RAJESH H. SHUKLA, J.

Rule Learned Advocate Shri A. K. Clerk waives service of Rule for the respondents.

2. The present petition has been filed by the petitioner under Arts. 14, 16 as well as Art. 226 of the Constitution of India and also under the Life Insurance Corporation of India (Agents) Regulations, 1972 read with the Insurance Act, 1938 for the prayers :

"(A) To admit, entertain and dispose of this petition as early as possible;

(B) To quash and set aside the order dated 1-5-2009 of the Sr. Divisional Manager, L.I.C., Gandhinagar, terminating the agency with forfeiture of renewal commission as also the order of the Zonal Manager dated 10-11-2009 and the order of the Chairman, dated 14-6-2010, confirming the termination of agency with forfeiture of renewal commission and further be pleased to direct the respondent-Corporation to reinstate the agency of the petitioner and to release the renewal commission.

(C) To direct the respondent-Corporation to release the renewal commission withheld by the respondent-Corporation from the date of termination of agency i.e. 1-5-2009 with market rate interest till payment;

(D) To award the cost of Rs.10,000/-.

(E) To grant any such other and further suitable relief/s which may deem fit in the facts and circumstances of the case."

3. The facts of the case, briefly summarised, are that the petitioner had been working as L.I.C. agent since 2003 under Development Officer Shri B.R. Trivedi attached to Gandhinagar Branch in Gandhinagar Divisional office. The agent so appointed would contribute towards the growth and development of the business of L.I.C. for which a remuneration is paid to the agent. It is the case of the respondent-L.I.C. that during the course of his agency, the petitioner had given proposal for insuring life polices of three persons stated in the petition, and though they were hale and hearty at the time of the proposal when the policy was taken, unfortunately, death occurred resulting in a claim for the death under the policy. According to the L.I.C., the proposal was accepted by the petitioner or recommended by him of such persons having flour mills, pan-bidi galla with less income, and therefore, deliberately the proposal was made keeping back the relevant information. The respondent-L.I.C., therefore, issued a show-cause notice, and ultimately, terminated the agency with forfeiture of the renewal commission of the petitioner vide order dated 1-5-2009 in exercise of power under Regulations 16(1)(a) and (b) as well as Regulation 10(6) and Regulation 19 of Life Insurance Corporation of India (Agents) Regulations, 1972 (hereinafter referred to as ('Agent's Regulations').

4. Learned Advocate Shri C.N. Trivedi for the petitioner has referred to the papers and submitted that termination of agency in exercise of power under Regulations 19 and 16 is bad. He submitted that the agency of the petitioner has been terminated under Regulations 16(1)(a) and (b) read with Regulation 10(6) and Regulation 19 of the Agent's Regulations. He pointedly referred to the regulations and submitted that the proposal was given by the petitioner as agent after completing all formalities including the medical examination, and thereafter, it was accepted by the respondent-Corporation along with the premium, and therefore, the termination of agency is arbitrary and illegal. He submitted that full medical report from the panel doctor of respondent-L.I.C. is required to be submitted at the time of taking the insurance and necessary reports like E.C.G. etc. are submitted. Learned Advocate Shri Trivedi submitted that as agent, the petitioner had taken care that at the time of taking insurance necessary precautions are taken. However, merely because death has occurred cannot be a ground to blame the petitioner or impute against the petitioner. He pointedly referred to Regulation 16 of the Agent's Regulations which provide:

"16. Termination of agency for certain lapses :

(1) The competent authority may, by orde