DEBENTURE ISSUE

Dominion, Volume 29, Issue 149, 19 March 1936, Page 15

DEBENTURE ISSUE

Payment in Sterling or in N.Z. Currency? Legal argument us to whether the principal and interest on certain debentures issued by the Auckland City Council had to be paid in sterling or in New Zealand currency was heard before Mr. Justice Reed. Mr. Justice Ostler, Mr. Justice Blair and Mr. Justice Kennedy in the Court of Appeal at Wellington yesterday. The case, which was removed from the Supreme Court, was brought by the Alliance Assurance Company. Ltd., against the Auckland City Council and the Auckland Transport Board in respect of debentures issued by the city council when it purchased the Auckland tramways. Liability for the debentures has since been taken over by the transport board. The total amount of the debentures was £1.227.200. and they gave the holder the option of requiring payment of principal and interest in Auckland or in London. In respect of nearly one million pounds’ worth of the debentures the option was exercised In favour of London, and the question in dispute is whether the principal and interest on these debentures have to be paid in sterling or in New Zealand currency. Mr. 11. E. Bnrrowclongh is appearing for plaintiff, and Mr. 11. II Johnstone. with Mr. J. Stanton, for the local bodies concerned. Tito case will be continued to-day.