BRUNDABAN PATRA Vs. NEW INDIA ASSURANCE CO LTD

JUDGEMENT

(1.) IN pursuance of order dated April 30, 1997, Mr. M. Sinha, learned Advocate appeared on behalf of the Respondent No. 1 at the stage of Admission. Heard Mr. Rath for the appellant and Mr. Sinha for Respondent No. 1. Appellant filed a claim petition under Section 166 of the Motor Vehicles Act, 1988 before the 2nd Motor Accident Claims Tribunal (S.D.), Berhampur and the same was registered as MAC No. 305/91 and renumbered as MAC No. 185/92. Appellant alleged that while he was getting down from the bus, the driver suddenly started the bus, he fell down and suffered injuries on his right hand. He claimed a compensation of Rs. 25,000/ - from the respondents.

(2.) THE owner Atanu Kumar Behera, respondent No. 2 herein, did not contest the claim. The New India Assurance Company, the insurer, contested the claim and denied its liability on the ground that the vehicle was not covered by a valid insurance and the driver did not have any valid driving licence on the date of accident.

(3.) IT is necessary to note a few material dates for determining the questions raised in this appeal. Accident took place on April 22, 1991. On June 27, 1990 the owner of the vehicle approached the insurer for insurance coverage and obtained a policy from the insurer by giving a cheque dated June 27, 1990 to pay the required premium. Said cheque was dishonoured by the owner's banker Indian Overseas Bank, Berhampur and as such there was no payment of premium. By letter dated July 13, 1990 the Insurance Company intimated said fact to the owner with a copy to Regional Transport Officer, Chhatrapur. By the said letter Insurance Company also intimated the owner that all documents, receipts issued by the Insurance Company had already been declared as cancelled for all purposes and asked him to return those documents.