JUDGMENT :

ANOOP KUMAR DHAND, J.

Both these appeals are arising out of the award dated 13.08.2002 passed by the Motor Accidents Claims Tribunal, Shahpura, District Jaipur (for short ‘the Tribunal’) in MAC Case No. 539/2001 by which the claim petition filed by the claimants has been allowed and the respondent- Insurance Company has been directed to pay compensation of Rs. 1,88,000/- to the claimants.

2. Feeling aggrieved and dissatisfied by the above award, both the Insurance Company as well as the claimants have preferred these appeals.

3. With the consent of the parties, both matters are taken up and heard together and are being decided by this common judgment.

4. Brief facts of the case are that on 28.05.1996, the deceased Ghisa Lal met with an accident caused by the driver of bus No. DL IP 0339. After the aforesaid accident, the claimants submitted the claim petition before the Tribunal against the driver, owner and Insurance Company of the vehicle. In spite of receipt of notice, the driver as well as the registered owner of the vehicle did not appear before the Tribunal, hence ex-parte proceedings were initiated against them vide order dated 07.11.1997. The Insurance Company submitted its reply and denied the averments of the claim petition and submitted that the vehicle in question was not insured on the date of accident i.e. 28.05.1996. It was pleaded in the reply that for renewal of the insurance policy, premium was paid by the registered owner of the vehicle to the Insurance Company vide cheque No. 201745 on 04.10.1995 and on the basis of the said cheque, a cover note was issued. Subsequently, the aforesaid cheque was dishonoured and hence the insurance policy was cancelled by the Insurance Company on 08.12.1995 and an intimation in this regard was sent to the registered owner of the vehicle by registered post. It was also pleaded by the Insurance Company before the Tribunal that since the vehicle was not insured on the date of accident, hence the Insurance Company is not liable to pay any amount of compensation to the claimants.

5. After hearing the arguments of both side, the Tribunal discarded the plea taken by the Insurance Company and allowed the claim petition filed by the claimants directing the Insurance Company as well as the registered owner and driver of the vehicle to pay the amount of compensation of Rs. 1,88,000/- to the claimants.

6. Counsel for the Insurance Company submits that the accident occurred on 28.05.1996. He further submits that the registered owner of the vehicle issued a cheque bearing No. 201745 for renewal of the insurance policy of the vehicle in question and on the basis of the said cheque, a cover note was issued to the registered owner on 04.10.1995. He further submits that the said cheque was dishonoured. The payment of premium was not satisfied, hence the policy was cancelled by issuing registered notice to the registered owner of the vehicle on 08.12.1995. Counsel further submits that after lapse of long time, the registered owner again issued another cheque bearing No. 214721 for renewal of the insurance policy on 31.05.1996 and on the basis of the said cheque again a cover note was issued. He submits that the said cheque was also dishonoured and again the policy issued in favour of the registered owner was cancelled on 26.06.1996. He further submits that thereafter the registered owner submitted a demand draft of the premium amount to the Insurance Company on 16.07.1996 and on the basis of that, a fresh/renewed insurance policy was issued to him. Counsel submits that under these circumstances it is clear that the vehicle in ques