Brijesh & Ors. v. AK GUPTA

enged either the findings of the Tribunal regarding rash and negligent driving challenged either the findings of the Tribunal regarding rash and negligent driving enged either the findings of the Tribunal regarding rash and negligent driving enged either the findings of the Tribunal regarding rash and negligent driving of the offending vehicle or the quantum of compensation awarded to the of the offending vehicle or the quantum of compensation awarded to the of the offending vehicle or the quantum of compensation awarded to the of the offending vehicle or the quantum of compensation awarded to the claimant. The challenge in the present appeal is confined only to the question of claimant. The challenge in the present appeal is confined only to the question of claimant. The challenge in the present appeal is confined only to the question of claimant. The challenge in the present appeal is confined only to the question of liability.

#4. tended that the cheque issued by the insured towards It is contended that the cheque issued by the insured towards tended that the cheque issued by the insured towards It is con payment of premium was dishonoured on presentation due to insufficiency of payment of premium was dishonoured on presentation due to insufficiency of payment of premium was dishonoured on presentation due to insufficiency of payment of premium was dishonoured on presentation due to insufficiency of funds. It is further submitted that immediately thereafter the insurance policy funds. It is further submitted that immediately thereafter the insurance policy funds. It is further submitted that immediately thereafter the insurance policy funds. It is further submitted that immediately thereafter the insurance policy cancellation was sent to the was cancelled and due intimation regarding such cancellation was sent to the was cancelled and due intimation regarding such was cancelled and due intimation regarding such insured as well as to the concerned Registering Authority. According to learned insured as well as to the concerned Registering Authority. According to learned insured as well as to the concerned Registering Authority. According to learned insured as well as to the concerned Registering Authority. According to learned counsel, once the policy stood cancelled prior to the accident, there remained no counsel, once the policy stood cancelled prior to the accident, there remained no counsel, once the policy stood cancelled prior to the accident, there remained no counsel, once the policy stood cancelled prior to the accident, there remained no ore, the valid contract of insurance on the date of occurrence and, therefore, the valid contract of insurance on the date of occurrence and, theref valid contract of insurance on the date of occurrence and, theref appellant deserves complete exoneration from its liability instead of being appellant deserves complete exoneration from its liability instead of being appellant deserves complete exoneration from its liability instead of being appellant deserves complete exoneration from its liability instead of being directed to satisfy the award with liberty to recover the amount from the insured. directed to satisfy the award with liberty to recover the amount from the insured. directed to satisfy the award with liberty to recover the amount from the insured. directed to satisfy the award with liberty to recover the amount from the insured. Reliance is placed upon the statements made by RW Reliance is placed upon the 2, including the by RW-1 and RW-2, including the cheque, bank return memo and cancellation letters proved before dishonoured cheque, bank return memo and cancellation letters proved before cheque, bank return memo and cancellation letters proved before cheque, bank return memo and cancellation letters proved before the Tribunal.

#5. I have heard learned counsel for the appellant and have carefully I have heard learned counsel for the appellant and have carefully I have heard learned counsel for the appellant and have carefully I have heard learned counsel for the appellant and have carefully gone through the impugned award and the record. gone through the impugned award and the record. gone through the impugned award and the record.

#6. er the The only question that arises for consideration is whether the The only question that arises for consideration is wheth The only question that arises for consideration is wheth party claimant Insurance Company can avoid its statutory liability towards a third-party claimant Insurance Company can avoid its statutory liability towards a third Insurance Company can avoid its statutory liability towards a third solely on the ground that the premium cheque stood dishonoured and the policy solely on the ground that the premium cheque stood dishonoured and the policy solely on the ground that the premium cheque stood dishonoured and the policy solely on the ground that the premium cheque stood dishonoured and the policy had thereafter been cancelled. had thereafter been cancelled.

#7. on. The evidence This Court is unable to accept the aforesaid contention. The evidence This Court is unable to accept the aforesaid contenti This Court is unable to accept the aforesaid contenti led before the Tribunal indeed establishes that the cheque issued towards led before the Tribunal indeed establishes that the cheque issued towards led before the Tribunal indeed establishes that the cheque issued towards led before the Tribunal indeed establishes that the cheque issued towards premium was dishonoured and that the insurer thereafter issued cancellation premium was dishonoured and that the insurer thereafter issued cancellation premium was dishonoured and that the insurer thereafter issued cancellation premium was dishonoured and that the insurer thereafter issued cancellation letters to the insured and also informed the Registering Authority. However, the letters to the insured and also informed the Registering Authority. However, the letters to the insured and also informed the Registering Authority. However, the letters to the insured and also informed the Registering Authority. However, the Page N: 2 of total 6 Pages Pages FAO-5560-2025 facts by themselves do not absolve the insurer from its statutory liability aforesaid facts by themselves do not absolve the insurer from its statutory liability facts by themselves do not absolve the insurer from its statutory liability facts by themselves do not absolve the insurer from its statutory liability towards an innocent third-party claimant. towards an innocent third

#8. The Motor Vehicles Act is a beneficial social welfare legislation The Motor Vehicles Act is a beneficial social welfare legislation The Motor Vehicles Act is a beneficial social welfare legislation The Motor Vehicles Act is a beneficial social welfare legislation uately enacted primarily to ensure that victims of road accidents are adequately enacted primarily to ensure that victims of road accidents are adeq enacted primarily to ensure that victims of road accidents are adeq compensated. The statutory obligation cast upon an insurer under Section 149 of compensated. The statutory obligation cast upon an insurer under Section 149 of compensated. The statutory obligation cast upon an insurer under Section 149 of compensated. The statutory obligation cast upon an insurer under Section 149 of the Motor Vehicles Act cannot be defeated merely because disputes subsequently the Motor Vehicles Act cannot be defeated merely because disputes subsequently the Motor Vehicles Act cannot be defeated merely because disputes subsequently the Motor Vehicles Act cannot be defeated merely because disputes subsequently arise between the insurer and the insured regarding payment of premium. Once a arise between the insurer and the insured regarding payment of premium. Once a arise between the insurer and the insured regarding payment of premium. Once a arise between the insurer and the insured regarding payment of premium. Once a of insurance has been issued and the vehicle is permitted to ply on certificate of insurance has been issued and the vehicle is permitted to ply on of insurance has been issued and the vehicle is permitted to ply on of insurance has been issued and the vehicle is permitted to ply on public roads, third parties are entitled to legitimately proceed on the assumption public roads, third parties are entitled to legitimately proceed on the assumption public roads, third parties are entitled to legitimately proceed on the assumption public roads, third parties are entitled to legitimately proceed on the assumption that the vehicle is duly insured. that the vehicle is duly insured.

#9. The legal position on the issue is no longer res integra.In Oriental The legal position on the issue is no longer res integra.In The legal position on the issue is no longer res integra.In