THE NATIVE LANDS COURT ACT.

Daily Telegraph (Napier), Issue 7402, 27 June 1895, Page 3

THE NATIVE LANDS COURT ACT.

CHIEF JUSTICE'S RULING.

Hia Honor the Chief Justice yesterday morning in Chambers delivered a judgment hearing on the question of the disposition of native lands in oase of bankruptcy, whioh undtr the Native Lands Court Aot, 1894, rendered Bale to anyone but the Government impossible. Tho Official Assignee, Mr M. Laaoalles, applied for direction in tne bankrupt estate of A. Karaitiana, application being nude under (Section 67 of tho Bankruptcy Aot, 1892, and Kule 163. Mr Humphtiea appeared for the Aaeignee. Ihe full text of the judgment is as folio wa :—

Ihe Official Assignee in the bankruptcy of a native aaks for directions and advice as to whether he i 3 to treat as assets in tho bankruptcy lands which the native himself ia, by tho Native Lands Court Act, 1891, prevented from dealing with exoopt in the manner provided by that Act. Tho_ mode in whioh and the ooaditionß under which tha native owner himself could deal with the aaid land as the Uffioial Asßi_uoe on behalf of the creditors desires to reaoh, aro presoribed in tho third part of the seoond division of the Act. The provisions are, in effeot, that all dealings muat be by the Crown Lands Board for the district in which the lands are situated, and the proceeds, after pa>ing exponsea, are to be paid to tho Publio Trustee, who is to hold them iv trußt for the natives. In part I of the same division, which part ia headed " aliauation," it ia provided that excopt a^thereinafter provided it shall not bo lawful for any person excopt on behalf of thj Urown to ucquiro any estate or interest in any lauds owned or held by a native, except laud which has been acquired by purohaae,bequeot, gift, or testamentary disposition, or by purchase from tho Crown; and by section 121 it ia provided thut nothing iv tho Act ah>U render nugatory any power of sale under any existing judgment. The term "alienation" ia interpreted to mean any stilo, lease, contract, or other disposition, abjoiute or limited, mortgage charge, lion, or encumbrance. This moaning ia certainly not appropriate to a transfer effected by operation of law ; nor iB much language as "It ahall not be lawful for any per.on to acquire" tho kind of provision ono would expect where it ia intended that there shall bo no trautfer by op oration of law With regard to such lunda; but inasmuch aa by aeetion 121 a aalo by tho sheriff in satisfaction of a judgment cannot bo made of such lands as c!u not oomo within tho exception iv saction 117, unless saoh judgment wero eaiutiug at tho time of tho coming into operation of tho Act, aud aa uu adjudication iv bankruptcy is a judgment which ia offoct amounts to a general execution against tho debtor'a property, real and peruonal, I think that tho debtor'a liuda, not coming within tho exception provided for in aooiion 117 do not puss to tho Official Ahriguot). I think, howov-i'., that the creditors are entitled to such monty" as are paid t> tho Publio Trustee in for iho debtor, and thut tho tsfiioir'.l Asaigi-.e ■■> should t-iko stt-psi ti givo uotico to the into-; Board and tho Public 'i'rustto of th»> ckims.