The termination of an agent's agency with forfeiture of renewal commission is only legally sustainable when the element of fraud is proved.

JUDGMENT

(Prayer: This Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, to call for the records of the impugned order of the first respondent dated 28.06.2012 and consequential impugned order passed by the third respondent dated 01.12.2014 and quash the same and further direct the respondents to pay all the renewal commissions along with arrears in respect of the policies proposed during the agency period within the time fixed by this Court.)

1. The present writ petition has been filed challenging an order passed by the first respondent herein under which the request of the petitioner for payment of renewal commission along with arrears in respect of policies proposed during the agency period was rejected.

2. According to the petitioner, he served as L.I.C agent from the year 1987 and he was terminated by an order dated 08.09.2009 by the second respondent herein. During the said period, he has solicited 900 policies and he was honoured with privileges of L.I.C Divisional Manager's Club Member. Throughout his entire career span over 22 years, he has maintained unblemished record. According to the petitioner, he had proposed a policy in favour of one Manikandan on 15.02.2002 in which the date of the Manikandan was mentioned as 01.02.1984 and accordingly, the said Manikandan was aged 18 years on the date of proposal. The petitioner had attested the signature of the policy holder and the petitioner had relied upon horoscope of the said Manikandan for fixing the date of birth of policy holder. The policy holder had died on 29.05.2006. When the claim application was made, it was found that the date of birth of the life assured was 01.08.1985 as per the School record. As per the policy, it was shown as 01.12.1984. In view of the said discrepancy, the petitioner was issued a show cause notice on 29.06.2009 as to why his agency could not be terminated with forfeiture of renewal commission on the ground that the petitioner has deliberately misinformed Corporation about the age of the life assured. The petitioner has submitted a reply on 23.07.2009 contending that he had relied upon the horoscope of the life assured and based upon the same, he had entered the date of birth as 01.12.1984.

3. The said explanation submitted by the writ petitioner was not accepted by the second respondent herein and he proceeded to pass an order on 08.08.2009 holding that the petitioner is guilty of charges of perpetrated fraud upon the Corporation and proceeded to terminate the agency with forfeiture of renewal commission. The petitioner had preferred an appeal to the first respondent herein on 03.04.2010. The first respondent had dismissed the appeal on 22.07.2010 confirming the order of the second respondent herein. Thereafter, the petitioner had filed W.P.No.1 of 2011 challenging the said impugned order. The said writ petition was disposed of on 21.03.2012 granting liberty to the petitioner to apply for restoration of commission and the first respondent was directed to consider the same and pass appropriate order on merits and in accordance with law within a period of 30 days from the date of receipt of application.

4. Pursuant to the order passed by this Court, the first respondent herein has reheared the petitioner and arrived at a finding that the petitioner ought to have been more cautious in undertaking a proposal especially when the proponent is none other than the son of the L.I.C Penal Medical Examiner. Hence, according to the first respondent, the action of the petitioner is prejudicial to the interest of the Corporation. Based upon the said finding, the first respondent had rejected the request of the petitioner for restoration of renewal commission. The said order is under challenge in the present writ petition.

5. The learned counsel for the petitioner had contended that he had an unblemished service of a L.I.C agent for nearly 22 years and he has proposed more than 900 policies during the s