IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC TUESDAY, THE 16TH FEBRUARY 2010 / 27TH MAGHA 1931 WP(C).No. 21512 of 2007(J) -------------------------------------- PETITIONER(S): ------------------------ DEPPA, D/O.K.SUDEVAN, HAVING PERMANENT RESIDENTIAL ADDRESS AT "SREE PADAM", KOTTAPURAM CHERRY, PARAVOOR VILLAGE, KOLLAM DISTRICT, REP.BY HER P/A HOLDER K.SUDEVAN, S/O.KESAVAN RESIDENCE OF "SREE PADAM", KOTTAPPURAM, PARAVOOR VILLAGE, KOLLAM DISTRICT. BY ADVS. MR.S.HARIKRISHNAN MR.JAMES ABRAHAM (VILAYAKATTU) RESPONDENT(S): ------------------------- 1. THE DIVISIONAL MANAGER, LIFE INSURANCE CORPORATION OF INDIA, DIVISIONAL OFFICE, GEEVAN PRAKASH, P.B.NO.1001, PATTOM P.O., THIRUVANANTHAPURAM-4. 2. THE BRANCH MANAGER, LIFE INSURANCE CORPORATION OF INDIA, CITY BRANCH OFFICE 5, THE ARCADE P.B.NO.622 KILLIPALAM, KARAMANA, THIRUVANANTHAPURAM-1. R1 & R2 BY ADV. MR.LAL GEORGE THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 16/02/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.21512/2007 APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE LIC POLICY BEARING NO.78239517 DT. 23.9.03 HELD BY THE DISEASED MOTHER -IN-LAW OF THE PETITIONER LATE S.SUDHA SYAMALA BY THE OFFICE OF THE 2ND RESPONDENT. P2:- COPY OF THE DEATH CERTIFICATE OF EXT.P1 POLICY HOLDER LATE SUDHA SYAMALA DTD. 2.11.06. P3:- COPY OF THE DEATH CERTIFICATE DTD. 11.7.01 OF PETITIONER'S HUSBAND ARAVINDA RANA. P4:- COPY OF THE LETTER DTD. 26.11.06 ISSUED BY THE PETITIONER TO THE 2ND RESPONDENT. P5:- COPY OF THE REPLY DTD. 19.2.07 ISSUED BY THE 2ND RESPONDENT. P6:- COPY OF THE REPRESENTATION DTD. 7.4.07 SUBMITTED BY THE PETITIONER BEFORE THE IST RESPONDENT. P7:- COPY OF THE REPLY ISSUED BY THE IST RESPONDENT DTD. 1.6.07 TOWARDS EXT.P6 REPRESENTATION. P8:- COPY OF THE RELEVANT FRONT PAGE OF THE BLANK PROPOSAL FORM BEING ISSUED BY THE RESPONDENTS. TRUE COPY P.A. TO JUDGE tss ANTONY DOMINIC, J. ================ W.P.(C) NO. 21512 OF 2007 (J) ===================== Dated this the 16th day of February, 2010 J U D G M E N T Petitioner's mother-in-law, Late Smt.S.Sudha Syamala, had subscribed Ext.P1 policy with Life Insurance Corporation of India, the purchase price of which is Rs.2 lakhs. In the policy, Smt.S.Sudha Syamala had nominated her grand son Sri.Adithya Rana.D, who is the petitioner's son, as the nominee. Smt.Sudha Syamala expired on 14/10/2006 and Ext.P2 is the death certificate. Thereupon, the petitioner, mother of the nominee, submitted Ext.P4 request to the 2nd respondent stating that her son is only aged 5 and requested to settle the claim amount at the earliest. Thereupon, LIC gave Ext.P5 reply stating their inability to disburse the policy amount to the minor in view of his inability to give a valid discharge in their favour. It was thereupon that this writ petition was filed praying for a direction to the LIC to deposit the claim amount covered by the policy in a Fixed Deposit till he attains majority. 2. LIC does not dispute its liability to disburse the policy amount to the nominee, but only submits that, on payment, they WPC 21512/07 :2 : should get a valid document discharging them of the liability. It is contended that the nominee being only a trustee for the legal heirs, is bound to execute such a document, which in the present case, the nominee is incapable of executing. They also rely on the proviso to Section 39 of the Insurance Act and point out that the whole difficulty has arisen on account of the fact that the insured did not appoint a person as provided therein. 3. Admittedly, the nominee in question is a minor even as on date. Apparently, it is realising this difficulty that the petitioner has prayed for a direction to the LIC to keep the amount in Fixed Deposit in a Nationalised Bank in favour of the nominee, till he attains majority. It was considering this prayer that by order dated 12/7/07, this Court directed the LIC to keep the proceeds of Ext.P1 policy in a separate account in a Nationalised Bank. In compliance with the said direction, LIC has already deposited the policy amount in Corporation Bank, Trivandrum, in a Fixed Deposit bearing 9% interest. Therefore, with the deposit so made, the substantial prayer in the writ petition is satisfied. 4. In view of the above, I dispose of this writ petition with the following directions. WPC 21512/07 :3 : (1) That the petitioner or the respondents will produce a copy of this judgment before the Corporation Bank, Trivandrum, where the amount due under Ext.P1 policy has been deposited by the LIC. (2) The Corporation Bank will periodically renew the deposit and retain the deposit until the nominee Sri.Adithya Rana.D., son of the petitioner produces an acceptable certificate proving himself of having attained the majority (3) The amount in deposit along with interest accrued thereon will be released only thereafter. ANTONY DOMINIC, JUDGE Rp