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MANISHA BATRA
Life Insurance Corporation of India – Appellant
Versus
Darshna Devi – Respondent
JUDGMENT
Manisha Batra, J.
The present appeal has been filed by the appellant-defendant No.1 against the judgment and decree dated 26.11.2004 passed in Civil Appeal No.32 of 2003 by the Court of the then learned District Judge, Jind whereby the judgment and decree passed by learned trial Court had been modified, the appeal was partly allowed and the respondent-plaintiff was held entitled to renewal commission in respect of the policies effected through her as an agent of the appellant Corporation.
2. For the sake of convenience, the parties shall be referred to hereinafter as per the original nomenclature as given in the suit.
3. The factual matrix of the case is given as hereunder:-
The agent's fraudulent conduct resulted in loss of entitlement to renewal commission despite extended service, supported by applicable regulations.
The termination of an agent's agency with forfeiture of renewal commission is only legally sustainable when the element of fraud is proved.
The judgment established the importance of proportionality and necessity in administrative decisions, emphasizing the need for a rational connection between the measures taken and the objective, and ....
It is trite that if a particular procedure is mandated to be followed prior to passing any order of termination, such procedure cannot be given a go-bye by Authorities, as procedure is life blood of ....
Compliance with procedural safeguards is essential in disciplinary actions; failure to adequately inform the accused and provide a fair opportunity to defend leads to invalidation of termination.
The agent's collection of the premium on behalf of the Corporation constituted legal liability upon the Corporation to pay the assured under the policy.
There is no rule in the Corporation which allows renewal of terminated Distributorship on sympathetic grounds, especially in cases where Distributorship has been terminated on account of malpractices....
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