ROYALTIES AND RENTS

New Zealand Herald, Volume LXXII, Issue 22250, 26 October 1935, Page 14

ROYALTIES AND RENTS

| APPEAL COURT DECISION VERDICT IN TEST CASE i [BY TELEGRAPH — PRESS ASSOCIATION J \VK LLIXG TO X. Friday I In connection with tho originating ! snimiions. McKiiinon :uul others v. the I Glen Alton Collieries. hoard on October ! 1 and 2, tlio Court of Appeal. b,\ a I inaiority judgment. held that the ro\al- ! tics and wayleavos under review were i " rents payable in respect of land, ! within tin- meaning of section.! 10l the i \;it ion a I Expenditure Adjustment Act. i The Chief .Justice, who delivered ! the judgment of the majority of the Court, intimated that -Mr. Justice rair found himself unable to agree with the 1 decision. rn Plaintiffs were ordered to pay ou i guineas and disbursements to cover tlio costs in both Courts.

This was a test case removed by consent to thej.'ourt of Appeal. Mr. A. H. Johnstone, K.C., with him Mr. McVrtliur. appeared for plaintiffs, and Mr. A. K. North for Glen Afton Collieries, Limited The question at issue was whether royalties payable under a lease are " rents payable in respect of land or ot any interest in land within the mean in" of the National Kxpenditurc Adjustment Act, ISW2." The verdict for the defendant means that royalties are rents and thereby subject to 20 per cent reduction under the Act quoted.