IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF MARCH, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 245 OF 2026 (GM-RES)

BETWEEN:

1. ZONAL MANAGER APPELLATE AUTHORITY LIFE INSURANCE CORPORATION OF INDIA SOUTH CENTRAL ZONE OFFICE JEEVAN BHAGYA SAIFABAD, HYDERABAD - 500 063

2. THE LIFE INSURANCE CORPORATION OF INDIA REPRESENTED BY ITS CHAIRMAN "YOGAKSHEMA"

Digitally JEEVAN BHIMA MARG signed by CENTRAL OFFICE VEERENDRA P.B.NO.19953 KUMAR K M MUMBAI - 400 021 Location:

High Court of Karnataka

3. THE SENIOR DIVISIONAL MANAGER LIFE INSURANCE CORPORATION OF INDIA DIVISIONAL OFFICE-I J.C.ROAD BENGALURU - 560 002 …APPELLANTS (BY SRI RAJESH SHETTY, ADVOCATE)

AND:

1. SRI K.P. NARASIMHA MURTHY S/O. LATE K.R. PRAHALADA RAO AGED ABOUT 56 YEARS R/AT NO.101, 19^TH CROSS

20^TH MAIN, SMS LAYOUT J.P. NAGAR, V PHASE BENGALURU - 560 078 …RESPONDENT (BY SRI PRASHANTH P.N., ADVOCATE)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET-ASIDE THE ORDER DATED 10/12/2025 PASSED IN W.P.NO.23625/2023 BY THE LEARNED SINGLE JUDGE AND CONSEQUENTLY DISMISS THE WRIT PETITION & ETC.

THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. The appellants [LIC] have filed the present appeal impugning an order dated 10.12.2025 [the impugned order] passed by the learned Single Judge of this Court in W.P.No.23625/2023 (GM-RES).

2. The respondent had filed the said writ petition, inter alia, to impugn an order dated 14.05.2019 terminating his agency. The respondent also impugned the proceedings dated 12.09.2023 conducted under Rule 23 of the LIC of India (Agents) Regulations, 2017 [LIC Regulations].

3. The respondent was an agent of LIC. However, his agency was terminated. Aggrieved by the same, he had preferred the writ petition. The learned Single Judge had allowed the writ petition and set aside the proceedings dated 12.09.2023, which confirmed the 'penalty of termination of agency with forfeiture of renewal commission' as imposed on the respondent.

4. The respondent (writ petitioner) enrolled himself as an agent of the Life Insurance Corporation of India in the year 1992. The appellants imposed a penalty on the respondent, leading to his termination as an LIC agent following allegations made in an FIR [Crime No. 73/2018] registered at Banashankari Police Station, Bengaluru, on 03.03.2018. LIC states that it became aware of these allegations through newspapers and TV channels, which reported that three LIC agents, including the respondent, had been named in an FIR for offences punishable under Sections 34, 403, 406, and 420 of the IPC. The FIR was lodged by Sri P.R. Balaji, who alleged that the respondent and Sri Raghavendra Srinath, proprietor of Vikram Investment Co., had induced him to invest in M/s Vikram Investments and to part with `11.20 crores. They also allegedly persuaded his brother, Sri Bhaskar, to part with `54.00 crores and invest these amounts in various schemes of Vikram Investments, promising high returns. He further claimed that Vikram Investments had failed to return `11.74 crores (comprising the `11.20 crores invested by the complainant and `54.00 crores invested by his brother Bhaskar) and thus had cheated them. It is also alleged that, similarly, other named LIC agents had induced

800 (eight hundred) persons to invest in Vikram Investments.

5. On becoming aware of the news reports, appellant No.3 (Senior Divisional Manager of LIC) sent a letter dated 12.03.2018, directing the respondent not to solicit or procure new life insurance business. He also called upon the respondent to provide an explanation. Thereafter, on 18.03.2019, a show cause notice was issued, stating, among other things, that sufficient opportunity had been given by the Inquiry Off