VANGUARD FIRE AND GENERAL INSURANCE CO LIMITED MADRAS Vs. FRASER AND ROSS
LAWS(SC)-1960-5-16
SUPREME COURT OF INDIA (FROM: MADRAS)
Decided on May 04,1960

VANGUARD FIRE AND GENERAL INSURANCE COMPANY LIMITED Appellant
VERSUS
FRASER AND ROSS Respondents


Cited Judgements :-

STATE BANK OF INDIA VS. UNION OF INDIA & ORS [LAWS(GJH)-2015-7-200] [REFERRED]
KANDLA EXPORT CORPORATION VS. OCI CORPORATION [LAWS(GJH)-2017-9-20] [REFERRED TO]
SHIKSHAN PRASARAK MANDAL VS. MUTYAL VILAS RAMBHAU [LAWS(BOM)-2016-3-223] [REFERRED]
COMMISSIONER VS. DYNAMIC INDUSTRIES LTD. [LAWS(GJH)-2014-7-145] [REFERRED TO]
STATE OF GUJARAT FERTILIZERS VS. ADDITIONAL SECRETARY [LAWS(CAL)-2012-8-98] [REFERRED TO]
STATE OF MADHYA PRADESH VS. ABDUL RASHID [LAWS(MPH)-1962-8-15] [REFERRED TO]
JOSEPH MAANI, S/O. MANI MATTATHIL VS. M.I. PHILIP, S/O. ITTYKUNJU AND OTHERS [LAWS(KER)-2018-4-437] [REFERRED TO]
RADHA KRISHNA VS. STATE OF BIHAR [LAWS(PAT)-1987-9-21] [REFERRED TO]
MUNICIPAL CORPORATION VS. BHUSHAN LAL SAHU [LAWS(CHH)-2010-7-28] [REFERRED TO]
UNION OF INDIA VS. TELECOM REGULATORY AUTHORITY OF INDIA [LAWS(DLH)-1998-7-52] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. DLF COMMERCIAL DEVELOPERS LIMITED [LAWS(DLH)-2013-7-151] [REFERRED TO]
COMMISSIONER OF INCOME TAX, DELHI VS. M/S D.C.M. LIMITED [LAWS(DLH)-2014-12-620] [REFERRED TO]
NAMALDINIA SARBARTHA SADHAK SAMABAY SAMITY LTD. AND ANOTHER VS. STATE OF WEST BENGAL AND OTHERS [LAWS(CAL)-1997-6-22] [REFERRED TO]
BIDYUTLATA KUNDU VS. STATE OF WEST BENGAL [LAWS(CAL)-1999-10-39] [REFERRED TO]
AMIR ALAM KHAN VS. STATE OF UTTAR PRADESH [LAWS(ALL)-2001-7-73] [REFERRED TO]
SHRI ANIL (VIDYARTHI) CHANDERLAL AILANI VS. STATE OF MAHARASHTRA [LAWS(BOM)-2016-3-26] [REFERRED TO]
APAR PRIVATE LIMITED VS. UNION OF INDIA [LAWS(BOM)-1985-10-9] [REFERRED TO]
SOM KIRTI ALIAS SOM K. NATH VS. STATE OF H.P. [LAWS(HPH)-2013-10-4] [REFERRED TO]
BRIJARAJSINH HEMANTSINH JADEJA VS. STATE OF GUJARAT [LAWS(GJH)-2012-9-63] [REFERRED TO]
JANTA TOURING TALKIES VS. STATE OF GUJARAT [LAWS(GJH)-2000-3-66] [REFERRED]
MOHAMMED SHAMEER ALI VS. STATE OF KERALA [LAWS(KER)-2019-3-200] [REFERRED TO]
BHORUKA FINANCE CORPORATION VS. APPROPRIATE AUTHORITY [LAWS(KAR)-2001-1-1] [REFERRED TO]
DALAPPA VS. BANGALORE UNIVERSITY [LAWS(KAR)-2003-2-32] [REFERRED TO]
SUVEEN S. KAMATH VS. STATE OF KERALA [LAWS(KER)-2014-4-13] [REFERRED TO]
BUDHULAL KASTURCHAND VS. CHHOTELAL [LAWS(MPH)-1976-8-4] [REFERRED TO]
NEPTUNE ASSURANCE CO LTT VS. UNION OF INDIA [LAWS(SC)-1972-11-15] [REFERRED TO]
GE POWER CONVERSION INDIA PRIVATE LIMITED VS. PASL WIND SOLUTIONS PRIVATE LIMITED [LAWS(GJH)-2020-11-19] [REFERRED TO]
VISA STEEL LTD VS. STATE OF ORISSA [LAWS(ORI)-2010-8-48] [REFERRED TO]
STATE OF KERALA VS. ALL KERALA DOCUMENTS WRITERS [LAWS(KER)-2005-10-11] [REFERRED TO]
