2013 (1) TMI 1019

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..... 8 of 2009 (V) - -
Indian Laws
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THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE 15-01-2013 FOR THE APPELLANT : BY ADV. SRI.RAJU K.MATHEWS FOR THE RESPONDNT : ADV. SRI.LAL GEORGE JUDGMENT The petitioner was a Life Insurance Corporation(LIC) agent who later on resigned with effect from 31/12/2008. The writ petition is filed since the subsequent commission on renewal premiums were not paid by .....

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..... to pay renewal commission under Section 44(1) arises only if all the conditions stipulated are complied and in terms of the Section 44(1) (c) of the Insurance Act, there is no obligation to pay the commission if the agent who was inclusively working for LIC for 10 years resigns and join a competitive company. In this regard it is contended that the above position is covered by the judgment of lea .....

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..... ments of commission: (1) Notwithstanding anything to the contrary contained in any contract between any person and an insurance agent providing for the forfeiture or stoppage of payment of renewal commission to such insurance agent, no such person shall, in respect of life insurance business transacted in India, refuse payment to an insurance agent of commission due to him on renewal premium und .....

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..... n any way effecting the fundamental rights of the person involved. 5. That apart under normal circumstances when an agency is terminated, the agent is not entitled for any future commission. But the statute by virtue of Section 44(1) of Act has recognised such a right. Therefore the restriction imposed by the statute by virtue of proviso (c) is only reasonable cannot termed as illegal. Hence the .....

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