NAPIER RENT CASE

Hawke's Bay Tribune, Volume XXIII, Issue 276, 4 November 1933, Page 7

NAPIER RENT CASE

Leave to Distrain Granted JUDGMENT FOR PLAINTIFF At the Supreme Court to-day Mr. Justice Ostler, in giving his reserved decision in the case in which F - W. Triggs sought leave to distrain tor rent on Heiford Bros (in liquidation), gave judgment for the plaintiff. Mr John Mason appeared for Triggs, while Mr E. J. W. Hallett appeared for the H.B. Finance and Investment Co., Ltd., who held a debenture over the assets, df the company in liquidation. The debenture amounted to £4BO, while the assets of the company in liquidation did not total more than about £75. After reviewing the facts as outlined by counsel, His Honour considered that the case could be brought ‘within tho principle applied in the New Vogue, Ltd., heard by the Court of Appeal, in which it was decided that where a tenant company had given a debenture over its assets and the assets were of less value than lhe amount owing on the debenture, the landlord could distrain for arrears of rent on such of those assets as were distrainable. Although these assets were legally the property of the company in liquidation, the debenture holder bad equitable rights over them, which made them unavailable to the liquidator for the payment of the company’s debts. “In my opinion the same principle applies both in bankruptcy and in the liquidation of a company." said His Honour, “and there will be an order declaring that Triggs had the right to distrain iijwni the goods and chattels in the shop on October 5 for the sum of £BO 3 and that he is entitled to receive the proceeds of tho sale of the goods and chattels which have been sold or which may hereafter be sold.” The defendant was ordered to pur costa totalling £6 6 -.