Reliance General Insurance Co. ... vs Belenur Bibi Ors
2023 Latest Caselaw 6005 Cal

08.09.2023                    IN THE HIGH COURT AT CALCUTTA
Ct. no.654                     CIVIL APPELLATE JURISDICTION
Item no.196                           (Appellate Side)
   sn
                                   FMA 937 of 2022
                       (CAN 1 of 2019) (Old CAN 2901 of 2010)

                              Reliance General Insurance Co. Ltd.
                                          Vs.
                                    Belenur Bibi Ors.

              Ms. Gopa Das Mukherjee
                         ...for the appellant-insurance company

              Mr. Saidur Rahaman
                         ..for the respondents-claimants

This appeal is preferred against the judgment

and award dated 14th December, 2018 passed by the

learned Additional District Judge-cum-Judge, Motor

Accident Claims Tribunal, Fast Track, 3rd Court,

Malda in MAC case no.10 of 2014 granting

compensation of Rs.4,01,300/- together with interest

in favour of the claimants under Section 163A of the

Motor Vehicles Act, 1988.

The brief fact of the case is that on 27th

October, 2013 at about 16-00 hours while the victim

was waiting for a bus near Dariapur in front of

Hafijur Madrasa, at that point of time the offending

vehicle bearing registration no. NL-01K/9489

proceeding towards Farakka in a rash and negligent

manner dashed the victim, as a result of which the

victim sustained multiple grievous injuries.

Immediately, the victim was shifted to Malda Medical

College & Hospital, where he succumbed to his

injuries and died. On account of sudden demise of

the deceased, the claimants being the parents of the

deceased filed application for compensation of Rs.

3,00,000/- together with interest under Section 163A

of the Motor Vehicles Act, 1988.

The claimants in order to establish their case

examined claimant no. 2 and produced documents,

which have been marked as Exhibits 1 to 6

respectively.

The appellant-insurance Company also

adduced the evidence of three witnesses and

produced documents which have been marked as

Exhibits A to G respectively.

Since the owner of the offending vehicle did not

contest the claim application, hence, service of notice

of appeal upon the said respondent stands dispensed

with.

Upon considering the materials on record and

evidence adduced by the claimants, the learned

Tribunal granted compensation of Rs.4,01,300/-

together with interest in favour of the claimants

under Section 163A of the Motor Vehicles Act, 1988.

Being aggrieved by and dissatisfied with the

impugned judgment and award of the learned

Tribunal, the appellant-insurance company has

preferred the present appeal.

Ms. Gopa Das Mukherjee, learned advocate for

the appellant-insurance company submits that the

offending vehicle did not have valid insurance policy

on the date of accident in view of the fact that the

cheque issued towards premium of policy of

insurance was dishonoured due to insufficiency of

funds. The insurance company subsequent thereto

had issued letter of intimation on 25th September,

2013 for cancellation of policy to the owner of the

offending vehicle. Since the policy of the insurance

company was cancelled due to dishonour of cheque

which was duly intimated to the owner of the alleged

offending vehicle, the insurance company cannot be

saddled with the liability to make payment of

compensation to the claimants. In the light of her

aforesaid submissions, she prays for setting aside of

the impugned judgment and award of the learned

Tribunal.

In reply to aforesaid contentions raised on

behalf of the insurance company, Mr. Saidur

Rahaman, learned advocate for the respondents-

claimants submits that the letter intimating the

cancellation of insurance policy has been issued

prior to dishonour of the cheque. Further, no

document has been produced to show receipt of

intimation and cancellation of the policy of

insurance. Such being the position on the relevant

date of accident, the offending vehicle was validly

covered under the policy of insurance. In view of his

aforesaid submissions, he prays for dismissal of the

appeal.

Having heard the learned advocates for the

respective parties, the only issue that has fallen for

consideration is whether on the relevant date of

accident the offending vehicle was under valid

coverage of insurance or not.

In order to appreciate the aforesaid issue, it

would be apposite to look to the additional written

statement filed on behalf of the appellant-insurance

company. The insurance company has specifically

stated in its additional written statement that the

owner of the offending vehicle issued cheque bearing

no.180085 dated 24th September,2013 in favour of

the insurance company towards payment of premium

against the policy of insurance company. The

insurance company upon receipt of the aforesaid

cheque issued cover note for the period from 25th

September,2013 to 24th September, 2014. The

aforesaid cheque was dishonoured due to insufficient

funds. The insurance company vide letter dated 25th

September, 2013 intimated the owner of the alleged

offending vehicle of cancellation of the insurance

policy due to dishonour of the cheque. In order to

substantiate such fact, the insurance company has

examined three witnesses and produced the copy of

the letter of intimation (Exhibit A/1), cheque bearing

no.180085 (Exhibit-C) and cheque returned memo

(Exhibit-D).

Upon perusal of the letter of intimation for

cancellation of policy (Exhibit A/1), it is found that

the same has been issued on 25th September, 2013.

However, the cheque returned memo shows that the

same has been issued on 30th September, 2013 by

the HSBC Bank (Exhibit D). Thus, it manifest prior

to receiving information of dishonour of the said

cheque issued towards payment of premium of policy

of insurance the letter of cancellation of policy of

insurance was issued by the insurance company.

Further, in the letter of intimation of cancellation of

policy the cheque number, the date of the said

cheque and the amount is kept blank. Thus from the

materials as discussed above it is comprehensible

that no such proper letter of intimation of

cancellation of policy of insurance has been issued

by the insurance company. There are no other

document on record to show that after receiving

information of dishonour of the cheque informed vide

memo dated 30th September, 2013, of HSBC Bank,

the insurance company has issued any letter of

intimation to the owner of the offending vehicle of

cancellation of the insurance policy. Such being the

position, in the absence of cogent evidence

suggesting cancellation of policy of insurance with

proper intimation, it can safely be said that the

offending vehicle was validly covered on the date of

accident (i.e. 27th October, 2013).

For the aforesaid reasons, the appeal fails.

It is found that the insurance company has

already deposited an amount of Rs.5,64,245/- vide

O.D. challan no.1487 dated 11th August, 2022 and

Rs.46,986/- vide O.D.Challan no. 1487 dated 11th

August, 2022 and Rs.25,000/- towards statutory

deposit vide O.D. challan no.2699 dated 29th

January, 2019 before the registry of this Court.

The learned Registrar General, High Court,

Calcutta, shall release the aforesaid amount together

with accrued interest in favour of the claimants in

equal proportion upon satisfaction of their identity.

With the aforesaid observation, the appeal

stands disposed of. The impugned judgment and

award of the learned Tribunal is affirmed. No order

as to costs.

All the connected applications, if any, stand

disposed of.

Interim order, if any, stands vacated.

Let a copy of this order along with the Lower

Court Records be sent to the learned Court below for

information in accordance with the rules.

Urgent photostat copy of this order, if applied

for, be given to the parties upon compliance of

necessary legal formalities.

(Bivas Pattanayak, J.)