APPEAL DISMISSED

Poverty Bay Herald, Volume LIV, Issue 16612, 30 March 1928, Page 11

APPEAL DISMISSED

MATAWAI LAND DISPUTE (Special to the .Herald.) " WELLINGTON, this day. The Court of Appeal to-day gave judgment in the appeal of the Public Trustee in the. case against Mortloman, an .action involving transactions in property situated near Matawai, the decision being in favor of the respondent. Tho case arose out of two mortgages held on the property by the Public Trustee. A sum of £6OOO was advanced, to Mortleman, -who subsequently sold to Grey Bros., the latter securing a further advance oi £15.00 from tho Public Trustee, Grey .Bros, abandoned the property, and the court, was asked to decide ‘ whether MonHeman could resume upon payings .the £6OOO, or whether he was responsible for the £7500. V ; The Court answered two questions submitted to it as fellows:— “(1) In the present/ case the. original charge stands with the extension, and if the original mortgagor shall pay to the Public Trustee the moneys owing under the original mortgage lie shall .obtain the right of redemption in the property, and the moneys so paid by him shall become a charge upon the property in priority to the further advance of £ISOO advanced by the Public Trustee.

‘ 1 (2) If the Public Trustee shall sell the property in exercise of his power of sale implied in the mortgage lie is entitled to' sue the mortgagor on his covenant in the original mortgage for the amount so realised, and the amount of the debt.”

Mr. M. Myers, K.C., appeared for the appellant, and Mr. T. F. Martin, instructed by Messrs Barnard and Bull, for the respondent,