- (1.) The Court : This appeal under Clause 15 of the Letters Patent is directed against judgment dated 30th July, 1997 passed by the learned single Judge of this court whereby a direction was issued by the learned single Judge to the appellants to renew the mediclaim policy of the respondent-writ-petitioner. The writ application was allowed with costs assessed at 200 Gms.
(2.) The respondents, Biman Krishna Bose had taken out a mediclaim insurance policy with the appellant, United India Insurance Company at the relevant time. The dispute between the parties arose because of the refusal of the appellants to renew the said mediclaim policy, despite a clause specifically providing for the renewal in the then existing and subsisting policy. The respondent approached this court by filing writ application under Article 226 of the Constitution of India complaining that the act of the appellants in refusing the renewal was arbitrary and subjective and that because of such refusal the respondent was to suffer loss and injury. After considering all relevant aspects of the case the learned single Judge allowed the writ application in the terms indicated hereinabove.
(3.) We have heard the arguments of Mr. Banerjee appearing for the appellant extensively on the question as to whether an obligation is cast upon the appellants to renew the mediclaim insurance policy as far as the respondent is concerned. Mr. Banerjee very vehemently submitted before us that an option is always available to the appellants, being one of the prospective contracting parties in a contract of Insurance to refuse an offer of entering into the contract in so far as the renewal of a policy is concerned, or for that purpose even the purpose of issuance of a fresh Insurance Policy. We do not agree with the stand taken by the appellants and for the reasons given below.;