NATIONAL INSURANCE CO. LTD. VS. KIRPAL SINGH [LAWS(SC)-2014-1-23] [REFERRED TO]
AMEER VS. DIVISIONAL MAGISTRATE VARANASI S [LAWS(ALL)-1968-8-13] [REFERRED TO]
DYES AND CHEMICAL WORKERS UNION VS. BOMBAY OIL INDUSTRIES LIMITED [LAWS(BOM)-2001-1-44] [REFERRED TO]
YOGESHWARI SHIKSHAN SANSTHA AMBAJOGAI VS. SUJATA PRAKASH ANSARWADKAR [LAWS(BOM)-2016-9-217] [REFERRED TO]
TRAMMO DMCC (FORMERLY KNOWN AS TRANSAMMONIA) DMCC VS. NAGARJUNA FERTILIZERS AND CHEMICALS LTD. [LAWS(BOM)-2017-10-229] [REFERRED TO]
RENJITH J.V. VS. STATE OF KERALA [LAWS(KER)-2020-8-290] [REFERRED TO]
GOKULAM CIT AND FINANCE CO P LTD VS. DAMODARAN [LAWS(KER)-2013-7-191] [REFERRED TO]
C RENUKA VS. KERALA STATE COUNCIL FOR SCIENCE [LAWS(KER)-2014-11-8] [REFERRED TO]
COMMISSIONER OF AGRICULTURAL INCOME TAX VS. KRISHNAN NAIR K N [LAWS(KER)-1975-9-12] [REFERRED TO]
ANTONY VARGHESE VS. A AND E INSPECTOR [LAWS(KER)-1985-12-8] [REFERRED TO]
MOHINDER SINGH VS. STATE OF PUNJAB [LAWS(P&H)-1993-5-49] [REFERRED TO]
TOPHAN PATI VS. STATE OF ORISSA [LAWS(ORI)-1998-7-36] [REFERRED TO]
HDFC BANK LIMITED VS. SIMA MONDAL [LAWS(CAL)-2009-12-63] [REFERRED TO]
YASHDEEP TREXIM VS. BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION [LAWS(CAL)-2011-1-33] [REFERRED TO]
SARVAJANIK VYAYAM MANDIR VS. ANAND NAGARPALIKA [LAWS(GJH)-2018-6-49] [REFERRED TO]
COMMISSIONER OF C. EX. & CUSTOMS VS. PARTH POLY WOOVEN PVT. LTD. [LAWS(GJH)-2011-4-260] [REFERRED TO]
UDHO RAM VS. BHOPINDER SINGH [LAWS(HPH)-1987-7-5] [REFERRED TO]
STATE OF ASSAM VS. RAJEEV TAKRU [LAWS(GAU)-2017-12-75] [REFERRED TO]
ZINABHAI RANCHHODJI DARJI VS. STATE OF GUJARAT [LAWS(GJH)-1971-2-1] [REFERRED]
STATE OF GUJARAT VS. WOOD POLYMER LTD [LAWS(GJH)-1982-3-11] [REFERRED TO]
PUSHPAJA M VS. STATE OF KERALA [LAWS(KER)-2018-12-167] [REFERRED TO]
TVL TRANSTONNELSTROY AFCONS JOINT VENTURE, VS. UNION OF INDIA [LAWS(MAD)-2020-9-756] [REFERRED TO]
KURIAKOSE KURIAN VS. SARAMMA CHACKO [LAWS(KER)-1963-11-3] [REFERRED TO]
PUSHPA DEVI VS. MILKHI RAM DEAD [LAWS(SC)-1990-2-7] [RELIED ON]
BHARAT STEEL TUBES VS. STATE OF HARYANA [LAWS(P&H)-1976-12-19] [REFERRED TO]
JITENDRA NATH ROY VS. STATE [LAWS(CAL)-2005-2-51] [REFERRED TO]
GEMINI BAY TRANSCRIPTION PRIVATE LTD. VS. INTEGRATED SALES SERVICE LTD. [LAWS(BOM)-2018-2-123] [REFERRED TO]
ASSOCIATION OF MANAGEMENT OF PRIVATE COLLEGES VS. ALL INDIA COUNCIL FOR TECHNICAL EDUCATION [LAWS(MAD)-2001-10-110] [REFERRED TO]
BRAHM SINGH VS. BOARD OF RENUE [LAWS(ALL)-2008-4-87] [REFERRED TO]
RAJ NATH DUBEY VS. DY. DIRECTOR OF CONSOLIDATION [LAWS(ALL)-2013-11-3] [REFERRED TO]
OMANAJOSE VS. STATE OF KERALA [LAWS(KER)-2014-4-24] [REFERRED TO]
STATE OF TAMIL NADU VS. ADMINISTRATIX TO THE ESTATE OF LATE DR P VENKATARAMANA RAO [LAWS(MAD)-1983-11-28] [REFERRED TO]
TELANGANA STATE ROAD TRANSPORT CORPORATION VS. P. RAMESH [LAWS(APH)-2016-9-80] [REFERRED TO]
