Royal Insurance Company Limited v Mylius [1926] HCA 49

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38 C.L.R.] OF AUSTRALIA. 477 [HIGH COURT OF AUSTRALIA.] ROYAL INSURANCE COMPANY LIMITED . Appetiant; DEFENDANT, AND MYLIUS AND OTHERS . ' i 4 . ResponvENTS. Pratntirr AND DEFENDANTS. ON APPEAL FROM THE SUPREME COURT OF VICTORIA. Fire Insurance—Policy issued to owner and mortgagee—Sale subject to mortgage— vy & oy 4 Right of purchaser to have policy moneys laid out in rebuilding—Imperial Acts "yoy, Application Act 1922 (Vict.) (No. 3270), sec. 49.* woe

S., being the registered proprietor of certain land upon which there were MELBOURNE,

buildings, mortgaged the property to certain mortgagees and, pursuant toa Oek. 5. clause in the mortgage, procured an insurance company to issue to 8. as owner ¢ and the mortgages as such a policy of insurance against loss by fire in respect p,, 9

of the buildings.

'The property was subsequently purchased by M, subject

to the mortgage, but, before the transfer to him was registered and while S. 'was still the registered proprietor, the buildings were destroyed by fire. 'The

* Seo, 49 of the Imperial Acts Appli- cation Act 1922 (Vict.) provides that "Tt shall be lawful to and for the respective governors and directors of any insurance office or persons granting policies of insurance for insuring houses or other buildings against loss by fire, and they are hereby authorized and required, on the request of any person interested in or entitled to any house or other which here- after is bumed down demolished or damaged by fie, to cause the money for which such house or building has been insured by the occupier thereof or by any other person to be laid out and expended as far as the same will go towards rebuilding reinstating or re-

VOL. XXXVIII.

pairing such house or other building so burned down demolished or damaged by fire; unless the person claiming such insurance money within thirty days next after his claim is adjusted gives a sufficient security to the governors or directors of the insurance office where such house or other building is insured that the same insurance money will be laid out and expended as aforesaid; or unless the said insurance money is in that time settled and disposed of to and amongst all the contending parties to the satis- faction and approbation of such governors or directors of such insurance office or such persons aforesaid respec- tively." Isaacs, Higgins, Rich and Starke JJ.