(1.) THIS application has been taken out under sections 392 and 394 of the Companies Act read with rule 87 of the Companies (Court) Rules, for an order to the Controller of Insurance to amend Licence No. E-35604, by substituting the name of the applicant-company, namely, Binny Ltd., for Binny & Co. Ltd. THIS court sanctioned a scheme of amalgamation of Messrs. Binny & Co. Ltd. and five other companies into the applicant-company, namely, Messrs. Binny Ltd. Pursuant to the order of this court, all the rights, powers, claims, liabilities and duties of the six companies stand transferred to the applicant-company. Binny & Co. Ltd. stands dissolved and ceases to remain. Binny & Co. Ltd. was at one time the agent of certain insurance companies. The licence issued by the Controller of Insurance was renewed from time to time and the licence E-35604 issued by the Controller of Insurance on 1st September, 1969, was valid for a period of three years from that date. The amalgamation of the companies became effective from 1st November, 1969. On 2nd January, 1970, the Atlas Assurance Co. Ltd., of which the Binny & Co. Ltd. were agents, wrote to the Controller of Insurance, Simla, enclosing a copy of the order of this court sanctioning the amalgamation, requesting that the name of the applicant-company may be substituted for Binny & Co. Ltd., in the said licence. The Controller of Insurance, by his letter dated 26th February, 1970, declined to amend the current licence. It is in these circumstances that this application has been taken out for a direction to the Controller of Insurance to give effect to the amendment.
(2.) THE standing counsel for the Central Government has filed a counter-affidavit pointing out that what is sought for is transfer of the insurance business from one insurer to another and that under the provisions of section 42B of the Insurance Act, 1938, such transfer cannot be recognised.THEre is no substance in this objection. THEre is no express prohibition to recognise such transfer that is brought about by reason of the amalgamation of companies under the provisions of the Companies Act. Section 42B of the Insurance Act was introduced by the Insurance (Amendment) Act, 1950. THE statement of objects and reasons appended to the Insurance (Amendment) Bill, 1957, clearly shows that individuals who were working as principal agents could, however, continue in business as ordinary insurance agents and that principal agents at that time in business, may, if they so desired, continue to play their part in the industry by acting as ordinary insurance agents. It is for this purpose that section 42 of the Act was amended. My attention has not been drawn to any provision in the Act prohibiting the transfer brought about by the operation of law. THEre is, therefore, no substance in the objection.