N K JAIN VS. C K SHAH [LAWS(SC)-1991-3-41] [RELIED ON]
NARASINGHA KAR & CO. VS. COMMISSIONER OF INCOME TAX, ORISSA. [LAWS(ORI)-1976-3-28] [REFERRED TO]
CENTRAL COAL FIELDS LTD VS. STATE [LAWS(PAT)-1988-12-1] [REFERRED TO]
PHILIPS MEDICAL SYSTEMS VS. INDIAN MRI DIAGNOSTIC AND RESEARCH LTD [LAWS(SC)-2008-9-112] [REFERRED TO]
PANDURANG DAGADU PARTE VS. RAMCHANDRA BABURAO HIRVE [LAWS(BOM)-1997-3-3] [REFERRED TO]
UMADEVI RAJKUMAR JEURE VS. DISTRICT COLLECTOR, SOLAPUR [LAWS(BOM)-2021-6-92] [REFERRED TO]
MAHARASHTRA STATE CO OPERATIVE BANK LIMITED VS. STATE OF MAHARASHTRA [LAWS(BOM)-1996-12-29] [REFERRED TO]
SOBRAN SINGH VS. UNION OF INDIA AND OTHERS [LAWS(ALL)-1995-2-169] [REFERRED TO]
SHIKSHAN PRASARAK MANDAL VS. RAMESH BHIMRAO NARAYANKAR [LAWS(BOM)-2016-3-27] [REFERRED TO]
COMMISSIONER OF COMMERCIAL TAX VS. AGRAWAL MEDICAL AND GENERAL STORE [LAWS(MPH)-2003-3-79] [REFERRED TO]
MOHAMMED SHAMEER ALI VS. STATE OF KERALA [LAWS(KER)-2019-8-212] [REFERRED TO]
COMMISSIONER OF SALES TAX VS. MOHAMMAD HUSSAIN RAHIM BUX [LAWS(MPH)-1964-7-2] [REFERRED TO]
GOVINDA PILLAI VS. TALUK LAND BOARD PARUR [LAWS(KER)-1977-2-7] [RELIED ON]
TTK HEALTHCARE TPA PRIVATE LIMITED REPRESENTED HEREIN BY ITS MANAGING DIRECTOR GIRISH RAO, BANGALORE VS. DEPUTY COMMISSIONER OF INCOME TAX (TDS), BANGALORE [LAWS(KAR)-2020-10-53] [REFERRED TO]
STATE OF KERALA VS. GEORGE JACOB [LAWS(KER)-2005-10-4] [REFERRED TO]
K A VIJOY VS. DIRECTOR GENERAL [LAWS(KER)-2005-10-42] [REFERRED TO]
MATHU G VS. MANAGMENT OF TAMIL NADU STATE TRANSPORT CORPN MADURAI LTD [LAWS(MAD)-2006-8-295] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. BAZAZ M P [LAWS(ORI)-1992-7-7] [REFERRED TO]
D A V INSTITUTE OF PHYSIOTHERAPY VS. NAVLEEN KAUR [LAWS(NCD)-1998-1-10] [REFERRED]
PRESS COUNCIL OF INDIA VS. ALL INDIA SMALL AND MEDIUM NEWSPAPER FEDERATION [LAWS(DLH)-2001-3-141] [REFERRED TO]
JHARNA SARKAR VS. STATE OF WEST BENGAL [LAWS(CAL)-2006-12-31] [REFERRED TO]
GREAT PYRAMID INSURANCE CO LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1974-9-11] [REFERRED TO]
FOMENTO RESORTS AND HOTELS LTD VS. STATE OF GOA [LAWS(BOM)-2022-9-31] [REFERRED TO]
JAGDISHBHAI ISHWARBHAI ROCHANI VS. COSMOS CO OPERATIVE BANK LTD [LAWS(GJH)-2012-11-205] [REFERRED TO]
JAGDISHBHAI ISHWARBHAI ROCHANI VS. COSMOS CO OPERATIVE BANK LTD [LAWS(GJH)-2012-11-205] [REFERRED TO]
OIL AND NATURAL GAS CORPORATION LTD VS. SCHLUMBERGER ASIA SERVICES LTD [LAWS(DLH)-2006-9-60] [REFERRED TO]
RATANLAL NATH VS. THE STATE OF TRIPURA AND ORS. [LAWS(GAU)-1994-5-12] [REFERRED TO]
NARAYANA RAO PATALAY DIED PER L RS VS. NARESH THAPPOR [LAWS(APH)-2002-8-6] [REFERRED TO]
B RAMA RAJU VS. UNION OF INDIA [LAWS(APH)-2011-3-76] [REFERRED TO]
M.VENKATESWARLU S/O PAPAIAH VS. ANDHRA PRADESH STATE ROAD TRANSPORT CORPORATION [LAWS(APH)-2016-1-27] [REFERRED TO]
