NATIONAL INSURANCE COMPANY LTD Vs. RAJENDRA MOURYA

JUDGEMENT

(1.) HEARD.

(2.) THE short question, which arises for determination in this appeal by the insurance company, is whether in view of the cancellation of the insurance policy prior to the date of accident upon the cheque for payment of premium issued by the insured having been dishonoured the IVth Additional motor Accidents Claims Tribunal, Bilaspur (hereinafter referred to as 'the MACT) was justified in passing an award against the insurance company for payment of compensation while giving it the right to recover the same from the insured.

(3.) IT is not in dispute in this appeal that on 13-6-2005, the claimant, while going towards his house on a Luna, was dashed by the Bus and suffered grievous injuries. In claim Case No. 15/2006, vide award dated 23-9-2006, the MACT awarded compensation of Rs. 58,381/- against the appellant/ insurer. The offending vehicle, i. e. , Bus No. CG 10 A/4900 (hereinafter referred to as 'the bus) was driven by respondent No. 2, who was also the registered owner thereof. A policy of insurance was issued on 17-1 -2005 by the appellant/insurer covering liability to third parties which was to expire on 16-1 -2006. Upon dishonour of the cheque dated 17-1-2005 issued by the insured towards premium, the appellant/insurance company had cancelled the policy on 24-1-2005. The quantum of compensation awarded by the mact is also not in question in this appeal.