S.C. Agrawal, J.—The question that falls for consideration in these appeals by special leave is whether payment of premium in respect of a life insurance policy by the insured to the general agent of the Life Insurance Corporation of India (for short 'LIC') can be regarded as payment to the insurer so as to constitute a discharge of liability of the insured. This question arises on the following facts.

2. Jaswantrai G. Shah, the husband of appellant No. 2, (hereinafter referred to as 'the insured') took out four insurance policies for Rs. 25,000/- each with double accidental benefits on March 6,1986 through Mr. Chaturbhuj H. Shah (respondent No. 3) who was a general agent of the LIC (respondent No. 1). Premium under the said policies was payable on half yearly basis. The insured deposited the first half yearly premium on March 6,1986 and the second half yearly premium was deposited on September 6,1986. The third half yearly premium fell due on March 6,1987 but it was not deposited within the prescribed period. On June 4,1987 respondent No. 3 met the insured and obtained from him a bearer cheque dated June 4,1987 for Rs. 2,730/- drawn on Union Bank of India, Malad, Bombay, to