VALIDATION COURT.

Gisborne Times, Volume V, Issue 145, 1 July 1901, Page 3

VALIDATION COURT.

--- —; ITS SCOPE AND POWERS,

At the Validation Court on Saturda 1 morning, His Honor Judge Batham dc livered a lengthly judgment in regard t an application for the removal of a eaven lodged by the Bank of New Zealan against Tahora No. 2, C 3, Section 2. M DeLautour and Mr AV. G. Foster were ii attendance on behalf of the Bank, M Kees for the Trustees of the Tahora Block Messrs Sievwright and Lysnar were aist present. The immediate point raised was wkethei i the Validation or Supreme Court was the ! proper tribunal to deal with the summons j The Court held that it had not jurisdicj tion to deal with the matter, and set forth its reasons at length. The reasons involve very much wider matters than the mere removal of the caveat, the general effect of the judgment being that the Court was set up to validate defective titles, and that when it had made its decree to any case its jurisdiction was exhausted ; that the Validation Coutt had not the power to create the various trust estates and to continue its own existence to superintend them. Mr Itees : The judgment just given by Tour Honor is very far reaching in its consequences because it affects very large matters which have been decided during the last five or six years. It involves the titles to large estates, as well as large investments and securities. Ido not think in face of the decision that it is any use going on with Mr DeLautour's motion, for a charge in favor of the Bank over Tahora, because it the Court has no

jurisdiction in deciding this point it has no jurisdiction to givo charge over the block. His Honor : My idea in this judgment is to rather prevent the spread of the excess of jurisdiction than to disturb the present state of matters. In my opinion the action of this Court will sooner or later have to be confirmed by Parliament, particularly in the direction indicated in this judgment. I am sorry to do anything that would prejudice the Trust instate. I am rather more inclined to continue the existing state of things than to cause a deadlock.

io cause a ueauiuciv. Mr Bees : Then we can go on oecause it is likely that a modus vivendi will bo found. It must be necessary to appeal, and possibly after appealing we shall require legislation. I wish to ask the Court and Mr DcLautour in what way the ease should be stated ; whether anything will be required in the way of documents beyond the judgment given. Naturally the Bank of New Zealand will not he an opposing party to the appeal, as they must desire it. It is for the Court of Appeal to say whether or not this Court has full jurisdiction. lam right, Mr DcLautour '? Mr DcLautour : I do not know. jlis Honor: It is not material to the Bank of New Zealand. Mr ltces: If this Court disclaims jurisdiction, what is to become of the titles already given ? Mr DcLautour : The position is this — that the Court will not enlarge the scope of its administration ; but, as far as matters have already gone, it will assist to complete them. Ills Honor: I think I must take the responsibility of doing so. Mr DcLautour: We should base our claim on Tahora on what lias passed before previous judges and Your Honor. As to 1 the appeal, I have not made up my mind.

■My own feeling is that the Bank should stand out of the appeal: that is the reason wo did not raise the question of jurisdiction. His Honor: 1 have not considered what security will he required if you decide to appeal. lam prepared to hear what you have to say. lam not disposed to do anything that will in the slightest degree impede the Trustees in testing the question. Mr llecs: Of course, the security is only necessary to defray tho costs of an opposing party. This matter is one of great importance—far wider than tho mere removal of this caveat. Mr HoLautour: I can fully see that this will probably mean the instant dismissal of the Receivers. How can they remain officers of a Court that has no jurisdiction '? This is the logical outcome of it. His Honor : The logical result is a deadlock, which will involve serious consequences. I should be sorry to take that stand. I would be inclined rather to proceed and ask for confirmation than to involve the parties in loss and inconvenience. Mr Bees : It lets loose the whole claimants upon these titles. It is a most dangerous position, and will mean involving matters in a worse position. There is no dispute between the parties, the trustees, and the bank. The trustees have no desire to go back on any arrangements that they have come to. However, I shall have to settle this, unless Mr DcLautour, on the part of the bank, desires to

have a hand in stating the case of appeal, j lie will probably at any rate see his way j to give assistance so long as the bank was not a party to the appeal. We cannot leave matters as they now stand. His Honor : It is not satisfactory to the Court or to the parties. Mr Bees : The judgment means this or j nothing ; that everything that has been j hone beyond the valuation of the titles was beyond the jurisdiction of the Court ; that this Court was functus otlicio directly the decree validating the title was madp. It is n dangerous position and should not be allowed to remain. Still, It is the expression of the Court. If the Court of Appeal is of that opinion, wo can go to Parliament and get a Bill passed. Parliament would do it, as they have passed all these decrees. His Honor : I have always thought that it was a pity that a changc'was made from the Act of 1898. I think it is an unfortunate position in some respects. The Houso has hardly realised its responsibilities. Mr Bees : Twice the House has acted and passed a positive clause. It cannot be said that it has allowed anything to pass through ignorance or want of care. At t.liic ctncrA PnniKf'l rnfirorl to nonsuit

At this stage Counsel retired to consult as to the course which should bo taken with regard to Mr DcLautour’s motion. Upon their return Mr DeLautour stated that in view of the weighty decision just given, they had come to the conclusion that it would not be fair to ask the Court to deal with this summons. He would accordingly ask that the matter be adjourned for three months. Mr Rees assenting, the motion was adjourned.