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ANNUAL REPORT 2011-12
In yet another case relating to repudiation of claim,
the court directed IRDA to look into the
representation of the policyholder.
SIGNIFICANT ORDERS / JUDGMENTS PASSED
DURING 2011-12
II.3.3 Writ Petition No. 11020/10 - LMB Insurance
Brokers Ltd. vs IRDA before the Kerala High Court
The subject petition has been fi led by the petitioner:
M/s LMB Insurance Brokers Ltd. before the Kerala
High Court inter alia challenging the IRDA (Insurance
Brokers) Regulations, 2002 as being illegal and void,
particularly Regulation 18 of the said Regulations
relating to levy of annual fee at 0.5 per cent of annual
turnover and Regulation 20 of the said Regulations
relating to ceiling on business of the broker from a
single client. On the basis of the above, the petitioner
had inter alia prayed for quashing of Regulations 18
and 20 of the said Regulations; had sought for a
direction to IRDA not to take any action against the
broker under these regulations; and had further prayed
for a direction to IRDA to change its license from direct
broking to composite broking license. The petitioner
had also made an interim prayer seeking directions to
pass an Order restraining IRDA from restricting on
percentage basis, the petitioner in doing business
activities with individual clients and clients without any
restrictions.
Judgment: Kerala High Court vide its Order dated 13 th
March, 2012 dismissed the writ petition as withdrawn.
II.3.4 SLP (C) No. 18317-18318 /2012- Heritage
Insurance Brokers (P) Ltd. Vs Ors. v. IRDA & Ors
before Supreme Court of India
IRDA vide its Order dated 22 nd September, 2011
refused grant of renewal of the license of M/s Heritage
Insurance Brokers Pvt. Ltd. (“Broker”) to act as a
Composite Broker on the ground of violation of
Regulation 23 of IRDA Brokers Regulation, 2002.
Thereafter, the Broker fi led a Writ Petition No. 17286
(W) of 2011 (formerly AST No.678 of 2011) before the
Calcutta High Court inter alia challenging the Order
dated 22 nd September, 2011 issued by IRDA as being
illegal, without jurisdiction, contrary to the Regulations,
in abuse of power and in violation of the principle of
natural justice.
Single Bench Order: The Learned Single Judge vide
its Order date 15 th December, 2011 while admitting the
above writ petition stayed the Order dated 22 nd
September, 2011 of IRDA refusing the renewal of
broker license to the Broker. Against the Order dated
15 th December, 2011 of Single Judge, IRDA preferred
an appeal before the Division Bench of Calcutta High
Court in MAT No. 124/2012.
Division Bench Order: The Division Bench while
disposing of the appeal vide its Order dated 17 th May,
2012 allowed the appeal of IRDA and vacated the stay
Order dated 15 th December, 2011 in W. P. No.
17286(W)/11, thus making the IRDA Order operative.
Supreme Court Order: The Supreme Court while
observing that the power of licensing of Insurance
Broker rests solely with IRDA and vide its Order dated
6 th July, 2012 disposed of the above petition with a
direction that W.P. No. 5828(W) of 2011 and W.P. No.
17286(W) of 2011 fi led by Heritage Insurance Brokers
against IRDA in Calcutta High Court shall be treated
dismissed, directed the Competent Authority of IRDA
empowered to hear, shall hear the petitioners on the
application dated 31 st December, 2008 made by them
for renewal of license and then pass fresh Order .
II.3.5 CIVIL SUIT (CCC) NO. 695 OF 2011-Iqbal
Hussein Tadha vs K V Krishnan, IRDA & Ors. before
City Civil Court Ahmadabad
The above suit was fi led by the petitioner against the
result of 4 th Council election of Indian Institute of
Insurance Surveyors & Loss Assessors (IIISLA). While
fi ling the suit, the petitioner asked for the relief by way
of an ad-interim injunction to restrain the Council,
created as a result of the impugned 4 th Council
elections, from taking charge from the present councils
whereof the present plaintiff is as on date the Acting
President until final hearing and disposal of the present
suit. In the above suit, IRDA has also filed an injunction
asking relief to restrain the plaintiff from carrying on
any correspondence in the name of President of
“IIISLA” and to direct the plaintiff to hand over all the
records, documents and accounts relating to and
connected directly or indirectly with “IIISLA” and its
functioning, which are in his custody and possession.
Order : Court vide its Order dated 12 th March, 2012
observed that it appears that “IRDA” being a regulatory
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