Life Insurance Corporation Of … vs R K Mahajan on 27 November, 2015

1. By common order dated 21.04.2010, the learned Single Judge allowed
W.P.(C) Nos.10426, 10442, 10443 of 2006 and W.P.(C) 3277 of 2007.
Aggrieved by the same, the Life Insurance Corporation of India/the sole
respondent therein preferred these four appeals under Clause 10 of the
Letters Patent.
2. The Respondents/Writ petitioners are the agents with the Life
Insurance Corporation of India (for short „LIC‟). By separate orders dated
24.11.2005, their agency was terminated by the LIC and renewal
commission was forfeited in terms of Life Insurance Corporation of India
(Agents) Regulations, 1972 (hereinafter referred to as „the Regulations‟).
Against the said orders of termination though the writ petitioners preferred
appeals to the Zonal Manager, the same were rejected by orders dated
30.05.2006. Aggrieved by the same, they filed W.P.(C) Nos.10426, 10442,
10443 of 2006 and W.P.(C) No.3277 of 2007 contending inter alia that the
orders of termination as well as the orders of the Appellate Authority
dismissing the appeals were in violation of the principles of natural justice.
Accepting the said contention, the learned Single Judge allowed all the writ
petitions. Accordingly, while setting aside the impugned orders dated
24.11.2005 and 30.05.2006, the learned Single Judge directed restoration of
the agency of the writ petitioners from the date of their respective
termination. The learned Single Judge also directed payment of renewal
commission and the arrears together with simple interest @ 6% per annum
LPAs No.531, 534, 535, 537 of 2010 Page 2 of 30
from the date of forfeiture to the date of payment. The said order is under
challenge in these appeals preferred by the LIC.

Source: Indian Kanoon

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