(Sanjay Karol, J.) - United India Insurance Company Limited, the appellant herein has assailed the impugned award date 7th April, 2004, passed by the Motor Accident Claims Tribunal, Una, H.P. in MAC Petition No. 13 of 1999 titled as Sandhya Devi and others v. Rajesh Kumar and others awarding compensation of Rs. 1,39,600/- to the claimants, legal representatives of the deceased Sh. Basant Ram.

2.Since the Insurance Company has filed the appeal, therefore, the controversy is narrow. Mr. Behl, learned Counsel for the appellant has challenged the impugned award only on the ground that since the cheque towards the premium of the policy stood bounced and the policy cancelled, therefore, the Tribunal seriously erred in holding the Insurance Company liable to indemnify the insured and pay the awarded compensation.

3.Facts necessary for adjudication of the case are that vehicle No. HP-23-1575 owned by Sh. Subhash Chand was insured by the appellant. As per the insurance cover note (Ext.RW-2/A), the policy was to be valid and operative from 11th November, 1997 to 11th November, 1998. However, cheque No. 572022 dated 12th November, 1997 for a sum of Rs. 8,654/- issued towards the