LAWS(PVC)-1931-6-53

J C GALSTAUN Vs. PRUDENTIAL ASSURANCE CO

Decided On June 25, 1931
J C GALSTAUN Appellant
V/S
PRUDENTIAL ASSURANCE CO Respondents

JUDGEMENT

(1.) In this case, an application was taken out by the receivers appointed by the Court under a preliminary mortgage decree dated 18 December 1928 for a direction as to whether the receivers were bound to insure the mortgaged . premises with the plaintiff company, that is the Prudential Assurance Company as provided by Clause 3 of the mortgage-deed. The application asked the question in an alternative form which concluded with the words or with the nominee of the said defendant John Carapiet Galstaun". The order which the learned Judge has made is that the receivers be at liberty to insure the properties with the plaintiff company instead of insuring the same with any company chosen by the defendant John Carapeit Galstaun.

(2.) It appears that by the terms of the mortgage-deed which is dated 3 April 1925, it was provided that the mortgagor would keep the properties: insured with the mortgagee and in the name of the mortgagee against loss or damage by fire and earthquake for such sum as the mortgagee may from time to time determine to be the full insurance value thereof.

(3.) The usual provisions were included that the mortgagor would pay the premia and that, if the mortgagor refused or neglected to keep the mortgaged premises insured it would be: lawful for but not obligatory or incumbent on the mortgagee to insure and keep insured the said premises in manner aforesaid or in any other manner the mortgagee may from time to time determine.