JUDGEMENT
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(1.)IN this appeal filed under Section 96 of the Civil Procedure Code, the appellants/defendants have called in question the judgment and decree dated 18-7-1995 passed by the III Additional District Judge, Satna in Civil Suit No. 2-A/90.
(2.)AS per the appellants, on 5-2-1968 the respondent was appointed as their agent under Section 4 of the Life Insurance Corporation of India (Agents) Regulations, 1972 (hereinafter referred to as 'regulations' ). During the existence of his agency, on 21-3-1984 he submitted a proposal form to insure life of Prakash Chandra Agrawal. Alongwith the proposal form dated 21-3-1984 the respondent submitted his report about the proposer. In the said proposal form and report, the respondent suppressed the information regarding previous hospitalization of the proposer due to accident and also about his ailment. As per the appellants, before the proposal could be accepted, proposer Prakash Chandra Agrawal, died on 29-3-84 due to renal failure. For the aforesaid suppression of fact, invoking provisions contained in Regulation 16 of the Regulations, a show-cause notice dated 11-10-1985 was issued to the respondent proposing termination of agency under Regulation 16 (b) of the Regulations. The respondent filed his reply on 26-10-85 denying the allegations. On 19-4-1986 yet another show-cause notice was issued by the appellant proposing forfeiture of his renewal commission under Regulation 19 (i) of the Regulations.
(3.)SINCE the reply filed by the respondent was not found to be satisfactory, therefore, his agency was terminated and his premium commission was forfeited vide order dated 1-6-87. The respondent preferred an appeal to the Zonal Manager. The same was rejected vide order dated 25-1-89.
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