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Navaratnam v HG Metal Manufacturing Limited [2022] NZCA 425 (8 September 2022)

Last Updated: 12 September 2022

IN THE COURT OF APPEAL OF NEW ZEALAND

I TE KŌTI PĪRA O AOTEAROA
CA692/2020
[2022] NZCA 425



BETWEEN

VASHIHARAN NAVARATNAM
First Appellant

SHERINE NAVARATNAM
Second Appellant


AND

HG METAL MANUFACTURING LIMITED
Respondent
CA152/2022


BETWEEN

VASHIHARAN NAVARATNAM
First Appellant

SHERINE NAVARATNAM
Second Appellant


AND

HIGH COURT AT AUCKLAND
First Respondent

HG METAL MANUFACTURING LIMITED
Second Respondent

Hearing:

18 July 2022

Court:

Courtney, Thomas and Peters JJ

Counsel:

First Appellant in Person for CA692/2020 and CA152/2022
Second Appellant in Person in CA692/2020 and CA152/2022
T B Fitzgerald and B J Dominikovich for Respondent in CA692/2020 and Second Respondent in CA152/2022
No appearance for First Respondent in CA152/2022

Judgment:

8 September 2022 at 11 am




JUDGMENT OF THE COURT

  1. The appeal in CA692/2020 is struck out.
  2. The appeal in CA152/2022 is struck out.
  1. Costs are reserved.

____________________________________________________________________

REASONS OF THE COURT

(Given by Courtney J)

Introduction

Jurisdiction

[3] ... These days we try to decide cases on their merits if we possibly can. Cases should not lightly be dismissed on purely technical or procedural grounds. On the other hand there comes a point at which the victim of procedural default is entitled to justice too. ...

Recognition and enforcement of an arbitral award

Application to strike out appeal against decision of Jagose J (CA152/2022)

Katz J’s decision

[24] The Award has clearly been properly certified. It is sealed on the first page where it says, “Registered in SIAC Registry of Awards as: Award No. 059 of 2020 on 24 April 2020”. Mr Chow has provided expert evidence that this is all that is required as a matter of Singaporean law.

Mr Navaratnam is refused an extension of time to appeal

[22] ... Mr Navaratnam has not identified any specific error by the Judge in finding that the award was properly certified. Given that this ground does not appear in the proposed notice of appeal and that Mr Navaratnam’s affidavit contains nothing to support his assertion regarding authentication we cannot see the basis on which Mr Navaratnam might impugn the Judge’s finding.

The judicial review proceedings and Jagose J’s decision

[5] Even at judicial review’s widest conception, decisions of this Court and its judges — including in all the senior courts, distinctly from inferior courts of limited jurisdiction — are not susceptible to it, as contrary to principles of finality and legality. Save for this Court’s inherent power to revisit its decisions in exceptional circumstances when required by the interests of justice, any dissatisfaction with its decisions can only be taken up on appeal, where available.

...

[6] In very significant part, looking past its judicial review veneer, this proceeding embodies the applicants’ dissatisfaction with the substance of this Court’s impugned decisions. No exceptional circumstance is evident. As such, I am satisfied this proceeding plainly is an abuse of the Court’s process. An abuse is “improper use of [the court’s] machinery”; use of that process “for a purpose or in a way significantly different from its ordinary and proper use”. Here, as I have explained, that is the proceeding’s improper attempt to obtain judicial review of this Court’s decisions. The applicants can have no reasonably arguable case to claim it.

Application to strike out appeal against Jagose J’s decision

Decision

Application to strike out appeal against Woolford J’s decision (CA692/2020)

...

[20] The appeal relates to a judgment against Mrs Navaratnam. Mr Navaratnam is a party, and is entitled to be heard. But he is not entitled to represent Mrs Navaratnam, and in light of the concerns previously expressed about his conduct of related proceedings it would not be appropriate to grant him leave to represent his wife in connection with the future conduct of this appeal or at the hearing. Mrs Navaratnam’s submissions, and any other documents filed on her behalf, must be signed by her personally or by counsel acting for her. At the hearing of the appeal Mrs Navaratnam may be represented by counsel, or may appear in person. Mr Navaratnam may not appear for her. If she does not appear by counsel or in person at the hearing of the appeal, she will be treated as unrepresented.

[21] Mr Navaratnam can of course continue to represent himself. But his role in this appeal against a judgment against Mrs Navaratnam is very much a secondary one. ...

Difficulties at the hearing of the strike out application

HG Metal’s application to strike out

...

(b) Hg Metal has not proven the presumptive validity of the award as required under Article 35(2) and according to the relief the Navaratnam’s (sic) sought, it was a prerequisite to have [Mrs Navaratnam’s] grounds challenge to be heard under Article 36 and that requirement has not been met.

(c) The non-compliance is also dispositive of the issue of service on [Mrs Navaratnam] because in order for service to be effective, there ought to be a valid award and arbitration agreement filed which proves matters under Article 35(2). There is no such filing and any argument otherwise is displaced by the evidence.

