Wanchoo, J. - (1.) The only question that, arises for determination in this appeal by special leave from the order of the Life Insurance Tribunal, Bombay, is the interpretation of the words. "life insurance fund" as used in paragraph 4 of Part B of the First schedule to the Life Insurance Corporation Act, No. 31 of 1956 (hereinafter referred to as the Act). The question arose in connection with the payment of compensation to the respondent, the Crown Life Insurance Company which is incorporated in Canada, by the appellant, the Life Insurance Corporation of India on the taking over of the business of the respondent by the appellant under the Act. The respondent claimed Rs. 27,86,658 as compensation while the appellant was prepared to pay Rs. 1,11,466. The respondent claimed that as its life insurance fund was always in deficit before the Act came into force there was no liability on it under cl. (d) of paragraph 4 of Part B of the First Schedule to the Act. The appellant on the other hand claimed that under that cl. (d), there was a 'surplus of Rs. 27,86,658 and therefore under cl. (d) a sum of Rs. 26,75,192 was to be debited towards the liabilities of the respondent. That is how the appellant arrived at the compensation of Rs. 1,11,466.
(2.) The appellant claimed that the words "life insurance fund" in cl.(d) meant the difference between the total assets and the liabilities under cls.(a) and (c) of the said paragraph 4. The respondent on the other hand contended that the words "life insurance fund" in cl. (d) had the same meaning as those words had under the Insurance Act, No. 4 of 1938 (hereinafter referred to as the Insurance Act). The respondent therefore claimed that as there was always a deficit in its working as shown by form I of the Fourth Schedule to the Insurance Act, no amount was to be deducted as liability under cl.(d) of the said paragraph 4. It is this difference in the meaning assigned to the words "life insurance fund" by the parties that is responsible for the large difference in the amount claimed by the respondent and offered by the appellant.
(3.) The Insurance Tribunal has accepted the contention put forward on behalf of the respondent and has held that the words "life insurance fund" in cl.(d) of the said paragraph 4 have the same meaning as in the Insurance Act, and that there is only one meaning of these words in the Insurance Act. It has rejected the contention raised on behalf of the appellant and has in consequence awarded compensation at Rs. 27,86,658. Aggrieved by this order, the appellant got special leave from this Court; and that is how the matter has come up before us.;