National Insurance Co.Ltd. vs Geeta & Ors.
2009 Latest Caselaw 4757 Del

3
*IN THE HIGH COURT OF DELHI AT NEW DELHI

                      +      MAC.APP.No.223/2007

                               Date of Decision: 20th November, 2009
%

      NATIONAL INSURANCE CO.LTD.           ..... Appellant
                    Through : Mr. Amit Kumar Pandey,
                              Adv.

                      versus

      GEETA & ORS.                              ..... Respondents
                             Through : Mr. Manohar Lal, Adv.

CORAM :-
THE HON'BLE MR. JUSTICE J.R. MIDHA

1.      Whether Reporters of Local papers may                  NO
        be allowed to see the Judgment?

2.      To be referred to the Reporter or not?                 NO

3.      Whether the judgment should be                         NO
        reported in the Digest?

                             JUDGMENT (Oral)

1. The appellant has challenged the award of the learned

Tribunal whereby compensation of Rs.4,50,000/- has been

awarded to claimants/respondents No.1 to 5.

2. The accident dated 2nd June, 2004 resulted in the death

of Ram Sewak. The deceased was survived by his widow,

son, daughter and parents who filed the claim petition before

the learned Tribunal.

3. The only ground urged by learned counsel for the

appellant at the time of hearing of this appeal is that the

appellant is not liable to pay any compensation because the

insurance policy in question was cancelled before the

accident due to dishonour of the cheque towards the

premium.

4. The appellant produced the witness R3W1 before the

learned Tribunal who deposed that the cheque towards the

premium by the insured was dishonoured due to insufficient

funds. The copy of the cheque and the cheque return memo

were exhibited as Ex.R3W1/3 and Ex.R3W1/4. After the

dishonour of the cheque, the appellant intimated the insured

on 14th May, 2004 and the policy was cancelled vide

Ex.R3W1/6 (colly.).

5. The accident occurred on 2nd June, 2004. Admittedly,

the appellant has intimated the Road Transport Authority

after the cancellation of the policy. The learned Tribunal has

held that the liability of the Insurance Company continues

towards the third Party till the intimation is given to the Road

Transport Authority.

6. The learned Tribunal has granted the recovery rights to

the owner and driver of the offending vehicle to recover the

award amount from the insured.

7. There is no infirmity in the findings of the learned

Tribunal.

8. The appeal is, therefore, dismissed.

9. The appellant has deposited the entire award amount

with the learned Tribunal in terms of the order dated 6 th

April, 2009. The original FDRs have been retained by the

learned Tribunal. The learned Tribunal is directed to release

the original FDRs to claimants/respondents No.1 to 5 in terms

of its award.

10. The statutory amount of Rs.25,000/- be refunded back

to the appellant through counsel within a period of four

weeks.

11. Copy of this order be given 'Dasti' to learned counsel

for both the parties under signature of Court Master.

J.R. MIDHA, J NOVEMBER 20, 2009 mk