Liquidator of Clyde Marine Insurance Co. v. Herbert Renwick & Co., And La Societe Anonyme De Periandros [1923] ScotLR 114 (30 November 1923)

Liquidator of Clyde Marine Insurance Co. v. Herbert Renwick & Co., And La Societe Anonyme De Periandros [1923] ScotLR 114 (30 November 1923)

Marine insurance slips initialled prior to liquidation do not create legally enforceable obligations to issue policies; liquidator not carrying on business is not entitled or bound to issue policies or claim premiums; issuance of policies post-liquidation without authority is ultra vires; Court lacks jurisdiction to direct implementation of obligations binding only in honour.

Citation
[1923] ScotLR 114
Parties
Petitioner: Eric Portlock, F.C.A., Liquidator for Clyde Marine Insurance Company, Limited; Respondent: Herbert Renwick & Company; Respondent: La Société Anonyme de Periandros
Jurisdiction
Scotland
Judgment Date
30 November 1923
Procedural Posture
Application Under Companies (consolidation) Act 1908, S.193 / Judgment on Test Cases in Voluntary Liquidation
Outcome
All questions in Case 1 and Case 2 (except Case 2, question 4) answered in the negative; Case 2, question 4 answered in the affirmative.
Legal Topics
Marine Insurance, Voluntary Liquidation, Liquidator's Powers and Duties, Validity of Insurance Contracts, Honourable Obligations Vs Legal Obligations
Company Law Insurance Law Marine Insurance Voluntary Liquidation Liquidator's Powers and Duties Validity of Insurance Contracts Honourable Obligations Vs Legal Obligations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 22 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Eric Portlock, F.C.A., Liquidator for Clyde Marine Insurance Company, Limited

Petitioner

Herbert Renwick & Company

Respondent

La Société Anonyme de Periandros

Respondent

Procedural Posture

Application Under Companies (consolidation) Act 1908, S.193 / Judgment on Test Cases in Voluntary Liquidation

Legal Issues

  1. 1 Whether a marine insurance slip initialled prior to liquidation creates a legally enforceable obligation to issue a policy
  2. 2 Whether the liquidator may or must issue policies in respect of slips initialled before liquidation
  3. 3 Whether the liquidator's issuance of policies after liquidation is ultra vires

Ratio Decidendi

Marine insurance slips initialled prior to liquidation do not create legally enforceable obligations to issue policies; liquidator not carrying on business is not entitled or bound to issue policies or claim premiums; issuance of policies post-liquidation without authority is ultra vires; Court lacks jurisdiction to direct implementation of obligations binding only in honour.

Court Disposition

All questions in Case 1 and Case 2 (except Case 2, question 4) answered in the negative; Case 2, question 4 answered in the affirmative.

Orders

  • Liquidator not bound or entitled to issue policies in respect of slips initialled before liquidation.
  • Liquidator's issuance of policies post-liquidation is ultra vires and not binding.