( 1 ) A question of considerable importance for holders of life insurance policies has arisen in this First Appeal arising out of a suit instituted by the widow and minor son of a policy holder claiming a declaration that they were entitled to the sum assured under the insurance policy upon the death of the policy holder in their capacity as his heirs and not the person named in the policy as a nominee under sec. 39 of the Insurance Act of 1938. The dispute was raised by the father of the policy holder who was the nominee named in the policy on the premise that he had a title to the said amount in his own right by virtue of his capacity as a nominee named by the policy holder. The trial Court having negatived the contention of the defendant nominee and having decreed the suit instituted by the plaintiffs the nominee (original defendant No. 1) has preferred the present First Appeal and has challenged the legality and validity of the judgment and decree passed by the learned Judge presiding over the City Civil Court 3 Court at Ahmedabad in Civil Suit No. 1137 of 1972.

( 2 ) THE facts are not in dispute. One Surendra Atmaram Panchal took a life insurance policy on his