"HARSH ACTION"

New Zealand Herald, Volume LXXIII, Issue 22402, 24 April 1936, Page 16

"HARSH ACTION"

STATE AS MORTGAGEE COURT CASE OVER RATES FORMER OWNER'S POSITION [BY TELEGRAPH PRESS ASSOCIATION] WELLING TON, Thuraday A vehement protest at the attitude adopted by tho Mortgage Corporation was made in tho Magistrate's Court to-day by tho city solicitor, Mr. J. O'Shea, when asking for judgment by default in favour of the City Council against William Love, win was charged as tho owner of property on which three years' rates were owing. Mr. Hardio Boys, for defendant, asked that judgment bo withhold ponding an inquiry into tho circumstances. Ho said defendant was the owner of tho property in 1931, when on account of tho depression he could not keep up his payments, and was asked by the second mortgagee to vacate the premises, which ho did in March of that year, sinco when he had had no contact with tho property and had never regarded himself as the owner. In law, however, lie was still regarded as such, and was liable for rates for live venrs. Tho second mortgagee had collected all rents and for the first two years had paid tho rates. "Ordered Not to Pay" The first mortgagee was the State Advances Office, the mortgage now being with tho Mortgage Corporation. The second mortgagee was ordered by the Mortgage Corporation not to pay tho rates, though ho was ready and willing to do so. He was told he must handle tho rents without any reduction for rates, otherwise tho Mortgage Corporation would take over the property from him. " The Mortgage Corporation," said Mr. Boys, " is not liable for the rates, and the result is that this poor man must have judgment against him personally unless the Court iB prepared to regard tho matter as so harsh and unconscionable that judgment should be withheld." The Magistrate: But it is not the City Council that is acting harshly. Council Sympathetic Mr. Boys: No. It is harsh and unconscionable dealings on the part of tho Mortgage Corporation. The City Council is fully sympathetic with defendant's position, but is forced to ensure the collection of the rates. The Magistrate: There is a remedy open to you with another tribunal by wav of a petition. Mr. Boys (smiling): Yes, I've heard of that tribunal. Mr. O'Shea said the Mortgage Corporation was standing behind a Tudor prerogative originally enforced by the aid of a subservient judiciary. The prerogative being extended to-day to the trading departments of the Crown, it would be necessary to go to the Privy Council for judgment, but the previous administration if the judgment of that Court was in the council's favour legislation would promptly be introduced to revise the position. The present. Government had not yet had time, on account of policy matters, to go into tho position, but the matter was ono they proposed to deal with. "Preventing Payment" This was the furthest tho Mortgage Corporation had yet gone in expressing the prerogative transferred to it, said Mr. O'Shea. He drew the magistrate's attention to the fact that in England drastic steps were being taken to prevent private citizens from evading income tnx, yet here what was practically a State department was preventing the payment of rates. Mr. Ball (for the Mortgage Corporation): Your Worship— The Magistrate: If this argument goes much further I think you must address me as "Mr. Speaker." Mr. Bali explained that owing to tho of tho full instalments an arrangement had been entered into between the seennd mortgagee and the Mortgage Corporation that the second mortgagee should pjy nil rents to the Mortgage Corporation, which was prepared to pay such amounts to the City Council as it was empowered to do. Mr. O'Shea • The position is worse even than T thought. The Magistrate: The matter ends with judgment for the plaintiff.