LIFE INSURANCE CORPORATION OF INDIA vs S. V. OAK AND ANOTHER

The Supreme Court held that under Section 9 of the Life Insurance Corporation Act, 1956, the contractual liabilities of a mutual life assurance company were transferred to the Life Insurance Corporation upon its takeover, despite the company's insolvency at the time. The Court clarified that the absence of a surplus on the date of vesting did not negate the existence of the contracts, which remained effective until the condition regarding actuarial surplus was fulfilled. The appeal was dismissed, affirming the High Court's decision that the surplus was available for the repayment of deposits to the respondents.