NATIONAL INSURANCE CO. LTD,, CALCUTTA vs LIFE INSURANCE CORPORATION OF INDIA

The Supreme Court ruled on the compensation payable under the Life Insurance Corporation Act, 1956, specifically Section 16, which governs the vesting of life insurance businesses in the Corporation. The Court held that the Corporation's offer of compensation was justified as it adhered to the principles outlined in the First Schedule of the Act, emphasizing that compensation should reflect a true average of profits over specified years. The Tribunal's decision to relate the actuarial investigations to the corresponding periods was upheld, confirming the method of calculating compensation as valid and appropriate.