MORTGAGEE'S POWERS

Evening Post, Volume CIV, Issue 8, 10 July 1922, Page 8

MORTGAGEE'S POWERS

IN CASE OF BANKRUPTCY

' The Court of Appeal was engaged today in the'hearing of a complicated case originating from a land transaction. The appellant was the Official Assignee of the property of James L. Bowen, Korokipo, Hawkes Bay, sheepfarmer, and the respondents Edward James • Watt, Sydney, N.S.W., and Thomas Henry Lowry, Ohawa, Hastings. The statement of the case outlined ' that the plaintiff Bowen agreed to purchase certain proparty from the defendants at Omamatua for the price of £23,000, 'and £2000 for stock. He paid over. £1000 on signing the contract, and agreed to ,pay a further £4000 by a certain date. The plaintiff failed to pay. that sum, and the defendants obtained judgment against him by default. Then subsequently they induced the plaintiff to mortgage certain freehold property for the sum of £4021' 10s. The plaintiff failed to pay the amount of the mortgage on ithe Ist August—the date fixed—and on the 23rd August the defendants gave him notice that they proposed to exercise their power of sale. The plaintiff applied and obtained an interim injunction forbidding such exercise, and disclaimed the original contract. The question was whether, having disclaimed the contract to purchase land from the defendants, he was still liable for the sum /of £4000 under the contract.. Mr. Justice Read in an action held he was liable. Against this judgment the Official Assignee appealed.

Argument on the question of procedure occupied the Court all the morning. Mr. M. Myers appeared for the appellant, Mr. A. Gray, X.0., with him Mr. E. M. Gladden, for the 'respondents. (Proceeding.) F