LAKSHMI INSURANCE CO. LTD Vs. BIBI PADMA WATI

JUDGEMENT

(1.) THIS is a defendant's appeal from the judgment and decree of Senior Subordinate Judge, Amritsar, decreeing the plaintiff's suit for recovery of' Rs. 40,000/ -; Rs. 34,000/ - being the principal amount, and Rs. 6,000/ - being the interest. The plaintiff in, this case is the widow of late Diwan Balkishan of Amritsar who died on 8th of April 1949. The de -ceased had taken two life insurance policies of the Laxmi Insurance Company Ltd, which is now represented in appeal by the Life Insurance Corporation of India. Policy No. 126837 (Exhibit D. 10) was taken by the deceased on his life with effect from 8th of September 1944 for a sum of Rs. 14,000/ -. The proposal was sent by the deceased to the defendant Insurance Company on 25th of August 1944 and the sum assured for this policy was Rs. 14,000/ -. The sum was payable on 8th of September 1959 which was the date of maturity, or, on his death, if that event took place earlier. Exhibit D. 6/7 is the medical report signed by the deceased and also by the medical examiner of the Company dated 26th of August 1944.

(2.) THE insured had made another proposal on 25th of September 1944 to the Company; and policy No. 128605 for a sum of Rs. 20,000/ - on his life was issued with effect from 12th of November 1944. The date of maturity of this policy was 12th of November 1963, when the deceased would have attained the age of 65 years, and in the event of his death earlier, the sum was to be paid to his nominee Shrimati Padma Wati, his wife, who is the plaintiff in this case. The deceased continued to pay the premiums on these polices for some time and had paid a sum of Rs. 5,307/14/ - on account of the first policy No. 126837 and he had paid a sum of Rs. 6,131/4/ -on account of the second policy No. 128605. Both the policies lapsed because of non -payment of the premiums some time in 1947. On 9th of November 1948, Dewan Balkishan wrote to the Company that his policies should be renewed and he sent a cheque for Rs. 1,047/7/ - in full payment of the amounts due to the Company vide Exhibit D. 3. He also sent an application (Exhibit D. 5) for the revival of his lapsed policies on the same date. On the death of Dewan Balkishan on 8th of April 1949, the plaintiff sent information to the defendant Company and sent to the Company the two original policies after filling in certain forms claiming the amounts for which her deceased husband's life had been assured.

(3.) THE defendant Company pleaded that the plaintiff herself knew that her husband had been suffering from a dangerous and malignant disease viz. tuberculosis at the time when the original proposals had been made in August and September 1944 and also when applications for the revival of the lapsed policies had been made in November 1948. It was also averred that the policies had been obtained in 1944 and also got revived in 1948 by the deceased, by making a false and fraudulent representation, as to the state of his health, and true facts had been deliberately concealed by him, when the original proposals had been sent, and also, when he applied for the revival of the policies after they had lapsed. It was alleged that on account of false and fraudulent representations and acts of deliberate concealment the plaintiff's claim under the two policies was void. It was also pleaded that she was not entitled to claim any interest. The parties' pleadings gave rise to the following issues : 1. Was any fraud or misrepresentation committed by the deceased Diwan Balkishan with respect to the state of his health when be got himself insured through two policies in dispute and at the time of the revival if any? If so, what fraud or misrepresentation was committed by him and what was its effect? 2. Was the suit within time? 3. Had not the plaintiff the locus standi to maintain the suit if so, on what grounds? 4. Was the plaintiff entitled to any interest, if so, to what extent?