The case now came on for argument.

The plaintiff, in person, submitted that the property out of which the annuity in question issues being invested in India, and the annuity being received by him in India by the hands of the East India Company, and he himself not being resident in Great Britain, it was not chargeable with income-tax under any of the provisions of the 5 & 6 Vict. c. 35.

Walford was called upon to support the defendants' view. This annuity is payable and paid out of the public revenue of the East India Company, and therefore chargeable with duty under s. 27. (a) [Cresswell, J. The case states otherwise: it shews that the annuity is payable in India, out of the Bengal Civil Service Annuity Fund.] If not within schedule (C.), this annuity is clearly "gains and profits within Great Britain,” within the meaning of schedule (D.), and the rules prescribed under the 100th section of the act. [Maule, J. Those rules clearly do not impose the tax upon persons not resident in Great Britain, who are not otherwise liable.] For the purposes of the act, it is submitted this is property in Great Britain. [Cresswell, J. The company pay over to the defendant here money which they re

(a) Which enacts "that the directors of the East India Company shall be commissioners for executing the act, and with the like powers as aforesaid, for the purpose of assessing and charging the duties thereby granted in respect of the interest payable on the bonds of the said company, and in respect of all dividends, annuities, pensions, and salaries payable by the said company,

VOL. XIII.-C. B.

and also in respect of all other
profits and gains chargeable
with duty under the act, and
arising within any office or de-
partment under the manage-
ment or control of the said
company; which assessments
shall be made under and sub-
ject to the rules, regulations,
and exemptions contained in
the several schedules under
which the said duties are re-
spectively chargeable."

CC C

1853.

UDNEY

v.

THE EAST INDIA COMPANY.

ceive on his account in India.] The 93rd section makes it imperative on the company to retain the amount pursuant to the assessment. Mr. Udney's remedy, if he is exempt, is, by an appeal, under the 118th section. [Jerris, C. J. The directors, as commissioners, are to assess, but only that which is legally chargeable. This annuity is not payable out of any fund in England.] If the court are clearly of opinion that this is a payment by the company as agents for the fund in India, undoubtedly the charge cannot be supported.

JERVIS, C. J. The facts stated in the case shew clearly that the company are mere agents for the trustees of the Bengal Civil Service Annuity Fund in India, and consequently that the plaintiff is not chargeable with income-tax upon this annuity.

MAULE, J. The East India Company has sufficient connexion with the fund in India to make them satisfied to pay the value of the annuity here. But, if the Bengal Civil Service Annuity Fund were to fail, I do not think the plaintiff could call upon the company to pay the annuity.

The rest of the court concurring,

Judgment for the plaintiff.

1853.

THIS

ARNOLD v. RIDGE and Another.

was an action commenced by writ of summons on the 1st of January, 1853, to recover 1137. 15s. for a quarter's rent claimed by the plaintiff under the circumstances detailed in the following case, which was stated, under a judge's order, pursuant to the common law procedure act, 1852,—15 & 16 Vict. c. 76, s. 179.

The plaintiff is a gentleman living at Gravesend, in Kent; the defendant Ridge is a surgeon, and the defendant Parsons a perfumer, both residing at Gravesend. After the making and passing and coming into force of the 9 G. 4, c. lvi, intituted "An act for re-building or for improving, regulating, and maintaining the townquay of Gravesend, in the county of Kent, and the landing-place belonging thereto," the mayor, jurats, and common councillors for the time being of the villages and parishes of Gravesend and Milton, under and by virtue of, and in accordance with, the provisions of that act, commenced making a new quay or landing-place, and other works necessary and proper for the object and purposes mentioned and specified in the first section of the said act of parliament, at the spot and place therein also mentioned and specified, then being the estate and property of the corporation, and proceeded with the same until the same were duly completed and finished in accordance with the said provisions of the said act.

After the said quay or landing-place and works had been commenced, and during the progress of the same, the mayor, jurats, and councillors judged it necessary to raise money for the purposes of the said act, and accordingly, under and in pursuance of the 16th section c c c 2

May 31.

Execution cannot, by virtue

of the 5 & 6 W. 4, c. 76, s.

92, be had

against the pro

perty of a corporation, acquired since the passing of that statute, in satis

faction of a

debt contracted by the old cor

poration.

of the act, borrowed and took up at interest various
sums of money, not exceeding in the whole the sum of
70007., upon the credit of the rates, tolls, or duties
granted and authorised by the said act to be levied for
the purposes
of the said act. The amount so borrowed
could not be obtained from any person upon the security
of the said rates, tolls, or duties alone, but only on the
credit thereof together with collateral bonds under the
common seal of the said mayor, jurats, and inhabitants
of the villages and parishes of Gravesend and Milton;
which bonds were given by the corporation, as herein-
after mentioned. The whole of the money so borrowed
has been duly expended in making, constructing, and
carrying on the said quay or landing-place and works in
accordance with the provisions of the act.

A part of the money so borrowed and taken up, was,
ten several sums of 1007., which were then lent and
advanced on the 16th of October, 1828, by the plaintiff
at interest at 571. per cent. per annum: and at the time
of the said loan of the said ten respective sums of 100%.,
in accordance with the terms upon which the loans took
place, the said mayor, jurats, and common councillors,
by writing under their common seal, in the form in that
behalf given in the 16th section of the act, as a security
for the money so borrowed of the plaintiff, and the said
interest for the same, mortgaged such proportion of the
said rates, tolls, or duties arising by virtue of the said
act, as the said respective sums of 1007. did or should
bear to the whole sum which might at any time be
borrowed, or become due and owing, or charged upon
the credit of the said act: and the said mayor, jurats,
and inhabitants of the villages and parishes of Gravesend
and Milton then also, in accordance with the terms
upon
which the loans took place, in addition and by way
of collateral security to the said mortgages, gave and
executed a certain bond, sealed with their common seal,

to and in favour of the plaintiff, and thereby acknowledged themselves to be held and firmly bound unto the plaintiff in the sum of 2000l., to be paid to the plaintiff; which said bond was subject to a condition, whereby,— after reciting the said act of parliament, and that the said mayor, jurats, and common councillors had, in pursuance of the said act, borrowed and taken up from the plaintiff the said ten several sums of 100%., and, by way of security for the same, had granted and executed the said mortgage, and that, in addition, and by way of collateral security, it had been agreed to give to the plaintiff such bond as aforesaid for the due and punctual payment of the interest, at and after the rate aforesaid, upon the said respective sums of 100l., so as, in the event of the rates, tolls, or duties decreasing, the plaintiff might, nevertheless, be always secured the full interest of 51. per cent. per annum upon the amount of the principal moneys so advanced as aforesaid,-the said condition was declared to be such, that, if the thereby-bound mayor, jurats, and inhabitants, or their successors, did and should well and truly pay or cause to be paid unto the plaintiff, his executors, &c., interest at 51. per cent. per annum upon the said respective sums of 1007. (being the same sums as were so secured by the said grants or assignments), or upon so much or such part thereof as might from time to time remain unpaid and undischarged, by equal half-yearly payments, on the 16th of April and 16th of October in each year, the first of such half-yearly payments to begin and be made on the 16th of April next ensuing the date of the said bond or obligation, then the said bond or obligation to be void and of none effect, or else to remain in full force and virtue.

The whole of the said ten several sums of 100l. so borrowed and secured as aforesaid still remain unpaid and undischarged.

1853.

ARNOLD

v.

RIDGE.