The New India Assurance Company ... vs Raju ...1St
2022 Latest Caselaw 903 Mad

                                                                                      CMA.No.366 of 2020
                                                                                and CMP.No.3422 of 2020

                                  IN THE HIGH COURT OF JUDICATURE AT MADRAS
                                                 DATED: 20.01.2022
                                                      CORAM:
                                  THE HONOURABLE MR.JUSTICE R.SUBRAMANIAN
                                               CMA.No.366 of 2020
                                                      and
                                               CMP.No.3422 of 2020

                     The New India Assurance Company Limited,
                     No.45, Moore Street,
                     3rd Party Cell, Chennai - 1                      ...Appellant / 2nd Respondent

                                                         Vs.

                     1.Raju                                      ...1st Respondent / 1st Respondent
                     2.Sathya                                    ...2nd Respondent / Petitioner

                     Prayer: Civil Miscellaneous Appeal filed under Section 173 of the MV Act,
                     1988, against the judgment and decree passed in M.C.O.P.No.561 of 2014
                     dated 30.09.2019 on the file of the Motor Accidents Claims Tribunal / III
                     Additional District Court, Poonamallee.


                                         For Appellant         : Ms.C.Sangamithirai
                                         For Respondents       : Mr.K.Varadhakamaraj for R2




                     1/4


https://www.mhc.tn.gov.in/judis
                                                                                       CMA.No.366 of 2020
                                                                                   and CMP.No.3422 of 2020



                                                     JUDGMENT

The only ground on which, the Insurance Company challenges the

award is that the Tribunal ought not to have granted an order for pay and

recovery when the policy was cancelled by the Insurance Company on the

ground that the cheque issued for the premium was dishonoured even on

21.04.2014, prior to the accident.

2.It is not in dispute that the cheque given by the 1st respondent was

dishonoured and the Insurance Company had informed the 1st respondent as

well as the RTO of the cancellation of the policy by the registered letters

dated 21.04.2014. Once the said cancellation is admitted, the Tribunal ought

not to have directed the Insurance Company to pay the compensatin and

recover the same from the owner. The question of pay and recovery will arise

only if there is a policy and there is violation of any of the policy conditions.

3.If the very policy has been cancelled, there is no question of

Insurance Company being directed to pay with liberty to recover the amount

https://www.mhc.tn.gov.in/judis CMA.No.366 of 2020 and CMP.No.3422 of 2020

from the owner of the vehicle. Hence, that portion of the award of the

Tribunal is liable to be set aside and it is accordingly, set aside. This civil

miscellaneous appeal is therefore, partly allowed. The Insurance Company is

exonerated from the liability to pay and the liability to satisfy the entire award

will be on the 1st respondent / owner of the vehicle. No costs. Consequently,

connected miscellaneous petition is closed.

20.01.2022 kkn

Index:No Internet:Yes Speaking

To:-

The Motor Accident Claims Tribunal, III-Additional District Court, Poonamallee.

https://www.mhc.tn.gov.in/judis CMA.No.366 of 2020 and CMP.No.3422 of 2020

R.SUBRAMANIAN, J.

KKN

CMA.No.366 of 2020 and CMP.No.3422 of 2020

20.01.2022

https://www.mhc.tn.gov.in/judis