Judgment

RAGHUBAR DAYAL, J.: These appeals, by special leave, are against the decree of the Life Insurance Tribunal, Nagpur, in proceedings on an application by the Life Insurance Corporation of India (hereinafter called the Corporation) under S. 15 of the Life Insurance Corporation Act, 1956 (Act XXXI of 1956), shortly termed as the LIC Act, for ordering the Vishwabharti Insurance Company, Bombay, Damji Valji Shah and Jayantilal Hirijibhai Chawda, appellants in C. A. 676 of 1962, Ghanshyamdas, appellant in C. A. 677 of 1962, the afore-mentioned individuals being directors of the Vishwabharti Insurance Company, and another director, to pay to the Corporation jointly and severally the sum of Rs.82,000 together with interest thereon at 6 per cent per annum from September 1, 1956, till full payment. The decree ordered the company to pay a further sum, but we are not concerned with that part of the decree as the company has not appealed against it.

2. The facts of the case briefly are these. The company was a composite insurer i.e., an insurer who carried on, in addition to life insurance business, other classes of insurance business. The LIC Act came into force on July 1, 1956 and the C