ORDER SET ASIDE

Evening Post, Volume CXI, Issue 120, 23 May 1931, Page 7

ORDER SET ASIDE

SECURITY OF DEBENTURES

The Court of Appeal gave reserved judgment yesterday in an involved case, dealing with voluminous and complicated facts, between New Zealand Redwood Forests, Ltd., Auckland, and the New Zealand Insurance Co., Ltd., which concerned principally a deed of covenant for securing debentures entered into by the parties. The appeal was from an order made by Mr; Justice Smith in' the Supreme Court on an originating summons. The decision of the Court of Appeal was that the order should be vacated and set aside, and the parties left to their remedies aa in an ordinary .action. ■ • The Chief Justice, Sir Michael Myers,said that the procedure by originating summons was in his opinion misconceived in this case. It.was neither appropriate nor applicable to the circumstances. The proper course in his Honour's opinion was to vacate and set aside the order appealed from and . leave the parties to their remedies in an ordinary action, unless, of course, they were able to come to some arrangement or devise a course of action which would avoid the necessity for further litigation. As to costs, his Honour said he did not think any order should be made either in the Court of Appeal or in the Court below. Mr. Justice Reed, in a separate judgment, agreed that the case had been presented in an inconvenient form for properly dealing with the questions involved. His Honour and also Mr. Justice Ostler concurred in the conclusion arrived at by the Chief Justice.