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of <h1>Interpretation of Nominee Rights under Insurance Policy: Heirs entitled under Hindu Succession Act</h1> <h3>Malli Dei and Anr. Versus Kanchan Prava Dei</h3> The High Court of Orissa interpreted that a nominee under an insurance policy acts as a trustee for all heirs, not the exclusive owner of the amount. The ... - Issues:1. Interpretation of Section 39(6) of the Insurance Act, 1938 regarding nominee's rights.2. Entitlement of heirs under Section 8 of the Hindu Succession Act, 1956 to the insurance policy amount.3. Consideration of interim injunction against the nominee.4. Safeguarding plaintiffs' interest in the insurance policy amount.5. Direction for the trial court to dispose of the suit within a specified timeframe.Analysis:The judgment by the High Court of Orissa dealt with various crucial issues arising from a dispute over an insurance policy amount following the death of an individual. The primary contention revolved around the interpretation of Section 39(6) of the Insurance Act, 1938. The court held that a nominee under an insurance policy does not acquire exclusive title to the amount but is a trustee on behalf of all heirs, including themselves. This interpretation was supported by a Full Bench decision of the Allahabad High Court, emphasizing that the nominee's role is to receive the amount, not to claim sole ownership.Furthermore, the court considered the entitlement of heirs under the Hindu Succession Act, 1956. It was established that the mother, widow, and sons of the deceased were simultaneous heirs in class I, entitling them to a share of the insurance policy amount. The plaintiffs were deemed entitled to a 2/5ths share of the sum, acknowledging the rights of all eligible heirs.Regarding the request for an interim injunction against the nominee, the court upheld the decisions of the lower courts in denying the injunction. Granting such relief would have contradicted the provisions of Section 39 of the Act, as the amount was rightfully payable to the nominee. The court emphasized that injunctions should not impede statutory provisions and deemed the initial injunction request as misconceived.In ensuring the protection of the plaintiffs' interest in their entitled share of the insurance policy amount, the court directed the trial court to require the defendant to provide security equal to 2/5ths of the sum. This measure aimed to safeguard the plaintiffs' rights without prolonging the litigation unnecessarily. Additionally, the trial court was instructed to expedite the suit's resolution within three months, with a mandate to inform the High Court of the outcome.Ultimately, the Civil Revision was dismissed, subject to the directive for the defendant to furnish security as specified, after which she could receive the amount. No costs were awarded in this matter. The judgment underscored the importance of upholding legal provisions, protecting heirs' entitlements, and ensuring a swift resolution of the dispute.
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