1. This appeal by the New India Assurance Company Limited is directed against the judgment and award dated 22.8.2000 passed by the 4th Additional Motor Vehicles Accident Claim Tribunal, Muzaffarpur in Claim Case No. 134 of 1997 by which it has allowed the compensation of rupees three lacs to respondent nos.1 and 2 for the death of one Rabindra Yadav in a motor vehicle accident.

2. Learned counsel for the appellant has assailed the judgment and award on the ground that on the date of accident i.e. 18.6.1997 there was no valid insurance policy to indemnify the liability of the owner. He contended that the owner of the vehicle which caused accident had obtained an insurance policy from the appellant Company firstly on 6.6.1997 effective from 7.6.1997 to 6.6.1998 but as the premium of the insurance was paid by cheque on 6.6.1997 and the same bounced due to insufficient fund and the policy was cancelled, the policy became non est and so there was no valid policy on 18.6.1997. As such the appellant is not liable to pay compensation. In support of the submission, he relied on the decision of the Apex Court in the case of National Insurance Company Limited vs. Seema Malhotra and ot