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2008 Supreme(AP) 1129

Dr. G. YETHIRAJULU, J.
Saleha Fatima & Ors. – Appellants
Versus
Mirza Fazal Hussain Baig & Ors. – Respondents
City Civil Court A. No. 199 of 2008
Decided on : 31-12-2008

Advocates appeared:
Mohd. Shafiuddin for Appellants:Ashok Kumar Agarwal for Respondents.

Headnote:

Indian Insurance Act. 1938 – Section 46, 39 – National Savings Act – Section 6, 8 – Misrepresentation – Transfer of Insurance Policies – The defendants in O.S. preferred the present appeal challenging the Decree and Judgment of the lower Court in O.S. – Plaintiffs filed the above suit for partition of money of Rs.21 ,00,255.75 ps – Suit was decreed holding that plaintiffs are entitled to 1/6th share each out of total amount received on the personal insurance policy of late Mirza Hashim Hussain Baig by first defendant – Being aggrieved by same, defendants 1 to 3 preferred present appeal – Held, application of Foreign Insurance Act does not apply to the present case, as there is no dispute between the insurance company and anyone of legal heirs – It is not a disputed fact that deceased died intestate, therefore, lower Court rightly held that plaintiffs are entitled to 1/6th &hare each out of the amount received by first defendant – After going through entire oral and documentary evidence – Court at Hyderabad has territorial jurisdiction to entertain the suit and rightly came to a conclusion that the plaintiffs are entitled to 1/6th share each in the amount credited to the account of the first defendant –Appeal Dismissed

ORDER:-

The defendants in O.S. No. 1828 of 2003 preferred the present appeal challenging the Decree and Judgment of the lower Court dated 12-03-2008 in O.S. No.1828 of 2003. The plaintiffs filed the above suit for partition of money of Rs.21 ,00,255.75 ps. The suit was decreed holding that plaintiffs are entitled to 1/6th share each out of total amount received on the personal insurance policy of late Mirza Hashim Hussain Baig by the first defendant. Being aggrieved by the same, defendants 1 to 3 preferred the present appeal.

2. The averments of the plaint filed by the plaintiffs are briefly as follows:

The plaintiffs are the father and mother of late Mirza Hashim Hussain Baig. He is the only son among other children. Defendant No.1 is the wife and defendants 2 and 3 are children of the deceased Baig. During the lifetime of the deceased, he worked at Meero & Co., Sharjah, Abu Dhabi as Project Engineer and while working he purchased insurance policy of his life for $ 45,000/- through Alliance Insurance Company at Sharjah of Abu Dhabi. On 28-08-2001 the deceased nominated his wife as nominee to receive amount in case of his pre-mature death. The first defendant as per the nomination entitled to receive all benefits from the insurance company and liable to distribute the amount among all heirs of late Baig. The deceased died in his car on Abu Dhabi Road on 12-03-2002 intestate due to cardio respiratory arrest. After the death of late Mirza Hashim Hussan Baig, all his movable and immovable properties will become Matruka properties and they devolved upon all legal heirs. The plaintiffs are entitled to give 1/6 share each in those properties. The plaintiffs intimated to Alliance Insurance Company about the presence of other heirs of late Mirza Hashim Hussan Baig, but the insurance company did not consider this fact. The defendant No.1 had received an amount of Rs.21 ,00,255.75 ps. from the insurance company through cheque and also all the movables and cash from the bank accounts of the deceased from Mashreq Bank Sharjah, and also from the Meero Company amounting to Rs. 10,00,000/-, but failed to distribute among the heirs as per law. The first defendant did not disclose the other movable property. Dl deposited cheque in her personal account No. 01190015489. The plaintiffs demanded their share of amount, but the first defendant at first gave evasive replies. On 23-09-2002, she refused to give the share of property to plaintiffs without any reason. Plaintiffs tried for amicable settlement, but D1 refused for the same. Hence, the suit.

3. Defendants 1 to 3 resisted the suit through written statement and made the following averments in brief:

The relationship between the plaintiffs and defendants and the purchase of policy by the deceased Baig are not disputed, but contended that the deceased nominated D1 to receive the amount, therefore, she is entitled to receive all the benefits from the insurance company. The Indian laws are not applicable to the policy, as the policy obtained in Abu Dhabi and further contended that plaintiffs cannot be permitted to contend that they have got 1/6th share each out of the amount disbursed by Alliance Insurance Company, Sharjah. The plaintiffs have no locus standi in claiming very part of the amount of the policy. The policy amount was disbursed by Alliance Insurance Company in favour of nominee, therefore, the Court at Hyderabad has no jurisdiction and the Indian law has no application to the transaction and no cause of action arose to the plaintiffs and hence the suit is liable to be dismissed in points of cause of action and jurisdiction.

4. After amendment of the plaint, D 1 to D3 filed additional written statement by denying the averments in plaint para 9 (A) contending that the pay order and covering better dated 04-06-2003 addressed to the first defendant have nothing to do with the plaintiffs as the suit itself is not maintainable.

The defendant No.4, State Bank of Hyderabad, filed a separate written




















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