( 1 ) THIS is an appeal from the judgment and decree of the Court of the Subordinate Judge, Nellore, in O. S. No. 66 of 1954.

( 2 ) THE suit was by the assignee of a policy-holder for payment of the sum insured on the life of his adoptive father, Virareddi. The defendant in the action is the New India Assurance Company Limited, a Company incorporated under the Indian Companies Act, having their Head Office at Bombay and carrying on life insurance business in the former composite State of Madras through their Branch Office at Madras.

( 3 ) DURING the pendency of the appeal was enacted the Life Insurance Corporation Act (XXXI of 1956) providing for the nationalisation of life insurance business in India by transferring all such business to a Corparalion established for the purpose. By virtue of Section 7 of the-Act, all the assets and liabilities appertaining to the controlled business of all insurers were transferred to and1 vested in the Life Insurance Corporation. By reason of this provision, the Life Insurance Corporation has come on-record as the appellant.

( 4 ) IN order to appreciate the points raised in the appeal, it is necessary to state in some detail the facts ou