COUNCIL V. GAS COMPANY.

Auckland Star, Volume XXXIX, Issue 81, 3 April 1908, Page 4

COUNCIL V. GAS COMPANY.

APPEAL: COURT CASE.

CBy Telegraph.—Press 'Association.)

WELLINGTON, Thursday. This afternoon the Appeal Court began the hearing of the case FeUding Borough v. Feilding Gas Company. The Borough; brought the action against -the cornpaa/ ' claiming an injunction to restrain _a company from interfering with the streets of the borough in laying mains, and also claimed that its- agreement with the company was ultra vires of the corporation, and should he de-

clared void. The agreement was entered into in 1896, and the borough required the company to extend its mains into the . suburbs, and light several street lamps, then hitherto lit with kerosene. The company declined, claiming' that they were not bound to So so by the agreement! The borough then began negotiations for the purchase of the works, but'nothing ." came of them. The chief question was whether the company could sell to private consumers, and the opinion of the Court was asked—(l) Whether the agreement was valid, seeing that the Council had granted concessions beyond its power to validly grant; (2) whether the Council, on-the assumption that .the company had performed its obligations under the agreement, had the right to the injunction claimed; (3) whether, on the same assumption, the company was. entitled to the exclusive right of supplying gas (a) to the Council, or (b) to the inhabitants of the. borough; (4) whether the assignment agreement to the company was valid at law; and, (s);if not, whether the Council was stopped by-its-conduct in recognising and dealing with the company from denying the validity/ of the assignment. . Mr. Bell, K.C., for the plaintiffs, contended that the borough was prohibited by terms of section 371 of the Municipal Corporations Act, ISB6, from contracting an action with the company to supply gas to the inhabitants of the borough, and the only course was to contract for the supply to the borough itself. The agreement was therefore ultra vires and void. The Court then adjourned until the morning.