L I C OF INDIA Vs. SHANTA GUPTA

JUDGEMENT

(1.) The Appellant-Life Insurance Corporation of India by means of present appeal Under Section 96 Code of Civil Procedure, 1908, seeks to impugn the judgment and decree dated 30.01.1999 of the trial Court whereby the suit of the Respondent-Plaintiff-widow was decreed for Rs. 99,000/- with interest @6% per annum from the date of the suit till realization. The decree for recovery was passed in the suit which came to be filed on account of the Appellant-Corporation refusing to pay the entire amount of the life insurance policies.

(2.) The facts of the case are that the insured-late Sh.J.P. Gupta, the late husband of erstwhile Respondent (now represented by legal heirs) took out four policies of Rs. 40,000/-, Rs. 10,000/-,Rs.10,000/- and Rs. 20,000/- of which the first was taken on 24.12.1975 and the last three on 28.03.1975. On one occasion only due to the fault of the agent the premium was not paid by which the policies got lapsed, however, the same were thereafter renewed/revived by the Appellant-corporation on payment of the necessary insurance premium and other charges. Sh.J.P. Gupta expired on 20.07.1987. On filing of the insurance claims, though the value of policies was Rs. 80,000/- and bonus of Rs. 43,040/- totaling to Rs. 1,23,040/-, however, the Appellant only paid a sum of Rs. 45,103/- i.e. amount due up to the date of revival of the policies and not for the amount thereafter. Accordingly, the widow Smt. Shanti Gupta filed the suit for recovery of Rs. 77,937/- with interest and a consolidated figure of Rs. 99,000/- was claimed.

(3.) The suit was contested by the Appellant. The main issue which has been argued before this Court and which was also urged before the trial Court was issue Nos. 3 which reads as under: