Banerjee, J. - (1.) In this appeal we are asked to reverse a decree made or 1st December 1950, by S. R. Das Gupta J., upholding the plaintiffs' claim to recover Rs. 10,000 from the appellant Insurance Company, a defendant in the action. The plaintiffs' title to the money is not disputed. The only question raised in this appeal is whether the Company is under any liability to pay the money and that depends on as to whether the proposal of the deceased was accepted by the Insurance Company.
(2.) The plaintiffs' 'case, as related in the Court below by plaintiff 1, (a brother of the deceased), so far as it is necessary to be stated for the purpose of this judgment, is as follows: In or about the first week of January 1939, at the request of N. P. Das an organiser of the company and also a defendant to the suit, the deceased verbally agreed to insure his life for the sum above mentioned on an endowment policy. The deceased was medically examined at Soro, in the district of Balasore, on 5-1-1939, by a doctor employed by the company. After the medical examination, the organiser told the deceased that the doctor had found his life to be first class, and that if he submitted the proposal form and deposited the half-yearly premium without delay, the company would, accept his life for insurance and would issue a policy promptly. Plaintiff 1 and the deceased again went to Soro, in the afternoon, of 6-1-1939, and on that date it was settled that the insurance would be for the sum of Bs. 10,000 on an endowment policy of 21 years, the half-yearly premium payable being Rs. 295-10-0. The proposal form was filled in, was signed by the deceased and made over to the organiser with a cheque for Rs. 295-10-0, drawn on the Central Bank of India in favour of the company, being the sum payable for the half-yearly premium. The organiser gave a receipt for the cheque as being the " half-yearly premium for a proposal of Rs. 10,000 with Hindusthan Co-operative Insurance Society Ltd., Calcutta, in advance."
(3.) It appears from the prospectus of the company that all premiums are payable at the head-office of the company in Calcutta; but if it suits the convenience of the policyholders they may pay the premium at any branch office or agency office specially empowered to collect premiums on behalf of the company. It also appears from the prospectus that the company has opened accounts with banks in most places of importance and premium may also be paid in such banks, free of charge. The organisers or authorised agents as they are called, are empowered to receive and forward proposals for insurance and arrange for medical examination; but they have no authority to receive any premium as such. It is quite clear therefore that when in this case the organiser received the cheque from the deceased, he had no authority to receive it as premium on behalf of the company.;