NATIONAL INSURANCE COMPANY LTD Vs. RESHMI

JUDGEMENT

(1.) The Appellant National Insurance Company Limited impugns the judgment dated 03.04.2010 whereby a Claim Petition under Section 166 of the Motor Vehicles Act (the Act) preferred by the First Respondent (Ms. Reshmi), for having suffered injuries in an accident which took place on 17.07.2004, was allowed and she was granted a compensation of Rs. 87,178/-.

(2.) The defence raised by the Appellant National Insurance Company is that the policy had been cancelled due to which it was not liable to indemnify the insured, was rejected by the Tribunal relying on a judgment of the Himachal Pradesh High Court in United India Insurance Company Limited v. Sandhya Devi & Ors., 2009 ACJ 1867, which in turn relied on Daddappa & Ors. v. Branch Manager, National Insurance Company Limited, 2008 2 SCC 595; National Insurance Company Limited v. Seema Malhotra & Ors., 2001 3 SCC 151; New India Assurance Company Limited v. Rula, 2000 3 SCC 195 and Oriental Insurance Company Limited v. Inderjit Kaur, 1998 1 SCC 371.

(3.) Certain facts are not in dispute. The offending vehicle i.e. bus number DL-1PA-1453 was owned by Roshni Devi (Respondent No.3 herein) and the same was sold to Amit Gupta (Respondent No.4 herein) on 17.01.2004 and was transferred in his name on 17.06.2004. Respondent Amit Gupta also admitted that the vehicle was purchased by him on 17.06.2004. Although, Roshni Devi, the first owner and Amit Gupta, the subsequent owner (on the date of the accident) appeared during the inquiry before the Tribunal and filed their respective defenses but subsequently, they absented and were ordered by the Tribunal to be proceeded ex-parte by order dated 16.07.2008. The first and the subsequent owner i.e. Third and Fourth Respondent have preferred not to contest this Appeal also.