BRAHM DUTT SHARMA Vs. LIFE INSURANCE CORPORATION OF INDIA

JUDGEMENT

(1.) 1. The plaintiff has filed this appeal from the decree or the Civil Judge, Meerut, dismissing his suit with costs.

(2.) THE facts giving rise to this appeal, shortly stated, are as follows: On the 15th January 1951 Mukhtar Singh, deceased unole of me appellant, made an application for insurance in the Crown Life Insurance Company, Toronto, Canada, with its branch office at Bombay (hereinafter referred to as the Company) for a sum of Rs. 35,000. In that application he stated his occupation as landlord and mill owner, Weaving and Spinning Mills, and his place of residence as C/o Brahma Dutta Sharma, Gujrati Well. Meerut City. On the basis of the above application the Company issued an interim policy to Mukhtar Singh on the 19th February 1951. THE interim policy was approved by the Head Office of the Company which issued Insurance Policy No. 573766, dated 21st May 1951 in favour of the said Mukhtar Singh. In that policy the appellant was described as the nominee of the assured after his death. THE policy was issued subject to the endorsements contained therein, Clause 4 of the endorsement reads: "After the expiry of two years from the date on which it shall have been effected, this policy shall not be called in question by the company on the ground that a statement made in the application therefor or in any other document leading to the issue of the policy was inaccurate or false, unless the company shall show that such statement was on a material matter and fraudulently made by the insured and that the insured knew at the time of making it that the statement was false." Clause 4 laid down that the application for the policy and any additional statements made to the company, together with the policy and its endorsements, shall constitute the entire contract between the parties. Clause 10 provided that on the policy becoming a claim by death, proof of claim shall include such evidence under oath as may be required by the company of the death of the insured and the causes leading thereto, and of the title of the claimant and proof of age as mentioned in Clause 8 and such other information as the company may deem necessary to establish the validity of the contract.

(3.) THE suit was resisted by the Company inter alia on the ground that the statements made by the assured Mukhtar Singh Sharma in Part I and Part II of the application for policy were false and that since these statements were agreed to be the basis for contract of insurance the suit was liable to be dismissed. It was further pleaded that the insurance policy was not really effected by Mukhtar Singh Sharma deceased for his use and benefit but was got effected by the appellant for his own use and benefit and that the appellant had no insurable interest in the life of the deceased,