Court dissolves restraining order to stop firm from collecting wharf fees

National

The Waigani National Court has dissolved a restraining order by PNG Express Line Company Ltd to stop a local company from collecting wharf fees from its vessels at Kiunga Wharf in Western due to land title legality.
Judge Justice Kingsley Allen David dismissed the whole proceedings and dissolved the restraining order taken by PNG Express Line Company Ltd (PNGELCL) as plaintiff on Aug 19, 2016 against North Fly Development Corporation Limited (NFDCL).
The court order was to restrain NFDCL from stopping, preventing, intimidating, threatening or restricting PNGELCL from using the wharf. And with all wharf cost fees shall follow.
Justice David made the ruling following a contested motion filed by first defendant NFDCL on May 1, 2018 backed by Steamship Ltd and Kiunga Stevedoring Company Ltd to set aside the interim orders of PNGELCL.
The court heard that PNGELCL was a shipping company providing commercial shipping service between Port Moresby and Kiunga since 2012. During that time NFDCL had been charging and collecting berth and wharf fees. NFDCL also did the same to Steamships Ltd and other shipping companies.
on Aug 11, 2016 NFDCL applied for the title and was granted with the land described as State lease volume 71 Folio 224. NFDCL is a landowner company owned by six local-level governments within North and Middle Fly Districts in Western.
The court heard that the proceedings started through originating summons by PNGELCL on Aug 18, 2016, following the receipt of an email on Aug 16, 2016 from John Kalan, an employee of NFDCL, demanding immediate payment of all outstanding invoices of wharf fees. He also indicated that the failure to do so would result in PNGELCL vessels being prevented from berthing at the wharf.
The plaintiff contended that while NFDCL may be entitled to charge and collect fees from the wharf after the grant of the title over the land, it challenged the validity of invoices issued to it prior to the issue of the title.
It was alleged that PNGELCL stopped payment after a survey of the land originally described as Allotment 30 Section 6 was subdivided into creation of Allotment 41 and 42 Section 6 pursuant to registered Survey Plan Cat.No.28/143. Steamships Ltd, as second defendant in the matter, also adjoining the same State land but with different allotment and section numbers which were Allotment 50 and 51 Section 6.
The confusion led to the registered survey plan cat.No.28/143 superseded by another survey plan cat.No.28/155 which had resulted in the land being reverted to its original description Allotment 30 section 6. The changes forced PNGELCL to withhold payments for the use of the wharf.
However, the court considered the decision as without any lawful basis and did not apply to all users of the wharf.
The court heard that the Kiunga wharf was constructed in 1989 by the NFDCL on the land when it was vacant State land. It was built when Ok Tedi Mine began operation in the district, prompting the need for a public wharf. The provincial government at that time assisted with K600,000. Since then, NFDCL has charged fees to all users and continues to do so.