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High Court Of Calcutta
NIKHIL NATH BHATTACHARJEE
NIRUPAMA SARKAR - Appellant
Versus
LIFE INSURANCE CORPORATION OF INDIA - Respondent
Suit 238 Of 1956
Decided On : 08/08/1995
LIFE INSURANCE CORPORATION OF INDIA V. PROMUD RAJAN SARKAR - LIFE INSURANCE CORPORATION ACT, 1956 - SECTIONS 17, 41 - LIFE INSURANCE (EMERGENCY PROVISIONS) ACT, 1956 - RULE 12-A - INDIAN SUCCESSION ACT, 1925 - SECTION 214 - JURISDICTION OF TRIBUNAL - DEBT - FAMILY PENSION.
Fact of the Case:
The plaintiffs, heirs of Nalini Ranjan Sarkar, sought recovery of Rs. 44,958/- from the Life Insurance Corporation of India (LIC), successor to the Hindusthan Cooperative Insurance Society Ltd., claiming entitlement under a resolution passed by the society's Board of Directors providing for payment of a monthly allowance to Nalini Ranjan Sarkar's dependents after his death. The LIC denied liability, asserting that the claim was a personal right that did not survive Nalini Ranjan Sarkar's death and that the suit was barred by limitation.
Finding of the Court:
The court held that it lacked jurisdiction to adjudicate on the matter as per the Life Insurance (Emergency Provisions) Act, 1956, and Rule 12-A of the Life Insurance Corporation Act, 1956, which vested the authority to decide such disputes with a Tribunal. The court also found that the plaintiffs were not the only heirs of Nalini Ranjan Sarkar and that the suit was bad for non-joinder of necessary parties. Furthermore, the court determined that Section 214 of the Indian Succession Act did not bar the claim since it was an independent claim of the plaintiffs, characterized as a family pension, rather than a debt due to Nalini Ranjan Sarkar.
Issues: 1. Whether the court had jurisdiction to adjudicate on the matter. 2. Whether the plaintiffs were the legal heirs and successors of Nalini Ranjan Sarkar. 3. Whether the suit was bad for non-joinder of necessary parties. 4. Whether the suit was barred by limitation. 5. Whether the purported resolution dated 12th August 1940 was borne out and acted upon. 6. Whether the claim in the suit emanated from a personal right that did not survive after Nalini Ranjan Sarkar's death. 7. Whether the claim in the suit partakes the character of a debt and cannot proceed in view of Section 214 of the Indian Succession Act. 8. Whether the plaintiffs were entitled to recover the sum as prayed for in the plaint.
Ratio Decidendi: 1. The court lacked jurisdiction to adjudicate on the matter as the Life Insurance (Emergency Provisions) Act, 1956, and Rule 12-A of the Life Insurance Corporation Act, 1956, vested the authority to decide such disputes with a Tribunal. 2. The plaintiffs were not the only heirs of Nalini Ranjan Sarkar, and the suit was bad for non-joinder of necessary parties. 3. Section 214 of the Indian Succession Act did not bar the claim since it was an independent claim of the plaintiffs, characterized as a family pension, rather than a debt due to Nalini Ranjan Sarkar.
Final Decision: The suit was dismissed on contest, but without costs, due to the circumstances.
( 1 ) THIS is a suit for recovery of Rs. 44,958/- (Forty-four thousand nine hundred fifty-eight) only being the amount due and payable from 25th January, 1956 till 24th Jan. 1958 by the Hindusthan Cooperative Insurance Society Ltd. , a company incorporated under the Indian Company's Act. By virtue of the provisions of the Life Insurance Corporation Act, 1956 (Act No. X 31 of 1956) the assets and liabilities of the said Hindusthan Co-operative Insurance Society Ltd. having been vested in the Life Insurance Corporation of India, the present defendant is said to be liable to pay to the plaintiff the said sum of money.
( 2 ) PLAINTIFFS case, shortly stated, is that Late Nalini Ranjan Sarkar predecessors-in-interest of the original and substituted plaintiffs was associated with Hindusthan Cooperative Insurance Society Ltd. and in consideration of his devoted and loyal service the said society at a meeting of its Board of Directors held in Calcutta on 12th Aug. 1940, resolved, inter alia, as follows:- (a) That the said Sri Nalini Ranjan Sarkar be paid for the reminder of his natural life the sum of Rs. 5,000/- (Five thousand) only per month as pension or retiring allowance with effect from 1st January, 1940 free of Incometax, subject to an undertaking given by him that he shall not work directly or indirectly without the previous permission in writing of the Board for any other Life Insurance Company; (b) That in the eventuality of the said Sri Nalini Ranjan Sarkar's death before 1st January, 1955 an allowance shall be paid to his dependents in the following manner: (i) a sum of Rs. 1250/- (One thousand two hundred fifty) only per month to be paid for ten (10) years in case he died before 1st January, 1945; (ii) a sum of Rs. 1250/- (One thousand two hundred fifty) only per month to be paid for seven (7) years in case he died before the 1st January, 1950; (iii) a sum of Rs, 1250/- (One thousand two hundred fifty) only per month to be paid for five (5) years in case he died before 1st January, 1955. (c) The dependents would be nominated by the said Sri Nalini Ranjan Sarkar, the proportion payable to each also to be specified by him during his lifetime. (d) In the absence of any such nomination or specification of proportions the payments are to be made to his legal heirs and in such proportion to each as the Directors of the Society may think fit.
( 3 ) SAID Sri Nalini Ranjan Sarkar died 9 intestate on 25th January, 1953, living him surviving the plaintiffs as his heirs, 1953. The plaintiffs including their predecessors-in-interest, Late Sri Nalini Ranjan Sarkar are governed by the Dayabhaga School of Hindu Law. Nalini Ranjan Sarkar did not nominate any dependant or specified the proportion payable to such dependants.
( 4 ) THE said resolution of the Board of Directors of the said society was ratified and accepted by the said society.
( 5 ) PURSUANT to the said ratification and acceptance thereof the said society agreed to pay a sum of Rs. 5,000/ - (Five thousand) only per month as pension for the remainder of his natural life with effect from lst Jan. 1940 until about the month of Sept. 1947, when the said Sri Nalini Ranjan Sarkar agitated to foreoe a sum of Rs. 2,000/- (Two thousand) per month out of the said Rs. 5,000/- (Five thousand) only per month payable to him during his natural life.
( 6 ) AT a meeting of the Board of Directors of the said society held in Calcutta on 17th Sept. 1947, the said Board by a resolution accepted the said reduction of Rs. 2,000/- (Two thousand) only per month resolving and agreeing that other terms and conditions relating to the pension as sanctioned by its resolution dated 12th August 1940, remained the same. The resolution dated 17th Sept. 1947 was accepted and ratified by the said society subsequently.
( 7 ) IN the premises as aforesaid the plaintiffs became entitled to be paid by the said society and / or by the present defendant a sum of Rs. 1250/- (One thous
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