New India Assurance Co. Ltd vs Manoj Kumar Solanki & Ors
2010 Latest Caselaw 1568 Del

11
*IN THE HIGH COURT OF DELHI AT NEW DELHI

                     +   MAC.APP.No. 187/2007

                              Date of Decision: 19th March, 2010
%

      NEW INDIA ASSURANCE CO. LTD        ..... Appellant
                    Through Mr. Jos Chiramel and
                    Mr. Ramesh Kumar, Advs.

                     versus

      MANOJ KUMAR SOLANKI & ORS             ..... Respondents
                   Through None.


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

1.      Whether Reporters of Local papers may             YES
        be allowed to see the Judgment?

2.      To be referred to the Reporter or not?            YES

3.      Whether the judgment should be                    YES
        reported in the Digest?

                         JUDGMENT (Oral)

1. The appellant has challenged the award of the learned

Tribunal whereby compensation of Rs.56,000/- has been

awarded to claimant/respondent No.1.

2. The accident dated 4th February, 1999 resulted in the

grievous injuries to respondent No.1. Respondent No.1

suffered compound fracture of left arm. Respondent no.1

filed the claim petition before the Claims Tribunal.

3. The accident was caused by Maruti Esteem Car bearing

No.DL-6CE-3533 which was driven by respondent No.2 and

owned by respondent No.3 at the time of the accident. The

learned counsel for the appellant submits that the appellant

had insured Maruti Esteem Car bearing No.DL-4CE-6419 for

the period 27th June, 1998 to 26th January, 1999. On 8th June,

1998, respondent No.3 approached the appellant to transfer

the aforesaid policy to the offending vehicle bearing No.DL-

6CE-3533 for the remaining period to the policy i.e. up to 26 th

January, 1999. The development officer of the appellant

inadvertently issued the cover note bearing No.0413849 for

the period 8th June, 1998 to 7th June, 1999, instead of 8th June,

1998 to 26th January, 1999. This mistake was corrected by an

endorsement dated 28th July, 1998. The period as per

endorsement expired on 26th January, 1999 and vehicle met

with an accident on 4th February, 1999. The contention of

learned counsel appellant is that the offending vehicle was

not insured at the time of the accident and, therefore, the

appellant was not liable to pay the award amount.

4. The learned Tribunal held the appellant liable on the

ground that the cover note No.0413849 dated 8 th June, 1999

was for full year from 8th June, 1999 to 7th June, 1999,

therefore, the appellant is liable qua the third party.

5. The learned counsel for the appellant submits that the

cover note No.0413849 was not followed by any policy and

also no premium was taken for the period after 26 th January,

1999.

6. This appeal can be decided on the basis of the principle

applicable in the case of dishonoured cheques. In the case of

dishonour of cheque towards the premium of the insurance

policy, the insurance company is liable qua the third party till

the endorsement is issued, notice of endorsement is given to

the owner and the intimation is sent to the Road Transport

Authority. In the present case, admittedly no intimation has

been given to the Road Transport Authority about the

endorsement issued by the appellant and, therefore,

appellant shall remain liable qua the third party with the

right to recover the amount from the owner of the offending

vehicle.

7. The learned counsel submits that respondent No.3 has

also filed a claim for damage caused to the offending vehicle.

It is clarified that the owner shall not be entitled to the own

damage claim on the basis of this judgment.

8. The appeal is partially allowed and the impugned award

is modified to the extent that after the payment of the award

amount to the claimant, the appellant shall be entitled to

recover the award amount from respondent No.3.

9. Vide order dated 23rd March, 2010, the statutory

amount of Rs.25,000/- was directed to be released to the

claimant/respondent No.1. Respondent No.1 has not

appeared and has not withdrawn the said amount. Let the

statutory amount of Rs.25,000/- be kept in fixed deposit till

the respondent No.1 approaches this Court for withdrawal of

the said amount. The balance award amount be deposited by

the appellant with the Claims Tribunal after notice of deposit

under Order 21 Rule 1 of the Code of Civil Procedure to

respondent No.1.

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

for both the parties under signature of Court Master.

J.R. MIDHA, J MARCH 19, 2010 HL