MORTGAGEES RIGHTS

Wairarapa Daily Times, 1 July 1933, Page 5

MORTGAGEES RIGHTS

UABILITY OF GUARANTOR. # Decision was reserved in the Court of Appeal at Wellington yesterday in a case in which questions of law had been removed from the Supreme Court, New Plymouth, for argument before ttrial. The case , was one in which £4'500 had been lent to a farmer on third mortgage, the amount being guaranteed by Newton King, Ltd., of New Plymouth. The farmer subsequently be--caine insolvent, and the mortgagees applied to the guarantors for payment of. the money advanced. The claim was resisted on the ground that the act of bankruptcy discharged the mortgagor’s liability to repay, and the case was taken to court. In effect the Court of Appeal was asked to determine whether the liability of Newton King, Ltd., to pay under the terms of the guarantee had ceased by reason of the mortgagor’s bankruptcy. The court consisted of the Chief Justice (Sir Michael Myeirs), Mr Justice Her dm an, Mr Justice Blair,’ and Mr -Justice Kennedy. Mr G. P. Finlay, Auckland, with him Mr, P. H. Watts, Hamilton, appeared for plaintiffs, and Mr P. B. Oool&s, ■with him Mr R. H. Quilliam, New Plymouth, for' defendant company.