( 1 ) IN this appeal by the insurer, the following facts need be mentioned.

( 2 ) THE respondents husband B. Venkatarama Naidu of Chelepalli had insured his life with the appellant-company who issued policy No, 10765 on 4-2-1949 marked as Exhibit A-1 under which the risk was to take effect from 20-12-1948. The premium was payable in half-yearly installments of Rs. 302-8-0 and the second installment was due to be paid on 20-6-1949. The assured did not pay this installment within the period of grace which expired on 20-7-1949. On 30-7-1949 he paid Rs. 302-8-0 in the District Co-operative Central Bank Ltd. , Chittoor, who were the bankers of the insurer. The appellant passed a receipt therefor on 1-8-1949, but as this installment of the premium was paid out of time, the insurance company wrote Exhibit A-4 to the assured that the amount was credited to the anamath account and reiterated the request to send interest and the form of health certificate in order to enable them to take necessary action in respect of the lapsed policy. Exhibit B-6 is yet another letter sent by the insurer. In this the insurance company wrote: "immediately after seeing this letter, if you send a sum of Rs. 3.

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