IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ****

Date of Decision: 12.03.2026 SUMIT KUMAR ...Petitioner Vs.

THE PERMANENT LOK ADALAT AND OTHERS …Respondents CORAM:- HON'BLE MR. JUSTICE JAGMOHAN BANSAL Present:- Mr. Ashutosh Kaushik, Advocate with Mr. Abhivrat Arya, Advocate for the petitioner ***

JAGMOHAN BANSAL, J. (ORAL)

1. The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking setting aside of order dated 26.07.2024 whereby Permanent Lok Adalat (for short ‘PLA’) has rejected his application filed under Section 22C of Legal Services Authorities Act, 1987 (for short ‘1987 Act’).

2. The petitioner’s father namely Mr. Karambir Singh obtained Life Insurance Policy No. NP012103206373 from M/s Shri Ram Life Insurance on 18.03.2021. The sum insured was Rs.4,71,500/- with death benefit of Rs.5,03,250/-. He paid first premium of Rs.63,040/- and expired on 25.04.2021 due to sudden heart attack. It is apposite to notice that death took place within 38 days from the date of insurance policy. The insurer repudiated death claim vide letter dated 21.09.2021 on the ground that there was suppression of material pre-existing chronic liver disease besides Hepatitis C. The petitioner in terms of Section 22C of 1987 Act preferred claim before Ld. PLA which vide order dated

26.07.2024 rejected his claim. The findings recorded by PLA read as:-

“20. From the medical report of deceased life assured Karambir Singh issued by the doctor of renowned hospitals i.e. Amar Hospital, Patiala and Sir Ganga Ram Hospital, New Delhi leave no doubt that Karambir Singh was suffering from chronic liver disease prior to the issuance of the insurance policy by the respondent insurance company. He was well aware of the fact that he was suffering from fatal deadly disease. He died within a period of 1 month and 8 days of the issuance of the policy. He was bound to disclose the fact as regards his previous ailment and hospitalization in the proposal form. The insurance policy is issued by the insurance company on the basis of the disclosures made by the life assured in the proposal form.

21. It is now well settled that Life Insurance Policies are contract governed by the principle of "Uberrima Fidei" From oral as well as documentary evidence brought on record it stands proved that the deceased life assured Karambir Singh was suffering from Chronic liver disease, Portal hypertension, Ascites, Hepatitis C prior to the taking of the Policy, which was very much in his knowledge. He remained under continuous treatment in Amar Hospital, Patiala since August 2020. The Ultrasonography reports of Karambir Singh Ex. R-13 and Ex. R-16, issued by Durga Ultrasound & Diagnostic Centre, Kaithal leave no doubt that Karambir Singh was suffering from Chronic liver disease. The said ultrasound reports are dated 01.12.2020 and 06.01.2021 respectively. The discharge summary of Karambir Singh Ex. R-17 was issued by Sir Ganga Ram Hospital, New Delhi on 03.02.2021 i.e. just 1 month and 15 days prior to the submission of the proposal form by the life assured. The life assured gave false and misleading information to the respondent insurance company despite having knowledge of the fact that he was suffering from Chronic Liver Disease for the last more than a year prior to the issuance of the policy by the insurance company.

22. The learned Counsel for the applicant has placed reliance upon the following case law:

(i) National Insurance Company Limited Vs. Sardar Kulbir Singh, III(2010) CPJ 276 (NCDRC, New Delhi).

(ii) Life Insurance Corporation of India & Anr. Vs.

Sudesh, II (2012) CPJ 65 (NCDRC, New Delhi).

(iii) Manmohan Nanda Vs. United India Assurance Co.

Ltd. & Anr, Civil Appeal No. 8386/2015 D/d

06.12.2021 (SC)

23. We have gone through the case law cited by learned Counsel for the applicant. The same are clearly distinguishable on facts. In Kulbir Singh's case, the insurance company failed to produce any concrete evidence to the effect that the d