NEW INDIA ASSURANCE CO LTD Vs. VIJAY KUMAR

JUDGEMENT

(1.) ONLY on one ground, the appellant has challenged the judgment dated 25.8.1993 passed by the learned Motor Accidents Claims Tribunal Jammu, in file No. 291/ Claims. The ground relates to the interpretation put on Section 149 (l) of the Motor Vehicles Act, 1988. But the brief facts first.

(2.) MISS Bandhana Devi," the daughter of respondents 1 and 2, aged 5/6 years, was standing on the road side on National Highway at Jakh near Jakh Chandla Tehsil Samba on 6.9.1992 at about 7.30 P.M. when vehicle Bus No. HR -26A/1132 being driven rashly and negligently and with a great speed, struck against her, as a result whereof she received multiple injuries, was admitted in SMGS Hospital Jammu, where she died same day in the evening at 8.30P.M. Arising out of this accident and her resultant death, the respondents 1 & 2 filed a claim petition under Section 166 of the Motor Vehicles Act before the learned Motor Accidents Claims Tribunal Jammu. Vide the impugned judgment dt.25.8.1993, the learned Tribunal has awarded an amount of Rs.30,000/ - in favour of the claimants (respondents 1 and 2 herein). The entire amount of award has been directed to be paid by the appellant, the insurer.

(3.) THE case of the appellant is very simple indeed. It says that whereas the accident in question occurred on 6.9.1992, on 27.2.1992, it had cancelled the policy of insurance which was taken out by Respondent No 4, Haryana Roadways, in respect of the vehicle in question i.e. HR -26A/ 1132. The appellantâ„¢s contention, therefore, is this: If the policy of insurance in respect of the offending vehicle stood cancelled much before the date of occurrence of the accident, the appellant cannot be held liable to pay the amount awarded by the Tribunal in favour of the claimants.â„¢ Section 149 (1) of the Motor Vehicle Act, 1988, reads as under: - "Section 149 (1): If, after a certificate of insurance has been issued under sub -section (3) of Section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub -section (1) of Section 147 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy then notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefits of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments". The Legislature in its wisdom while enacting Section 149 (1) of the Motor Vehicles Act has clearly provided that, even if an insurer has cancelled a policy of insurance, after a certificate of insurance was issued under Section 147 (3) of the Act, judgment or award in respect of any such liability as was required to be covered by such a policy of insurance has to be satisfied by the insurance company, notwithstanding such cancellation of policy in the meanwhile.