(1.) These Writ Appeals are directed against the judgment rendered by a learned Single Judge of this Court in O.P. No. 4739 of 1990. The parties in these appeals will be referred to as the petitioner and the Life Insurance Corporation (for short 'the Corporation').
(2.) The brief facts which are necessary for the disposal of these appeals are as follows: Petitioner is the widow of one P.J. Augustine. In the Writ Petition she had prayed for the issuance of a direction to the Corporation to pay her "the entire insured amount of late P.J. Augustine as per the proposal No. 615781 dated 27.8.88 for Rs.10 lakhs". Other incidental and consequential reliefs were also prayed for the O.P. The aforesaid Augustine, during his life time, had proposed his life for insurance for a sum of Rs.10 lakhs. The proposal was submitted on 16.8.1988 before the Branch Office of the Corporation, as per proposal No. 615781 of Ernakulam Branch. An amount of Rs.7925/- was also received from deceased Augustine, as evidenced by Ext. P1 receipt. Subsequently an amount of Rs.15,974/- was received from deceased Augustine on 27.8.1988, as evidenced by Ext. P2 receipt. An additional sum of Rs.426 was also remitted by him on 5.9.1988, as evidenced by Ext. P3 receipt. The amounts received under Exts. P1 to P3 were kept in suspense account by the Corporation pending finalisation of the Policy since the Branch Office of the Corporation was not competent to accept the proposal of deceased Augustine as it was for Rs.10 lakhs, in which case a decision has to be taken by the Zonal Office of the Corporation. Before the proposal of deceased Augustine was finalised, he was required to undergo a comprehensive medical check up including a Treadmill Test (TMT), as evidenced by Ext. P4. However, deceased Augustine, as per Ext R2 (b) telegram, informed the Corporation that he did not want to maintain the Policy and that the Corporation be pleased to pay him back the amount covered by Exts. P1 to P3. Deceased Augustine also informed the Corporation that he wanted to discontinue the proposal for life insurance in the name of his wife also and sought refund of the amount already paid, vide Ext. P5 letter. On receipt of Ext. P5 letter by the Corporation on 22.10.1988, a decision was taken to cancel the proposal submitted by deceased Augustine and under cover of letter dated 10th November, 1988 a cheque for an amount of Rs.24,225/- favouring deceased Augustine, being refund of the premia paid less Rs. 100/- towards expenses incurred by the Corporation for his medical examination, was forwarded to him. The letter enclosing the cheque was returned to the Corporation by the postal authorities with the endorsement "addressee Sri. Augustine expired".
(3.) The factum of death of Augustine was communicated to the Corporation by the petitioner by letter dated 17.11.1988 in which is stated that he died due to a car accident. Accordingly, the petitioner requested the Corporation to settle in her favour the amounts due under the proposal at the earliest, being the nominee of the deceased. As per Exts. P7 and P8 letters, the Corporation requested the petitioner to return to the Branch Office the receipts Exts. P1 to P3 for the amounts held in suspense deposit, so as to enable the Branch office to refund to her the initial deposits made by deceased Augustine towards the proposal for life insurance. However, the petitioner took the stand that as per the contract between the Corporation and the deceased, the Corporation is bound to pay to the petitioner the entire insured amount and that the Corporation is not entitled to contend that they are liable to refund only the premium paid. Since the demand of the petitioner was not acceded to by the Corporation, she moved this Court with the present Writ Petition out of which these appeals arise, for the various reliefs as already noticed.