Max Umbu v Steamships Limited (2004) N2738

• Jurisdiction: Papua New Guinea
• Court: National Court
• Citation: (2004) N2738
• Date: 03 December 2004
• Year: 2004

Full Title: Max Umbu v Steamships Limited (2004) N2738

National Court: Salika J

Judgment Delivered: 3 December 2004

1 Mortgages—Mortgagers default—Claim to possession under Mortgage—Statutory Rights

2 Constitution—s41 of Constitution not applicable

3 Tarere v ANZ Bank [1988] PNGLR 201, Australia and New Zealand Banking Group (PNG) Ltd v Kila Wari (1990) N801, Bank of PNG v Muteng Basa [1992] PNGLR 271, PNGBC v Barra Amevo [1998] PNGLR 240, PNGBC v Pala Aruai [2002] PNGLR 159 referred to

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Salika J: The plaintiff is a former employee of the Defendant company who was made redundant on 3 December 2002 following the downsizing of the Defendant's various businesses, including its Merchandise Division where the plaintiff was formerly employed. The plaintiff graduated with a Bachelor of Economics from the University of Papua New Guinea, Waigani Campus in 1998 and in May of that year began employment with Ela Motors at its Port Moresby Head Office. In November 1999 the plaintiff won a position as System and Administration Manager for the Defendant's Automotive Division in Lae. He served a 3 months' probationary period and was confirmed thereafter on a permanent basis. He served the Defendant in that capacity until it became known that the Division was going to be closed. Pending the closure of the Defendant's Automotive Division throughout the country the plaintiff successfully applied and won the position of Inventory Audit Manager with the Defendant's Merchandise Division in Port Moresby. The plaintiff took up this position on or about 26 August 2002 upon acceptance of a written offer from the Defendant.

The plaintiff says that without prior knowing the defendants plan to close the operations of its Automotive Division throughout the country he made enquiries about joining the Defendant's Home Ownership Scheme. He was informed that he was eligible to join the scheme. The plaintiff identified a property on Section 106, Allotment 13, Wagtail Street, Lae, Morobe province as the property he wanted to purchase under the scheme. Approval was granted to the plaintiff to buy the property. In February 2002 the plaintiff entered into a contract of sale between Glen Ming Chen and Chun Ming Huang to buy the property from them for K95,000.00

In the meantime following the Defendant's approval for the plaintiff to purchase the property the plaintiff entered into an agreement between himself and the...