THE MORATORIUM LAW

Dominion, Volume 7, Issue 2252, 11 September 1914, Page 4

THE MORATORIUM LAW

, _ fr—— —.. DEFENCE IN A SUPREME COURT? •'ACTION. (By Telegraph—Press Association.) Auckland, September 10. ! Tlie Mortgage Extension Act, passed at tho commencement of the_ present war; to give mortgagors relief from enforced repayment of principal during the war, was cited in a caso hoard by. the Chief Justice at the Supreme Court to-day. Mr. MTeagh, in bringing up the Act as part of his defence to a claim for; the repayment of tho principal under mortgage, contended that it applied, notwithstanding that the action was commenced before it became law. Tho Act, said counsel, was intended to be interpreted in its most broad and liberal sense at the present crisis. It was intended to affect very seriously the rights of a class of tho community who, it was considered, could well afford such loss of rights. Counsel cited several authorities in support of his contention that the Act was retrospective in its operation, and further laid stress on tho clause directing that the. Supremo. Court should, in every matter arising out of a mortgage have full power and jurisdiction to determine such mat- •-. ter as it deemed to bo just and equit* able under the circumstances, notwithstanding that express provision in that regard could not bp found_ in the Act. Mr. Sohnauer, for the plaintiff, argued that an Act injuriously affecting the rights of any class of tho community ought to be interpreted strictly, and further- oited authorities against the view that the Act was retrospective. ■ His Honour Teserved his decision,, but stated that in the ovont of his findiiiß against tho mortgagor, he would then be prepared to consider tho effect of the clause giving the Court po\yer to decide according to what it considered to be just and equitable in the matter.