JUDGMENT Pushpendra Singh Bhati, J. - Appellant-Insurance Company has preferred the present appeal under Section 173 of Motor Vehicles Act, 1988 claiming the following reliefs:- "It is, therefore, prayed that the appeal may kindly be accepted and the impugned judgment and award may kindly be set aside and the owner of the Vehicle RRJ7172 may kindly be directed to make the payment of the award amount to the claimant respondent No.1." 2. At the outset, it is an admitted position in the present case that owner of the vehicle in question bought an insurance policy but the cheque given in lieu of buying such policy was dishonoured, and thus, the policy in question was cancelled. 3. Learned counsel for the appellant-insurance company has relied upon the judgment rendered by Hon'ble Apex Court in National Insurance Company Limited Vs. Seema Malhotra & Ors., (2001) ACJ 638 , relevant portion of which reads as under :- "Thus, when the insured fails to pay the premium promised, or when the cheque issued by him towards the premium is returned dishonoured by the bank concerned the insurer need not perform his part of the promise. The corollary is that the insured cannot claim performance from the insurer in such a situation. Under Section 25 of the Contract Act an agreement made without consideration is void. Section 65 of the Contract Act says that when a contract becomes void any person who has received any advantage under such contract is bound to restore it to the person from whom he received it. So, even if the insurer has disbursed the amount covered by the policy to the insured before the cheque was returned u, insurer is entitled to get the money back. " 4. Learned counsel for the respondents/claimants however, while relying upon the judgment rendered by Hon'ble Apex Court in National Insurance Company Limited Vs. Swaran Singh & Ors., (2004) AIR SC 1531 has tried to contend that pay and recovery clause shall become applicable in the present case. 5. " 4. Learned counsel for the respondents/claimants however, while relying upon the judgment rendered by Hon'ble Apex Court in National Insurance Company Limited Vs. Swaran Singh & Ors., (2004) AIR SC 1531 has tried to contend that pay and recovery clause shall become applicable in the present case. 5. After hearing learned counsel for the parties and perusing the record of the case alongwith the precedent law cited at the Bar, this Court is of the opinion that in the present case, the insurance company shall not have any liability from the inception itself in light of the precedent law laid down by Hon'ble Apex Court in Seema Malhotra (supra), as the initial cheque in lieu of the insurance policy itself has been dishonoured, as a result whereof, the policy stood nullified. 6. Thus, while making limited intervention, the appeal is allowed and the liability to pay the compensation awarded by the learned Tribunal shall be of the owner of the vehicle in question. However, if any amount has already been paid by the appellant- insurance company, it shall be free to recover the same from the owner and driver.