DEBENTURE CASE

Evening Post, Volume CXXIII, Issue 51, 2 March 1937, Page 17

DEBENTURE CASE

MAGISTRATE'S ORDERS.

DECISIONS AfYACKED

(By Telesraph—Press Association.)

INVERCARGILL, March. 1,

Decisions .made in' the Magistrate's Court, at, Inve'rcargill; cancelling the transfer.;of debentures to one of the McArthtir; Trust companies were' again attacked in,the Supreme Court today, when the hearing of a motion for writs of ..prohibition and certiorari ■:'. against the .Magistrate and tliose affected ,by the. orders,was continued. After legal argument.-.continuing, for. most, of th^e day, Mr. Justice'l-Cennedy.reserved db: cision. The ground for "the-motion for .writs was/the jurisdiction of the Lower Court ,1;o make the decision it did,, and-many authorities for their respective claims, were advanced by respective counsel. ; ■;; "-..-.'•,.■

Mr. Macalister said that the fact of the McA-r'th'ur Trust having appeared in the Lower. Court showed that it admitted the Court's jurisdiction. He quoted authorities "on the .effect of appearances in court upon subsequent attacks upon the Court's jurisdiction.

Mr... Cooke..claimed that, the section under which the Magistrate's, action had beeii -taken did not: permit of the making of such' an order against a company not .'cited and not heard." He said a. possible ■hypothetical:.case would :be that of a company whicb. had forhidden its salesmen' to break;the..t>tatutes,.:.lf one.of them,'however, bad brqken;.the statutes': the: company might find; itself in a position.'of having an order mado against it-for somethir^.'-of which it. knew nothing. .: •■. '■■■.- ;: ..-' :

A beginning was made immediately afterwards-with- still, another case, con-

cerhing the McArthur Trust—an appeal by the Trust against the Magistrate's decision triaking";an order for the return of 'shares' to John Albert Colin Mackenzie. ■;...: