Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Life Insurance Corporation Act 1956 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Life insurance - Construction of Statute - Composite insurer - "Controlled business" - Meaning and scope of - If includes capital redemption business and annuity certain business - Life Insurance Corporation Act, 1956 (31 of 1956) ss. 6, 7. The appellant company was admittedly a composite insurer because it carried on general insurance business in addition to the business which fell within the definition or controlled business. The company also carried on both capital redemption business and annuity certain business which it compendiously called capital obligation business. By the operation of s. 7 (I) of the Life Insurance Corporation Act, 1956, all the acts and liabilities appertaining to the "controlled business" of all insurers were transferred to and vested in the Life Insurance Corporation from the 'appointed day'. In pursuance of this provision the Iife Insurance Corporation took over the life insurance business of the appellant company. Dispute arose between the parties as to what part of the business of the appellant company vests in the Corporation and what are the assets of the business. The appellant company contended that on a proper interpretation of the relevant provisions of the Life Insurance Corporation Act, 1956, particularly the explanation to the definition of "controlled business" the capital obligation business of the company which included capital redemption business and annuity certain business, did not vest in the Corporation. The Corporation on the other hand claimed that this business also vested in the Corporation. This dispute was referred to the Life Insurance Corporation Tribunal, Nagpur, and the Tribunal decided in favour of the Corporation and the company appealed to this Court with special leave. It was contended in the appeal that the force of the word "only" in the Explanation to s. 2 (3) of the Act which defines "controlled business" is that where an insurer carries on life business and capital redemption business but no other kind of business and or annuity certain business but no other kind of business then the controlled business can be said to include in addition to Life business the capital redemption business or annuity certain 'business or both, but 'here an insurer carries on Life business and general business, life, fire and marine insurance etc., the capital redemption business or the annuity certain business or both cannot be included in the controlled business. It was further contended that the expression "business appertaining to his life insurance business" in sub-cls. (i) and (ii) of s. 2 (3) should also be given the same meaning. |
Judge | Honble Mr. Justice M. Hidayatullah |
Neutral Citation | 1963 INSC 46 |
Petitioner | National Insurance Co. Ltd. |
Respondent | Life Insurance Corporation Of India |
SCR | [1964] 2 S.C.R. 182 |
Judgement Date | 1963-03-04 |
Case Number | 134 |
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