NEPTUNE ASSURANCE CO LTT Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition challenges the application of the General Insurance (Emergency Provisions) Ordinance 1971, the General Insurance (Emergency Provisions) Act 1971 as well as the General Insurance (Emergency Provisions) Amendment Act 1972 to the petitioner company. The petitioners are three in numbers, viz., the company and two Directors and shareholders.

(2.) The petitioners asked for a declaration that the order dated 13 May 1971 made in exercise of powers conferred by Section 4 (1) of the General Insurance (Emergency Provisions) Ordinance 1971 and the directions dated 13 May 1971 given by virtue of powers conferred by Section 4 (3) of the General Insurance (Emergency Provisions )Ordinance 1971 are illegal.

(3.) The paid up capital of the Neptune Assurance Company referred to as the company is Rs. 10,00,000. The petitioner Jalan is a Director of the company. He holds 16,725 ordinary shares of the face value of Rs. 20 each. The petitioner Goenka is a Director of the company. He holds 2,000 ordinary shares of the face value of Rs. 20 each.