OUDH SUGAR MILLS LTD VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1974-7-8] [REFERRED TO]
MOHAN SINGH VS. STATE OF MADHYA PRADESH [LAWS(MPH)-1994-8-8] [REFERRED TO]
JAGADESAN VS. STATE OF TAMIL NADU [LAWS(MAD)-2015-2-266] [REFERRED TO]
J K PAPER LTD VS. STATE OF ORISSA [LAWS(ORI)-2010-8-6] [REFERRED TO]
PERFECT STEEL CORPN VS. STATE OF ORISSA [LAWS(ORI)-2010-8-16] [REFERRED TO]
SMT. SADHNA VS. STATE OF U.P. AND 5 ORS. [LAWS(ALL)-2017-5-29] [REFERRED TO]
INDIRA DEVI VS. SPECIAL TAHSILDAR [LAWS(KER)-1990-11-16] [REFERRED TO]
ANIL VIDYARTHI CHANDERLAL AILANI & ANR. VS. STATE OF MAHARASHTRA & ORS. [LAWS(BOM)-2016-3-170] [REFERRED TO]
E S I C VS. M B NAGARAJ [LAWS(KAR)-1981-8-36] [REFERRED TO]
ORACLE INDIA PRIVATE LIMITED VS. THE COMMISSIONER OF CUSTOMS (I AN G) AND THE COMMISSIONER OF CUSTOMER OF VALUATION, DIRECTORATE GENERAL OF VALUATION [LAWS(AR)-2011-5-11] [REFERRED TO]
IN RE: ZD VS. STATE [LAWS(AR)-2012-6-1] [REFERRED TO]
BAR COUNCIL OF GUJARAT VS. VINOD HARJIVANDAS DIXIT [LAWS(GJH)-2000-10-22] [REFERRED TO]
AMMINI VS. DISTRICT COLLECTOR, COLLECTORATE, KAKKANAD [LAWS(KER)-2018-8-202] [REFERRED TO]
RADHESHYAM VS. MUNICIPAL COUNCIL [LAWS(MPH)-1988-9-45] [REFERRED TO]
DRUGS INSPECTOR VS. CHIMANLAL AND CO [LAWS(MPH)-1965-3-20] [REFERRED TO]
V K BALAKRISHNAN VS. ASOKA BANK LTD [LAWS(KER)-1965-9-1] [REFERRED TO]
WHIRLPOOL CORPORATION VS. REGISTRAR OF TRADE MARKS MUMBAI [LAWS(SC)-1998-10-1] [RELIED ON]
SUDEEPTI SHARMA VS. STATE OF PUNJAB [LAWS(P&H)-2013-8-13] [REFERRED TO]
G MUTHU VS. TAMIL NADU STATE TRANSPORT CORPORATION MADURAI LTD [LAWS(MAD)-2006-8-229] [REFERRED TO]
ADDL COMMISSIONER COMMERCIAL TAXES DEPARTMENT VS. BADRI LAL [LAWS(RAJ)-1995-5-17] [REFERRED TO]


JUDGEMENT

Wanchoo, J. - (1.)This is an appeal on a certificate granted by the Madras High Court. The appellant Company had been carrying on various classes of insurance business other than life insurance after its incorporation in September 1941. On October 15, 1956, an extraordinary general meeting of the shareholders of the Company passed a resolution by which all its insurance business was to cease forthwith and no further policies of insurance of any kind were to be issued thereafter, It was also resolved that no application should be made for renewal of the certificate granted under S. 3 of the Insurance Act No. IV of 1938, (hereinafter called the Act) and that thenceforward the Company should only carry on the business of money-leading as a loan-company and also to do investment business. In consequence of these resolutions, the Company informed the Controller of Insurance in December 1956 that it was not applying for renewal of its registration for carrying on the business of insurance. In May 1957, the Controller wrote to the Company that its certificates for carrying on insurance business would be deemed to be cancelled from July 1, 1957, and the cancellation was notified in the Gazette of India.
