court’s jurisdiction. Having one ground of appeal or a process before the Supreme Court that invokes the jurisdiction of the Court is one critical aspect. The other also critical aspect is the need to come to the Supreme Court in the correct manner and form, at the correct time and by the correct person or parties. Secondly, they make it clear that, even if a person gets everything right but for one requirement such as the form, timing, not sufficiently and properly pleading a ground, or raising an issue not raised in the Court below, or seeking leave when not required, renders the appeal or the processes before the Court not properly before the Court. Instead, it would be incompetent and could be dismissed on that basis. The decision in Coca Cola Amatil (PNG) Ltd v. Yanda (supra) does not address these factors and clearly articulate why all the years of making through the various decisions of the Supreme Court must now be abandoned. Clearly, that decision does not with respect, offer any good reason to depart from the well-trodden road of objections to competencies of appeals and other process before the Supreme Court and in particular, the principles that have been developed and applied throughout the years to the present. In these circumstances, I see no reason to depart from the long-established practice and procedure in our jurisdiction. The principles they stand for are still sound and are thus relevant and applicable.”
Background facts
KEL’s Objection - Objection to Competency Not Served Within Prescribed Time
“In regard to the objection to the notice of objection to competency that it was not served within the time prescribed by Order 7 Rule 15(b) Supreme Court Rules, we note that it is conceded that the notice was served four days late. The evidence is that this was due to a sealed copy not being released in time by the Supreme Court Registry. Order 7 Rule 19 provides for a scenario in which an appeal may be dismissed as incompetent notwithstanding that a notice of objection to competency is not given. A failure to comply with this rule therefore does not preclude an objection to competency. We are also aware of numerous authorities to the effect that an objection to competency may be made at any time before the hearing of an appeal notwithstanding the requirements of the Supreme Court Rules concerning objections to competency: Lowa v. Akipe [1992] PNGLR 399; Bruce Tsang v. Credit Corporation (PNG) Ltd [1993] PNGLR 112 and Kalasim v. Mond (2006) SC828. Consequently, we reject the objection to the notice of objection to competency.”
Objection ground 1 – One appeal against two separate decisions
“It is clear from a reading of the whole of the provisions of Rule 8 that there is general power, albeit discretionary, vested in the National Court to set aside or vary a direction for entry of judgment or order. It is, however, also important to note that such power can be exercised only when an application (notice of motion) is filed “before entry of judgment” but this requirement may be dispensed with in appropriate circumstances under Order 1 Rule 7. Where the relief under Order 1 Rule 7 is not sought and or granted, there is no power to be exercised.
(Underlining ours)
“Sub-rule (1) grants a general power; however, the conditions for the exercise of the power are specific and are provided under Sub-rule (2). There are only 3 conditions; firstly, in cases where a default judgment is entered under Division 3 of Order 12, or, secondly, in cases where a judgment has been entered ex parte, or, thirdly, in cases where judgment has been entered in proceedings relating to land.”
Sub-rule (4) whilst making provision for additional or supplementary powers, at the same time, provides two caveats or exceptions to the general power. It specifically says that there is no power to set aside or vary a judgment or order for “dismissal of proceedings or for dismissal of proceedings so far as concerns the whole or any part of any claim for relief.”
(Underlining ours)
“ The process for setting aside or varying an order is without question an interlocutory process. Sub-rule (1) expressly provides for that. In the broader context and scheme of things under the Rules of Court a civil proceeding is commenced by a substantive process. These processes are provided under Order 4. Except as authorized by any other law there are only two modes of commencing a civil proceeding; by a writ of summons and by an originating summons.”
(Underlining ours)
“A notice of motion is only an interlocutory process. It cannot be used to commence or re-commence a substantive proceeding. It can only be used, as its name suggests, whilst the substantive proceeding is current. It is intended to be used within and not without a current proceeding. Where the proceeding is brought to a finality by way of a dismissal order the currency or life of the proceedings is at end and cannot be brought back to life or resurrected, as it were, by an interlocutory process. This is made clear by virtue of Rule 4 of Order 4. It states:
‘4. Mode of proceedings in interlocutory matters.
