VISHVANATH V VAIDYA Vs. MULRAJ KHATAU

JUDGEMENT

(1.) In this case the following facts are undisputed. The plaintiff held two policies upon the life of Dwarkadas Dharamsey, one in the London and Lancashire Assurance Company and the other in the New York Assurance Company, which had been deposited with him by Dwarkadas as security for pecuniary liabilities incurred by the plaintiff from time to time on behalf of Dwarkadas.

(2.) On the the 23rd of April 1909, the plaintiff was responsible upon promissory notes and bills of Dwarkadas to the extent of Rs. 75,000 and in July those obligations were renewed. Of those a sum of Rs. 50,000 was payable by the 1st of September and Rs. 25,000 by the 20th of September 1909 to the Indian Specie Bank. On the 20th of August 1909, the plaintiff received notice from the Bank to discharge the obligations upon their due dates and was informed that the advances would not be renewed. On the 28th of August Dwarkadas committed suicide, and in the month of September the plaintiff had to deposit security with the Specie Bank against his obligations.

(3.) On the 4th of September the plaintiff s attorneys gave notice to the agents of the London and Lancashire Assurance Company that the plaintiff held policy No. 59656 on the life of Dwarkadas as security for the advances made to the latter. The plaintiff was then informed by the agents that on the day before the death of Dwarkadas, they had received for registration a deed of assignment of that policy in favour of the defendant Mulraj Khatau. This deed of assignment was dated the 13th August 1909, and under it the defendant claims payment of the policy moneys in preference to the plaintiff.