UNITED INDIA INSURANCE CO LTD Vs. SANDHYA DEVI

JUDGEMENT

(1.) -UNITED India Insurance Co. Ltd. , appellant herein has assailed the impugned award dated 7. 4. 2004 passed by Motor Accidents Claims Tribunal, Una (H. P.) in M. A. C. Petition No. 13 of 1999 titled as Sandhya Devi v. Rajesh Kumar awarding compensation of Rs. 1,39,600 to the claimants, legal representatives of the deceased Basant Ram.

(2.) SINCE the insurance company has filed the appeal, therefore, the controversy is narrow. Mr. Behl, learned counsel for the appellant has challenged the impugned award only on the ground that since the cheque towards the premium of the policy stood bounced and the policy cancelled, therefore, the Tribunal seriously erred in holding the insurance company liable to indemnify the insured and pay the awarded compensation.

(3.) FACTS necessary for adjudication of the case are that vehicle No. HP 23-1575 owned by Subhash Chand was insured by the appellant. As per the insurance cover note, Exh. RW2/a, the policy was to be valid and operative from 11. 11. 1997 to 10. 11. 1998. However, cheque No. 572022 dated 12. 11. 1997 for a sum of Rs. 8,654 issued towards insurance premium could not be encashed due to insufficient funds in the account of the insured, respondent No. 2. The appellant, vide endorsement dated 16. 12. 1997 sent a notice to the financier and cancelled the insurance policy. The insured, respondent No. 2 was also informed about the same vide letter dated 29. 1. 1998.