IMPORTANT POINT
Nominees of life insurance policies do not have exclusive beneficial interest; amounts are to be distributed according to the law of succession.

JUDGMENT :

(Devashis Baruah, J.)

Heard Mr. M. Sarania, the learned counsel appearing on behalf of the Petitioner and Mr. A. L. Mandal, the learned Standing counsel appearing on behalf of the Respondent Nos. 1 to 6. I have also heard Mr. B. P. Sharma, the learned counsel appearing on behalf of the Respondent Nos. 7 and 8.

2. The issue involved in the instant proceedings pertains to as to whether the Petitioner herein would be entitled to a share of the three LIC Policies which was held by the husband of the Petitioner wherein the Respondent No.7 and 8 were the nominees.

3. From a perusal of the materials on record, it reveals that the Petitioner married one Rajeeb Boruah (since deceased) on 24.04.2021 as per the Hindu Social rituals. Subsequently, the marriage was also registered and a marriage certificate was issued on 28.04.2022. The husband of the Petitioner Late Rajeeb Boruah, during his lifetime had taken three life insurance policies issued by the Respondent Corporation. The said policies were bearing Nos. 486006062, 486008012 and 444707681. It is an admitted fact that in respect to the Policy No. 444707681, the Respondent No.8 was the nominee. However, in respect to the other two policies, the Respondent No.7 was the nominee.

4. At this stage, it is relevant to mention that the Respondent No.7 is the brother of Late Rajeeb Boruah and the Respondent No.8 is the mother of Late Rajeeb Boruah. Upon the demise of Late Rajeeb Boruah, the Respondent Corporation took steps for disbursing the amounts to the respective nominees of the policies and in fact, disbursed the amounts to the Respondent No.7 against the policies wherein he was the nominee.

5. The Petitioner herein is the Class 1 legal heir of Late Rajeeb Boruah being the wife approached the Respondent Authorities for making payment of her share which the Respondent Authorities refused. It is under such circumstances, the present writ petition has been filed.

6. From the materials on record, it reveals that this Court vide an order dated 10.03.2023 issued notice and provided that till the returnable date, the Respondent LIC shall not disburse the sum assured against the aforesaid three policies to the Respondent No.7. Pursuant to the said order being passed, the Respondents have duly appeared and filed their respective affidavits. This Court has duly taken note of the said affidavits.

7. This Court has duly heard the learned counsels appearing on behalf of the Petitioner as well as the Respondents. The question which arises for consideration is as to whether the Petitioner who admittedly is the Class 1 legal heir of Late Rajeeb Boruah can claim the said amounts from the Respondent Corporation or the Petitioner is required to make a claim against the nominees to whom the Respondent Corporation would make payment in pursuance to the mandate of the policies in question. The law in this regard is no longer res-integra as would be seen from the judgment of the Supreme Court in the case of Sarbati Devi and Another Vs. Usha Devi reported in (1984) 1 SCC 424 wherein the issue which was before the Supreme Court was whether a nominee of a Life Insurance Policy under Section 39 of the Insurance Act, 1938 on the assured dying intestate would be entitled to the beneficial interest in the amount received under the policy to the exclusion of the heirs of the assured. The Supreme Court in the said judgment held that mere nomination made under Section 39 of the Insurance Act, 1938 do not have the effect of conferring on the nominee any beneficial interest in the amount payable under the Life Insurance Policy on the death of the insurer. It was categorically observed that the nomination only indicates the hand which is authorized to receive the amount and on payment of the amounts, the insurer gets a valid discharge of its liability under the policy. The Supreme Court further observed that amount however, can be claimed by the heirs of the assured in accordance with law of succession governing t