ORDER

1. Delay of 65 days in filing the Special Leave Petition is condoned.

2. Issue notice.

3. Until further orders, the operation of the impugned order shall remain stayed.

4. In this case, the allegation of the petitioner-Insurance Company is that there was no valid insurance coverage on the date of the accident i.e. 30th November, 2003. The cheque towards premium for renewal of the policy was issued on 29th November, 2003 but the same was dishonoured. Hence, the contention of the Insurance Company is that it has no liability to pay any compensation amount to the claimants since there was no insurance coverage on the date of the accident.

5. Despite this, the High Court has directed the insurance company to pay the compensation amount to the claimants with liberty to the Insurance Company to recover the same from the owner of the vehicle. Prima facie, we are of the opinion if the Insurance Company proves that it has no liability to pay compensation to the claimants, the Insurance Company can not be compelled to make payment and later on recover it from the owner of the vehicle.

6. No doubt, there are some decisions which have taken the view that even if the insurance company ha