New India Assurance Company Ltd. vs K.M. Cherian and Another

K.T. Sankaran, J.—The Motor Accident Claims Tribunal, Kottayam passed an award in favour of the first respondent for Rs. 31,250 as compensation directing the appellant herein, the second respondent in the claim petition, to deposit the amount with interest at 9% per annum from the date of petition till the date of deposit.

The accident occurred on 18.12.1997 at 1.30 p.m. The first respondent herein, while he was walking along the road, motor cycle bearing registration No. KA09/Q-4989 driven by the second respondent herein knocked him down and he sustained injuries. Compensation of Rs. 1,43,750 was claimed.

The appellant, second respondent before the Tribunal, contended that the vehicle was not insured at the time of the accident and, therefore, the appellant is not liable to pay compensation. It was also contended that the vehicle was insured on 22.12.1997 and the second respondent herein issued a cheque for the premium amount. The Tribunal considered the question whether the insurer will be liable to pay the compensation amount even if the cheque issued towards premium amount was dishonoured. The Tribunal referred to the decisions relied on 2 (2000) ACC 751 (SC) : 11 (2000) CLT 52 (SC) : 2000 SCC 601 Case No. 95 and held that the insurer would be liable in such case. The contention put forward by the learned Counsel for the appellant was that on the date of the accident, namely, 18.12.1997, the vehicle was not insured at all and that the appellant Insurance Company is not liable to pay compensation. What is discussed in the judgment is not the contention raised by the appellant. The discussion in paragraph 8 of the award is on the question whether the Insurance Company would be liable if the cheque issued by the insured towards premium amount was dishonoured. The question whether there was a policy at the relevant time, namely, the date of the accident was not at all considered by the Tribunal.

In the result, the appeal is allowed and the award as against the appellant/second respondent shall stand set aside. The Tribunal shall consider afresh the question whether there was valid policy of insurance on the date of the accident and whether the appellant is liable as the insurer, after affording an opportunity to all the parties to adduce such other evidence as they may wish to adduce. It is made clear that the award as against the appellant alone, who was the second respondent before the Tribunal, is being interferred within this appeal. In other words, the finding on issue No. 1 and the finding on issue No. 2 as to the quantum of compensation and the liability of the first respondent in the O.P. (MV) to pay compensation are not interfered with.

M.A.C.A. is allowed to the extent indicated above.