CO129-514-6 Question of legality of sale of water to Tai Koo Sugar Refining Co. Ltd.- from... 6-12-1928 - 23-12-1929 — Page 45

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evidence were admissiable.

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I think if the Company sold its business & Inland

Lot 1336 together with its pipe line rights the purchaser

would be entitled to the pipe line as it now stands

See Muskett v. äill 9 L.J.C.P. 201. No doubt a bare

licence is not assignable See Ackroyd v. Smith 19 L. J.

C.P. 315 but in this case the licence, in my view, is

coupled with an interest, & the Government has granted

to the Company a right of entry upon land for a specific

purpose.

For the reasons above given I am of opinion that

the Government has no right to restrain the Company from

selling the water impounded in its reservoir & cannot

cancel the pipe line agreement or permit.

The matter is of great moment to the Government, &

I would strongly advise that the opinion of a leading

Chancery barister in England be taken. He may entirely

disagree with my views, or may be able to indicate some

avenue of escape from the difficulty not at present

apparent to me.

sa.

Eldon Potter

22/10/28.