Last month, the Bombay High Court had also refused to stay the Draft Red Herring Prospectus (DRHP) filed by LIC for the issuance of shares through its IPO.
The petitioners had contended that an allocation or reservation immediately gives every policyholder an estate in the surplus of the corporation.
“…every single existing policyholder from LIC has a direct, enforceable and realizable interest in surplus. That surplus is, therefore, the “property of” every policyholder and of all policyholders as a class”, the petition stated.
The Court was, however, not convinced that policyholders could have an enforceable estate in the surplus of LIC fund.
Source: Barandbench
