Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Person making the reference’’--Meaning of Life insurance Corporation Rules 1956 No period prescribed for moving the Corporation |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Insurance—"Person making the reference’’--Meaning of — No period prescribed for moving the Corporation—Effect—Life Insurance Corporation Act, 1956 (31 of 1956), SS. 16(2) 48 (2) (f) —Life Insurance Corporation Rules, 1956, r. 12 Sub-rr. (i), (ii), (iii).The Life Insurance business of the insurer. The Andhra Insurance Company Ltd., vested in the Life Insurance Corporation of India and it became entitled in compensation under s. 16 of the Life Insurance Corporation Act. The Corporation made an offer of it and claimed various deductions. The insurer raised certain disputes and on August 6, 1957, made an application to the tribunal constituted on May 25, 1957 for re-assessment of the compensation and also for extension of time for making the application by three months from the date of its constitution. On September 21, 1957, the insurer filed another statement giving details of its claim. In answer to the claim the Corporation filed its written statement. The tribunal held that the claim for compensation was time-barred under r. 12 of the Rules framed under the Act and dismissed the application. It also held that under s. 16(2) of the Act the insurer had no right to move directly the tribunal regarding the amount of compensation, but could move corporation for making a reference of the dis- pute to the tribunal and that it did not show any cause for extending time to make the reference to the tribunal. Against the judgment of the tribunal, the insurer obtained special leave to add and thereafter amalgamated with Hiridustan Ideal Insurance Company Ltd. which was substituted as appellant in place of the insurer. Held, (Per Subba Rao and Mudholkar, JJ.) That while sub-s. (1) of s.48 confers a power on the Central Government, sub-s. (2) of s. 16 imposes a duty upon it and therefore, it is obligatory upon the Central Government to prescribe the period within which the insurer is to move the’ Corporation for referring the claim to the Tribunal. When the Jaw requires a period to be prescribed for doing a thing, that period should be clearly specified with specific reference to the particular purpose. The specific purpose referred to in Sub-s. (2) of s.16 is, to have the matter referred to the tribunal for decision. ‘Making of the reference is thus in the hands of the corporation and not in these of insurer who can only move the corporation for making the reference. Time has to be prescribed for enabling the insurer to move the Corporation. Prescribing time for making a reference is not prescribing time for moving the corporation to make the reference. Prescribing time by implication wont not be compliance with the provisions of Sub-s, (2) of S. 16While framing r. 12 the Rule making authority lost sight of the fact that Sub-s. (2) of s. 16 contemplates a reference not by the insurer but by the corporation. The proceeding taken before the tribunal were therefore misconceived. No question of limitation arises because the period within ia which an insurer must move the corporation to make a reference has not yet been prescribed as required by Sub-s.(2) of s, 16. It would be open to the appellant to move the corporation under s. 16(2) after such period is prescribed. It was urged by the insurer that the claim cannot treated as barred by time and this was a fit case for extension of time under the proviso to r. 12. Held, As r.12, read by itself does not show clearly whether it applies to the corporation or it applies to an insurer or a chief agent or a special agent, it is permissible to look into the proviso for ascertaining the scope of the main provisions of that rule. Reading it along with the proviso would not violate any well accepted rule of construction. Held (per Sarkar, J.), that the insurer had no right to move the tribunal directly and the proceedings commenced by it before the tribunal were therefore wholly misconceived and no relief could be granted by the tribunal to the insurer, As the insurer had no right to move the tribunal, no question of extending time for it to do so really arose. If the application for extension of time to move the tribunal is treated as competent under the proviso of r. 12 of the rules, then also, the appellant is not entitled to any relief, for there is no justification on the merits to interfere with the tribunal’s order refusing to extend time, The proceedings being in- competent, an enquiry as to whether it had been started out of time would be wholly irrelevant and it is therefore unnecessary to express any opinion on the correct interpretation of r. 12 of the Rules. The proceeding being incompetent from the beginning it is not possible for this Court to grant any relief and, therefore, the appeal must fail in any case. |
Judge | Honble Mr. Justice A.K. Sarkar Hon'ble Mr. Justice J.R. Mudholkar |
Neutral Citation | 1962 INSC 141 |
Petitioner | Hindustan Ideal Insurance Co. Ltd. |
Respondent | Life Insurance Corporation Of India |
SCR | [1963] 2 S.C.R. 56 |
Judgement Date | 1962-04-12 |
Case Number | 82 |
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