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CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework in Insurance

A suit against the Interim Insurance Regulatory Authority was pending before the appointed day, and a second dispute against it had arisen but no suit had yet been filed. How does Section 13 of the IRDA Act, 1999 treat these?

Both survive. Legal proceedings instituted, or which could have been instituted, by or against the interim authority immediately before the appointed day may be continued or instituted by or against the Authority, so the pending suit continues and the new claim can be filed.

  1. ABoth the pending suit and the potential claim lapse on the appointed day
  2. BOnly the pending suit continues; a fresh dispute cannot be brought against the Authority
  3. CThe pending suit may be continued, and the second proceeding may be instituted, by or against the AuthorityCorrect
  4. DBoth proceedings must be transferred to the Central Government

Explanation

Clause (d) says suits and legal proceedings instituted, or which could have been instituted, by or against the interim body immediately before the appointed day may be continued or instituted by or against the Authority. This covers both the pending suit and the not-yet-filed claim.

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