STATE REPRESENTED BY INSPECTOR OF POLICE SPE/CBI/ACB/CHENNAI Vs. N.C. NAHAR ASSISTANT DIVISIONAL MANAGER, UNITED INDIA INSURANCE & ORS.

JUDGEMENT

(1.) This appeal is preferred by CBI aggrieved by the judgment of acquittal delivered by the trial Court.

(2.) The brief facts of the case is as follows: An Ambassador car bearing Regn.No. TMO 2790 met with a road accident on 18.01.1989 near Music Academy signal in Chennai. It is alleged that due to rash and negligent driving by one Sharmila Mehta, a Benz car bearing Regn.No. TCV 2752 was damaged. Later, the owner of the Benz car viz., John Nemen has filed M.C.O.P.No. 1640 of 1989 for damages against (i) M/s Surya Cabs represented by its Proprietor, Mr. Giridhari Lal as owner of the offending vehicle; (2)Tmt.Sharmila Mehta, who has driven the offending car and (3)United India Insurance Company Limited, Museum Road, Bangalore being the insurer indemnified third party claim. The petition in M.C.O.P.No. 1640 of 1989 was filed during the month of July, 1989 claiming compensation of Rs. 2,91,027.26. Before that, but subsequent to the accident, for the Ambassador car bearing Regn.No. TMO 2790, which was not covered under any insurance scheme on the date of the accident, a proposal was presented before the United India Insurance Company, Museum Road Branch, Banagalore on 20.01.1989. The premium amount of Rs. 120/- was paid by way of a cheque dated 16.01.1989 drawn by one Narasimhaswamy in favour of the United India Insurance Company. Though the receipt was issued on 20.01.1989, the policy note issued indicating that the insurance commence from 16.01.1989 to 15.01.1990. Thus, though the payment was made, after the date of the accident, the policy was issued prior to the date of the accident based on the date of cheque. This is the core issue, which has lead to the criminal prosecution.

(3.) The United India Insurance Company Internal Vigilance Team, in pursuant to the notice received from the V Small Causes Court, Chennai in M.C.O.P.No. 1640 of 1989, has made an investigation regarding the policy issued to the Ambassador car bearing Regn.No. TMO 2790 belonging to M/s Surya Cabs represented by its Proprietor Mr. Giridhar Lal. Mr. P. Vijayan, who has conducted enquiry, had submitted a report dated 208.1990 that though the third party insurance policy was issued for the vehicle bearing Regn.No. TMO 2790 for the period from 16.01.1989 to 15.01.1990, the proposal was signed only on 20.01.1989, however, the underwriting docket is not available in the office. The premium was received only on 20.01.1989 and the same was entered in the Premium Collection Register only on 20.01.1989. The receipt for receiving the cheque was issued on 20.01.1989. Though the cheque bears ante-date of 16.01.1989, it was not submitted to the Insurance Company on that day and the same was not reflected in the Cheque Inward Register. There is no entry for the receipt of the subject cheque in the Cheque Inward Register during the period between 05.01.1989 and 25.01.1989. Though the premium register and the policy indicate that the proposal was submitted by the Agent bearing code No. SNNS/016, the said Agent has informed Mr. Vijayan, Enquiry Officer that he has given the cheque as per the instruction of the Branch Manager and he is not aware of the purpose for which the cheque was utilized. In his report dated 208.1990, Mr. P. Vijayan, Assistant Administrative Officer has pointed out that from the branch records, it is confirmed that the premium was received for the said vehicle only on 20.01.1989, whereas the policy was granted from 16.01.1989 which covers the date of accident on 18.01.1989.