JUDGMENT :

1. Present First Appeal under Section 173 read with Section 166 of the Motor Vehicles Act, 1988 is filed for the purpose of challenging the legality and validity of judgment and award passed by the learned Motor Accident Claims Tribunal (Main), Ahmedabad (Rural), Ahmedabad on 25.11.2010 in M.A.C. Petition No.464 of 2001.

2. Brief facts of the present appeal are as under:-

[2.1] On 19.03.2001, the respondent No.3 - original claimant was walking on the side of the road and at that time, the driver of Truck bearing registration No.GJ-1-UU-7595 took the truck in a reverse direction and dashed with the original claimant. As a result of this, the original claimant sustained fracture on left leg, rupture of urethra and the injuries on other parts of the body. At the time when this incident took place, the original claimant was aged about 27 years, doing labour work and he was earning Rs.3500/- per month. As such, the claim petition was filed for the purpose of seeking compensation of Rs.2,50,000/- from the original opponents-company. The said petition was registered as M.A.C. Petition No.464 of 2001 before the Motor Accident Claims Tribunal (Main), Ahmedabad (Rural), Ahmedabad.

[2.2] Though, the notice was served at Exh.7, the opponent-M/s Mehta Transport Services Pvt. Ltd. did not remain present when the matter was called out and an order was passed on 11.10.2001 and then matter proceeded ex-parte against him. So far as original opponent No.3 is concerned, the New India Assurance Company Limited appeared and filed its written statement at Exh.16 inter alia denying the claim and contents of the petition and thereby had contended that there was no rash and negligent driving by the driver of the vehicle in question and as such requested to dismiss the petition.

[2.3] After the pleadings having been completed, the issues were framed at Exh.22 and after considering overall material on record and upon scrutiny of evidence, the learned Tribunal below was pleased to pass an order on 25.11.2010 and partly allowed the claim petition submitted by the original claimant. The operative part thereof thus reads as under:

"ORDER:

The present petition is partly allowed. The applicant is entitled to get the compensation of Rs.1,17,000/- from the opponents with proportionate costs and interest at the rate of 7.5% per annum from the date of application till realization.

The interim amount of compensation, if any, paid or deposited under the provisions of no fault liability shall be adjusted in the amount of compensation awarded in the final adjudication.

The deficit court fees, if any, be deducted before making payment. Out of the amount payable, the applicant shall invest 70% share in his name in Fixed Deposit Receipt in any nationalised bank of his choice, for a period of six years, and remaining 30% amount shall be paid to him by A/c payee cheque.

The applicant will be entitled to receive periodical interest but he will not be entitled to raise loan or advance, without prior permission of this Tribunal. Award be drawn accordingly."

[2.4] It is this judgment and order is the subject matter of present appeal filed by the New India Assurance Company Limited. After the present appeal came to be entertained by this Court and necessary orders were passed on Civil Application for Interim Relief and in this background the appeal has come up for consideration today before this Court.

3. Mr. Vibhuti Nanavati, learned advocate appearing for the appellant - the New India Assurance Company Limited has contended that the order passed by the learned Tribunal is not only unjust and perverse but reflects clear non-application of mind. He has contended that no doubt the vehicle in question was insured with the appellant-company but the policy of offending vehicle could not have been considered inasmuch as the cheque which was given for payment of premium was dishonored on account of insufficient funds on 08.02.2001 and as such, the policy could not have been acknowled