V.K. CHANDELA Vs. NAWAB

JUDGEMENT

(1.) This order will dispose of FAO Nos.998 to 1001, 4018, 4102 of 2001 and cross objections No.53-II of 2014 as these have emerged out of same award dtd. 8/1/2001 passed by the Motor Accidents Claims Tribunal, Faridabad whereby compensation has been assessed on account of death of Vijay Pal, Mehak Singh Sharma and injuries sustained by Ms. Aruna and Mahipal Singh whereas V.K. Chandela filed the claim for damage to Maruti Car No.HNU-3447.

(2.) FAO Nos.998 to 1001 have been filed by The Oriental Insurance Co. Ltd. with whom the offending vehicle truck No.UP-81-C- 3918 was insured. Cross objections No.53-CII of 2014 in FAO No.998 of 2001 have been preferred by Smt. Inderwati and others in respect of death of Vijay Pal. FAO No.4102 of 2001 has been filed by injured/claimant Aruna and No.4018 of 2001 by V.K. Chandela. For the sake of convenience, the parties shall be referred to as 'insurance company' and 'claimant(s)'. FAO Nos.998 to 1001, 4018 of 2001 and XOBJC-53-CII of 2014

(3.) Counsel for the insurance company would argue that the cover note in respect of the truck in question was effective from 9/12/1994 to 8/12/1995. The insured issued cheque dtd. 9/12/1994 for payment of premium of Rs.12,443.00. The same was presented for encashment on 13/1/1995 and got dishonored. The insurance company cancelled the policy and sent intimation to the insured with regard to dishonour of the cheque as well as cancellation of the policy vide letter dtd. 17/1/1995. It is argued that as the insurance company had cancelled the policy much prior to the occurrence in question that took place on 19/4/1995, the insurance company cannot be saddled with liability to pay compensation. In the alternative, it is prayed that even if the insurance company is held liable to pay compensation to the claimants, recovery rights may be given against the insured as there was no contract of insurance on the date of accident i.e. 19/4/1995.