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2013 Supreme(Pat) 1116

PATNA HIGH COURT
KISHORE K. MANDAL, J.

In re : Sudhir Chandra Ghose.
Vs
Nil
Test Case No. 3 of 2004
Decided On : 09/10/2013

Once probate is granted, the applicant can raise a claim for due discharge of legal obligations before the appropriate forum.

Headnote:

Probate - Will - Life Insurance Corporation of India Act, 1956, Section 7 - Indian Succession Act, Section 302, Section 273

Fact of the Case:

The applicant filed for grant of probate for the Will executed by his father. The court directed the payment of duty and considered the claim of the applicant for non-payment of dues under three insurance policies subscribed by the testator.

Finding of the Court:

The court found that the probate granted representative title against all debtors of the deceased, and the applicant could raise a claim for due discharge of legal obligations before the appropriate forum. The court directed the LIC to pay the legal admissible dues under one policy, but stated that such claims or issues are not required to be adjudicated in a testamentary proceeding.

Issues: The issues included the payment of duty, non-payment of dues under insurance policies, and the jurisdiction of the court in deciding the applicant's claim.

Ratio Decidendi: The court held that once probate is granted, the applicant can raise a claim for due discharge of legal obligations before the appropriate forum. Claims or issues related to non-payment of dues under insurance policies are not required to be adjudicated in a testamentary proceeding.

Final Decision: The court closed the proceeding, directing the applicant to pursue any unsatisfied claims before the appropriate court/forum.

ORDER

The applicant has filed this case for grant of probate having its effect throughout India in respect of the Will executed by his father Late Sudhir Chandra Ghose (testator) on 13.10.1988 respecting the Estate/property set out therein. The applicant was appointed executor of the said Will.

2. In course of consideration of the said case, this Court in its order dated 01.04.2005 directed the Branch Manager of the State Bank of India, Patna Main Branch to remit a sum of Rs.2600/- after encashing travellors cheque issued in the name of the testator towards payment of duty. The balance amount of duty was directed to be drawn from the savings bank accounts of the testator with the Postmaster of Patna High Court Post Office and the Branch Manager Central Bank of India, Rajendra Nagar Branch, Patna. Further amount was directed to be drawn from the LIC policies of the testator as detailed in paragraph 5 of the application. The remaining amount, if any, was required to be paid by the applicant. On payment of the duty the said test case being Test. Case No. 03 of 2004 was heard and by a judgment/order dated 02.02.2008 the same was finally allowed. Be it noted that in the light of the said order dated 01.04.2005 a show cause on behalf of the Senior Divisional Manager, LIC of India, Patna Divisional Office, Patna (at Flag 4) was filed stating as under in paragraph 3, 6 and 7 :

3. That on receipt of the aforesaid letter dated 30.05.2005 the matter was referred to the Zonal Office of the Corporation vide letter dated 25.8.2005 by the Patna Divisional Office of the Corporation. The Manager (Claim), Kolkata Metropolitan Divisional Office-1, thereafter wrote a letter dated 5.9.2005 to the Manager (L &HPF), Kolkata who, in his turn, informed the Manager (L&HPF) LIC of India, Patna Divisional Officer by letter dated 6.9.2005 enclosing the copy of the letter dated 5.9.2005 of the Manager (Claims) and requested to make available relevant records; however, no records are traceable in the Patna Divisional Office of the Corporation.

6. That the deponent respectfully states and submits that without prejudice to the facts already mentioned hereinbefore; in accordance with the provisions of section 7 of the Life Insurance Corporation of India Act, 1956 which came into effect from 1.9.1956; the assets and liabilities of existing insurers carrying on Life Insurance business vested in the Corporation. After nationalization of the Life Insurance business it is the Corporation established u/S. 3 of the Life Insurance Corporation of India Act started Life Insurance business and as such the applicant should make available the relevant documents to prove the claim based on records, particularly when the records in regard to those policies are not traceable in the office of the Corporation. The applicant has mentioned date of policy No.178281 as 9th of May, 1943 obtained from National Insurance Co. Ltd. so it is evident that it was a policy obtained by the life assured at least 13 years ago of taking over the life Insurance business by the Corporation; the applicant has not mentioned the date of the policy No.202172 obtained from Bombay National Life Insurance Society payable on death of life assured, but from name of the insurer it appears that it was a private insurer and as such the policy must have been obtained prior to nationalization of the Life Insurance business. So far policy No. 1/13890 dated 27.11.1995 obtained from Ganesham Life Insurance Society is concerned, it is humbly submitted that in November, 1995 the Corporation was very much in existence and was only authorized to continue with the Life Insurance business. Ganesham Life Insurance Society may be a private insurer and/or the date of policy as mentioned as not correct. However, the Corporation is ready to make full investigation of the claim of the applicant without prejudice to its right if the applicant co-operates and provides the documentary evidence as requested hereinabove to find out t





































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