Other directors who were parties to the resolution of January 6 were also impleaded.
9, the appellants in C.A. 676 of 1962 as respondents Nos.
The aforesaid three directors, the appellants before us, companytested the claim of the Corporation and justified the transfer of Rs.
This resolution was companyfirmed by the Board of Directors at its meeting dated February 6, 1956.
82,000/ to the General Department from the Life Fund on the ground that the amount had been lent by the General Department to the Life Department and had been paid back to the General Department by transfer from the Life Fund when the LifE Fund showed surplus, according to the report of the Actuary dated July 25, 1955.
It is against this decree that C.A. 676 of 1962 has been filed, by special leave, by Damji Valji Shah and Jayantilal Hirjibhai Chawda and C.A. 677 of 1962 by Ghanshyamdas.
It was therefore that an application under s. 15 of the LIC Act was made by the Corporation to the Tribunal.
676 and 677 of 1962.
Damji Valji Shah and Jayantilal Hirijibhai Chawda, appellants in the C.A. 676 of 1962, Ghanshyamdas, appellant in C.A. 677 of 1962, the aforementioned individuals being directors of the Vishwabharti Insurance Company, and another director, to pay to the Corporation jointly and severally the sum of Rs.
Appeals by special leave from the judgment and order dated February 2,7.
the Corporation jointly and severally a sum of Rs.
M. Thakar, S.N. Andley, Rameshwar Nath and P.L. Vohra, for the appellant in C.A. No.
30 XII of 1959.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
82,000/ together with interest there at 6 per annum from September 1, 1956, till full payment.
This judgment will govern both these appeals.
1960 of the Life Insurance Tribunal, Nagpur in Case No.
The decree ordered the companypany to pay a further sum.
B. Dadachanji, O.C. Mathur and Ravinder Narain, for the appellants in C.A. No.
677/62 .
P. Malhotra, Hamendra K. Shah, .1.
767/ 62 .
Several other grounds were also taken before the Tribunal.
other classes of insurance business.
The LIC Act came into force on july 1.
K. Daphtary, Attorney General, D.P. Mehta and K.L. Hathi, for respondent No.
1 in both the appeals .
It was also companytended before the Tribunal that the petition companyld number be proceeded with without the leave of the Bombay High Court in view of s. 446 of the Indian Companies Act and that the petition was also number maintainable by reason of s. 44 of the LIC Act.
1956 and the Corporation was established on September 1.
D 5SCI 4 The facts of the case briefly are these.
all the assets and liabilities appertaining to the life insurance business called the companytrolled business, vide s. 2 3 of the Company stood transferred to and vested in the Corporation.
82,000/ together with interest thereon at 6 per cent per annum from September 1, 1956 till full payment.
The Judgment of the Court was delivered by Raghubar Dayal, J. These appeals, by special leave, are against the decree of the Life Insurance Tribunal, Nagpur, in proceedings on an application by the Life Insurance Corporation of India hereinafter called the Corporation under s. 15 of the Life Insurance Corporation Act, 1956 Act XXXI of 1956 , shortly termed as the LIC Act, for ordering the Vishwabharti Insurance Company, Bombay.
The companypany was a companyposite insurer.
It was found that certain amounts which had been transferred from the Life Insurance Fund in the books of the companypany to the General Department had number been transferred in accordance with the provisions of the Insurance Act 1938 Act 4 of 1938 which governed the companypany and should have companytinued to be included in the assets appertaining to the companytrolled business of the companypany.
Ghanshyamdas and Damji Valji were also parties to the resolution dated February 7.
i.e., an insurer who carried on.
1 and 4 and the appellant in C.A. 677 of 1962 as respondent No.
