M P ELECTRICITY BOARD Vs. SAROJ BAI SONI

JUDGEMENT

(1.) THIS is an appeal under Section 173 of the Motor Vehicles Act 1988 (for short 'the Act') against the award dated 30. 6. 1994 passed in M. V. Case No. 150 of 1994, by the Xlth Additional Motor Accidents Claims Tribunal, Jabalpur.

(2.) FACTS giving rise to this appeal are these. Rajendra Kumar, while he was going on his scooter No. MPK 6822 was dashed by a truck No. CPJ 8795 owned by the appellant, Madhya Pradesh Electricity Board, insured by respondent No. 6 and driven by Mahendra Singh, driver, during the course of his employment with the appellant. Respondent No. 1, the widow and respondent Nos. 2 to 5, filed an application for compensation for the death of Rajendra Kumar on 4. 4. 1988.

(3.) THE owner, driver and insurer contested the application for compensation. The insurer disowned the liability on the ground that though the truck was insured by insurance policy, Exh. D 1, which covered the risk from 1. 1. 1988 to 31. 12. 1988, the payment of premium was guaranteed by the appellant vide bank guarantee dated 29. 12. 1987. The amount of premium was to be paid by February, 1988; but the appellant paid the premium by cheque No. 206388 which on encashment was deposited in the account of the company on 2. 7. 1988 of which the bank issued a certificate, Exh. D 3. It was also contended that as the premium was not paid and received by the insurer by February, 1988, therefore, in view of Section 64-VB of the Insurance Act, 1938, the Tribunal on the evidence adduced by the parties after holding that the accident was caused due to rash and negligent driving of the driver of the truck, awarded the compensation of Rs. 1,18,000/- with interest thereon at the rate of 12 per cent per annum from the date of application, that is, 15. 6. 1988, till payment, which was ordered to be paid by the owner and driver jointly or severally. The insurer was not found liable to pay the compensation or to indemnify the insured as on the date of the accident risk was not assumed because of non-payment of the premium.