Court No. - 24
Case :- FIRST APPEAL FROM ORDER No. - 940 of 2001 Appellant :- The Branch Manager, Oriental Insurance Co. Ltd., Hathras Respondent :- Smt. Birma Devi And Others Counsel for Appellant :- Manish Goyal Counsel for Respondent :- B.P.Verma
Hon'ble Saral Srivastava,J.
Heard Sri Manish Goyal, learned counsel for the appellant and Sri B.P. Verma, learned counsel for the respondents.
The insurance company has preferred the present appeal challenging the judgment and award dated 03.04.2001 passed by Motor Accident Claims Tribunal /Additional District Judge, Court No. 2 Mathura, whereby the Tribunal has awarded Rs.3,24,000/- along-with 9% interest as compensation to the respondents/claimants no. 1 to 5.
The claim petition was instituted by claimants-respondents no.
1 to 5 for the death of one Hakim Singh, who died in an accident on 30.05.1992 with Bus No. DEP 5601.
The counsel for the appellant has assailed the judgment of the court below; only on one issue, i.e., issue no. 2 whether the insurance company, which has issued a cover note and insurance policy before the date of accident, is liable to pay compensation due to motor accident to the third party, even if no premium has been paid by the owner to the insurance company.
Learned counsel for the appellant has contended that in the instant case the accident had taken place on 30.05.1992. The cover note was issued with regard to Bus No. DEP 5601 on 3.3.1992 on the payment of premium by owner through cheque no. 622484 on 3.3.1992. The cheque was dishonoured and the bank informed about the dishonour of cheque to the owner of bus namely Islam on 10.4.1992. The insurance company on 23.04.1992 by registered post informed the owner with regard to cancellation of policy of the offending Bus due to dishonour of cheque.
Thus, the submission of the counsel for the appellant is that since the intimation with regard to cancellation of the policy was given to the owner of the bus prior to the date of the accident and, as the policy was cancelled, there was no insurance of the bus on the date of the alleged accident, hence, the appellant is not liable to pay any compensation.
The Tribunal while recording the finding that though the cheque was dishonoured and due intimation with regard to cancellation of the policy to the owner of the bus was given the appellant insurance company was liable to pay compensation, inasmuch as, a cover note as well as valid insurance policy with regard to bus was issued and third party could not suffer for a breach of policy committed by the owner of bus. However, the Tribunal was of the view that the insurance company can recover the amount from the owner of the bus after paying the awarded amount to the claimants. The Tribunal in this regard, has placed reliance upon the various judgments of the apex court and particularly the judgment of the apex court in the case of Oriental Insurance Company Vs. Inderjit Kaur and others (1998) 1 SCC 371, wherein the apex court has held that by reasons of Section 147(5) and 149 (1) of the M.V. Act, the insurance company was liable to indemnify the third party in respect to the liability which that policy covered and to satisfy awards of compensation in respect thereof notwithstanding the cancellation of the policy for the reason that the cheque issued for payment of the premium had not been honoured.
In the opinion of the Court, the Tribunal after appreciating the correct legal position has held the liability of the insurance company to pay compensation. The Tribunal has further allowed the appellant to recover the amount from the owner of the bus, after paying the compensation to the claimants. Since, the finding of the Tribunal on the issue of liability of the insurance company is based on proper appreciation of law upon the judgment of the apex court, this Court affirms the finding of the court below on issue no. 2 regarding the liability of the insurance company to pay compensation and recover it from the owner of the bus after satisfying the award.
Thus, for the reasons given above, the appeal lacks merit and is dismissed.
Order Date :- 13.9.2018 Ishan