1. Present appeal has been filed by the appellant- Insurance Company against the judgment and order dated 21.7.2004 passed by the Motor Accident Claims Tribunal (Main) at Rajkor in M.A.C.P. No.134 of 1993, awarding compensation of Rs.30,280/- to the claimant.
2. Facts, in nutshell, are as under:-
2.1. Respondent No.1 Limbahhai Jadavbhai, on 11.1.1993 at about 8.p.m. Was proceeding on a road with his bullock cart near village Halendra and at that time, driver of the Ambassador car No.GJ 4T 2707 came driving his vehicle in fast speed, rashly and negligently from behind and dashed with his bullock cart, as a result of which, accident took place, he sustaibed injuries on his body on his leg, knee, thigh, fracture was caused and his bulock cart sustained several damages, he suffered great mental pain, shock and sufferings, huge amounts were spent for medicine, treatment, attendance, rich died, transportation, etc., he could not work and earn for long time, and he suffered permanent disability. Respondent No.1 filed claim petition before the Claims Tribunal and claimed compensation of Rs.1,38,500/- from the appellant and respondent No.2 herein jointly and severally.
2.2. The Claims Tribunal partly allowed the said claim petition by judgment and order dated 21.7.2004 and awarded compensation of Rs.30,280- to the claimant- respondent No.1 herein.
3. The appellant- Insurance Company, therefore, preferred the present First Appeal before this Court, on the ground that no policy of the insurance was in existence when the accident took place since the cheque issued by the insured towards insurance of his car dated 21.10.1992 was dishonoured and no fresh cheque or cash has been paid to the Insurance Company.
4. Heard Learned advocate for the appellant Insurance Company.
5. In the case of United India Insurance Co. Ltd. Vs. Laxmamma and Ors., reported in 2012(4) SCALE 409, wherein it has been held by the Apex Court as under in para 19 and 20.
“19. In our view, the legal position is this : where the policy of insurance is issued by an authorized insurer on receipt of cheque towards payment of premium and such cheque is returned dishonoured, the liability of authorized insurer to indemnify third parties in respect of the liability which that policy covered subsists and it has to satisfy award of compensation by reason of the provisions of Section 147(5) and 149(1) of the M.V. Act unless the policy of insurance is cancelled by the authorized insurer and intimation of such cancellation has reached the insured before the accident. In other words, where the policy of insurance is issued by an authorized insurer to cover a vehicle on receipt of the cheque paid towards premium and the cheque gets dishonored and before the accident of the vehicle occurs, such insurance company cancels the policy of insurance and sends intimation thereof to the owner, the insurance company's liability to indemnify the third parties which that policy covered ceases and the insurance company is not liable to satisfy awards of compensation in respect thereof.
20. Having regard to the above legal position, insofar as facts of the present case are concerned, the owner of the bus obtained policy of insurance from the insurer for the period April 16, 2004 to April 15, 2005 for which premium was paid through cheque on April 14, 2004. The accident occurred on May 11, 2004. It was only thereafter that the insurer cancelled the insurance policy by communication dated May 13, 2004 on the ground of dishonour of cheque which was received by the owner of the vehicle on May 21, 2004. The cancellation of policy having been done by the insurer after the accident, the insurer became liable to satisfy award of compensation passed in favour of the claimants.”
6. In view of the aforesaid decision of the Apex Court, as the cancellation of policy was done by the insurance on 17.11.1992, that is much prior to the date of the accident, the insurer cannot be made liable to satisfy the award of compensation passed in favour of the claimant.
7. In view of the aforesaid discussion, the Insurance Company is exonerated from satisfying the award. However, if any amount is deposited by the Insurance Company, it is at liberty to recover the same from the insured. Appeal is allowed. No order as to costs.
[ K. S. JHAVERI, J. ] vijay