Summarize the following court judgment. No. 224 of 1959. Appeal from the judgment and decree dated August 28	 1956	 of the Madhya Pradesh High Court in F.A. No. 90 of 1949. A. V. Viswanatha Sastri	 section N. Andley	 Rameshwar Nath and P.L. Vohra	 for the appellant. section T. Desai	 R. Ganapathy Iyer and K. L. Hathi	 for the respondent. January 15 The Judgment of the Court was delivered by section K. DAS	 J. This is an appeal on a certificate granted by the High Court of Madhya Pradesh under article 133 (1) (a) of the Constitution	 The appellant is Mithoolal Nayak	 who took an assignment on october 18	 1945 of a life insurance policy on the life of one Mahajan Deolal for a sum of Rs. 25	000/ in circumstances which we shall presently state. Mahajan Deolal died on November 12	 1946 573 Thereafter	 the appellant made a demand against the respondent company for a sum of Rs. 26	000/ and odd on the basis of the life insurance policy which had been assigned to him. This claim or demand of the appellant was repudiated by the respondent company by a letter dated October 10	 1947	 which in substance stated that the insured Mahajan Deolal had been guilty of deliberate mis statements and fraudulent suppression of material information in answers to questions in the proposal form and the personal statement	 which formed the basis of the contract between the insurer and the insured. On the repudiation of his claim the appellant brought the suit out of which this appeal has arisen. The suit was originally instituted against the oriental Government Security Life Assurance co. Ltd.	 Bombay	 which issued the policy in favour of Mahajan Deolal on March 13	 1945. Latter	 on the passing of the life Insurance corporation Act	 1956	 there was a statutory transfer of the assets and liabilities of the controlled (life) business of all insurance companies and insurers operating in India to a Corporation known as the Life Insurance Corporation of India. By an order of this Court made on February 16	 1960	 the said Corporation was substituted in place of the original respondent. For brevity as convenience we shall ignore the distinction between the original respondent and the said Corporation and refer to the respondent in this judgment as the respondent company. The Suit was decreed by the learned Additional District Judgment of Jabalpur by his judgment dated May 7	 1949. The respondent company then preferred an appeal to the High Court of Madhya Pradesh. This appeal was heard by a Division Bench of the said High Court and by a judgment dated August 28	 1956	 the appeal was allowed and the suit was dismissed with costs. It is from 574 that appellate judgment and decree that the present appeal has been brought to this Court. We now proceed to state some of the relevant facts relating to the appeal and the contentions urged on behalf of the appellant. Mahajan Deolal was a resident of. village Singhpur	 Tehsil Narsinghpur. It appears that he was a small landholder and possessed several acres of land. Sometime in December	 1942	 Mahajan Deolal submitted a proposal through one Rahatullah Khan	 an agent of the respondent company at Narsingpur	 for the insurance of his life with the respondent company for a sum of Rs. 10	000/ only. Mahajan Deolal 's age at that time was about 45 as stated by him. In the proposal form which was submitted to the respondent company	 Mahajan Deolal mentioned the name of one Motilal Nayak	 by profession a doctor	 as a personal friend who best knew the state of the health and habits etc. of the insured. This Motilal Nayak	 be it noted	 is a brother of the appellant	 the evidence in the record showing that the two brothers lived together in the same house. When the proposal for insurance of his life was made by Mahajan Deolal in December 1942	 he was examined by a doctor named Dr. D. D. Desai. This doctor submitted two reports about Mahajan Deolal; one report	 it appears	 was admitted with the proposal form through the agent of the respondent company; another report was sent in a confidential cover along with a letter from the doctor. In this letter (exhibit D 22) the doctor explained why he was submitting two medical reports. In substance he said that the report submitted with the proposal form at the instance of the agent	 Rahatullah Khan	 was not a correct report and the correct report was the one which he enclosed in the confidential cover. In that report Dr. Desai said that Mahajan Deolal 575 was anaemic	 looked about 55 years old	 had a dilated heart and his right lung showed indications of an old attack of pneumonia or pleurisy. The doctor further said that the general health of Mahajan Deolal was very much run down and he was a total physical wreck. The doctor opined that Mahajan Deolal ' life was an uninsurable life. It appears that nothing came out of the