R.M.Prasad, J.

1. Heard the learned Counsel for the appellant and perused the order impugned in the present appeal.

2. Mr. Ajay Kumar, learned Counsel appearing for the appellant has ventured to submit that in the facts and circumstances of the present case, the appellant insurance company is not liable to indemnify and thus grant of interim compensation vide impugned order is bad in law. He submitted that the appellant has moved in appeal especially as the Claims Tribunal has recorded certain findings against the appellant leaving it not open for consideration at the time of final hearing.

3. It is not in dispute that the vehicle in question was insured with the appellant company. However, according to the appellant company, the payment of premium was made by cheque which on deposit was returned with a remark funds insufficient vide letter dated 3.7.1996. After getting the aforesaid letter, the company immediately cancelled the cover note and informed the owner regarding the same, vide letter dated 11.7.1996. The accident took place on 22.7.1996. As such, according to the learned Counsel for the appellant, the appellant is not liable. However, he has failed to show that the said letter was issued under a registered cover. It is also not clear as to whether the said letter was served upon the insured.

4. These things require detailed consideration at the time of consideration of the claim for final award. As such, at this stage, the appellant company cannot be absolved of its obligation to pay interim compensation on the basis of the materials available on record.

5. Thus, I do not find any infirmity in the impugned order. However, in the facts and circumstances aforementioned, as prayed, the appeal is disposed of with the direction that any finding with respect to the above recorded in the impugned order shall not come in the way of the Tribunal in deciding the said objection of the appellant at the time of final award.

6. As prayed, the appellant company is given liberty to recover the amount to be paid to the claimant from the owner of the vehicle in case no claim for final award is filed, in accordance with law.

7. Since the respondents-claimants have not appeared, as prayed, the appellant company is permitted to withdraw the statutory amount deposited in this Court, vide Challan No. 283 dated 14.10.1999, for payment to the claimants within three weeks.