LIFE INSURANCE CORPORATION OF INDIA & ANR. vs GANGADHAR VISHWANATH RANADE (DEAD) BY LRS.

The Supreme Court addressed the liability of the Life Insurance Corporation (LIC) under Section 226(3) and Section 281 of the Income Tax Act, 1961, concerning the assignment of insurance policies. The Court held that the LIC was liable to pay interest to the assignee, Smt. Kamalabai G. Ranade, due to inordinate delay in fulfilling its statutory obligation to make a statement on oath before the Income Tax Officer (ITO). The Court emphasized that the delay in payment constituted a breach of duty by the LIC, thereby entitling the assignee to interest.