NATIVE. APPELLATE COURT-

Dominion, Volume 1, Issue 306, 19 September 1908, Page 3

NATIVE. APPELLATE COURT-

REFUSAL TO CONFIRM A TRANSFER. APPEAL DISMISSED. At tho sittings of the Native Appellate Court yesterday, judgment was delivered in the case brought by Koaro to Wbaro Pakaru of Palmerston North. This was an appeal against tho decision of tho Native Land Court given in June, 1908, refusing confirmation of a transfer dated March 3, 190S, from the appellant to ono Allan Skerman, of land known as Upper Aorangi, No. 1, sec. 26 A, which is situated between Palmerston North and Feilding. Tho Nativo Land Court had based its decision on the ground that it was not satisfied that tho full valuo of the land was tyeing paid by tho purchaser. Tho land in question was subject to a lease having twenty years to run from December 19 noxt at an annual rental of £9 10s. Two questions had, tho Court said, been raised on the hearing of tho appeal (a) Whether the Court, in coming to a decision as to adequacy or inadequacy of the consideration to be paid by the purchaser, should take into account tho fact of tho existence of tho lease, and (b) if question (a) bo answered in the affirmative whether tho consideration agreed to bo paid represented the fair and adequato value of the vendor's interest. As to the first question tho Court said it had no hesitation in answering it affirmatively. What the vendor had to sell was a reversion and not an estate in possession, and it followed as of course that the adequacy or otherwise of tho amount to bo paid to him by tho purchaser must be determined by the value of what tho vendor had to sell. With regard to the second question, however, tho Court found itself unable to say that tho agreed consideration represented tho value of tho vendor's interest. The sum agreed to bo paid was £320. The valuation of the land mado by the Government Valuation Department in March, 1907, showed the capital value of the land to bo £779, the owner's interest being assessed at £419, and the lessee's interest at £360. As a matter of precaution, it had had tho respective values of tho owner's and lessee's interests recalculated on tho basis of a capital valuo of £779 by a qualified .officer of tho Income Tax Department (by permission of the Commissioner of Taxes). This valuation agreed with that of tho Valuation Department. Thus the Department valued the vendor's interest at practically £100 more than tho consideration proposed to bo given him. It was truo that two land agents at Palmerston North had made declarations that in their opinion £320 was tho fair value of what tho vendor had to sell but after perusing tho declarations and the mothods adopted by the deponents in arriving at their values, tbo Court did not seo its way to accept, that evidence, as against the Government valuation. Ono of those gentlemen apparently accepted tho capital value of tho land fixed by tho Valuation Department as being correct; tbo other placed the capital valuo at £750 or £29 less than tho Department. There was thus little or no dispute on that point. On tho ovidonce, therefore, tho Court thought it ousht not to confirm the transaction, and would affirm the decision of tho Native Land Court. Tho deposit could, it said, bo returned. Mr. J. J. M'Grath appeared 011 behalf of the appellant. Tho Court then adjourned until Monday, tfhen it will sit at Wanganui,