MITHOOLAL NAYAK vs LIFE INSURANCE CORPORATION OF INDIA

The Supreme Court held that under Section 45 of the Insurance Act, 1938, an insurance company can repudiate a policy if it was obtained through fraudulent suppression of material facts. The court found that the policyholder had deliberately misrepresented his health status, which constituted a breach of the duty to disclose material information. Consequently, the court ruled that the insurance company was entitled to avoid the contract and the appellant was not entitled to a refund of premiums paid, as the policy was vitiated by fraud under Sections 64 and 65 of the Indian Contract Act, 1872.