proposal made by Mahajan Deolal for the insurance of his life in December	 1942. The evidence of the Inspector of the respondent company shows that on receipt of Dr. Desai 's reports	 the respondent company directed that Mahajan Deolal should be further examined by the Civil Surgeon	 Hoshangabad and District Medical officer	 Railways at Jabalpur. Mahajan Deolal could not	 however	 be examined by the two doctors aforesaid and according to the rules of the respondent company the proposal lapsed on the expiry of six months for want of completion of the medical examination as required by the respondent company. Then	 on July 16	 1944	 a second proposal was made through the same agent of the respondent company for the insurance of the life of Mahajan Deolal	 this time for a sum of Rs. 25	000/ . The Inspector of the respondent company said in his evidence that this second proposal was made at the instance of the same agent	 Rahatullah Khan inasmuch as the proposal of 1942 had not been rejected but had only lapsed. It appears that at the time of the first proposal in 1942 Mahajan Deolal had paid a sum of Rs. 571/ and odd towards the first premium due in case the proposal was accepted. In the personal statement	 accompanying the second proposal of July 16	 1944	 it was stated that an earlier proposal for insuring the life of Mahajan Deolal was pending with the respondent company. Now	 in the proposal form (exhibit D 11) there was a question (question No. 13) to the following effect: 576 "Have you within the past five years consulted any medical man for any ailment	 not necessarily confining you to your house? If so	 give details and state names and addresses of medical man consulted. " The answer given to the question was "No". This answer	 according to the case of the respondent	 was false and deliberately false. because	 according to the evidence of one Dr. P.N Lakshmanan	 Consulting Physician at Jabalpur	 Mahajan Deolal was examined and treated by the said doctor between the dates September 7	 1943	 and October 6	 1943	 when the doctor found that Mahajan Deolal was suffering from anaemia	 oedema of the feet	 diarrhoea and panting on exertion. We shall advert in greater detail to the evidence of Dr. Lakshmanan at a later stage. In his personal statement accompanying the second proposal Mahajan Deolal answered in the negative question 12(b)	 the question being as to when he was last under medical treatment and for what ailment and how long. In the same personal statement with regard to questions	 for example	 question nos. 5(a); 5(b) etc.	 as to whether he suffered from shortness of breath	 anaemia	 asthma etc	 Mahajan Deolal gave negative answers. The contention on behalf of the respondent company was that these answers in the personal statement were also deliberately false and constituted a fraudulent suppression of material particulars relating to the health of the insured. With regard to the second proposal and the personal statement accompanying it	 Dr. Motilal Nayak	 brother of the appellant	 gave a friend 's report	 in which he said that Mahajan Deolal health was good and that he had never heard that Mohajan Deolal suffered from any illness. It is worthy of note here that Dr. Motilal Nayak himself took Mahajan Deolal to Dr. Lakshmanan for treatment at Jabalpur in September October.	 1943. On receipt 577 of the second proposal in July	 1944	 Mahajan Deolal was examined by Dr. Kapadia	 who was the District Medical officer of the Railways at Jabalpur. Dr. Kapadia reported that Mahajan Deolal was a healthy man and looked about 52 to 54 years old. He recommended that Mahajan Deolal might be given a policy of fourteen years. In his report Dr. Kapadia noted that Mahajan Deolal had stated that he had suffered from pneurnonia four or five years ago	 and that he had also cholera some years ago. No mention	 however	 was made of anaemia	 asthma	 shortness of breath etc. On December 29	 1944	 Mahajan Deolal made a further declaration of his good health and so also on February 12	 1945. On March 13	 1945	 the policy was issued by the respondent company. It contained the usual terms of such life insurance policies	 one of which was that in case it would appear that any untrue or incorrect averment had been made in the proposal form or personal statement	 the policy would be void. The first premium due on the policy was taken from the amount which was already in deposit with the respondent company in connection with the proposal made in 1942. Then	 on May 22	 1945	 Mahajan Deolal wrote a letter to the respondent company in which he said that his financial condition had become suddenly worse and that he would not be able to pay the premium for the policy. He requested that the policy be cancelled. In the meantime the premium for 1945 not having been paid	 the policy lapsed. Then	 