AMEENA Vs. MANAGER, STATE BANK OF INDIA

JUDGEMENT

(1.) The complainants in C.D.No.42 of 2004 are the appellants. The first appellant is the wife and the second appellant is the son of Mohammad Azmal Hussain. Mohammad Azmal Hussain's father has filed C.D.No.158 of 2003. Mohammad Azmal Hussain during his life time obtained life insurance policy bearing number 840612861 for sum assured of Rs. 1,00,000/- from the second respondent insurance company. At the time of obtaining the insurance policy, Mohammad Azmal Hussain issued cheque bearing number 00493505 dated 29.12.2001 for an amount of Rs. 3,412/- towards the premium, in favour of the second respondent insurance company. The second respondent insurance company accepted the proposal and issued insurance policy bearing number 840612861 for a sum assured of Rs. 1,00,000/- with the date of commencement of risk from 15.12.2001. The insured had appointed the first appellant as his nominee under Section 39 of the Insurance Act.

(2.) The second respondent insurance company had presented the cheque with its banker, Bank of Baroda for clearance and the Bank did send the cheque to the first respondent bank. The first respondent bank returned the cheque with the endorsement that there were insufficient funds in the account of the first appellant's husband. By the time the cheque was returned unpaid, the second respondent insurance company issued the insurance policy. On 15.11.2002 the second respondent insurance company cancelled the insurance policy.

(3.) The case of the appellants is that there were sufficient funds in the account of the first appellant's husband and the first respondent bank negligently dishonoured the cheque. The second respondent insurance company kept the cheque with it for a period of 15 days without intimating the appellant's husband and he lost the opportunity to know about the dishonor of the cheque before he died on 9.01.2002. The respondents were at fault and for no fault of the appellants; they cannot be deprived of the amount assured under the insurance policy.