• Bombay High Court Settles LIC Policy Dispute
Unmesh Gujarathi
Sprouts News Exclusive
In a significant legal development, the Bombay High Court, on February 5th, resolved a dispute between petitioner Cyrus Ramyar Sukheswala and the Life Insurance Corporation of India (LIC), along with the Ministry of Finance. The matter, initially filed as Writ Petition (9039-2022), involved issues surrounding an LIC policy, its assignment, and the consequent financial disagreements between the petitioner and the corporation.
The case had been pending for some time, and during the previous hearing on January 21st, 2025, the Court had granted a request from LIC’s counsel, Asim Vidyarthi, to reconsider the issues involved in the case. The Court then allowed the parties to come together for a resolution based on the peculiar facts surrounding the case.
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During the latest hearing on February 5th, the Court was informed that a settlement had been reached. The petitioner, Cyrus Sukheswala, will receive a full and final settlement amount of Rs. 3,50,000 from LIC. This sum will be paid to the petitioner once he provides the necessary bank account details to LIC’s counsel, who is expected to process the payment within two weeks of receiving these details.
The Court, having heard both parties and been apprised of the settlement, noted that further adjudication of the matter was unnecessary. As a result, the petition was disposed of, and no costs were awarded.
This settlement brings an end to the legal battle over the life insurance policy, which had seen numerous exchanges of letters and reminders between the petitioner and LIC. The dispute dates back several years, with Sukheswala presenting various documents to the Court, including policy details, assignment records, and correspondence with LIC.
The case highlights the importance of resolving such matters in a timely manner, without prolonged litigation. The Court’s intervention in facilitating a settlement was seen as a step toward ensuring that the rights of individuals are respected and that they receive the benefits to which they are entitled.
The parties involved, including legal representatives ( Adv. Hare Krishna Mishra for petitioner and so also Vidyarthi for LIC) from both sides expressed satisfaction with the resolution, marking a peaceful end to what had been a lengthy legal process.
As per the Court’s direction, LIC is now expected to complete the necessary formalities and ensure that the agreed sum is transferred to the petitioner within the next two weeks. This development is seen as a positive outcome for both parties, resolving the matter without further legal complexities.
The case also serves as a reminder of the importance of resolving financial disputes in a fair and efficient manner, with both parties benefiting from an amicable settlement.
LIC had initially disputed the Maturity Sum Assured as stated in the Policy Document. However, on January 21st, 2025, after hearing both parties at length, the Division Bench of the Hon’ble High Court of Bombay (Justice G.S. Kulkarni and Justice Advait Sethna) passed an order in favor of the petitioner. Following this, LIC requested the Court to allow them to make an effort to resolve the dispute. Consequently, on February 5th, 2025, the dispute over the Maturity Sum Assured was resolved, and LIC settled the case after the intervention of the Hon’ble High Court.
This resolution brings an end to the suffering of Mr. Cyrus Sukheswala, who had been affected by the dispute over the maturity sum assured from the sale of his LIC Jeevan Saral Policy, along with the profits under Plan No. 165.
