Regular Second Appeal No. 2549 of 1988 1 In the High Court of Punjab and Haryana, at Chandigarh. Regular Second Appeal No. 2549 of 1988 Date of Decision: 30.11.2010 Smt. Sita Devi …Petitioner Versus Life Insurance Corporation of India and Others …Respondents CORAM: HON’BLE MR. JUSTICE KANWALJIT SINGH AHLUWALIA. Present: Mr. D.S. Bali, Senior Advocate with Ms. Neha Mann, Advocate for the petitioner. Mr. Tarun Thakur, Advocate for Mr. Baldev Raj Mahajan, Advocate for respondents No.1 and 2. None for respondents No.3 to 9. Kanwaljit Singh Ahluwalia, J. (Oral) Dhani Ram was insured with respondents No.1 and 2 and had obtained a policy with the total value of ` 2,000 and at the time of his death, the amount payable to his legal heirs was ` 2,369. The appellant was defendant No.3 to the suit. She is wife of the elder brother of Dhani Ram, who was insured with respondents No.1 and 2. Dhani Ram was unmarried. In the insurance policy, appellant/defendant No.3 was mentioned as nominee of Dhani Ram. About 10-12 yeas later, Dhani Ram married Bhagirithi Devi-plaintiff No.1 to the suit. At the time of death of Dhani Ram, Bhagirithi Devi was having five minor daughters Regular Second Appeal No. 2549 of 1988 2 and a minor son. She filed a suit for permanent injunction praying that the paid up value of the insurance policy be not paid to the nominee as she along with her minor children is the legal heir of deceased Dhani Ram. The appellant filed written statement and claimed herself to be the wife of Dhani Ram. After conclusion of the pleadings, the following issues were formulated by the trial Court:- “1. Whether the plaintiff is not the wife of deceased Sh. Dhani Ram alias Diani Ram Gosain? OPD. 2. Whether the defendant No.3 being nominee is entitled to policy money bearing No. 6648255 in respect of Dhani Ram in preference to his legal heirs? OPD-3. 3. Whether the suit is not maintainable in the present form? OPD 4. Whether the plaintiff has no locus standi to file the suit? OPD 5. Whether defendant No.3 is the wife of deceased Diani Ram Gosain? OPD 6. Whether there is no cause of action? OPD 7. Whether the suit has been filed in collusion with defendant No.1 and 2? OPD. Regular Second Appeal No. 2549 of 1988 3 8. Whether the defendant is entitled to special costs? OPD 9. Relief”. On the basis of evidence led, the trial Court, vide its judgment dated 1.3.1985, came to the conclusion that claim of the appellant/defendant No.3 that in the presence of the legal heirs of deceased Dhani Ram, nominee's right does not exist anywhere. The Court further held that from the evidence led, it stands conclusively proved that plaintiff/respondent No.3 was the legally wedded wife of deceased Dhani Ram and respondents No.4 to 9 herein were her minor children. Therefore, the trial Court ordered that the insurance amount be disbursed to plaintiffs/respondents No.3 to 9. This finding of fact was affirmed by the lower Appellate Court, vide its judgment dated 4.2.1988. Both the Courts below have relied upon Smt. Sarbati Devi and Another v. Smt. Usha Devi AIR 1984 Supreme Court 346 to hold that a mere nomination made under Section 39 of the Insurance Act, 1938, does not have the effect of conferring on the nominee any beneficial interest in the amount payable under the life insurance policy on the death of the assured. The nomination only indicates the hand which is unauthorized to receive the amount, on the payment of which the insurer gets a valid discharge of its liability under the policy. The amount, however, can be claimed by the heirs of the assured in accordance with the law of succession governing them. Learned counsel for the appellant has failed to cite any law contrary to the one propounded in Smt. Sarbati Devi's case (supra). Thus, no substantial question of law is raised, which calls for Regular Second Appeal No. 2549 of 1988 4 adjudication by this Court. Hence, the concurrent finding returned by both the Courts below is affirmed and the present appeal is dismissed. The amount of insurance policy shall be disbursed to respondents No.3 to 9 herein. (Kanwaljit Singh Ahluwalia) Judge November 30, 2010 “DK”