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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SUVIR SEHGAL
Lakhbir Singh – Appellant
Versus
Life Insurance Corporation of India – Respondent
JUDGMENT :
SUVIR SEHGAL, J.
(1) Petitioner has moved this Court, inter alia, for issuance of a writ, in the nature of certiorari, quashing orders, dated 31.12.2008, 20.11.2018 as well as 20.08.2019, Annexures P-3, P-11 and P-14, respectively, passed by the respondents. A direction has been sought for restoration of agency and for payment of the forfeited renewal commission.
(2) Brief facts may be noticed. Petitioner was working as an agent with Code No.10547175 with Life Insurance Corporation of India (LIC). He earned different club memberships and his agency was renewed from time to time. In December 2002, petitioner insured a 16 year old boy and an insurance policy of Rs.1 lac was issued on 09.12.2002. The young boy unfortunately expired on 23.12.2002 and the nominee claimed the insurance amount. The claim was repudiated by LIC, as the child was suffering from cancer and was undergoing medical treatment prior to the date of proposal. A show cause notice, dated 23.08.2008, Annexure P-1, was issued to petitioner under Regulation 16 of Life Insurance Corporation of India (Agents) Regulations, 1972 (for short “1972 Regulations”) for termination of the agency and petitioner submitted a r
The termination of an agent's agency with forfeiture of renewal commission is only legally sustainable when the element of fraud is proved.
The agent's fraudulent conduct resulted in loss of entitlement to renewal commission despite extended service, supported by applicable regulations.
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 ....
Renewal commission denial invalid absent fraud finding under rules in force at misconduct time.
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 ....
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