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2019 Supreme(Guj) 60

S.G.SHAH
NATIONAL INSURANCE CO LTD. – Appellant
Versus
JABUBEN NARANBHAI BHARWAD – Respondent


Advocates:
Advocate Appeared:
Dakshesh Mehta, Adv., H.C.L.S. Committee, Adv., R.K. Mansuri, Adv., Shivangi M Rana, Adv.

Judgement Key Points

What is the liability of the Insurance Company to pay third party compensation when there is disputed or allegedly cancelled policy?

What are the rights and obligations under Section 149 of the Motor Vehicles Act regarding payment of decree amounts despite potential policy cancellation?

How does cancellation of Own Damage coverage affect liability for third party claims under the MV Act?


JUDGMENT

S G SHAH, J.

1. Heard learned advocate Mr. Rushang D.Mehta appearing with Mr. Dakshesh Mehta for the appellant, learned advocate Mr. R.K. Mansuri for respondent No.1 and learned advocate Ms. Shivangi M.Rana for respondent No.4 in both the First Appeals. Rests of the respondents, though duly served, have remained absent. Perused the record as well as original R & P of the Tribunal.

2. Both these appeals are arising out of the common judgment and order dated 20.11.2014 in M.A.C.P. Nos.650 of 1998 and 651 of 1998 by the M.A.C.T. of Ahmedabad (Rural). Therefore, both these appeals are heard together and decided by this common CAV judgment, since basic issue raised in both the appeals regarding liability of the Insurance Company to pay compensation to the claimants are common in both the appeals.

3. As the Insurance Company has mainly contended about their liability based upon cancellation of policy by them, there is no much dispute with reference to nature of incident and its result and therefore, those details are not much relevant to be reproduced herein. It is well described in the pleadings as well as in the impugned award. However, when two vehicles are involved in the accide






















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