SALE OF LAND

Evening Post, Volume CXI, Issue 78, 2 April 1931, Page 3

SALE OF LAND

An unpaid instalment

By reserved judgment 'of the Court of Appeal delivered by Mr. Justice Adams yesterday afternoon an appeal in a Blenheim case made by Arthur Simpson, slieepfarmer, of Seddon, in which Christopher Frank Schwass, sheepfarmer, of Grovetown, was respondent, from a Supreme Court decision by Mr. Justice Reed, was dismissed. The facts were that the respondent, being a registered owner o£ ail occupation, licence under the Land Laws Amendment Act, executed a mortgage to the appellant of all his estate and interest in the land included in the-licence on 19th July, 1820, to secure payment of a loan of £9162 16s 9d and interest. The mortgage contained a covenant by the mortgagor that he would punctually pay all ■ manner of rates, taxes, assessments, impositions, and outgoings, then or at any time thereafter charged, assessed, or imposed upon, or payable in respect of the mortgaged premises, and^that in default thereof the mortgagee miglvt pay such rates, etc., and also that all moneys so paid with interest should be a charge upon the mortgaged premises. There was also a covenant that the mortgagor would duly and punctually pay all instalments of principal and interest as and when they became due and payable under the occupation licence. Default having been, made in payment of an instalment of. purchase money—£4lo 3s 9d — payable under the occupation licence, and of other moneys, and the power of sale having become exereisable, the appellant, on 12th April, 1030, applied to the Registrar to conduct the sale of the property, and for that purpose estimated .the value of the property at .£10,200. Clause 5 of the conditions of sale provided that all outgoings would be paid by the vendor up to the date of completion, and at the sale the appellant became the purchaser. The only question on the appeal was whether he was entitled to debjit the £410 3s 9d in his account on settlement with the respondent. Mr. Justice Reed held that he was not so entitled, and the judgment of the Court of Appeal upheld his Honour's decision. , The _ respondent was allowed ' costs on the middle scale as from a distance. Mr. H. F. Johnston, K.C., with Ut. V. Eeid, appeared for the, appellant, and Mr. A. C. Nathan for the respondent.