1971 (10) TMI 111

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....nd to execute the decree by attachment of the amounts payable to them as nominees under the aforesaid policies. The court below rejected the application. Hence this revision. 2. In the policy of 1945 Dwarka Prasad nominated Mata Prasad and Vishwanath Prasad as his nominees on July 11, 1951. It was made on the back of the policy. The company registered it on July 25, 1951. The nomination is made materially in these words: "I ...... nominate ...... to be the persons to whom the moneys secured by the policy shall be paid in the event of my death." 3. In the policy of 1951 the nomination was made on the date the policy was effected. The nomination is expressed materially in these words: "Names of nominees Mata Prasad and Vishwanath Prasad....

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....The contract together with the benefit arising under it forms part of his assets. On his becoming an insolvent it will vest in the Receiver appointed by the Insolvency Court. So the contracts vouched by the two policies formed part of the assets of Dwarka Prasad during his life. Section 38 also shows that the policies were his property. We have now to see whether the contracts together with the benefit arising under it formed part of the estate of Dwarka Prasad at the moment of his death, notwithstanding the nomination in favour of Mata Prasad and Vishwanath Prasad. 8. Section 38 deals with the assignment of policies. The assured may assign, with or without consideration, his policy to anyone. Assignment operates as a transfer inter vivo....

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....son whose life is insured, the amount secured by the policy shall be payable to such survivor or survivors". 10. Let us analyse these provisions now. The expression 'in the event of his death' in Sub-section (1) shows that the policy-holder continues to hold interest in the policy till the moment of his death. If the policy matures for payment in his life time, the benefit arising thereunder shall be his, and not that of his nominee. 11. Sub-section (2) enables the assured to cancel or change or re-change the nomination. So if he has nominated by endorsement a person named X, he may cancel the nomination, or nominate Y. The power of cancelling or changing the nomination shows that nomination does not pass the interest of the a....

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....es not get a title to the money secured by the policy. 15. The result of our survey of the material provisions is: 1. The policy-holder continues to hold interest in the policy till the moment of his death. 2. The nominee under Section 39 acquires no interest in the policy in the lifetime of the policy-holder. 3. The benefit secured by the policy forms part of the estate of the deceased policy-holder. As it is part of his estate, his creditors can realise their loans from the money paid to the nominee. He will be the legal representative of the deceased policy-holder. 16. Our opinion is supported by Amar Das v. Dadu Dayalu Mahasahha, AIR 1953 All 721: Smt. Shanti Devi v. Ramlal. AIR 1958 All 569; Ram Ballav v. Gangadhar, A....