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2010 (5) TMI 397 - HC - Companies LawCircular No. Mktg/CRM/558/23, dated 24-4-2006 which came into force with effect from 1-5-2007 challenged Held that:- It is material to note that while the assignment is charged, re-assignment is not charged with such service charges because by re-assignment, original policyholder will be entitled to all the benefits of the insurance policy and will also be entitled to share in the profits or surplus of the respondent No. 1. Therefore, in our considered opinion, not only there has been intelligible differentia, but also there is a rational relationship with the object to be achieved by the impugned Circula. The impugned Circular charges a service charge/fee, without there being a power to charge a fee, the impugned Circular on that count has to be held illegal and unconstitutional as it violates articles 19(1)(g) and 300A and to that extent, the petition has to be allowed. On behalf of the respondents, the learned counsel prays for stay. Considering that we have held that the fee is ultra vires the Act, it is not possible to grant stay. Hence, the stay is rejected.
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