Judgment

HIDAYATULLAH. J. : This is an appeal by certificate against the judgment of the High Court of Bombay dated July, 29, 1960 in a petition under Articles 226 and 227 of the Constitution reversing the decision of the Life Insurance Tribunal Nagpur dated December 30, 1959. The proceedings arose from the taking over of the controlled business of the Continental Mutual Assurance Company Ltd., Poona by the Life Insurance Corporation under the Life Insurance Corporation Act, 1956 (31 of 1956). The Insurance Company was a Mutual Company and thus had no share capital. It received deposits from Directors and other persons and the respondents V. V. Oak and S. V. Oak had made five deposits totalling Rs. 7,408. 81 P. in the last weeks of December 1950 and 1951. These deposits carried interest at 4 1/2 % per annum. The Insurance Company was incorporated in 1946 and carried on only life insurance business. As required by Insurance Act, 1938 (4 of 1938), it caused actuarial investigation and valuation to be made at intervals as laid down in the Insurance Act. The first valuation was of the business as on December 31, 1950 and it showed a loss of Rs. 72,924 and its balance-sheet showed some a