UNITED INDIA INSURANCE CO. LTD. Vs. KARUNA DEVI

JUDGEMENT

(1.) Insurance Company is in appeal against the judgment and award of compensation in Compensation Case No.35(T)/2001 whereby and whereunder the liability to pay compensation amount has been fixed on the appellant-Insurance Company and Oriental Insurance Company Limited (respondent no.7) for paying compensation amount in equal share to the claimants. Cross Objection has been preferred by the claimants for enhancement of compensation amount.

(2.) It is argued by the learned counsel on behalf of appellant-Insurance Company, Mr. Alok Lal that Cross Objection is not maintainable in view of the fact that it is hopelessly barred by limitation under Order XLI Rule 22 of the CPC. The Cross Objection can be filed only within one month after filing of the appeal, but this is a case where it has been filed after nine years without filing any petition for condonation of delay.

(3.) With regard to the appeal preferred by the United India Insurance Company, it is submitted that admittedly, the accident took place on 11/6/2001 at 6:15 p.m. Certified copy of Insurance Policy (Exhibit A/1) was effective from 1/6/2001 to 31/5/2002. The premium was paid by cheque, but it was dishonored on 5/6/2001 for insufficiency of fund. As per Exhibit C which is the cheque return memo issued by the Bank of India, the policy was cancelled on 8/6/2001 (Exhibit D) and the intimation regarding cancellation of policy was sent by registered post. The letter of cancellation dtd. 11/6/2001 has been adduced into evidence and marked as Exhibit E which cancelled the policy of insurance with effect from the date of policy of insurance i.e. 1/6/2001. Thus, on the date of accident, the offending vehicle was not under insurance cover of the appellant-Company. In the absence of Insurance Policy, it is urged that the learned Tribunal was at error to have awarded compensation fixing liability by appellant-Company. In any case, if the vehicle was under cover of Insurance Company, there was no occasion for the owner to have purchased any policy w.e.f. 17:00 hours on 11/6/2001 from Oriental Insurance Company Limited (respondent no.7).