IN RE NATIONAL BENEFIT ASSURANCE CO., LTD.

(1930) 37 Ll L Rep 153

CHANCERY DIVISION.

Before Mr. Justice Maugham.

Insurance - Reinsurance - Premiums - Treaties (inward and outward) between A and B companies - Premiums credited to B company by A company -No policies issued - Treaties void - B company wound up - Right of A company to return of premiums - Marine Insurance Act, 1906, Sect. 84- Failure of consideration - Held, that, there being no actual payment of premiums to B company and the treaties being void, no claim under Sect. 84 could properly be made; held, further, that, even if premiums had actually been paid to B company, having regard to the penalties imposed by the Stamp Act, 1891, Sect. 97, the issue of unstamped policies was illegal, and therefore in that case also there was no right of recovery under Sect. 84-As to the plea of total failure of consideration, held, that, premiums having been paid under an unlawful agreement, there was no right of recovery - Held, also, that as the treaties, which were illegal, had been partially carried into effect, any payment under those treaties could not be recovered.