JUDGMENT

S.B. Sinha, J.

1. Leave granted.

2. What would the effect of dishonour of a cheque when subsequently the amount of premium has been accepted in cash by the insurer is the question involved herein.

3. First respondent was driving a moped on 27.1.1995. An accident took place on the said date as the said vehicle was hit by a truck bearing registration No.GJ 6T 7000 which was allegedly being driven in a rash and negligent manner. The said truck first dashed against an Ambassador car and then hit the moped which was being driven by the respondent as a result whereof he suffered severe injuries.

4. For the purpose of getting the said truck insured, a cheque was tendered to the officers of the appellant company on 23.1.1995. As noticed hereinbefore the accident took place on 27.1.1995. The cheque when presented to the bank for clearance was allegedly dishonoured. On 30.1.1995, however, the amount of premium was paid in cash and received.

5. The Motor Vehicle Accident Claims Tribunal as also the High Court, however, opined that having regard to the fact that a cover note had been issued by the appellant, it was legally obligated to reimburse the claim of a third party.

6. Ms. Panka