NATIONAL INSURANCE COMPANY LIMITED Vs. DEORAO BHAYYAJI PATNE

JUDGEMENT

(1.) THIS first appeal is directed against an order dated 25-3-1996 passed by the Motor Accident Claims Tribunal, Nagpur, on an application for compensation under section 140 of the Motor Vehicles Act, 1988. The Tribunal has allowed the application for compensation and has directed the Insurance Company, which is in appeal before this Court, to pay to the claimants an amount of Rs. 25,000/- together with interest at the rate of 12% per annum from the date of the application until the realization of the amount. Consequential directions have been issued as regards the payment of 1/7th of the amount deposited to each of the claimants.

(2.) BRIEFLY stated, the facts relating to the case are that respondents 1 to 7 filed an application under section 140 of the Motor Vehicles Act, 1988 claiming compensation on account of no-fault liability for the death of one Ranjana Deorao Patne on 9-12-1989 in the course of an accident with a truck bearing Registration No. MWY 2682 belonging to the 8th respondent. The 8th respondent filed a reply before the Claims Tribunal contending that the vehicle had been insured with the appellant on the date of the accident and the appellant ought to be joined as a party to the claim proceedings. The 8th respondent produced a cover note purported to have been issued by the appellant on 3-12-1989 showing the period of validity of the contract from 4-12-1989 until 3-12-1990. The appellant came to be joined as a party to the proceedings in pursuance of the order passed by the Tribunal on 5-5-1990. The appellant filed its reply to the application under section 140 of the Act. The case of the appellant is that the cover note which had been relied upon by the 8th respondent was tampered and that on the date on which the accident took place, i. e. 9-12-1989 the vehicle had not been insured by the appellant. The appellant in support of its contentions produced a certified copy of the cover note which shows that the cover note was issued on 13-12-1989, and that the policy of insurance for the vehicle which was involved in the accident was actually issued on 14-12-1989.

(3.) IN the course of the adjudication of the application filed under section 140 of the Act by the original claimants, evidence came to be adduced before the Claims Tribunal. The appellant examined its Branch Manager and the agent who had prepared and issued the cover note to the 8th respondent. The appellant produced its office record before the Tribunal to substantiate its case that the premium which had been paid, had been paid on 14-12-1989. The insurance agent in the course of his examination deposed that the truck had been insured with the appellant through his agency and that the period covered by the policy was 14-12-1989 to 13-12-1990. The agent also deposed that the effective date in the cover note was 14-12-1989. The agent deposed to the fact that he had obtained from the office of the R. T. O. the certified insurance and registration particulars in respect of the vehicle and the validity period in the certificate issued by the R. T. O. was 14-12-1989 to 13-12-1990. In the copy of the cover note, which was produced by the owner of the vehicle, the date which was shown as the commencement of the contract was 3-12-1989. According to the agent, this date had been inserted by the owner fraudulently. The agent also specifically stated that the owner had paid to him premium on 13-12-1989 and that the cover note had been issued to him on the same date.