The Special Trustee, as appointed under the Married Women’s Property Act, is entitled to receive the money for the benefit of the minors, and the natural guardian of a Hindu minor has the power to act for the benefit of the minor or the minor’s estate.

JAYANT NATH, J.

1. Present suit is filed by the plaintiff seeking a decree of declaration that the revocation/ surrender of the insurance policy as has been done by the plaintiff is valid. A direction is also sought to the defendant to jointly and severally liquidate the insurance policy and release the liquidation amount of Rs. 1,25,25,993/- alongwith interest @ 12% per annum. Other connected reliefs are also sought. The case of the plaintiff is that the plaintiff No. 1 secured a life insurance policy with defendant No. 1 for and on behalf of defendant No. 2 on an annual premium of Rs. 20,57,200/-. An addendum to the policy was also signed which converted the policy to a policy under section 6 of the Married Women’s Property Act, 1874 (hereinafter referred to as MWP Act) Plaintiff No. 2 the wife of plaintiff No. 1 was appointed as a Special Trustee under the policy and the two children of plaintiff Nos.1 and 2, namely, Snehal Bindra and Master Dhruv Bindra (minor) were made the beneficiary.

2. Plaintiff No. 1 has paid the premium for the policy for five years from 2007 to 2011. In August 2013 plaintiff No. 1 made a request for surrender of the policy for the benefit of the beneficiary. On 9.8.2011 defendant No. 1 declined to accept the request for surrender of the policy stating that the policy can only be surrendered once the beneficiary attains majority as it is under the MWP Act. Hence, the present suit.

3. Learned counsel appearing for the defendant No. 2 insurance company has taken me through the letter dated 9.8.2011 (Ex.P2) wherein the defendant No. 2 has noted that the surrender form needs to be signed by the Special Trustee and in case the beneficiaries are minor the surrender form has to be accompanied with the order of the Court of competent jurisdiction.

4. Learned counsel stresses that the plaintiff was only required to take the consent of the Special Trustee and to also take appropriate orders from the court whereafter defendant No. 2 would have no objection to release the money. He relies upon section 6 of the Married Women’s Property Act and also Section 11 of the Indian Trust Act.

5. Learned counsel appearing for the plaintiff relies upon judgment of the Gujarat High Court in The Life Insurance Corporation of India vs. Saubhagyachand T. Vasa and another, AIR 1981 Gujarat 36 to submit that the trust created was a limited trust authorising the trustee under the policy. Hence, the defendant No. 2 ought to have released the money on the consent of the Special Trustee, namely, plaintiff No. 2.

6. I may first look at the statutory position. Section 6 of the MWP Act reads as follows:-

“6. Insurance by husband for benefit of wife:

(1) A policy of insurance effected by any married man on his own life, and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife, or of his wife and children, or any of them, according to the interest so expressed, and shall not, so long any object of the trust remains, be subject to the control of the husbands or to his creditors, or form part of his estate.

When the sum secured by the policy becomes payable, it shall, unless special trustees are duly appointed to receive and hold the same, be paid to the Official Trustee of the [State] in which the office at which the insurance was effected is situated, and shall be received and held by him upon the trusts expressed in the policy, or such of them as are then existing.

And in reference to such sum he shall stand in the same position in all respects as if he had been duly appointed trustee thereof by a High Court, under Act No. XVII of 1864 [to constitute an Office of Official Trustee], Sec. 10.

Nothing herein contained shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance which may have been effected with intent to defraud creditors.

7. Section 11 of the In