NEW INDIA ASSURANCE CO. LTD. Vs. MUNI JERAI

JUDGEMENT

(1.) The appeal has been preferred by New India Assurance Company Limited against the order dtd. 11/7/2013 passed by learned District Judge I-cum- MACT, Chaibasa in Compensation Case No.25/2010, whereby the amount of Rs.50,000.00 has been awarded in favour of the claimant, Muni Jerai, widow of the deceased Man Singh Jerai for herself and on behalf of her minor son namely, Bamia Jerai as guardian for 'no fault liability' on account of death of Man Singh Jerai to be paid within one month from the date of order, failing which, the claimants are entitled to get interest @ 9% per annum on the said amount from the date of order till its realization.

(2.) Learned counsel for the appellant, Mr. Alok Lal has submitted that the Insurance Company has filed additional show-cause on 23/4/2012 stating therein that account payee cheque no.693582 of Rs.13,777.00 towards the premium of the policy was sent to the Bank concerned for collection, but it was informed by the bank that due to insufficient fund, the cheque was dishonored. Then Insurance Company immediately cancelled the policy and accordingly intimated the insured through letter No.119 dtd. 31/5/2007 with a copy to concerned District Transport Office. The alleged dated of accident was 10/12/2007 and the policy was cancelled on 31/5/2007, but even then the learned Tribunal has directed the Insurance Company to pay ad-interim compensation under Sec. 140 of the Motor Vehicles Act to the claimants, holding that proceeding under Sec. 140 of the Motor Vehicles Act is a summary proceeding and the moment either it is admitted or proved that the vehicle involved in the alleged accident was insured, the Tribunal will make an award under Sec. 140 of the Motor Vehicles Act and direct the Insurance Company to pay the amount to the claimants and all other objections shall be considered at the time of final adjudication of the case under Sec. 166 of the Motor Vehicles Act.

(3.) Learned counsel for the appellant has submitted that Sec. 140 of the Motor Vehicles Act comes within Chapter 10 of the Motor Vehicles Act, where the liability is of the owner and has placed reliance upon a judgment passed by Apex Court in the case of Deddappa Vs Branch Manager, National Insurance Co. Ltd. reported in 2008 (2) SCC 595. Paras-26 and 28 of the same have been referred, which is profitably quoted hereunder:-