Proceedings may be instituted by motion, only if they relate to an interlocutory application.’
Rule 4 is further reinforced by Rule 37 of Order 4 where it reads:
‘37. Interlocutory or other application in proceedings. (19/1)
An interlocutory or other application, in or for the purpose of or in relation to proceedings commenced or to be commenced by writ of summons or by originating summons, shall be made by motion.’
Put it in another way in the context of the present appeal the effect of Rule 4, is that, a notice of motion cannot be employed to resurrect, restore or revive a substantive proceeding that has been dismissed even on the basis of an ex parte order. The remedy for an aggrieve party does not lie in an application under Order 12 Rule 8 but through an appeal or review process in the Supreme Court.”
(Underlining ours)
“We have read the National Court decision in James Aiwasi (supra). In the course of writing this decision we have also come across another judgment of the National Court in Harry Tovon v Carl Malpo (2016) N6240. Both are judgments of his Honour Kandakasi J. These two cases discussed, amongst others, the effect of Rule 8(4) of Order 12 and both reached the same conclusion on the very issue before us. In Harry Tovon case (supra) his Honour Kandakasi J discussed, amongst others, the scheme of the Rules and the meaning of “interlocutory” in the context of the Rules. Both of his Honour’s decisions agree with the reasoning by Makail AJ (as he then was) in Peter Malts case (supra). We are of the view that the reasoning in these 3 cases is sound in law and practice. We agree with and endorse their Honours’ reasoning and conclusion.”
(Underlining ours)
“The Public Policy dictates or requires finality in litigation. There must be finality in litigation once a final decision has been arrived at. We adopt the remarks as stated in Richard Dennis Wallbank & Jeanette Miniffe v The Independent State of Papua New Guinea [1994] PNGLR 78.
(Underlining ours)
“For all the foregoing reasons and applying the order approach principle recently approved by the full Bench of the Supreme Court in Steven Punangi case (supra) an ex-parte order dismissing the proceedings for want of prosecution, and for that matter disclosing no reasonable cause of action, is in our view a final order as it finally and effectively determines the life of the substantive proceeding before the National Court.
A party like the Appellants in this case who are aggrieved by an ex-parte dismissal order can only appeal to the Supreme Court as of right and leave is not required. see Rea Joseph v. Manau Sereva & Ors (2011) SC1152.”
(Underlining ours)
“15. The power under Order 12 Rule 8(1) is separate from those under Order 12 Rule 8(2) and (3) as the latter rules only apply to circumstances where judgments or orders have been obtained in the absence of a party. There is a clear demarcation in that regard.
(Underlining ours)
The Court may, on terms, set aside or vary a direction for entry of judgment where notice of motion for the setting aside or variation is filed before entry of the judgment.
(b) Order 12, r. 8 (3) (b) also reads:
Where notice of motion for the setting aside or variation is filed before entry of the order.
(c) Order 12, r. 8 (4) reads:
In addition to its powers under Sub-rules (1), (2) and (3), the Court may, on terms, set aside or vary any order (whether or not part of a judgment) except so far as the order determines any claim for relief or determines any question (whether of fact or law or both) arising on any claim for relief and excepting an order for dismissal of proceedings or for dismissal of proceedings so far as concerns the whole or any part of any claim for relief.
(d) Order 4, r. 4 and r. 37 which read:
Rule 4:
Proceedings may be instituted by motion, only if they relate to an interlocutory application.”
Rule 37:
An interlocutory or other application, in or for the purpose of or in relation to proceedings commenced or to be commenced by writ of summons or by originating summons, shall be made by motion.”
(Underlining ours)
“It is, however, also important to note that such power can be exercised only when an application (notice of motion) is filed “before entry of judgment” but this requirement may be dispensed with in appropriate circumstances under Order 1 Rule 7. Where the relief under Order 1 Rule 7 is not sought and or granted, there is no power to be exercised.”
Ground 5 - Failure to properly plead the grounds of appeal with particularity and clarity.
Outcome of the Objection to Competency
Orders of the Court
Judgment and orders accordingly.
________________________________________________________________
Awi Lawyers: Lawyers for the Appellant
Warner Shand Lawyers: Lawyers for the First Respondent
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