RECOVERY SUIT NOT BARRED

Press, Volume LXXIII, Issue 22240, 3 November 1937, Page 11

RECOVERY SUIT NOT BARRED

Australian Court Decision

N.Z. ACT INEFFECTIVE AS DEFENCE

(TWITED TBESS ASSOCIATION —COPTEIOHT.)

(Received November 2, 10.30 p.m.)

SYDNEY, November 2

Moratorium legislation passed in New Zealand does not prevent actions being taken in New South Wales Courts for the recovery of debts alleged to have been incurred in New Zealand. This was the effect of a Full Court judgment in a case in which it was sought to plead the New Zealand Mortgagors and Lessees Rehabilitation Act, 1936, as an answer to two claims for alleged debt which are pending before the New South Wales Court.

The plaintiffs are Noel Cole and Noel Cole, Ltd., of New Zealand, who are suing Henry Eli White, of Sydney, for sums alleged to be due for goods delivered and money lent White pleads that he was never indebted, and also has set up as a defence the Mortgagors and Lessees Rehabilitation Act, which act, lie says, binds himself and the plaintiffs as the alleged cause of action occurred in New Zealand where both were then domiciled.

To this plea plaintiffs demurred, the demurrer being upheld. The Court granted a stay of action for seven days to enable the defendant to ascertain the position of his application for an adjustment of the debt under the New Zealand Act.