Life Insurance Corporation Of India vs Debabrata Ray
2026 Latest Caselaw 923 Cal/2

Calcutta High Court

Life Insurance Corporation Of India vs Debabrata Ray on 13 February, 2026

Author: Sugato Majumdar

Bench: Sugato Majumdar

                                                                                     2026:CHC-OS:57
                       IN THE HIGH COURT AT CALCUTTA
                    ORDINARY ORIGINAL CIVIL JURISDICTION
                                  ORIGINAL SIDE
Present:
The Hon'ble Justice Sugato Majumdar

                                       CS/203/2016

                    LIFE INSURANCE CORPORATION OF INDIA
                                    VS
                               DEBABRATA RAY


For the Plaintiff                  :       Mr. Abhimanyu Shandilya, Adv.
                                           Mr. Biyas Banerjee, Adv.
                                           Mr. Gourab Das, Adv.

Hearing concluded on               :       09.02.2026

Judgment on                        :       13.02.2026


Sugato Majumdar, J.:

The instant suit was filed by the Plaintiff, praying for recovery of money.

The Plaintiff is a statutory body carrying on insurance and allied service

related business. The Defendant was appointed as an Assistant on 11/09/1996 and

subsequently the Defendant was promoted to the post of Assistant Administrative

Officer on 23/09/2006. In course of employment, the Defendant was posted as

Assistant Branch Manager (Sales) at City Branch Office-19, from 02/12/2008 to

27/05/2013. On 10/08/2013, the officers of the Plaintiff company came to know that

there was a big debit amount appearing against an account code 113811-00 (refund of

first premium account). A preliminary enquiry was conducted on 11/08/2013

followed by a final enquiry on 19/08/2013. It was discovered that the Defendant had

committed fraud involving insurance policies causing illegal outflow of the Plaintiff's

money. Particulars of fraud are given in the plaint. The amount of fraud, as on

08/08/2016 was Rs.3,63,90,494.60/-. The Plaintiff made complaint to the Central Page |2

2026:CHC-OS:57 Bureau of Investigation and an enquiry was conducted. This apart, a disciplinary

proceeding had also been initiated. The fraud was discovered for the first time on

10/08/2013. Accordingly, the Plaintiff instituted the suit, praying for recovery of a

sum of Rs.3,63,90,494.60/- along with interest.

Writ of summons was served but the suit remain undefended as the

Defendant did not contest the matter.

The Plaintiff's witness deposed and produced documentary evidences.

The documentary evidences includes report of CBI, Internal Enquiry

Committee report, complain of the policy holders against the Defendant, final order

of the disciplinary committee and others.

Unchallenged testimony of the Plaintiff, both documentary and oral,

established the plaint case. This Court also noted that the fact of fraud came to the

notice of the Plaintiff on 10th August, 2013 and the suit was filed on 8th August, 2016,

within period of limitation.

In nutshell, the instant suit is allowed.

The Plaintiff do get a money decree for a sum of Rs.3,63,90,494.60/- with

interest at rate of 12% per annum from the date of institution of the suit till recovery.

The Defendant shall pay the amount within 2 months of drawing of the decree, in

case of default of which, he will be liable to pay additional interest of 5% per annum

on principal and capitalized interest from the date of default.

Let the decree be drawn up.

The instant suit stands disposed of.

(Sugato Majumdar, J.)