(2.)It appears that the Government of India had been receiving complaints against the Company. Consequently on July 17, 1957, the Government of India passed an order under S. 33 of the Act directing the Controller of Insurance to investigate the affairs of the Company and to submit a report. Thereupon the Controller appointed Messrs. Fraser and Ross to act as auditors to assist him in the investigation. The Company was informed of this order in September 1957. Thereupon it wrote to the Controller that no order under S. 33 of the Act could be passed against it, as it had closed its business of insurance and the order in question was without jurisdiction. The Controller sent a reply to this communication and pointed to the provisions of S. 2D of the Act in justification of the order. Thereupon the Company made an application under Art. 226 of the Constitution in the Madras High Court. Two main contentions were raised by it in the petition. In the first place it was submitted that the Company having closed all its insurance business no order could be passed against it under S. 33, as that section only applied to companies actually carrying on the business of insurance and that in any case no such order could be passed even with the help of S. 2D of the Act. In the second place it was contended that even if such an order could be passed under S. 33 read with S. 2D of the Act, it could not be done in the present case, as the Company's liabilities in respect of its insurance business did not remain unsatisfied or not otherwise provided for. Messrs. Fraser and Ross as well as the Controller were made parties to the petition. The petition was opposed on behalf of the Controller, and his contention was that the case was clearly covered by S. 2D of the Act and therefore the order under S. 33 was validly passed in this case and that it had not been shown that the liabilities had been satisfied or had been otherwise provided for.
(3.)The learned Single Judge held that an order under S.33 read with S.2D could be passed against the Company and that it had not been shown that the Company's liabilities had been satisfied or otherwise provided for. He therefore dismissed the writ petition. This was followed by an appeal by the Company, which was dismissed. The Division Bench substantially agreed with the view taken by the learned Single Judge. Thereupon the Company applied for a certificate to enable it to appeal to this Court obtained it; and that is how the matter has come up before us.
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