Bombay High Court
New India Assurance Company ... vs Saherabegum Bhikan Shaikh And Ors on 11 February, 2021
Bench: M. G. Sewlikar
fa1176.12.odt
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IN THE HIGH COURT OF JUDICATURE OF BOMBAY
BENCH AT AURANGABAD
FIRST APPEAL NO. 1176 OF 2012
New India Assurance Company Limited Appellant
Versus
Saherabegum w/o Bhikan Shaikh & others Respondents
Mr. S.G. Chapalgaonkar, Advocate for the appellant.
Mr. S.R. Pande, Advocate for respondent N. 1.
CORAM : M.G. Sewlikar, J.
DATE : 11th February, 2021.
PER COURT :
1. Heard.
2. Learned counsel Shri Chapalgaonkar submitted that the
owner of the vehicle had issued a cheque for taking out the policy of
his vehicle i.e. Car bearing registration No. MH 20 Y 6391. The
policy was issued on 17.11.2007 in view of the cheque dated
17.11.2007. However, the cheque was dishonoured. Therefore, the
insurance company i.e. the appellant herein issued notice of
cancellation of policy on 18.01.2008. The said notice was issued by
R.P.A.D. The said notice could not be served on the owner/insured
on account of insuffcient address. The date of endorsement by the
postal authority is not known.
fa1176.12.odt
3. The insured vehicle met with an accident on 13.02.2008
resulting into injury to the respondent No.1.
4. Respondent No. 1 preferred application for compensation
before the learned Member, Motor Accident Claim Tribunal,
Aurangabad vide MACP No. 758/2009. The said application was
allowed by the learned Tribunal holding that the notice of
cancellation of policy on account of dishonour of the cheque was not
served on the owner/insured. Therefore, the learned Tribunal
awarded compensation to the respondent No. 1.
5. Learned counsel Shri Chapalgaonkar submitted that the
learned Tribunal did not pass any order as regards recovery of the
amount of compensation from the owner as the policy was cancelled
on account of dishonour of cheque. He submitted that in view of the
judgment of the Honourable Apex Court in the case of United India
Insurance Company Limited vs. Laxmamma and others reported In
(2012) 5 Supreme Court Cases 234, the Tribunal ought to have
passed the order of recovery of amount from the owner without
initiating separate proceedings.
fa1176.12.odt
6. In the case referred to above, similar issue had arisen.
The insurance company was held to be not entitled to absolve itself
from the liability to pay compensation. However, the insurance
company was permitted to prosecute the remedy to recover the
amount paid to the claimants from the insured.
7. In view of this, this Court directs that the insurance
company- appellant herein is at liberty to prosecute the remedy to
recover the amount paid to the claimants from the insured/owner.
The amount deposited alongwith accrued interest be paid to the
claimants. Award to that extent is modifed.
8. Appeal stands disposed of in above terms. Pending civil
applications, if any, stand disposed of.
( M. G. SEWLIKAR )
JUDGE
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