In an attempt to challenge the validity of a notification issued by the Ministry of Finance, a Writ Petition has been filed before the Delhi High Court praying for declaring insurance and banking as two separate businesses. The Petitioner, Mr. Titus Abraham, has filed the Writ Petition before the Hon’ble Delhi High Court challenging the August 3, 2000 notification under Section 6(1)(o) of the Banking Regulation Act, 1949 which justifying ‘insurance as a form of business in which it is lawful for a banking company to engage.’ The Petition also states that the Petitioner’s wife had secured a loan from a bank for purchasing her car and was also forced to take an insurance policy from the same bank itself. However, after her demise, the insurance claim was rejected.
Various questions of law have been highlighted in the Petition such as the excessive legislation on account of the 3rd August 2000 notification begin contrary to Section 2C of the Insurance Act, 1938 and whether the notification is opposing to public policy due to the element of ‘undue influence’, as per Section 16 of the Indian Contract Act 1872 on account of the fiduciary relationship between a bank and its customer. The Petition has sought the intervention of the High Court to adjudge the legality, validity and constitutionality of the notification on the grounds of violating citizen’s fundamental rights on various grounds.
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