- (1.) THIS is a suit for the recovery of a sum of Rs. 10,000/- and for other reliefs. The plaintiffs' case is that the defendant No. 1 namely, the Hindusthan Co-operative Insurance Society Ltd. at all material times carried on business, inter alia, of life insurance, at No. 4, Chittaranjan Avenue in Calcutta. By the Life Insurance (Emergency Provisions) Ordinance No. 1 of 1956 the entire management and administration of the affairs and business of the life department of the defendant No. 1 had vested in and come under the direct control of the Union of India with effect from the 19th January, 1956.
(2.) ON the 22nd November, 1952 a local agent of the defendant No. 1 approached the husband of the plaintiff No. 1 Shantilal Chhotalal Patel for Having insurance on his life and on the persuasion of the agent Shantilal agreed to have his life insured with the defendant No. 1 for the sum of Rs. 10,000/ -. The local agent asked Shantilal to put his signature on the proposal form which he took away saying that he would do the rest himself and that on satisfactory report of the Company's Doctor and upon payment of the premium Shantilal would get the policy. The company's doctor thereafter examined Shantilal and after the premium, was paid, the defendant No. 1 issued in his favour its Policy No. 787133. The assured could only sign his name in English and had no knowledge of the language at all.
(3.) SHANTILAL died on the 20th February, 1953 leaving his wife the plaintiff No. 1 and his son Vinoobhai, the plain-tiff No. 2 as his heirs. All the premiums that fell due before his death had been paid by the insured. By letter dated the 27th February, 1953 the plaintiffs informed the defendant No. 1 of the death of Shantilal. Then by letter dated May 26, 1953, the plaintiffs preferred their claim enclosing the relevant documents.;