NEW INDIA ASSURANCE CO LTD Vs. C. KHUANGHLIRI

JUDGEMENT

(1.) Heard Mr. Lalfakawma, learned counsel for the appellant as well as Mr. L.H. Lianhrima, learned senior counsel appearing for the respondent No. 1. No one appears for the respondent No. 2, even though the appellant's affidavit dated 23.03.2021 and the copies of the newspapers i.e. Nagaland Post and Assam Tribune, both dated 17.03.2021, show that notice had been issued to the respondent No. 2 by newspaper publication, in terms of the order dated 24.02.2021 issued by this Court. Accordingly, notice is deemed to be served on the respondent No. 2.

(2.) The challenge made by the appellant Insurance Company to the impugned Judgment and Award dated 25.05.2018, passed by the Motor Accident Claims Tribunal, Aizawl in MACT Case No. 31/2016, by which compensation amounting to Rs. 5,50,000/- along with interest @ 7% per annum from the date of filing of the claim petition till final payment has been awarded, is on the ground that the vehicle owner had not been insured, as the cheque given for the Insurance Policy had bounced. As such, no liability could be fastened upon the appellant Insurance Company.

(3.) Mr. Lalfakawma, learned counsel for the appellant submits that the respondent No. 2, who is the owner of the accident vehicle bearing Registration No. NL-01K-0991 had given a Bank of India cheque No. 000168 dated 10.07.2015, for Rs. 40,749/- for the purpose of insuring his vehicle. The cheque dated 10.07.2015 was presented by the appellant to the Axis Bank, Guwahati. However, the cheque bounced due to the reason "Exceeds Arrangement". The appellant Insurance Company thereafter intimated the dishonor of the cheque to the respondent No. 2 and to the Regional Transport Officer, Regional Transport Authority, Kohima vide letters dated 19.11.2015, which was sent by registered post, stating that the Insurance Policy stood cancelled since its inception due to the above reason.