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TMI Blog1952 (2) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... Soro, in the district of Balasore, on 5-1-1939, by a doctor employed by the company. After the medical examination, the organiser told the deceased that the doctor had found his life to be first class, and that if he submitted the proposal form and deposited the half-yearly premium without delay, the company would, accept his life for insurance and would issue a policy promptly. Plaintiff 1 and the deceased again went to Soro, in the afternoon, of 6-1-1939, and on that date it was settled that the insurance would be for the sum of Bs. 10,000 on an endowment policy of 21 years, the half-yearly premium payable being ₹ 295-10-0. The proposal form was filled in, was signed by the deceased and made over to the organiser with a cheque for ₹ 295-10-0, drawn on the Central Bank of India in favour of the company, being the sum payable for the half-yearly premium. The organiser gave a receipt for the cheque as being the half-yearly premium for a proposal of ₹ 10,000 with Hindusthan Co-operative Insurance Society Ltd., Calcutta, in advance. ( 3. ) It appears from the prospectus of the company that all premiums are payable at the head-office of the company in Calcutta; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gain told plaintiff 1 that his brother's life had been accepted. ( 5. ) On 1-2-1939, the deceased died of pneumonia. The plaintiffs as reversioners have claimed the sum of ₹ 10,000 for which sum a decree has been passed. From this decree, this appeal has been preferred. ' ( 6. ) The defendant company denied its liability and has refused to pay. The defendant's case before the learned Judge was that N. P. Das .was merely an organiser at Cuttack. The organisers canvass for policies and forward proposals to the head office for acceptance. They recruit agents and do such other work as the head office may direct. They furnish information which is considered to be necessary by the head office in order to come to a decision as to whether any proposal should be accepted or not. But the organiser cannot accept a proposal or any payment as premium. If anybody pays any money, he does so at his risk. The organiser merely forwards the money to the head office. In this case when the proposal and the cheque were received by the company, the money was credited to the proposer's suspense, account. If the proposal had been accepted the amount would have been adjusted agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nor the medical officer who examined the deceased, was called to give evidence. They had personal knowledge of the facts deposed to by plaintiff l. The learned Judge has accepted the evidence of plaintiff 1, observing that he gave evidence in a straight forward manner and that he was very much impressed by the demeanour of the witness. ( 9. ) In answer to a question put by the Court to the Advocate General, who appeared for the appellant as to why the organiser had not bees called, he said that the organiser was no longer in the employment of the company. Exit then no explanation has been given as to why a subpoena was not taken out and served on him. There is no satisfactory explanation as to why the medical officer or the agent was not called. It is to be observed that the organiser filed a written statement in which he denied that he had made any promise to the deceased to the effect that the proposal had been accepted by the defendant company, or that the policy would be issued soon or ever ''as alleged or at all. He denied that he gave any assurance that'the policy would be issued within a week or ten days, etc. etc. From his written statement, it is clear that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as really debated on a short point of law. That point is whether by reason of the cashing of the cheque on 18th January, the proposal can be said to have been accepted by the company. For if it was accepted, then the contract of insurance was made, and the letter of 31-1-1939, could not unmake the contract, which had already been made. The learned Advocate General in a concise argument before us said that a contract springs up from the acceptance of an offer and when the offer is accepted it becomes a promise; till the offer is accepted neither party is bound by the contract; but there cannot be an acceptance unless there is communication of the acceptance to the offerer. He referred to the relevant sections of the Contract Act. The statutory provisions in India on this point do not differ from the English Law. The English authorities, therefore, can safely be relied on. ( 14. ) In Anson's law of Contract the law is summarised thus : Acceptance means in general communicated acceptance. * * * * It must be something more than a mere mental assent. In an old case it was argued that where the produce of a field was offered to a man at a certain price if he was pleased with i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the person who mikes the offer may dispense with notice to himself if he thinks it desirable to do so, and I suppose there can be no doubt that where a person in an offer made by him to another person, expressly or impliedly intimates a particular mode of acceptance as sufficient to make the bargain binding, it is only nesessary for the other person to whom such offer is made to follow the indicated method of acceptance; and if the person making the offer, expressly or impliedly intimates in his offer that it will be sufficient to act on the proposal without communicating acceptance of it to himself, performance of the condition is a sufficient acceptance without notification. ( 17. ) In the same case, Lindley L. J. said '{p. 262) : Unquestionably, as a general proposition, when an offer is made, it is necessary in order to make a binding contract, not only that it should be accepted, but that the acceptance should be notified.....I apprehend that they are an exception to that rule, or, if not an exception, they are open to the observation that the notification of the acceptance need not precede the performance ... If notice of acceptance is required-which I doubt very ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The offerer in this case asked for an act on the condition of the offer becoming a promise, and that act was done by the company, namely, the cashing of the cheque. We have no doubt, therefore, that the company by cashing the cheque and appropriating the money accepted the proposal. No communication was necessary to be made to the assured to complete the acceptance. ( 20. ) The contract was made at the moment the money was appropriated. It was a completed contract. No subsequent communication by one of the parties could open the matter again. So the letter of 3lst January asking for a further report could not unmake the contract which had been made on the 18th by the appropriation of the money. Therefore, the company is liable to pay the insurance money. ( 21. ) This is the only point of law that has been argued in this appeal and no other. On a fall consideration of the evidence in the case and the law on the point, we are of the opinion that the learned trial Judge was right. His decree must therefore, be affirmed and the. appeal dismissed with costs. Certified for two counsel. Harries C.J. ( 22. ) I agree. The main contention advanced by the learned Advocate General o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in binding, it is only necessary for the other person to whom such offer is made to follow the indicated mode of acceptance; and if the person making the offer expressly or impliedly intimates in his offer that it will be sufficient to act on the proposal without communicating acceptance of it to himself, performance of the condition is a sufficient acceptance, without notification. ( 24. ) In the case before us I think it is clear from the facts that deceased indicated clearly the mode of acceptance of his proposal. It is true that no express words were used but such I think must be implied from what occurred. The deceased was examined by a medical' officer and on being told by the appellant's agent that the doctor had found him to be a first class life completed and signed a proposal form. The agent suggested that the deceased should draw a cheque in favour of the appellants for the first premium and the proposal form and cheque were handed to the agent for despatch to the appellant company. ( 25. ) It is clear from the prospectus of the company which the deceased admittedly saw that the agent had no power to bind the company or pledge their credit in any way. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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