THE ATTORNEY-GENERAL, At the relation of JOHN REA, on behalf of himself and all the other Inhabitants of the Borough of Belfast, subject to the payment of rates, Petitioner; THE MAYOR, ALDERMEN and BURGESSES of THE BOROUGH of BELFAST; and JOHN POTTS and fifteen others (Aldermen and Councillors of said Borough); JOHN THOMPSON (Treasurer) and JOHN BATES (Townclerk, and Solicitor to the Corporation); Respondents

• Jurisdiction: Ireland
• Judgment Date: 19 June 1855
• Date: 19 June 1855
• Court: High Court of Chancery (Ireland)

Chancery.

THE ATTORNEY-GENERAL, At the relation of JOHN REA, on behalf of himself and all the other Inhabitants of the Borough of Belfast, subject to the payment of rates,

Petitioner;

THE MAYOR, ALDERMEN AND BURGESSES OF THE BOROUGH OF BELFAST; and JOHN POTTS and fifteen others (Aldermen and Councillors of said Borough); JOHN THOMPSON (Treasurer) and JOHN BATES (Townclerk, and Solicitor to the Corporation);

Respondents.

Attorney-General v. Corporation of DublinUNKENR 1 Bli., N. R., 313; S. C. 4 Ir. L. Rec, 289; 3 C. & F. 289; 9 Bli., N. S., 39.

Attorney-General v. Corporation of Limerick 6 Dow. P. C. 136.

Attorney-General v. BallUNK 10 Ir. Eq. Rep. 146.

Charitable Corporation v. SuttonENR 2 Atk. 400.

Attorney-General v. BrownENR 1 Swans. 265.

Attorney-General v. Wilson 1 Cr. & P. 1.

Attorney-General v. Aspinall 2 M. & Cr. 613-22-23-27.

Frewin v. Lewis 4 M. & Cr. 249.

Attorney-General v. Corporation of LichfieldENRENR 11 Beav. 120; S. C., 13 Sim. 547.

Attorney-General v. Mayor of NorwickENR 16 Sim. 225.

Attorney-General v. AndrewsUNK 2 M. & G. 225.

Attorney-General v. Mayor of WiganENR 1 Kay, 268.

Attorney-General v. Corporation of PooleUNKENR 4 M. & C. 17; S. C. (Parr v. Attorney-General), 8 C. & F. 409; 8 Beav. 17.

Hazard v. LaneENR 3 Mer. 285., 291.

Johnson v. TelfordENR 3 Russ. 477.

In re DownesENR 5 Beav. 425.

Nokes v. WartonENR 5 Beav. 448.

In re CurrieENR 9 Beav. 602.

Attorney-General v. Foundling Hospital 2 Ves. jun. 41, 19.

Eden v. FosterENR 2 P. Wms. 325.

Attorney-General v. MiddletonENR 2 Ves. sen. 327.

Attorney-General v. HeelisENR 2 S. & S. 67.

Attorney-General v. ComptonENR 1 Y. & C., C. C., 417.

Attorney-General v. Corporation of Liverpool 1 M. & C. 171.

Attorney-General v. AspinallENR 1 Keen, 513.

Attorney-General v. Corporation of PooleENR 2 Keen, 190.

Attorney-General v. Corporation of DublinUNK 12 Ir. Eq. Rep. 465.

Frewin v. Lewis 4 M. & C. 249.

Harrison v. StickneyENR 2 House of Lords Cases, 108.

Attorney-General v. Mayor of NorwichENR 1 Keen, 700; S. C., 2 M. & C. 406.

Attorney-General v. Corporation of ExeterENR 2 Russ. 45, 54.

Attorney-General v. Earl of MansfieldENR 2 Russ. 501.

Harman v. TappendenENR 1 East, 555.

Shipton v. RawlinsENR 4 Hare, 619.

Binns v. HayENR 5 Beav. 429.

In re BarberENR 14 M. & W. 720; S. C., 3 D. & L. 244.

Shaw v. Holland 15 Law Jour., N. S., 91 b, Ex.

Attorney-General v. MiddletonENR 2 Ves. sen. 327.

Attorney-General v. Corporation of PooleENR 8 Beav. 75.

Wilde v. Gibson 1 H. Lds. Cas. 605.

Attorney- General v. Hartley 2 J. & W. 353, 369, 386.

Parr v. The Attorney-General C. & F. 409; and see S. C. (Attorney-General v. Mayor of Poole, & c. 8 Beav. 75.

Harrison v. StickneyENR 2 House of Lords Cases. 108.

The Attorney-General v. Wilson Cr. & P. 1.

Attorney-General v. ComptonENR 1 Y. & C., C. C., 417.

Charitable Corporation v. SuttonENR 2 Atk. 400.

Ferguson v. The Earl of KinnoullUNK 9 C. & F. 251.

LawsonENR Attorney-General v. Corporation of Poole, 8 Beav. 75.