on October 28	 1945	 Mahajan Deolal made a request for revival of the policy	 but a few days before that	 namely on October 18	 1945	 the policy was assigned in favour of the appellant	 by an endorsement made on the policy itself. This assignment was duly registered by the respondent company by means of its letter dated November 1	 1945 in which the respondent company said that it accepted the assignment without expressing any opinion as to its validity or 578 effect. The respondent company also made an enquiry from the appellant as to whether the latter had any insurable interest in the life of the insured and what consideration had passed from him to the insured. To this the appellant replied that he had no insurable interest in the life of Mahajan Deolal except that the latter was a friend and he (the appellant) had purchased the policy for a sum of Rs. 427.12 nP. being the premium paid by him so far	 because Mahajan Deolal did not with to continue the policy. On his request for a revival of the policy Mahajan Deolal was again medically examined	 this time by one Dr. Belapurkar. Later on February 25	 1946	 he was examined by Dr. Clarke. The policy was then revived on payment of all arrears of premium	 these arrears having been paid by the present appellant. On receipt of the revival fee	 the policy appears to have been revived some time in July	 1946. We have already stated that Mahajan Deolal died in November	 1946. The certificate of Dr. Clarke	 who was the medical attendant at the time when Mahajan Deolal died	 showed that the primary	 cause of death of Mahajan Deolal was malaria followed by severe type of diarrhoea; the secondary cause was anaemia	 chronic bronchitis and enlargement of liver. In the certificate which Dr. Clarke gave there was mention of certain other medical practitioners who had attended Mahajan Deolal at the time of his death. One of such medical practitioners mentioned in the certificate was Dr. Lakshmanan. On receipt of this certificate the respondent company got into touch with Dr. Lakshmanan and discovered from him that Mahajan Deolal had been treated in September October	 1943	 by Dr. Lakshmanan for ailments which	 according to the doctor	 were of a serious nature. Several issues were tried between the parties in the trial court. But the four questions which 579 were argued in the High Court and on which the fate of the appeal depends were these: (1) Whether the policy was vitiated by fraudulent suppression of material facts by Mahajan Deolal ? (2) Whether the present appellant had no insurable interest in the life of the insured	 and if so	 can he sue on the policy ? (3) Whether the respondent company had issued the policy with full knowledge of the facts relating to the health of the insured and if so	 is it estopped from contesting the validity of the policy ? and (4) Whether in any event the appellant is entitled to refund of the money he had paid to the respondent company ? These are the four questions which have been agitated before us and we shall deal with such of them as are necessary for deciding this appeal. So far as the first question is concerned	 the learned trial Judge found that though Mahajan. Deolal had given a negative answer to question no	 13 in the proposal form and to questions nos. 5(a)	 5(b)	 5 (f) and 12(b) in the personal statement	 these answers though not strictly accurate	 furnished no grounds for repudiating the claim of the appellant by the respondent company	 in as much as s.45 of the (4 of 1938) applied and the answers did not amount to a fraudulent suppression of material facts by the policy holder within the meaning of that section. The learned trial Judge found that the ailments for which Dr. Lakshmanan treated Mahajan Deolal in September October	 1943	 were of a causal or trivial nature and the failure of the policy holder to disclose those ailments did not attract the second part of 580 section 45 of the . The High Court came to a contrary conclusion and held that even applying section 45 of the 	 the policy holder was guilty of a fraudulent suppression of material facts relating to his health within the meaning of that section and the respondent company was entitled to avoid the contract on that ground. On behalf of the appellant it has been argued before us that the finding of the learned trial Judge on this question was the correct finding and that the High Court was wrong in arriving at a contrary finding on this question in view of the evidence given in the case. The judgment of the High Court is a judgment in reversal and the appellant has a right of appeal under article 133(1)(a) of the Constitution in as much as the value of the subject matter of the dispute in the court of first instance and still in dispute is more than Rs. 20	000/ . We have	 therefore	 allowed learned