APPEAL COURT.

Rangitikei Advocate and Manawatu Argus, Volume XXXIII, Issue 9112, 3 April 1908, Page 2

APPEAL COURT.

AN INTERESTING CASE. Press Association. Wellintgon, April 3. This afternoon the Appeal Court began the hearing of the case Feilding Borough v. Eeilding Gas Go. The plaintiff brought an action against the Company claiming’an injunction to restrain the Company from interfering with the of the Borough in laying the mains in the Borough ; and also claimed that its agreement with the Company was ultra vires of the Corporation, and should be declared void, _An agreement was entered into in 1896. In 1906 the Borough required the Company to extend the mains into the suburbs and light several street _ lamps then hitherto lit with kerosene. The Company declined, claiming they were not bound to do so by the agreement. The Borough then began negotiations for the purchase of the works, but nothing came of it. The chief question was —whether the Company could sell to private consumers. The opinion of the Court was asked (1) whether the agreement was valid, seeing that the Council had granted concessions beyond its power to validly grant; (3) whether the Council on the assumption that'the Company had performed its obligations under agreement, had the right to the injunction claimed ; (3) whether, on the same assumption the Company was entitled to the exclusive right of supplying gas; (a) to the Council or (b) to the inhabitants Borough; (4) whether the assignment agreement to the Company was valid at law; and, (5) if not, ” whether the Council was stopped by its conduct in recognising and dealing with the Company jlrom denying the validity of the assignment. „

Mr Bell, K.C., for the plaintiffs, contended thatt he Borough was prohibited by terms of section 31 of the Municipal Corporation Act, 1886, from contracting the action of the Company to supply gas to the inhabitants of the Borough. Their only power was to contract for a supply to the Borough itself. The agreement, therefore, was ultra vires, and there fore void. The Court adjourned until next morning.