NEW INDIA INSURANCE CO.LTD., MUMBAI Vs. KALICHAMY

JUDGEMENT

(1.) Challenging its liability to pay compensation to the claimants, the appellant insurance company has filed this appeal.

(2.) The only contention made by the learned counsel for the appellant is that the cheque issued by the 2nd respondent herein/owner of the offending vehicle towards premium, was dishonoured by the bankers on 04.12.2012 and the same was intimated to the 2nd respondent and also the Regional Transport Authority and to that effect, the relevant evidences and documents viz., RW1 (Company official), Exhibits R1 (policy), R2 (cheque), R3 (Bank return memo), R4 (notice sent to owner of the vehicle and RTO by RPAD) and R5 (Fresh Policy) have been submitted before the Tribunal. But the Tribunal failed to consider the said evidence and documents in the proper perspective. The canceled policy was issued for the period from 06.12.2012 to 05.12.2013 and on 09.03.2013, the accident had occurred. Thus, he submitted that on the date of accident, the insurance policy was not in force and therefore, the appellant is not liable to pay compensation, but the Tribunal ordered pay and recovery, instead of totally exonerating the appellant. In support of his contentions, learned counsel relied on the following judgments:-

(3.) Learned counsel for the 1st respondent would contend that though the insurance policy has been cancelled upon dishonour of the cheque, the claim of third party cannot be defeated for the self-created predicament of the insurer in issuing the policy without actually receiving the premium and considering the fact that the third party claimants cannot be made to suffer, the Tribunal has ordered pay and recovery, which does not require interference by this Court. In support of his contention, he relied on a judgment of this Court in The Branch Manager vs. A.Shanthi and Ors., New India Assurance Co.Ltd.