CHANDA Vs. KISHOR BHAGWAN TEJLI

JUDGEMENT

(1.) Challenge in this appeal is to cancellation of insurance policy due to dishonour of cheque which was paid as premium of policy.

(2.) It is the contention of the learned counsel for the appellants that the appellants/original claimants had filed a claim petition under the Employees Compensation Act for compensation against the vehicle owner and Insurance company. The Commissioner for WCA and Judge, Labour Court (II), Aurangabad has partly allowed the claim petition. The claim against the respondent-Insurance company is dismissed on the ground that there was no valid and effective insurance policy of the offending vehicle on the date of accident. The premium was paid through cheque but it was dishonoured. Dishonour of cheque can't be a ground to cancel the insurance policy. Hence, requested to allow the appeal.

(3.) The learned counsel for the appellants submits that no intimation was given to the RTO along-with postal acknowledgment, about cancellation of Insurance policy. Therefore, the insurance policy is not duly cancelled. Risk of the vehicle is covered under the policy, as the insurance policy is not cancelled as per law. Even if the policy is cancelled, the insurance company is liable to pay compensation and may recover the compensation from the vehicle owner. The learned counsel for the appellants relied on (1) Eknath Shantaram Kunkolienkar and another Vs. Anthony Fernandes and Anr. [ 2011 Goa L.R. 754 (Bom)] and the Oriental Insurance Company Ltd. Vs. Gitabai wd/o Bhaskar Brahmane and ors. [ 2013 A.C. 437 (Bom.)].