NATIONAL INSURANCE COMPANY Vs. HAIDER ALI

JUDGEMENT

(1.) This revision has been preferred by the petitioner insurance company against an order of the Tribunal wherein it has been directed that the insurance company should pay Rs. 7,500.00as interim compensation in the light of Sec. 92-A of the Motor Vehicles Act.

(2.) Brief facts of the case are that opposite party No. 1 filed a claim petition before the Motor Accidents Claims Tribunal, Indore for compensation for injuries which have been sustained by him in a motor accident. The petitioner insurance company was also impleaded as a party on the ground that on the date of accident the vehicle was insured with it. The plea taken by the petitioner insurance company is that the policy of insurance from the very inception was void because insured opposite party No. 1 had issued a cheque against the premium which, on production before the bank, was dishonoured and he did not pay the amount of the premium for the policy of insurance which was issued to him.

(3.) In this case there was no dispute about the fact that opposite party No. 1 suffered injuries as a result of the accident and he suffered fracture in his leg at two places and a permanent disability has taken place. The vehicle was insured with the petitioner. Consequently, the Tribunal was within its jurisdiction to award interim compensation against the insurance company. In New India Assurance Co. Ltd. Vs. Laxman Singh, 1991 ACJ 42 (MP) , it was held: