JUDGMENT

RANGANATH MISRA, P. B. SAWANT, J.

( 1 ) DELAY condoned.

( 2 ) THIS is an application for special leave against the decision of the Orissa High Court where the compensation given for a sum of rs. 15,000. 00 (Rupees fifteen thousand) under the Motor Vehicles Act has been upheld by the high Court against the insurer on the footing that it had issued a cover note undertaking the risk in terms of the requirements of the motor Vehicles Act, 1988 The insurers stand was that the cheque covering the premium had bounced and in the absence of payment, the cover note had become ineffective and there was no policy which obliged the insurer to pay the compensation. Counsel relies upon the decision of the Delhi High Court in the case of Chandan v. Kanwarlal, 1989 ACJ 816 (Delhi ).

( 3 ) UNDOUBTEDLY, the decision of the Delhi high Court supports his stand.

( 4 ) IN the impugned judgment the High court has taken the view that in the absence of steps taken for cancelling the cover note, the insurers liability continued, although the bouncing of the cheque and steps taken by the insurer cancelling the risk note have been found as a fact. In fact, the insurer had issued notice to the registerin