(d) Accordingly neither Navaratnam’s (sic) have an obligation to respond under 26.27 of the [High Court Rules] requesting review of the award under article 36(1)(a).

...

(f) [Mr Navaratnam] will not allow [Mrs Navaratnam] to respond as Hg Metal has not satisfied the requirements under Article 35(2) and by way of that requirement the terms of the Arbitration Agreement they used to obtain the Award. Satisfying the requirements in Article 35(2) is a prerequisite and a right that is afforded to her and if and when Hg Metal decides to submit the relevant documents and [Mrs Navaratnam] is validly served [in] accordance to the laws applicable to her, a response from her will be rightfully forthcoming. Until such time that happens [Mr Navaratnam] is doing what the Judiciary ought to do – protect her rights under the Arbitration Act 1996 and therefore he should not be penalised for his actions.

(g) For the above reasons, the Navaratnam’s (sic) have not complied with the time tabling directions and the directions ought to be deferred until determination is made under CA152/2022.

  1. The Cost Award. The circumstances particularized below shows that the Navaratnam’s (sic) did not progress the appeal on CA692/2020, as of right and penalizing them with a cost order does not do justice. It is reward for the plaintiff for not complying with its obligations and therefore the Navaratnam request the cost order to be recalled.

... [Mrs Navaratnam’s] position is that she is of the view that she has no obligation to respond to an award and arbitration agreement that does not comply to Article 35(2) requirements ...

Decision

Result

(a) HG Metal is to file a memorandum as to costs by 23 September 2022.

(b) Mr and Mrs Navaratnam may respond by filing a memorandum in reply by 30 October 2022.


Solicitors:
Bell Gully, Auckland for HG Metal Manufacturing Limited


[1] HG Metal Manufacturing Ltd v Navaratnam HC Auckland CIV-2020-404-001955, 22 October 2020 (Minute of Woolford J).

[2] Court of Appeal (Civil) Rules 2005, r 44A(1)(a).

[3] HG Metal Manufacturing Ltd v Navaratnam [2021] NZHC 1920 [Judgment of Katz J].

[4] Navaratnam v HG Metal Manufacturing Ltd [2021] NZCA 704 [Court of Appeal extension of time judgment].

[5] Navaratnam v High Court of Auckland [2022] NZHC 371 [Judgment of Jagose J].

[6] Court of Appeal (Civil) Rules, r 44A(1)(c).

[7] Rule 44A(1)(a) and (c).

[8] Smith v Antons Trawling Company Ltd HC Auckland CL 40/98, 24 March 2000.

[9] Commissioner of Inland Revenue v Chesterfields Preschools Ltd [2013] NZCA 53, [2013] 2 NZLR 679 at [89]; and Collier v Butterworths of New Zealand Ltd (1997) 11 PRNZ 581 (HC).

[10] Arbitration Act 1996, s 5.

[11] Judgment of Katz J, above n 3, at [22].

[12] At [49].

[13] Court of Appeal extension of time judgment, above n 4, at [15].

[14] The other broad ground related to the way the Judge had dealt with Mr Navaratnam’s argument about the underlying guarantee, which he asserted was precluded as a source of liability by related litigation between the parties.

[15] At [32].

[16] Judgment of Jagose J, above n 5 (footnotes omitted).

[17] The notice of appeal also purported to appeal the decisions of Woolford J entering judgment against Mrs Navaratnam and Katz J entering judgment against Mr Navaratnam, neither of which were amenable to appeal as a result of the procedural history just outlined.

[18] Navaratnam v High Court of New Zealand at Auckland [2022] NZCA 156.

[19] Young v Police [2007] NZCA 339 at [25]; Nicholls v Registrar of the Court of Appeal [1998] 2 NZLR 385 (CA) at 414, 435 and 455; Bulmer v Attorney-General (1998) 12 PRNZ 316 (CA) at 318; and Re Racal Communications Ltd [1980] UKHL 5; [1981] AC 374 (HL) at 384, 386 and 392.

[20] Ben Nevis Forestry Ventures Ltd v Commissioner of Inland Revenue [2014] NZCA 350 at [20]–[22]; and R v Smith [2002] NZCA 335; [2003] 3 NZLR 617 (CA) at [46]–[49].

[21] The defended hearing later proceeded before Katz J, as discussed.

[22] Minute of Woolford J, above n 1, at [8].

[23] This appears to be the first point at which Mr and Mrs Navaratnam refused to accept HG Metal was entitled to be represented by its solicitors. Their failure or refusal to serve HG Metal’s solicitors with documents has been a feature throughout the litigation.

[24] Navaratnam v HG Metal Manufacturing Ltd [2022] NZCA 185 at [16].

[25] At [15].

[26] At [16].

[27] At [22]–[23].

[28] HG Metal Manufacturing Ltd v Navaratnam [2021] NZHC 2498.


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