HIGH COURT OF UTTARAKHAND AT NAINITAL Writ Petition Misc. Single No.1758 of 2023

16th December, 2025 Manager Life Insurance Corporation of India and another ………….Petitioners Versus Vikas Kumar Verma ……….Respondent ----------------------------------------------------------------------

Presence:-

Mr. Siddhartha Bisht, Advocate for the petitioners.

Mr. Tarun Pande, Advocate for the respondent.

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Hon'ble Pankaj Purohit, J.

This writ petition has been filed under Article

227 of the Constitution of India, whereby the petitioner- Insurance Company seeks quashing of the impugned judgment and order dated 09.05.2023 passed by the Permanent Lok Adalat, Rudrapur, Udham Singh Nagar, in Case No.89 of 2022, Vikas Kumar vs. Manager, L.I.C. and another, whereby the Permanent Lok Adalat allowed the claim of the respondent against the petitioner–Insurance Corporation and directed it to pay a sum of ₹5,00,000/-

under Insurance Policy No.239301587.

2. Facts of the case, in brief, are that the respondent’s mother purchased Insurance Policy No.239301587 from the petitioner–Insurance Corporation on 03.01.2021. After the purchase of the said policy, the respondent’s mother expired on 05.05.2021. Thereafter, the respondent submitted an application before the petitioner– Insurance Corporation for payment of the insurance amount under the policy purchased by his mother. The said application was rejected vide letter dated 28.02.2022 on the ground that, at the time of purchase of the policy, the respondent’s mother (life assured) had not disclosed that she was suffering from diabetes mellitus, despite there being a specific question to that effect in the proposal form. It was alleged that the life assured gave a false answer by writing “NO” against the said column. The petitioner further contended that an inquiry conducted from the doctor, under whose treatment the respondent’s mother was at the time of her death, revealed that she had been suffering from diabetes for the last three years.

3. Aggrieved by the rejection letter dated 28.02.2022, the respondent filed a complaint before the Permanent Lok Adalat, Rudrapur, Udham Singh Nagar, which was registered as Case No. 89 of 2022, Vikas Kumar vs. Manager, L.I.C. and another. In response thereto, the petitioner–Insurance Corporation filed its written statement/objections on 22.07.2022. Upon consideration of the facts and material on record, the Permanent Lok Adalat allowed the claim of the respondent and directed the petitioner–Insurance Corporation to pay a sum of ₹5,00,000/- under the said insurance policy.

4. Learned counsel for the petitioner submitted that the respondent’s mother purchased the policy on 03.01.2021 and expired on 05.05.2021, i.e., within four months from the date of purchase of the policy. On this basis, it was argued that, at the time of purchasing the policy, the deceased/life assured was well aware of her critical health condition and that the policy was obtained by deceiving the petitioner–Insurance Corporation. This fact, according to learned counsel, is evident from the rejection letter dated 28.02.2022. Therefore, the direction issued by the Permanent Lok Adalat, Rudrapur, Udham Singh Nagar, requiring the petitioner–Insurance Corporation to pay a sum of ₹5,00,000/- to the respondent is entirely wrong, unfair, and unjust on the facts of the case.

5. Learned counsel for the respondent, on the other hand, submitted that the Permanent Lok Adalat, after duly appreciating the pleadings, documents, and evidence on record, has rightly allowed the claim of the respondent and directed the petitioner–Insurance Corporation to pay a sum of ₹5,00,000/- under Insurance Policy No.239301587. It was contended that the impugned order is well-reasoned, lawful, and passed within the jurisdiction of the Permanent Lok Adalat, and does not suffer from any perversity, illegality, or jurisdictional error warranting interference under Article 227 of