Balachandran, J.

The interesting question of vast legal importance which comes up for consideration before us upon a reference by a Division Bench is the following:-

“Whether the insurer is liable to pay compensation to the injured in a motor vehicle accident even if it has cancelled the policy issued in relation to the offending vehicle for non-payment of premium, the (the cheque issued towards payment of premium having been dishonoured) in respect of accident that has taken place within the period specified in the policy but that has taken place after the cancellation?”

2. The Referring Bench was of the view that the principles laid down by a division Bench of this court in New India Assurance Co. Ltd. v. Raghu (2001 (3) K.L.T. 515) required reconsideration by a larger bench on analyzing the provisions of Sections 147 (5) and 149(1) of he Motor Vehicles Act, 1988 in the light of the decisions of the Apex Court in Oriental Insurance Co. Ltd v. Inderjit Kaur and others (AIR 1998 SC 588) = 1998 ACJ 123 and New India Assurance Co. Ltd. v. Rula and others (2000 (3) SCC 195 = 2000 ACJ 630).

3. The appellant is the third respondent Insurance Company and the respondents are the p