APPEAL COURT.

Taranaki Daily News, Volume LI, Issue 89, 3 April 1908, Page 2

APPEAL COURT.

AN IMPORTANT CASE. ' ( Per Press Association. Wellington, Last Night. ! This afternoon the Appeal Court began the hearing of the case, Feilding Borough v. Feilding Gas Co. Plaintilf ■ brough the action against the company claiming an injunction to restrain the company from interfering with the streets in laying mains, and the borough jilso claimed that its agreement with the company was ultra vires of the corporation, and should be declared void. The agreement was entered into in 1890. In 1900, the borough required the company to extend the mains into the suburbs, and light several street lamps then 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 work, but nothing etmo of it. The chief question was, whether the company could sell to private consumers. The opinion of the Court was asked—(l) Whether the agreement was valid, seeing that the Council had granted concessions beyond its power to validly grant; (2) whether the Council,

on the assumption that the company had performed its obligations under the agreement, had a right to an injunction; (3) whether, on the same assumption, the company was entitled to exclusive right to supply gas (a) to the Council or (b) to tho inhabitants of the 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 recognition and dealing with the company from denying the validity of the agreement. Mr. Bell, K.C., for plaintiffs, contended that the borough was prohibited by the terms of section 371 of the Municipal Act, 188G, from contracting with the company to supply gas to the inhabitants of" the borough. The only power was to contract for supply to the bo-

rough itself. The agreement was therefore ultra vires and void. The Court adjourned till next morning.