IN BANCO.

Dominion, Volume 1, Issue 204, 22 May 1908, Page 4

IN BANCO.

■ RATING OF 11ESERVES. , AN IMPORTANT POINT. Mr. Justice Cooper yesterday heard argument in the case William Tonks (appellant) v. tho Wellington Corporation (respondent.) In June last appellant was sued by the respondent for £7 4s. 10d., being rates alleged to be duo by him as occupier of section 11 of the Town Belt. The deed under which the land was held was expressed to bo a lease for fourteen years, from March 7, 1906. The • Council reserved to itself the right to determine the same at any' time by giving twenty-eight days' notice. There was also a Reservation iD the lease giving to the inhabitants of the city the right to enter upon the laud for the- purpose of recreation and exercise Tonks was, not permitted to build upon .the land. . The lease contained a further, covenant that the tenant would pay. all.existing rates and future rates, payable eithej- by landlord or tenant, including those made and. levied tiy the Corporation.- The defence in the Magistrate's Court .was (1) that tho document, was not; a lease, but a mere license, inasmuch as it did not give exclusive possession;, (2) that, being determinable in twenty-eight days' notice, it .was not a lease for-six months certain, and that, therefore, Tonks was not an occupier within the meaning of tlm Rating Act, 1894. It was held by Mr. Riddell, S.M., that Tonks was not an occupier;. but thit, owing L to a covenant in the leaso whereby lie agreed to pay all ra!tcs','ho was liable to pay them. The grpunds of tho appeals-cm that Tonks was not an occupier within the meaning of the 'Rating' Act, that ho' was a mere licensee, nnd that, notwithstanding that the deed or license contained a covenant to pay' rates, 6uqli covenant only affected rates properly payable, and 'that, as the land was owned by the Corporation, it was hot liable to be rated. Tho Corporation had,, it was argued, nover rated itself as owner,, and could not get. rates from itself.

• On behalf of the Corporation it .was contended that tho rates were a charge upon the, land, and not a tax upon the occupier ; that tho land, boing vested in the Corporation upon . trust!for. tho inhabitants.of- tho city of AVellington, the" Corporation therefore'Was'the owner, and as such-was ultimately liable'\to pay- tho-jates' -duetto itself ; 'and: that, :therefore, T.onks haying-coven-anted to. pay -all rates payable ..-either' by. himself: or his-landlord, and these rates- being.'ultimately payable by the landlord, lie was;: therefore,--liable- under his covenant to pay tho rates. . His Honour-reserved'his decision.