NEW INDIA ASSURANCE COMPANY LIMITED Vs. BHIMRAO JANARDAN

JUDGEMENT

(1.) THIS appeal is against the order passed under Section 140 of the Motor Vehicles Act by the Motor Accident Claims Tribunal. It is alleged that deceased was traveling in a truck on 27.05.2006. The truck met with an accident in which deceased died. Heirs of the deceased filed an application before Motor Accident Claims Tribunal claiming compensation and also moved an application under Section 140 of the Motor Vehicles Act.

(2.) THE respondent Insurance Company had raised a defence that the insurance company was not liable because of the fact that the cheque issued by the owner of the truck towards insurance premium was dis-honoured and therefore policy was cancelled.

(3.) I have heard the learned counsel for the appellant and the respondents. It is not disputed that the accident had taken place on 27.05.2006. Further it is not disputed that the cheque came to be dishonoured on 31.05.2006. Obviously, on the date the accident took place cover note said to have been issued by the Insurance Company was not cancelled. In the circumstances the learned Judge of the Tribunal rightly awarded Rs. 50,000/- towards no fault liability. In the circumstances the appeal is dismissed. The order passed by the Tribunal is confirmed and the appeal is dismissed. However, it is made clear that these observations made by this Court while deciding this appeal shall not come in the way of Tribunal while deciding the main application on merits if it is found on merit that Insurance Company was not liable or that it has a right to recover the amount of compensation paid to the claimants from the owner of the truck. Hence the following order: Appeal is dismissed with no order as to costs. Respondents-claimants are entitled to withdraw the amount deposited in this Court.