ORIENTAL INSURANCE CO LTD Vs. YOGENDRA BHALCHANDRA PATIL

JUDGEMENT

(1.) Heard advocates for the parties. The appellant Oriental Insurance co. Ltd. has taken exception to the judgment and award dated 26. 10. 1989 passed by the learned Member of the Motor Accidents Claims Tribunal, Mumbai in a claim petition under section 110-A of the Motor vehicles Act, 1939. By the impugned judgment and award, learned Member of the claims Tribunal awarded compensation of rs. 67,780 together with interest in favour of the respondent No. 1-claimant.

(2.) The present appellant insurance company is the insurer of motor taxi No. MMQ 2678 which was involved in the accident. The accident occurred on 5. 12. 1984. The defence of the appellant was that insured, viz. , respondent No. 2 herein had issued a cheque dated 23. 7. 1984 on account of premium in favour of the appellant insurance company and on the basis of the said cheque, a policy of insurance was issued by the appellant. The case of the appellant is that by a letter dated 11. 8. 1984 addressed to respondent No. 2, the appellant cancelled the policy as the cheque issued by the insured was dishonoured. It is, therefore, contended that as on the date of accident, i. e. , 5. 12. 1984, the insurance company was not liable to honour the award which might have been passed against the insured as there was no valid insurance.

(3.) Mr. Vidhyarthi for the appellant submitted that as the cheque for the premium amount issued by the insured was dishonoured and as the policy was cancelled before the date of the accident, the Tribunal could not have held the appellant liable. The learned counsel for the respondent No. 1 supported the impugned judgment and award.