The main legal point established in the judgment is that the liability of the Insurance Company to indemnify the third parties and satisfy the award of compensation is determined by the timing of the cancellation of the policy in relation to the occurrence of the accident, as per the legal provisions and interpretation provided in the case of United India Insurance Co. Ltd. V/s Laxmamma & Ors.

JUDGMENT

1. The present appeal has been preferred by the appellant -Insurance Company against the judgment and awarded dated 28.07.2000 passed by the learned Motor Accident Claims Tribunal, Bhilwara in MAC Case No. 182/1993, whereby, an amount of Rs. 1,59,000/- was awarded to the respondents-claimants.

2. Brief facts of the case are that in the accident which occurred on 06.12.1992, Tirathraj who was traveling in Truck No. DNG 1650 as a second driver fell into A/a/a, on account of which he sustained fatal injuries, due to which he died. In the circumstances, the respondents-claimants preferred the claim petition before the learned Tribunal.

3. Learned Tribunal after framing the issues, evaluating the evidence and hearing the counsel for the parties, partly allowed the claim petition with a direction to the appellant-Insurance Company to compensate the respondents-claimants by paying the compensation amount to the tune of Rs.1,59,000/-.

4. Heard learned counsel for the parties.

5. Learned counsel for the appellant fairly submits that as far as the quantum and other factors taken into consideration by the Tribunal in the judgment and award dated 28.07.2000 are concerned, the same are not disputed. However, he submits that the learned Tribunal has fastened the liability to satisfy the award against the appellant, which is not correct. He submits that the cheque given by the Owner of the Truck towards the premium was dishonoured on account of 'insufficiency of funds', therefore, the Insurance Company was not paid the premium for covering the risk in furtherance of the insurance cover note issued in the present case.

6. Learned counsel further submits that although, the notice for cancellation of the insurance policy was given after the accident but the Tribunal erred while giving direction for satisfying the award to the insurance company without giving them any opportunity to recover the same from the owner and driver of the offending vehicle. In support of his contention, learned counsel for the appellant has relied upon the judgment of the Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. V/s Laxmamma & Ors., reported in (2012) 5 SCC 234. Since nobody has appeared on behalf of the driver and owner of the Truck, the contention raised by the learned counsel for the appellant are not opposed.

7. Learned counsel for the respondents-claimants, however, submits that in pursuance of the direction issued by the Tribunal, the compensation awarded has already been received by them.

8. I have considered the submissions made at the Bar and have gone through the judgment and award impugned.

9. As per the findings arrived at by the learned Tribunal with respect to the Issue No.4, it is an admitted position that the accident in the present case occurred on 06.12.1992 and cover note was issued on 05.12.1992. For the purpose, the owner of the vehicle submitted a cheque before 06.12.1992. The cheque was dishonoured after the accident and therefore, the notice for cancellation of the policy was also issued after the date of accident. In the circumstances, the appellant-Insurance Company was under the obligation to satisfy the compensation awarded in this case. However, in the light of judgment delivered by the Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. V/s Laxmamma & Ors. (Supra), the appellant is entitle to recover the same from the driver and owner of the offending vehicle.

10. The Hon'ble Supreme Court in the case of United India Insurance Co. Ltd. V/s Laxmamma & Ors.(Supra) has held as under :-

26. In our view, the legal position in this: where the policy of insurance is issued by an authorised insurer on receipt of cheque towards the payment of premium and such a cheque is returned dishonoured, the liability of the authorised insurer to indemnify the third parties in respect of the liability which that policy covered subsists and it has to satisfy the award of compensation by reason of the provisions of Sect