Deoki Nandan, J. - (1.) This is a plaintiffs second appeal in a suit for recovery of Rs. 10,160. The plaintiff claimed that her son Ashutosh Gupta had made a proposal on the 4th March 1966, being proposal N. 825215 for a 20-years anticipated endowment insurance policy with profits, for Rs. 10,000 and had paid Rupees 551.20 p., as the first years premium along with the proposal. This amount formed part of a cheque for Rs. 1,653.70 p., the balance being the amount of first years premia in respect of two other proposals for insurance on the lives of Santosh Gupta and Ajay Gupta who were the two other sons of the plaintiff. The plaintiff alleged that the proposal for insurance of the life of Ashutosh Gupta was accepted by Sri Ram Swarup Chandak, Agent, and Sri D. C. Sharma, Field Officer and Development Officer of the defendant-Life Insurance Corporation of India. It was alleged that they were both -authorised and must be deemed to have been authorised to accept proposals on the defendants behalf; that the cheque by which the premium was tendered along with the proposal was cashed by the defendant; that the acceptance of the first years premium by and on the defendants behalf amounted to acceptance of the proposal and the risk stood covered with effect from the 4th March 1966, the date on which the proposal was made. The plaintiff was the nominee of Ashutosh Gupta and entitled to recover the amount due under the insurance. Unfortunately Ashutosh Gupta, the assured, died on 27th June 1966 at Devangore (Karnataka) as a result of an accidental shot which hit him in the course of firing by the police. The insurance was for Rs. 10,000 and Rs. 160 was the amount of the first years profit which the plaintiff was entitled to recover. The defendant refused to pay the claim even in spite of a registered notice of demand. Hence the suit.
(2.) In defence the Life Insurance Corporation of India pleaded that the deceased Ashutosh Gupta had earlier submitted a proposal No. 367215 dated 27th Sept, 1005 under the plan and term 34-30 for insuring his life in the sum of .Rs. 10,000 and had paid Rs. 360 along with the proposal. That proposal was not accepted, instead Ashutosh Gupta was informed that a proposal for insurance &of his life for plan and term 143.30 with an extra premium of Rs. 1.50 p. per thousand per annum, or for the plan and term 14-25 could be accepted at the ordinary rates of premium, whereupon Ashutosh Gupta did not agree to pay the extra amount of premium at the rate of Rs. 1.50 per thousand per annum, but consented to have himself insured for the plan and term 14-25 and paid the balance of Rs. 6.20 p. and a policy No. 27587415 was issued to him covering the risk from the 17th November 1965. The claim under that policy, which was also for Rs. 10,000 had duly been paid. But, pleaded the Life Insurance Corporation, the proposal No. 825215 submitted on 4th March 1966 along with the deposit of Rs. 551.20 p., was not accepted and only memorandum showing the receipt of the amount as a deposit was issued on the 4th March 1966 wherein it was clearly stated that the payment was received as initial deposit involving no risk to the Corporation. It was then pleaded that a proposal was submitted to the Corporations Divisional Office at Lucknow for consideration that the agent or the Development Officer were not authorised to accept the proposal, and on a scrutiny of the proposal the Divisional Office decided to call for a medical report, that Ashutosh Gupta got himself medically examined on 31st March 1966 and after considering the medical report the Divisional Office decided that the proposal could not be accepted unless an extra amount of Rs. 1.50 p. per thousand per annum was paid as premium and Ashutosh Gupta gave his consent for such extra payment, that the Branch Officer of the Corporation at Budaun communicated the said decision to Ashutosh Gupta by letter dated 12th April 1966 and asked for his consent for payment of the extra premium of Rs. 1,50 p. per thousand per annum that the same was handed over personally to Ashutosh Guptas father Sri A. P. Gupta and a copy thereof was also sent to the agent Sri R. S. Chandak for complying with the requirements of that communication. However, Ashutosh Gupta never consented to pay the extra premium of Rs. 1.50 p. per. thousand per annum and it was pleaded that the proposal was not accepted by the Corporation and did not mature into a concluded contract of insurance at any time before the death of Ashutosh Gupta, and no liability was fastened by the proposal on the Corporation to pay the amount of the insurance proposed, and that the Corporation had only to refund the amount of the deposit of Rs. 551.20 p. made with the proposal, which the Corporation was ever ready and willing to pay.
(3.) The following issues were framed by the trial court: 1. Whether the health of Ashutosh Gupta was such that the proposal could not be accepted as such? 2. Whether any information was conveyed to the proposer that his proposal was not acceptable without excess amount? 3. Whether the receipt of the first deposit by the Development Officer of the defendant was towards the premium and amounted to acceptance of the proposal? 4. Whether the deposit memo contained any entry as mentioned in para 30 of the written statement ? If so is it binding on the plaintiff? 5. Whether the defendant was entitled to demand fresh medical examination within six months of the previous medical examination for the previous policy? If not its effect? 6. Whether there was a concluded contract between proposer and the defendant? 7. To what relief, if any, is the plaintiff entitled?;