- (1.) This appeal raised certain questions as to the validity of an order made under S. 36 of the Insurance Act, 1938 sanctioning the transfer of its life insurance business by one insurance company to another. The appellants had challenged that order by a petition filed under Art. 226 of the Constitution in the High Court of Punjab. The High Court having dismissed the petition, they have come to this Court in appeal.
(2.) There are three appellants, one of whom is a shareholder of the transferor company, another a policy-holder in it and the third, one of its agents who claims to have become entitled under the Insurance Act to receive from it commission on renewal premiums paid on life insurance business introduced by him. They complain that their respective rights have been adversely and illegally affected by the sanction.
(3.) The transferor company is the India Equitable Insurance Company Ltd. and the transferee company, the Arya Insurance Company Ltd. Under the transfer all the life insurance business including liabilities for policies issued and all the life fund of the transferor company were taken over by the transferee company. It is said and perhaps that is the correct position-that as a result of the transfer all the assets of the transferor company would vest in the transferee company and the transferor company would really become defunct.;