NEW INDIA ASSURANCE CO LTD Vs. ANJANABAI

JUDGEMENT

(1.) Heard Mr. Pophaly. learned counsel, for the appellant and Mr. A. V. Bhide, learned counsel, for respondents 1 to 3 finally. This appeal takes an exception to the judgment and Award dated 28-07-2004 passed by the learned Member, Motor Accident Claims tribunal, Yavatmal, in Claim Petition No. 221 of 1994 whereby the appellant/insurance company is also held liable along with other respondents jointly and severally to pay the amount of compensation to the legal representatives of the deceased.

(2.) Mr. Pophaly. learned counsel, for the appellant contended that the accident occurred on 28-01-1994 and the victim Sharad died as a result of accident arising out of the use of motor vehicle, i. e. Truck bearing registration No. MHG-6852. He contended that the Insurance Company has issued Cover Note on 08-09-1993 after receiving cheque on account of premium from respondent no. 5. He contended that the cheque was dishonoured on 16-09-1993 and therefore the Cover Note was cancelled by issuing letter dated 16-09-1993 addressed to the Regional Transport Officer in view of the provisions of Sub-section (4) of section 147 of the Motor Vehicles Act. He contended that since the cheque was dishonoured the premium remained unpaid and, therefore, there was no valid insurance policy in existence on the date of accident and consequently the Insurance Company is not liable to pay the compensation. In support of these submissions, he relied on the decision of apex court in National Insurance Co. Ltd. Vs. Seema Malhotra, (2001) 3 SCC 151 : 2001 (3) ALL MR 521 (S. C. ) and also on the decision of Orissa High Court in the case of divisional Manager, National Insurance Co. Ltd. Vs. Tasri Pradhan, 2004 (1) T. A. C. 781 (Ori).

(3.) Mr. Bhide, learned counsel, for claimants/respondents 1 to 3 contended that despite the bar created by Section 64-VB, the insurance Company issued the policy to cover the motor vehicle involved in the accident without receiving the premium and by reason of provisions of Section 147 (5) and 149 (1) of the Motor Vehicles Act the Insurance Company became liable to indemnify third parties in respect of the liability. In support of these submissions, he relied on a larger bench decision of the apex court in the case of oriental Insurance Co. Ltd. Vs. Inderjit kaur, 1998 ACJ 123 : 2000 SCC (Cri) 601.