NAIONAL INSURANCE COMPANY LTD Vs. RAMJEE PANDEY

JUDGEMENT

(1.) THIS appeal by the appellant-Insurance Company is directed against the judgment and award dated 23rd january, 2004 passed by the Motor Accident Claims tribunal, Bokaro in Title (Motor Vehicle) Suit No. 32 of 1997 whereby he has awarded compensation and held that the appellant-Insurance Company is liable to pay the same.

(2.) THE brief fact of the case is that the respondent-applicant Ramjee Pandey filed a compensation case under Section 166 of the Motor Vehicles Act on account of death of his wife Rameshwari Devi. The accident took place on 8-4-1996 on Bokaro-Ramgarh road where she was dashed by a truck bearing registration No. BR-13h/9259. Besides other facts, it was mentioned in the application that the vehicle in question was insured with the appellant-Insurance Company and was valid from 24-3-1996 to 23-3-1997. The applicant's further case was that the deceased was a housewife and was managing the affairs of the house. Due to death of the deceased, applicant has been facing several hardships and frustration.

(3.) IN spite of service of notice, the respon dent-owner of the vehicle, did not file written statement. The claim was contested only by the Insurance Company on various grounds inter alia that on the date of accident, the vehicle was not insured. It was the specific case of the Insurance Company that the respondent-owner for the purpose of insuring his vehicle issued a cheque dated 23-2-1996 for Rs. 5645/- in favour of the insurance Company. On receipt of the cheque, the insurance policy was issued and the cheque was sent to the bank for clearance. Subsequently on 29-3-1996, the said cheque was dishonoured by the bank. The insurance Company, consequently, cancelled the policy and informed the owner of the vehicle by letter dated 4-4-1996. Further case of the appellant-Insurance Company is that after the insurance policy was cancelled, the alleged accident took place on 8-4-1996 on which date, the vehicle was not validly insured. However on 12-4-1996, the respondent-owner took a fresh policy on payment of premium which was effective from 12-4-1996 to 11-4-1997.