NEW INDIA ASSURANCE CO LTD Vs. SONA DEVI

JUDGEMENT

(1.) THIS appeal by New india Assurance Co. Ltd. is directed against the judgment and award dated 22. 8. 2000 passed by the Fourth Additional Motor accidents Claims Tribunal, Muzaffarpur in Claim Case No. 134 of 1997 by which it has allowed compensation of Rs. 3,00,000 to respondent Nos. 1 and 2 for the death of one Rabindra Yadav in a motor vehicle accident.

(2.) LEARNED counsel for the appellant has assailed the judgment and award on the ground that on the date of accident, i. e. , 18. 6. 1997 there was no valid insurance policy to indemnify the liability of the owner. He contended that the owner of the vehicle which caused accident had obtained an insurance policy from the appellant insurance company, firstly, on 6. 6. 1997 effective from 7. 6. 1997 to 6. 6. 1998 but as the premium of the insurance was paid by cheque on 6. 6. 1997 and the same bounced due to insufficient fund and the policy was cancelled, the policy became non est and so there was no valid policy on 18. 6. 1997. As such the appellant is not liable to pay compensation. In support of the submission, he relied on the decision of the Apex court in the case of National Insurance co. Ltd. v. Seema Malhotra, 2001 ACJ 638 (SC ).

(3.) LEARNED counsel for the respondents-claimants, on the other hand, submitted that the above decision relied upon by the learned counsel for the appellant is not applicable in this case. He contended that for the same motor vehicle accident, two claim cases, viz. , Claim Case Nos. 134 and 136 of 1997 were filed against the appellant insurance company and another and both the claim cases were disposed of and allowed by the same judgment passed by fourth Additional Motor Accidents Claims tribunal and in both of them the appellant was directed to pay the awarded amount. The appellant then filed Misc. Appeal No. 614 of 2000 in the High Court against the award passed in Claim Case No. 136 of 1997 and this court relying on the decision of the Apex Court in the case of New India assurance Co. Ltd. v. Rula, 2000 ACJ 630 (SC), by order dated 3. 10. 2002 held that the appellant insurance company is fully liable to pay compensation awarded by the tribunal. Learned counsel submitted that the decision of this court is fully applicable in this case and that appeal is liable to be dismissed.