counsel for the parties to take us through the evidence in the case. On a consideration of that evidence we have come to the conclusion that the finding of the High Court is the correct finding. We shall presently consider the evidence	 but it may be advantageous to read first section 45 of the 	 as it stood at the relevant time. The section	 so far as it is relevant for our purpose	 is in these terms: "No policy of life insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no policy of life insurance effected after the coming into force of this Act shall	 after the expiry of two years from the date on which it was effected	 be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer	 or referee	 or friend of the insured	 or in any other document leading to 581 the issue of the policy	 was inaccurate or false	 unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policy holder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. x x x x x x" It would be noticed that the operating part of section 45 states in effect (so far as is relevant for our purpose) that no policy of life insurance effected after the coming into force of the Act shall	 after the expiry of two years from the date on which it was effected	 be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer	 or referee	 or friend of the insured	 or in any other document leading to the issue of the policy	 was inaccurate or false; the second part of the section is in the nature of a proviso which creates an exception. It says in effect that if the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policy holder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose	 then the insurer can call in question the policy effected as a result of such inaccurate or false statement. In the case before us the policy was issued on March 13	 1945	 and it was to come into effect from January 15	 1945. The amount insured was payable after January 15	 1968	 or at the death of the insured	 if earlier. The respondent company repudiated the claim by its letter dated October 10	 1947. Obviously	 therefore	 two years had expired from the date on which the policy was effected. We are clearly of the opinion that section 45 of the applies in the present case in 582 view of the clear terms in which the section is worded	 though learned counsel for the respondent company sought	 at one stage	 to argue that the revival of the policy some time in July	 1946	 constituted in law a new contract between the parties and if two years were to be counted from July	 1946	 then the period of two years had not expired from the date of the revival. Whether the revival of a lapsed policy constitutes a new contract or not for other purposes	 it is clear from the wording of the operative part of section 45 that the period of two years for the purpose of the section has to be calculated from the date on which the policy was originally effected; in the present case this can only mean the date on which the policy (exhibit P 2) was effected. From that date a period of two years had clearly expired when the respondent company repudiated the claim. As we think that section 45 of the applies in the present case	 we are relieved of the task of examining the legal position that would follow as a result of inaccurate statements made by the insured in the proposal form or the personal statement etc. in a case where section 45 does not apply and where the averments made in the proposal form and in the personal statement are made the basis of the contract. The three conditions for the application of the second part of section 45 are (a) the statement must be on a material matter or must suppress facts which it was material to disclose; (b) the suppression must be fraudulently made by the policy holder; and (c) the policy holder must have known at the time of making the statement that it was false or that it suppressed facts which it was material to disclose. The crucial question before us is whether these three conditions were fulfilled in the present 583 case. We think that they were. We are unable to agree with the learned trial Judge that the ailments for which Mahajan Deohal was treated by Dr. Lakshmanan in September October	 1943	 were trivial or casual ailments. Nor do we think that Mahajan Deolal was likely to forget in July	 1944	 that he had been treated by Dr. Lakshmanan for certain serious ailments only a few months before that date. This brings us to a consideration of the evidence of Dr. Lakshmanan. That evidence is clear and unequivocal. Dr. Lakshmanan says that Dr. Motilal Nayak brought the patient to him at Jabalpur. We have already referred to the fact that Dr. Motilal Nayak had himself made a false statement in his friend 's report dated July 17	 1944	 when he said that he had never heard that the insured had suffered from any illness. It