SUPREME COURT

Otago Daily Times, Issue 18896, 23 June 1923, Page 17

SUPREME COURT

IN BANCO. .(Before His Honor Mr Justice Sim). A sitting of the Supreme Court in Banco was hold yesterday to determine the -ights of the Muddy Terrace Sluicing Company’s workmen as against the Crown, when James Hamer (Freshford) applied for an order under Section 217 of the Mining Act for the sale of a water race hold under license. Air E. R. Bowler (Gore) appeared for the applicant, and Mr F. B. Adams for the Crown. The. statement of claim set out —(1) That.-the Alnddy Terraco Sluicing Company "applied for and obtained certain privileges near Waikaia; (a) a water race at Muddy Terrace, (b) a special claim at the same place. (2) On May 21, 1908, there was executed in favour of His Majesty the King a deed of assignment by way of mortgage given to secure the repayment of the sum, of £4OOO advanced by way of loan to the said company. (5) The payment, of the ad*yaiico- was-co!la(erally>-. seen red-by, th(v creation and issue of four debentures for. £IOOO, in favour of the King or bearer. (4) The company had since repaid the King the sum of £3OOO, and the remaining debenture was still outstanding. (5) In October. 1908, there was a further mortgage of £4OOO, of four debentures of £IOOO. No part of that amount had been repaid. In July, 1909, there was a. further mortgage of. £2CCO anct no! part has been paid. On September,1911, the water race was assigned to the King by way of further security and it was claimed that the special claim was subject to the charge created in favour of 'TI.M. the King by the debenture mentioned. James Hamer therefore claimed the sum of £lll 13s for wages. Air Bowler said that there was about £IOOO owing to the workmen of the company by way of wages. The company got into financial difficulties and ceased operations in January last. The workmen hod registered liens for wages totalling approximate) v £4OOI The Crown claimed by virtue of mortgage and the charges from the company that under Section 361, Subsection 2 of the Alining Act, and the general prorogation of the Crown as laid down’- .in the. Acts Interpretations. Act, Section 6, J, that, it was not affected by Section 215 of the Alining Act, which confers upon the men the privilege of a lien for three months’ wages, which lien is declared by such section to have priority over all other then existing or subsequently created encumbrances, liens, or interests whatsoever affecting the mining privilege to which such registered lien relates. Mr Bowles said the present case was really a tost case. Mr Adams contended that the -Crown was not bound by the provisions of the Act creating the lions. The debentures gave a special charge over the special claim and that therefore the same rule applied as would apply to the machinery and- plant on the claim. He contended that. . the lien holders could not touch them if they failed as to the special claim, and also that the debentures gave a floating security over the plant and machinery, and that this could be turned to account by appointing a receiver, a step which had not yet been taken. After Mr Bowler had replied on the question of the workmen’s rights under a, second mortgage His Honor said he would reserve decision.