SHRI BASRAM JAT, S/O SHRI AGAMA JAT, AGE 44 YEARS CASTE JAT, R/O VILLAGE MAVESIYA, POST RAMSAR, NASIRABAD, DISTRICT AJMER Vs. BIRLA SUN LIFE INSURANCE CO. LTD. THROUGH MANAGING DIRECTOR, REG. OFF. AT ONE INDIABULLS CENTRE, TOWER 1, 15TH AND 16TH FLOOR, JUPITER MILL COMPOUND, 841, SENAPATI BAPAT MARG, ELPHINSTORE ROAD, MUMBAI

JUDGEMENT

(1.) This application under Sec. 11 of the Arbitration and Conciliation Act, 1996 has been filed by applicant-Shri Basram Jat, inter alia praying for appointment of an independent arbitrator to adjudicate upon his dispute with the non-applicant-Birla Sun Life Insurance Co. Ltd. and its regional and branch office. Applicant is an insurance agent with IRDA licence no.539950 issued on 22.5.2009. He was serving as insurance advisor with the respondent-company since May, 2009. He is aggrieved by termination of licence code by the non-applicants.

(2.) Shri Rahul Agarwal, learned counsel for the applicant submits that applicant got business of 631 policies to non-applicant, out of which 41 death claims matured due to natural demise of insured persons. However, the non-applicant withheld his commission due on the above mentioned policies from April, 2013. The non-applicant also refused to materialise the new policies submitted by the applicant. According to the applicant when he enquired about the same, it transpired that non-applicant suspended his licence code from March, 2013 without any prior notice to him. It is contended that total outstanding amount of Rs. 2,42,113 till 31.8.2014 was withheld by the non-applicants, which was his hard earned commission. Due to the arbitrary and illegal action of non-applicant, the applicant is unable to lead comfortable life and provide standard livelihood to his family. The applicant requested the non-applicant to furnish reasons as to on what basis his code has been suspended without providing any opportunity of hearing vide letter dated 10.6.2013. The non-applicant instead of supplying reasons vide letter dated 26.6.2013 conveyed that in the previous financial year, they received 6 death claims under his code, which means that he has not done proper field investigation. The number of death claims received under the code of applicant was quite high, which was in violation to the IRDA regulations and Company's code of conduct. The non-applicant, therefore terminated his agency and cancelled the IRDA license with effect from 26.6.2013. The applicant then sent a legal notice dated 7.10.2014 through his advocate to the non-applicants to appoint sole arbitrator to settle the dispute. The non-applicant sent reply to the aforesaid notice on 24.12.2014 contending that no commission and renewal commission shall be payable after the Insurance Advisor License is cancelled or revoked for any reason. Even then if the applicant decides to initiate any legal action against the non-applicant, the same shall be defended by the non-applicant at his costs, risks and consequences.

(3.) Shri Rahul Agarwal, learned counsel for the applicant has invited attention of the Court towards the terms and conditions settled between the parties, according to which the applicant was approved to act as an insurance advisor to them. Clause 10 (d) regarding General Provisions of the said terms and conditions provides that any and all disputes that may arise between BSLI and the Insurance Advisor under or in relation to this Agreement shall be resolved amicably between the Parties through negotiation and conciliation within [30] days failing which the courts in Mumbai shall have exclusive jurisdiction over such disputes or differences. In the event of any dispute between the Insurance Advisors of BSLI and any of BSLI with BSLI, with regard to commission or any matter arising out of his activities as an Insurance Advisor, the Insurance Advisor shall refer the dispute to BSLI for resolution and the decision of the individual entity or committee appointed by BSLI to resolve the dispute shall be final and binding upon the Insurance Advisor.