is impossible to believe that Dr. Motilal Nayak would not remember that he had himself taken the insured to Jabalpur for treatment by Dr. Lakshmanan who was an experienced consulting physician. Dr. Lakshmanan said that when he first examined Mahajan Deolal on September 7	 1943	 he found that his condition was serious as a result of the impoverished condition of his blood	 and that Mahajan Deolal was suffering from anaemia	 oedema of the feet	 diarrhoea and panting on exertion. The doctor asked for an examination of the blood. The pathological report supported the diagnosis that Mahajan Deolal was suffering from secondary anaemia meaning thereby that anaemia was due to lack of iron and malnutrition. Dr. Lakshmanan further found that from the symptoms disclosed the disease was a major one. Mahajan Deolal had also cardiac asthma which was a symptom of anaemia and due to dilatation of heart. Dr. Lakshmanan saw the patient again on September 9	 1943	 and then again on September 16	 1943. On October 6	 1943 Mahajan Deolal himself went to Dr. Lakshmana. On that date Dr. Lakshmanan found that 584 anaemia had very greatly disappeared. In cross examination Dr. Lakshmanan admitted that the anaemia	 dilatation of heart and cardiac asthma from which Mahajan Deolal was suffering continued a passing phase which might disappear by treatment. He further admitted that he did not mention cardiac asthma in his letter addressed to the respondent company. We have given our very earnest consideration to the evidence of Dr. Lakshmanan and we are unable to hold that the ailments from which Mahajan Deolal was then suffering were either trivial or casual in nature. The ailments were serious though amenable to treatment. Mahajan Deolal 's son gave evidence in the case and he said in his evidence that though Dr. Lakshmanan prescribed some medicine	 his father did not take it. He further said that his father was a strict vegetarian. This evidence was given by the son with regard to what the doctor had said that he prescribed fresh liver juice made at home according to his directions three times a day. He also prescribed iron sulphate in tablet from with plenty of water. The son further said that during his stay at Jabalpur his father felt weakness	 though he used to move about freely and was never confined to bed. The son tried to make it appear in his evidence that his father was suffering from nothing serious. Dr. Lakshmanan said in his evidence that his fees for visiting a patient at Jabalpur were Rs. 16/ per visit. We agree with the High Court that if Mahajan Deolal was not suffering from any serious ailment	 he would not have been taken by his physician	 Dr. Motilal Nayak from his village to Jabalpur nor would he have consulted Dr. Lakshmanan	 a consulting physician of repute	 for so many days on payment of Rs. 16/ per visit. No doubt	 Mahajan Deolal 's son now tries to make light of the illness of his father but Dr. Lakshmanan 's evidence shows elearly enough that in September October	 1943. Mahajan 585 Deolal was suffering from a serious type of anaemia for which he was treated by Dr. Lakshmanan. Mahajan Deolal could not have forgotten in July	 1944	 that he was so treated only a few months earlier and furthermore	 Mahajan Deolal must have known that it was material to disclose this fact to the respondent company. In his answer to the questions put to him he not only failed to disclose what it was material for him to disclose	 but he made a false statement to the effect that he had not been treated by any doctor for any such serious ailment as anaemia or shortness of breath or asthma. In other words	 there was a deliberate suppression fraudulently made by Mahajan Deolal. Fraud	 according to section 17 of the (IX of 1872)	 means and includes Inter alia any of the following acts committed by a party to a contract with intent to deceive another party or to induce him to enter into a contract (1) the suggestion	 as to a fact	 of that which is not true by one who does not believe it to be true; and (2) the active concealment of a fact by one having knowledge or belief of the fact. Judged by the standard laid down in section 17	 Mahajan Deolal was clearly guilty of a fraudulent suppression of material facts when he made his statements on July 16	 1944	 statements which he must have known were deliberately false. Therefore	 we are in agreement with the High Court in answering the first question against the appellant. We may here dispose of the third question. Learned counsel for the appellant has argued before us that Mahajan Deolal was examined under the direction of the respondent company by as many as four doctors	 namely	 Dr. Desai	 Dr. Kapadia	 Dr. Belapurkar and Dr. Clarke. It is further pointed out that Mahajan Deolal had correctly 586 disclosed that he had suffered previously