The court held that minor cheque dishonour does not absolve the Insurance Company of liability, and compensation must be adjusted for inflation and economic conditions.

Order :

(Naresh Kumar Chandravanshi, J.)

1. Since both above mentioned appeals arise out of same accident and are directed against same award, they are heard analogously and are being disposed of by this common order.

2. The appellant/Insurance Company has filed MAC No.1746/2018 for setting aside the award dated 09.7.2018 passed in Motor Accident Claim Case No. 70/2017 by Motor Accident Claims Tribunal, Distt. Baloda Bazar, (CG) and also for exonerating it from the liability.

3. By filing MAC No.1380/2018, the appellants/claimants have prayed for enhancement of amount of impugned award dated 09.7.2018 passed in Motor Accident Claim Case No.70/2017 by Motor Accident Claims Tribunal, Distt. Baloda Bazar (CG), whereby, the learned Tribunal has awarded compensation to the tune of Rs.2,75,000/- to the claimants on account of death of Deepak Kannouje, in an accident that occurred on 21.4.2017, by rash and negligent driving of the offending vehicle Tipper Hyva Truck bearing registration No. CG 04 JC 2459 by respondent No.1 and owned by respondent No.2 and insured by respondent No.3/Insurance company.

4. Facts of the case, in brief are that, the claimants filed application under Section 166 of the Motor Vehicles Act, stating inter alia that on 21.4.2017 at about 5.30 pm, Deepak Kannouje, aged about 12 years, was going to shop on his cycle and on the way near Rajkumar Kirana shop, his cycle was dashed by Tipper Hyva Truck bearing registration No.CG 04 JC 2459 (for short ‘the offending vehicle’), driven by Lokesh @ Lukesh Sen, as a result of which, Deepak Kannouje received serious injuries and died during treatment. By filing aforesaid application, the claimants sought compensation from the non-applicants. Vide impugned award dated 09.7.2018, the learned Tribunal partially allowed the application filed by the claimants and directed the insurance company to pay compensation to the tune of Rs.2,75,000/- along with interest of 9% per annum from the date of filing of the claim case till date of payment of amount of compensation to the claimants. The aforesaid award has been challenged by the claimants for enhancement of the amount of compensation and the Insurance Company has challenged the same for setting aside the award and also to exonerate them from liability.

5. Learned counsel appearing for Insurance Company submits that he wants to press this appeal only to the extent of cancellation of the insurance policy. In this regard he submits that, respondent No.4/owner of the offending vehicle had issued cheque for premium for the offending vehicle for insurance for the period from 05.4.2017 to 04.4.2018 and the said cheque was dishonoured on 11.4.2017 due to insufficient fund, as such, the policy was cancelled and this fact was intimated to respondent No.4/owner by registered letter dated 13.4.17. Respondent No.4/owner again deposited the amount of premium and the vehicle was got insured for the period 26.4.2017 to 25.4.2018. Thus, the offending vehicle was not insured on the date and time of the alleged accident on 21.4.2017, because insurance policy issued covering that date had been cancelled due to non payment of premium as cheque given in this regard was dishonoured. Therefore, liability cannot be fastened upon the appellant/Insurance Company.

6. In reply, learned counsel for respondents 3 & 4/Owner and driver would submit that although the cheque given in respect of premium for the policy issued by the appellant/Insurance Company for the period from 05.4.2017 to 04.4.2018 was dishonoured by the appellant’s bank, but the cheque dishonour intimation was given to the appellant by the bank on 11.4.2017, despite that, aforesaid intimation was not given to the respondent/owner till 06.5.2017. He further submits that intimation with regard to dishonour of cheque was sent by the appellant/ Insurance Company vide letter dated 13.4.2017 but that letter was submitted in the post office on 04.5.2017, which shows that aforesaid letter was sent by puttin