ORIENTAL INSURANCE CO LTD Vs. BALWANT SINGH NEGI

JUDGEMENT

(1.) The question for determination in the Appeal is whether the Oriental Insurance Company Limited had cancelled the policy on account of dishonour of the cheque and therefore could avoid the liability to pay the compensation.

(2.) A compensation of Rs. 1,93,000/- was awarded by a judgment dated 23.12.2009 for the death of a young boy Narain Singh, aged 16 years in an accident which took place on 25.01.1996. The Tribunal while holding that the driver and the owner of the truck number DNG 0515 are liable to pay the compensation which is to be indemnified by the Appellant, rejected the Appellant's contention that the Insurance policy had been cancelled on account of dishonour of the cheque. The Appellant was fastened with the liability to pay the compensation. The conclusion reached by the Tribunal while making the Appellant liable is extracted hereunder:-

(3.) First of all, let me notice some admitted facts. The accident which resulted in fatal injuries to Narain Singh was caused on 25.01.1996. The Insurance policy which was issued by the Appellant by cover note number 496272 was valid for the period 04.10.1995 to 03.10.1996. A petition bearing Suit No.313/1997 was dismissed for non prosecution, by order dated 15.01.1998 passed by the Tribunal. The Second Claim Petition bearing number 169/1998 was dismissed for non prosecution by order dated 23.04.2002. The plea with regard to non maintainability of the third Petition was raised before the Tribunal when the third Petition being Suit No.391/2002 (new number 155/2008) was filed. The said contention came to be rejected by the Tribunal by order dated 21.04.2007.