Judgment

Sanjay Dhar, J.—The instant appeal is directed against the interim award dated 09.04.2014 passed by learned Motor Accident Claims Tribunal, Srinagar, under Section 140 of the Motor Vehicles Act, in a claim petition filed by respondent No.1/claimant whereby a sum of Rs.25,000/- has been awarded by the learned Tribunal in favour of the claimant to be payable by the appellant insurance company.

2. The aforesaid interim award has been challenged by the appellant on the ground that the offending vehicle was not covered under the policy of insurance at the time of the accident, inasmuch as the policy of insurance relating to the vehicle in question had been cancelled on account of dishonour of cheque pertaining to the premium of insurance of the vehicle in question and that this aspect of the matter has not been considered by the learned Tribunal while passing the impugned interim award.

3. I have heard learned counsel for the appellant and the learned counsel for respondent No.1. I have also gone through the memo of appeal and the grounds of appeal.

4. It appears that the claim petition has arisen out of a motor vehicular accident involving vehicle bearing registration No.JK01F-2944 that was being driven by respondent No.2. As a result of the accident, the respondent No.1 is alleged to have sustained grievous injuries which led to the registration of FIR No.113/2012 of offences under Section279, 338 RPC registered with Police Station, Beeru. The injured/claimant is stated to have sustained permanent disability. It appears that the claimant had placed on record photocopy of insurance policy issued by the appellant herein, according to which the vehicle in question was insured at the time of the accident.

5. The learned Tribunal after observing that the requirements as are necessary for awarding interim compensation under the principle “No Fault Liability” are fulfilled in the instant case, awarded a sum of Rs.25,000/- as interim compensation in favour of the claimant, holding the appellant insurance company liable for its payment.

6. The learned counsel for the respondent/claimant has raised a preliminary objection to the maintainability of the appeal on the ground that the award in question is an interim award and not a final award, as such, the same is not appealable in terms of Section 173 of the Motor Vehicles Act.

7. The contention raised by the learned counsel for the respondent No.1 is without merit as an interim award made under Section 140 of the Motor Vehicles Act has been held to be an award for the purpose of Section 173 of the Motor Vehicles Act and, as such, appealable under the said provision. I am supported in my aforesaid view by the judgment of the Supreme Court in Yallwwa & Ors. v. National Insurance Co. Ltd. & anr. (2007) 6 SCC 657. In the said case, the Supreme Court has clearly observed that an order of Tribunal awarding compensation under Section 140 of the of the Motor Vehicles Act is appealable under Section 173 of the said Act as it amounts to an award under Section 173.

8. Coming to the merits of the instant appeal, it has been contended by the learned counsel for the appellant that at the time of the accident, the offending vehicle was not insured with the appellant insurance company as the insurance policy, a photocopy whereof had been placed on record by the claimant before the learned Tribunal, had been cancelled on account of dishonour of cheque relating to premium amount. To buttress his point, the appellant has placed on record copy of communication dated 03.09.2012, issued by the appellant insurance company to the owner of the offending vehicle conveying him the cancellation of the policy of insurance, as also other documents like copy of the cheque, dishonour memo and the documents evidencing the dispatch of intimation regarding cancellation of policy of insurance to the owner.

9. It is contended by learned counsel for the appellant that in its reply to the claim petition, the appellant i