MORTGAGE ON HOTEL.

New Zealand Herald, Volume LXVIII, Issue 20965, 31 August 1931, Page 5

MORTGAGE ON HOTEL.

REQUEST FOR RELIEF. APPLICATION DISMISSED. Judgment was recently delivered by Mr. Justice Blair in an application under thp Mortgagors' Relief Act, heard by tho Supremo Court in Wanganui. The application was made by George Spriggens, proprietor of Spriggens' Hotel, who sought tho postponement of the exercise of their remedies by the second mortgagees, E. T. I aylor and Company, Limited, wine and spirit merchants, of Wellington. The facts disclosed by the affidavits were that in May, 1928, E. T. Taylor and Company made an advance of £4OOO to Spriggens, secured by a second mortgage of the hotel premises and an instrument by way of security over tho furniture. The arrangement was that the principal was to be repaid by monthly instalments commencing in December, 1923. It was shown that during the period that had elapsed since the dato of tho advance, Spriggens had substantially reduced his total liabilities, but it was also shown that these reductions had been made in large part at the expense of E. T. Taylor and Company, whose account as at April 30 stood at £4343, and whoso security had depreciated by the accumulation of a large arrear of interest under the first mortgage of £20,000, and by the mortgagor's default in payment of the rates for the year ending March 31, 1931 • In disposing of the application, His Honor said "that the correspondence showed that E. T. Taylor and Company had been extraordinarily patient and helpful to Spriggens, and had given him virtually every concession ho asked for. The position from their point of view as second mortgagees was unquestionably serious, and grave hardship would bo caused to them by the making of an order in Spriggens' favour. Even if in llis Honor's view the case were one calling for an order, tho correspondence showed that already the allowances and concessions made by E. T. Taylor and Company had gone as far as tho Court, taking a, most favourable view to Spriggens, could bo expected to go. In fact, Spriggens had already had all the concessions that a most helpful and indulgent mortgagee could be expected to give. Tho application was accordingly dismissed.