from malaria	 pneumonia and cholera. Dr. Kapadia	 it is pointed out	 was specifically asked to examine Mahajan Deolal in view of the conflicting reports which Dr. Desai had earlier submitted. On these facts	 the argument has been that the respondent company had full knowledge of all facts relevant to the state of health of Mahajan Deolal and having knowledge of the full facts	 it was not open to the respondent company to call the policy in question on the basis of the answers given by Mahajan Deolal in the proposal form and the personal statement	 even though those answers were inaccurate. Learned counsel for the appellant has referred us to the Explanation to section 19 of the in support of his argument. We are unable to accept this argument as correct. It is indeed true that Mahajan Deolal was examined by as many as four doctors. It is also true that the respondent company had before it the conflicting reports of Dr. Desai and it specially asked Dr. Kapadia to examine Mahajan Deolal in view of the reports submitted by Dr. Desai. Yet	 it must be pointed out that the respondent company had no means of knowing that Mahajan Deolal had been treated for the serious ailment of secondary anaemia followed by dilatation of heart etc. in September October	 1943 by Dr. Lakshmanan. Nor can it be said that if the respondent company had knowledge of those facts	 they would not have made any difference. The principle underlying the Explanation to section 19 of the Contract Act is that a false representation	 whether fraudulent or innocent is irrelevant if it has not induced the party to whom it is made to act upon it by entering into a contract. We do not think that principle applies in the present case. The terms of the policy make it clear that the averments made as to the state of health of the insured in the proposal form and the personal statement were the basis of the contract between the 587 parties	 and the circumstance that Mahajan Deolal had taken paint to falsify or conceal that he had been treated for a serious ailment by Dr. Lakshmanan only a few months before the policy was taken shows that the falsification or concealment had an important bearing in obtaining the other party 's consent. A man who has so acted cannot after wards turn round and say; "It could have made no difference if you had known the truth. " In our opinion	 no question of waiver arises in the circumstances of this case	 nor can the appellant take advantage of the Explanation to section 19 of the . Our finding on the first question makes it unnecessary for us to decide the second question	 namely	 whether the present appellant merely gambled on the life of Mahajan Deolal when he took the assignment on October 18	 1945. The contention of the respondent company was that appellant had no insurable interest in the life of Mahajan Deolal and when he took the assignment of the policy on October 18	 1945 he was merely indulging in a gamble on Mahajan Deolal 's life; the contract was therefore	 void by reason of section 30 of the . On behalf of the appellant	 however	 the contention was that section 38 of the insurance Act provided a complete code for assignment and transfer of insurance policies and the assignment made in favour of the appellant by Mahajan Deolal was a valid assignment in accordance with the provisions of section 38 aforesaid. The High Court	 it appears	 proceeded on the footing that from the very inception the policy was taken for the benefit of the appellant on the basis of a gamble on the life of Mahajan Deolal; it said that the appellant and his brother	 Dr. Motilal Nayak	 knew very well that Mahajan Deolal was not likely to live very long and when the policy was taken out in 1944	 it was really for the benefit of the present appellant	 who soon after took an assignment 588 on payment of the premium already paid by Mahajan Deolal and such arrears of premium as were then outstanding. It is unnecessary for us to give our decision on these contentions; because if Mahajan Deolal was himself guilty of a fraudulent suppression of material facts on which the respondent company was discharged from performing its part of the contract	 the appellant who holds an assignment of the policy cannot stand on a better footing than Mahajan Deolal himself. It was argued before us that is the policy was valid in its inception	 that is to say	 if it was in fact effected for the use and benefit of Mahajan Deolal	 who undoubtedly had an insurable interest in his own life	 it could not afterwards be invalidated by assignment to a person who had no interest but who merely took it as a speculation. Our attention was drawn to several decisions on this question	 American and English	 noticed in para 502 of MacGillivray on Insurance law (fourth Edition). We consider it unnecessary to examine those decisions