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Life Insurance Corporation Of India And ... vs Official Liquidator, High Court on 26 July, 1976 cites

Damji Valji Shah And Another vs Life Insurance Corporation Of India & ... on 8 April, 1965

In my opinion, the present case falls squarely within the rules enunciated by the Supreme Court in the abovementioned Damji's case [1965] 35 Comp Cas : 755. Accordingly, it must be held that the amount of Rs. 3,23,503-9-3 continued to remain in the life insurance fund which came to be vested in the applicants. The applicants, therefore, as the absolute owners of that amount were entitled to receive it back from the official liquidator. It is argued by Shri Munshi that there is no dispute that the amount is payable to the applicants. His grievance is that, in respect of this amount the applicants cannot be treated as a secured creditor and since they are not to be treated as a secured creditor, they must rank as an ordinary creditor in winding-up. There is substance in Shri Munshi's contention that the applicants cannot be called a secured creditor. This is so because there being no loan the life insurance fund was not the creditor and the general department a debtor. Also the security contemplated in respect of life insurance fund is in favour of the policy-holders. This follows from the plain language of Sub-section (3) of Section 10 which, inter alia, reads ;
Supreme Court of India Cites 25 - Cited by 99 - R Dayal - Full Document
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