K.S. Varma, J. - (1.) LATE Mr. Farooq Ahmad Khan, husband of the Plaintiff -Appellant was insured for a sum of Rs. 11,000/ - with the Life Insurance Corporation of India. The policy No. is 28071132. The policy was to take effect from 1.1.1975. At the time the contract of insurance was entered into Farooq Ahmad Khan was medically examined by the doctor of the Defendant -Life Insurance Corporation and he was found fit for being insured. On the report of the doctor the assured was insured under the said policy. Farooq Ahmad Khan, since deceased, was an employee of Punjab National Bank and posted at Chowk Branch, Lucknow. The premium on the policy was paid upto date. Farooq Ahmad Khan died on 11.4.1977 and the Plaintiff Mrs. Shakra Khatoon in her capacity as nominee claimed the amount under the policy from the Defendant. The Defendant -Life Insurance Corporation accepted the liability to pay and promised to pay the amount under the policy upon the compliance of formalities. But later on by means of letter dated 14/20th September, 1977, the payment was refused. The letter was received by the Plaintiff on 24.9.1977. According to the Plaintiff the grounds for forfeiting the policy were untenable and uncalled for and by notice dated 26.6.1978 the Plaintiff called upon the Defendant to pay the entire amount within the statutory period. The notice was served upon the Defendant, the Defendant failed to pay the amount, hence the Plaintiff filed the suit for recovery of Rs. 11,000/ - with costs against the Defendant.
(2.) THE Defendant has admitted that the deceased was insured for a sum of Rs. 11,000/ - and that he was medically examined by the Defendant's medical examiner. The Defendant's case is that the deceased had deliberately withheld vital and essential information regarding his health and illness. The case is that the deceased made false statements knowingly and with a view to mislead the examining doctor and to defraud the Defendant. On enquiry being made by the Defendant it was found that vital information in regard to his health was deliberately withheld by the deceased. The deceased was suffering from chronic cough expectoration and fever off and on and had taken treatment therefor. It is also contended by the Defendant that the deceased was absent from duty off and on, on the ground of sickness. The main case of the Defendant is that the information given by the deceased in regard to his health was false and untrue and it was on account of false and untrue statement given out by the deceased that the insurance policy has become null and void. The Defendant accordingly denied the claim of the Plaintiff by letter dated 14.9.1977. On the above pleadings the following two issues were framed: (1) Whether the insured deceased suppressed the material facts which were the basis of the contract and due to this, the contract of insurance is liable to be forfeited, as alleged in paragraphs 17 to 23 of written statement? (2) To what relief, if any, is the Plaintiff entitled? The trial court by its judgment and decree dated 30.9.1980 decreed the Plaintiffs suit for recovery of Rs. 11,000/ - with costs against the Defendant. On issue No. 1 the finding recorded was that the case of the Defendant that the assured had suppressed material facts knowingly and fraudulently was not worthy of credence. The specific finding recorded by the trial court was that at the time of submitting the proposal Exh. A -4 and personal statement Exh. A -5, the deceased had no knowledge of the fact that he was suffering from tuberculosis. It was also found that the facts mentioned in the proposal and personal statement were not made fraudulently.
(3.) AGGRIEVED by the decree passed by the trial court, Life Insurance Corporation of India filed an appeal before the District Judge, Lucknow. The appeal was heard by the II Additional District Judge, Lucknow who by judgment and decree dated 5.10.1981 allowed the Defendant's appeal and dismissed the Plaintiffs suit. The Plaintiff aggrieved by the decree passed by the lower appellate court has come up in second appeal before this Court.;