TMI Blog1977 (4) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... not necessary to set out the facts in any great detail. One of the suits was brought in 1961 for recovery of a sum of about ₹ 17,000/-, after giving credit to the payments made by the defendants, due on a mortgage executed by the defendants in 1950 in favour of the Andhra Insurance Company of Masulipatnam. The other suit was filed in 1962 for recovery of about ₹ 45,555/- also due on a mortgage which was executed in 1952 by the defendants of this suit in favour of the Nagpur Pioneer Insurance Company Ltd., Bombay. Thus in both cases the loans were incurred long before the Corporation was established on September 1, 1956 under the Life Insurance Corporation Act, 1956. In both suits the mortgagors claimed that the debt should be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e). It is contended on behalf of the appellant that the debts in question in these cases would not therefore be affected by anything contained in the Madras Act. This contention was not accepted either by the trial court or the High Court who held that the debts were due originally not to the corporation but to the insurance whose life Insurance business was taken over by the corporation, and because of the genesis of the debts Section 4(e) of the Madras Act was not attracted. 3. It will be necessary at this stage to refer to certain provisions of the life Insurance Corporation Act, 1956. It is an Act to provide for the nationalisation of life insurance business in Indian by transferring all such business to a corporation established f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on says that if on the appointed day and suit, appeal or other legal proceeding was pending by or against an insurer relating to his life insurance business. It will be not prejudicially affected by reason of the transfer to the Corporation of the business of the insurer but may be continued by or against the corporation. 4. Mr. Samnath Iyer appearing for the appellants in both the appeals contends that Sub-section (1) of Section 9 creates a legal fiction that the contracts or instruments to which the insurer was a party shall be deemed to have been entered into or issued in favour of the co-operation. That being so, in argument proceeds, the debts in question should be taken as due to the corporation from the beginning, and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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