CHANCERY REPORTS: 119 1855. Chancery. THE ATTORNEY-GENERAL, At the relation of JOHN REA, on behalf of himself and all the other Inhabitants of the Borough of Belfast, subject to the payment of rates, Petitioner; THE MAYOR, ALDERMEN AND BURGESSES OF THE BOROUGH OF BELFAST; and JOHN POTTS and fifteen others (Aldermen and Councillors of said Borough); JOHN THOMPSON (Treasurer) and JOHN BATES (Town clerk, and Solicitor to the Corporation); Respondents.* (In Chancery.) June 11, 12, 13, 14, 15, 16, 18, 19. THE Information (which was by way of cause petition) prayed, that A Local Act (obtained by it might be declared that the Corporation (or the Mayor, Aldermen the Municipal Council of the and Burgesses) of the Borough of Belfast, were trustees of the rates Borough of Belfast) enact- levied pursuant to the provisions of the Local Act for the Improve- ed that the Council might, ment of said Borough (8 & 9 Vic., c. 142), for the purposes men- from time to time, borrow at interest any sum which, together with any previous loan, should not exceed 150,000, on the credit of the rates authorised to be raised by that Act ; and, in the event of all or any part of such moneys being repaid by them, to re-borrow the same ; but so, nevertheless, that there should not be so owing, on the security aforesaid, any more than the 150,000, in the whole, at any one time ; and for securing the re-payment of same, with interest, the council might assign over the rates to the lenders : And every such assignment was to be by deed, under the common seal : And if the council could at any time borrow any sums, for any of the purposes of the Act, at a lower rate of interest than was borne by existing securities; they might borrow such sums as they should think proper, at such lower rate, in order to pay off the securities bearing the higher rate, notwithstanding they had previously bor- rowed the entire of the 150,000, and charge the rates with payment of those sums and interest, in such manner, and subject to such regulations, as in the case of other moneys borrowed on mortgage. And (s. 44), of the money borrowed on the credit of the rates, by that Act made liable to be mortgaged, the council might apply any sum not exceeding 100,000, for widening old and making new streets-removing projections-and purchasing property for all or any such purposes; and the remainder of the money to be borrowed for the purpose of effectuating the several other works and purposes of the Act. The lenders, however, were not bound to see to its application. By the same Act, and to enable the council to carry its works and improvements into effect, they were empowered to purchase a vast number of houses, to widen old streets, and to make new ones : And, if deemed expedient, to take upon lease any land which they might think convenient for those works, and to erect same thereon, * Ex relatione ALFRED APFARL.A.ND, Esq, vol.,. 4. 120 CHANCERY REPORTS. tioned in that Act, and in another Local Act, for better Lighting and Improving the same Borough (9 & 10 Vic., c. 294); and that the Corporation were not entitled to raise, on the security of the said rates, any further sum than 200,000; and were trustees of 150,000, part of said 200,000, forthe several purposes mentioned in said first Act, and none other ; and were, under the provisions of the second Act, trustees of 50,000, the residue of the 200,000, and to pay the costs and rent out of the moneys to be raised under the Act : And to agree with the owner of any house or ground within the borough, for the absolute purchase thereof, &c., and to pay for same out of the rates by that Act authorised to be levied; and to purchase or take on lease the existing market-places-as well as additional lands for a like object, and to erect market-places thereon, &c. : And for defraying the costs of carrying the Act, and all its powers, into execution, they were empowered to make an annual rate upon the occupiers of houses : And such rates, and all other moneys to be received under the Act, were to be applied in paying, first, the expenses of obtaining it ; secondly, the interest of the sums borrowed on mortgage, thereunder ; thirdly, the expenses of improving the streets, and effectuaÂÂting the several purposes of the Act ; and lastly, in paying off the principal sums so borrowed. The council borrowed the 150,000 on mortgage of the rates, under deeds bearing the corporate seal, as provided by the Act ; they also raised large sums upon certiÂÂficates, signed by individual members of the body, and admitting that those sums had been paid by the lenders to the credit of the Corporation; and they obtained still further advances by overdrawing their accounts. These extra moneys, as well as the 150,000, were raised and expended to enable the council to effect some of the various works, street and market purposes, &c., contemplated by the Act, and which the 150,000 were insufficient to accomplish. The result was, that sums greatly exÂÂceeding 100,000 were expended on those purposes to which (as declared by the Act) any sum within that amount was appplicable : And upwards of 60,000 were also expended on the other objects of the Act. The council paid interest on all the loans, and treated them as if they equally affected the rates : And sixteen of the persons who were members of the council during these transactions were now named in the Information as special respondents. Held, that the council were not authorised to charge the rates by mortgage, certificate or otherwise, in the way of loan, with, or with the interest on, more than 150,000; and that the rates were not properly chargeable with any such greater sum, or interest : And the petitioner was declared entitled to have the rates and other properties of the borough exonerated from, and indemnified against, all unauthorised loans, and the interest thereof, by those respondents; but withÂÂout prejudice to any question which they might be entitled to raise, on the reÂÂturn of the Master's report, as to their right to be recouped said moneys out of such funds or properties, if any, as the Court might think justly applicable to that purpose. Held also, that of thtir.150,000, the council were not authorised to expend more than 100,000 on the street purposes specified in the Act (s. 44). Held also, that the Corporation were trustees of all the moneys received for rates or loans under the Act, for the purposes of it. By a subsequent Local Act, after reciting the prior one, and that it would tend to the benefit of the inhabitants of Belfast, if the Corporation were empowÂÂered to supply them with gas, it was enacted that the provisions contained in the former Act, except such of them as were by that (second) Act altered or otherwise provided for, should, where the same might be applicable, and were not inconsistent with the provisions of the latter, extend to it, and to the seveÂÂral purposes and things thereby authorised ; and both...