IN RE NAUTILUS STEAM SHIPPING COMPANY, LTD. (APPLICATION OF GIBBS & CO.)

(1935) 52 Ll L Rep 183

COURT OF APPEAL.

Before Lord Hanworth (Master of the Rolls), Lord Justice Romer and Lord Justice Maugham.

Third Parties (Rights against Insurers) Act, 1930-Liquidation of shipping company-Collision between steamship Pear Branch and sailing vessel Dharma in 1925-Pear Branch arrested -Released on execution of joint bail bond by shipowners and ship's agents -Judgment against Pear Branch- Liability met by ship's agents-Reimbursed by shipowners through their insurers-Liquidation of company subsequent to passing of Act-Further claim against Pear Branch-No assignment of policies-Application by ship's agents that they were entitled, on meeting the further claim of the Dharma, to be subrogated to the rights of the Pear Branch against their insurers -Sect. 1 (1): "Where under any contract of insurance a person (hereinafter referred to as the insured) is insured against liabilities to third parties which he may incur, then-(a) in the event of the insured becoming bankrupt or making a composition or arrangement with his creditors; or (b) in the case of the insured being a company, in the event of a winding-up order being made, or a resolution for a voluntary winding-up being passed, with respect to the company, or of a receiver or manager of the company's business or undertaking being duly appointed, or of possession being taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property comprised in or subject to the charge; if, either before of after that event, any such liability as aforesaid is incurred by the insured, his rights against the insurer under the contract in respect of the liability shall, notwithstanding anything in any Act or rule of law to the contrary, be transferred to and vest in the third party to whom the liability was so incurred."