Fazal Ali, J. - (1.) This appeal by certificate is directed against the judgment of the High Court of Madhya Pradesh dated 20th April, 1967 affirming the decree passed by the Additional District Judge, Indore decreeing the plaintiff"s suit.
(2.) The facts of the case are detailed in the judgment of the High Court and that of the District Judge and it is not necessary for us to repeat the same all over again.
(3.) Briefly, the present action was brought by the plaintiff for recovery of a sum of Rs. 2,00,000 invested by the plaintiff in the Adarsh Bima Company being defendant No. 1 and the predecessor of the appellant, who is defendant No. 3 (Life Insurance Corporation of India). The action was brought on the basis that the Managing Director of the Adarsh Bima Company by practising fraud and misrepresentation on the plaintiff induced him to part with a sum of Rs. 2,00,000 by purchasing 2000 shares of Rs. 100/- each. The courts below have recorded clear findings of fact that the fraud alleged by the plaintiff has been clearly proved and that the plaintiff had parted with a sum of Rs. 2,00,000 by investing the same in purchase of 2000 shares as a result of which the shares scripts were handed over to the plaintiff and he was assured of a dividend of 4%. It has also been found as a fact that such a resolution was contrary to the statute of the company.;