or to go into the question posed therein. That question must be left to be determined in a case where it properly arises. As we have stated earlier	 on our conclusion on the first question	 the appellant is clearly out of Court and can not claim the benefit of a contract which had been entered into as a result of a fraudulent suppression of material facts by Mahajan Deolal. This brings us to the last question	 namely	 whether the appellant is entitled to a refund of the money he had paid to the respondent company. Here again one of the terms of the policy was that all moneys that had been paid in consequence of the policy would belong to the company if the policy was vitiated by reason of a fraudulent suppression of material facts by the insured. We agree with the High Court that where the contract is bad on the ground of fraud	 the party who has been guilty of fraud or a person who claims under him can not 589 ask for a refund of the money paid. It is a well established principal that courts will not entertain an action for money had and received	 where	 in order to succeed	 the plaintiff has to prove his own fraud. We are further in agreement with the High Court that in cases in which there is stipulation that by reason of a breach of warranty by one of the parties to the contract	 the other party shall be discharged from the performance of his part of the contract	 neither section 65 nor section 64 of the has any application. For the reasons given above we have come to the conclusion that there in no merit in the appeal. The appeal is accordingly dismissed with costs. Appeal dismissed.

In 1942	 one M sent a proposal for the insurance of his life. He was examined by Dr. D who submitted two reports	 one with the proposal form and one confidential. The confidential report showed that M was anaemic	 had a dilated heart and his right lung showed indications of an old attack of pneumonia or pleurisy and that he was a total physical wreck. Nothing came out of this proposal and it lapsed. In 1943	 M consulted and was treated by one Dr. L for anaemia oedema of the feet	 diarrhoea and panting on exertion. In 1944	 M made a second proposal for insurance of his life. Against the question in the proposal form whether he had consulted any medical man for any ailment within the last five years	 he gave the answer	 "Nor '. He also did not disclose any of his ailments. After medical examination by one Dr. K the proposal was accepted and a policy for Rs. 25	000/ was issued on March 13	 1945. The policy lapsed for non payment of premium but was revived in July	 1946. In November	 1946	 M died. His assignee	 the appellant	 made a demand for Rs. 26	000/ but the Company on October 10	 1947	 repudiated it on the ground that the policy had been obtained by deliberate mis statement and fraudulent suppression of material facts. Thereupon	 the appellant filed a suit to recover the amount of the policy contending that section 45 Insurance Act	 barred the company from calling in question the policy after two years on the ground that any statement made in the proposal was inaccurate or false. ^ Held	 that the policy holder was guilty of fraudulent suppression of material facts relating to his health and the Company was entitled to avoid the contract. Section 45 Insurance Act applied to the case as two years had lapsed since the policy was effected; in view of the language of s.45 the two years could not be counted from the date of the revival of the policy. The second part of section 45 entitled the company to repudiate the contract even after the expiry 572 of two years if three conditions were fulfilled viz. (a) the statement was on a material matter or there was suppression of facts which it was material to disclose; (b) the suppression was fraudulently made by the policy holder	 and (c) the policy holder must have known at the time of the making of the statement that it was false or that it suppressed facts which it was material to disclose. When M was treated in 1943 by Dr. L he was suffering from serious ailments. He must have known that it was material to disclose this but made a false statement that he had not been treated by any doctor for any serious ailment. There was deliberate suppression fraudulently made by M. Even though the Company had got M examined by four doctors before issuing the policy	 it was not estopped from questioning the policy. It had no means of knowing that M had been treated by Dr. L for serious ailments. Held	 further	 that the appellant was not entitled even to a refund of the money paid as premium as one of the terms of the policy was that all monies paid belonged to the company if the policy was vitiated by fraudulent suppression of material facts. To such a contract neither section 65 nor section 64 of the Indian Contract had any application.