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2014 DIGILAW 1423 (RAJ)

Bharti Axa General Insurance Co. Ltd. v. Smt. Mohani Paneri

2014-07-24

SANDEEP MEHTA

body2014
JUDGMENT 1. - The instant appeal is preferred by the appellant Insurance Company against the judgment cum award dated 21.4.2014 passed by lie learned Motor Accident Claims Tribunal No. 1, Udaipur in M.A.C. No. 15/2011 whereby the application seeking compensation filed by the respondents-claimants No. 1 to 6 under Section 166 of the Motor Vehicles Act upon death of Shri Bhanwar Lal was partly accepted and they were awarded a sum of Rs. 8,83,000 as compensation with interest @ 9% per annum. 2. Whilst allowing the appeal, the Tribunal exonerated the appellant Insurance Company from the responsibility of satisfying the award. However, the Insurance Company was directed to make payment of the award upfront and thereafter, was given liberty to recover the same back from the owner of the insured vehicle. 3. Facts in brief are that a Trailer No. RJ27.GA.7986 owned by Ram Lal and insured by the appellant Insurance Company being driven in a rash and negligent fashion by its driver Jamna Lal, collided with deceased Bhanwar Lal, who was proceeding on his motorcycle. Bhanwar Lal expired during treatment. 4. The respondents No. 1 to 6 being his legal heirs, filed a claim application for compensation under Section 166 of the Motor Vehicles Act before the Tribunal. The appellant Insurance Company appeared and took an objection that the cheque given by the owner of the insured vehicle towards payment of the policy premium was dishonoured by the bank on presentation and therefore, the insurance policy was not enforceable as the same stood canceled from the date of issuance. 5. The learned Tribunal framed the usual issues for consideration and whilst deciding the issue regarding the objection taken by the Insurance Company vide para 19 of the impugned judgment, held that the cancellation of the policy was done by the Insurance Company after the accident and, therefore, it was liable to satisfy the compensation awarded to the claimants. For coming to this conclusion, the learned Tribunal relied on the decision rendered by the Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. v. Laxmamma & Ors. reported in 2013 RAR 47 SC . The Tribunal also relied on the decision rendered by the Hon'ble Supreme Court in the case of National Insurance Co. For coming to this conclusion, the learned Tribunal relied on the decision rendered by the Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. v. Laxmamma & Ors. reported in 2013 RAR 47 SC . The Tribunal also relied on the decision rendered by the Hon'ble Supreme Court in the case of National Insurance Co. Ltd. v. Seema reported in 2001 ACJ (SC) 638 and gave the Insurance Company liberty to recover the decreetal amount from the vehicle owner after making payment thereof to the claimants. It is against the said conclusion recorded by the Tribunal directing the Insurance Company to satisfy the decree, the appellant Insurance Company has approached this Court by way of the instant appeal. 6. I have heard the arguments advanced by the learned Counsel for the appellant and have gone through the impugned judgment cum award. 7. The case at hand is squarely covered by the decision rendered by the Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. v. Laxmamma & Ors. (supra). The factual position in the said case was exactly the same wherein the policy of insurance was issued by the authorised insurer on receipt of a cheque towards the payment of insurance premium. The cheque was dishonoured by the bank on presentation. The Hon'ble Supreme Court after considering the various provisions of law held that unless and until the insurance policy is canceled by the insurer and intimation of such cancellation reaches the insured before the accident, the liability of the Insurance Company to indemnify the damage caused to a third party would continue. Same is the position in the case at hand. The vehicle owner handed over a cheque to the insurer towards payment of premium of the insurance policy. The policy issued by the appellant was valid from 7.9.2010 to 6.9.2011. The accident took place on 7.9.2010. The Insurance Company received information about the dishonour of the cheque on 6.10.2010. The insurance policy was canceled vide document Ex.A-4 on 13.10.2010 i.e. more than a month and 7 days from the date of the accident. In this view of the matter, the case stands squarely covered by the law propounded by the Hon'ble Supreme Court in the case of Laxmamma (supra). The insurance policy was canceled vide document Ex.A-4 on 13.10.2010 i.e. more than a month and 7 days from the date of the accident. In this view of the matter, the case stands squarely covered by the law propounded by the Hon'ble Supreme Court in the case of Laxmamma (supra). No fault can be found in the judgment rendered by the learned Tribunal directing the appellant Insurance Company to satisfy the decree and make payment of the award to the claimants. The rights of the appellant Insurance Company have already been saved and secured by permitting it to recover the decreetal amount from the vehicle owner.Resultantly, the appeal being devoid of any merit is hereby rejected. Stay petition is also rejected.Appeal dismissed. *******