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of <h1>Delhi HC sets aside partition order, remands insurance policy dispute for fresh consideration under amended Section 39</h1> <h3>Shweta Singh Huria and Ors. Versus Santosh Huria and Ors.</h3> Shweta Singh Huria and Ors. Versus Santosh Huria and Ors. - TMI Issues Involved:1. Maintainability of the suit.2. Applicability of the Insurance Laws (Amendment) Act, 2015.3. Entitlement to insurance policy benefits.4. Calculation of the amount payable to the respondent.Issue-wise Detailed Analysis:1. Maintainability of the Suit:The appellants raised preliminary objections regarding the maintainability of the suit, citing the need for a succession certificate under Section 372 of the Indian Succession Act, 1925, for movable assets. They also questioned the pecuniary jurisdiction, court fee, and misjoinder of causes of action.2. Applicability of the Insurance Laws (Amendment) Act, 2015:The appellants contended that the Life Insurance Policies were governed by the Insurance Act, 1938, as amended by the Insurance Laws (Amendment) Act, 2015. They argued that under the amended Section 39(7), the nominee (Appellant No. 1) would have a beneficial interest in the insurance amount, to the exclusion of other legal heirs.3. Entitlement to Insurance Policy Benefits:The respondent (mother of the deceased) claimed a 1/4th share in the insurance benefits as a Class-I legal heir, arguing that mere nomination does not confer absolute rights to the nominee. The Trial Court, based on the unamended Section 39 and the precedent set by the Supreme Court in Sarbati Devi vs. Usha Devi (1984) 1 SCC 424, held that the nominee does not have a beneficial interest and is merely an authorized receiver. The Trial Court directed Appellant No. 1 to pay Rs. 54,14,077/- to the respondent.4. Calculation of the Amount Payable:The Trial Court calculated the amount payable to the respondent by dividing the total benefits (Rs. 3,12,56,311/-) into four shares and deducting Rs. 24,00,000/- already received by the respondent. However, the appellants argued that the Trial Court erroneously included benefits related to Provident Fund and medical reimbursements, which were not claimed in the application under Order XII Rule 6 CPC.Judgment Summary:The High Court allowed the appeal, setting aside the Trial Court's order dated 16.09.2020. The High Court noted that the Trial Court failed to consider the applicability of the 2015 Amendment to Section 39 of the Insurance Act, which was crucial as the policies matured post-amendment. The High Court remanded the matter back to the Trial Court for fresh consideration, directing it to address the legal issue of the 2015 Amendment and the respective claims of the parties.The High Court emphasized that the Trial Court should separately decide the claims related to other movable assets, excluding the insurance policies, and clarified that no opinion on the merits of the case was expressed. The appeal was disposed of along with the pending application, instructing the Trial Court to proceed uninfluenced by the High Court's observations.
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