LIFE INSURANCE CORPORATION OF INDIA vs RAJMATA SAHEB CHOWHANJI & ORS.

The Supreme Court held that under Section 7(2) of the Life Insurance Corporation Act, 1956, the appellant is liable for all debts and obligations of the Adarsh Bima Company, including the obligation to restitute Rs. 2 lakhs to the plaintiff under Section 65 of the Contract Act due to fraud and misrepresentation. The Court clarified that the ultra vires nature of the managing director's actions does not exempt the company from liability. The plaintiff is entitled to restitution without interest until the date of the suit, but interest at 6% per annum is awarded from the date of the suit until payment.