INTEREST PAYMENT

Hokitika Guardian, 20 December 1933, Page 3

INTEREST PAYMENT

DECISION BY PRIVY COUNCIL

FAR reaching importance

WELLINGTON, December 19. The judgment of the Privy Council or far-reaching importance to local bodies, has been announced i„ the House of Lords, according to cabled advice received at Wellington. Ihe effect of the Privy Council’s ruling is to reverse the decision of the Court of Appeal in the case of the Adelaide Electric Supply Coy, versus the Prudential Assurance.

As in the Broken Hill case, the dispute arose over the question whether interest payments in London should be made, in sterling or Australian currency. The Court of Appeal upheld the Adelaide company’s decision to pay in Australian currency. ' The Privy. Council judgment, it is understood, declared-that • the judgment of Justice Maughan and Lord Hamvortli in the Broken Hill case, was correct, ■ and overruled the judgment -of the majority in the Court of. Appeal. ...... The two local bodies in New Zea-' land which contested the position are the Auckland . Transport Board and the -Southland Electric Power Board. It is understood that the Privy Council's judgment will . .seriously affeqt the Auckland Transport Board’s case,', but the Southland Board, which is. on the point of making arrangements with the Government, may not be affected. .