( 1. ) THIS appeal is directed against the award passed by 7th Additional Motor Accidents Claims Tribunal, Bhopal, in Claim Case No. 17 of 1999, dated 18. 4. 2000.

( 2. ) BRIEFLY stated, the facts are that on 20. 6. 1998, Dawood (30) was travelling by bus No. MP 04-7330, owned by Lakhansingh and driven by Lal Miyan. When the bus reached near Holy Family School, Shanti Nagar, Bhopal, Ashok Leyland dumper No. MP 04-F 8606, owned by Ramgopal and driven by Dashrath at an excessive speed and negligently, dashed against the bus resulting in the accident. As a result, Dawood died on account of the injuries received by him in this accident. Claimants, father and mother of the deceased, preferred claim petition alleging that on account of rash and negligent driving of the dumper by the driver thereof, the accident took place in which Dawood died, who was working as a mechanic/ repairer of dynamos and batteries and was earning Rs. 250 per day. Consequently, compensation of Rs. 15,55,000 is claimed against the owner, driver and insurance company jointly and severally.

( 3. ) IN reply, the owner and driver of the dumper stated that there was no negligence in causing the accident by them; the dumper was stationary on the left side of the road and the accident took place due to negligence of the driver of the bus which dashed against the dumper, therefore, they are not liable to pay the compensation. Owner and driver of the bus stated they were not responsible for the accident; it was due to negligence and excessive speed of the dumper driver as a result of which the dumper dashed against the bus. It is also stated that it was a case of contributory negligence and in case compensation is awarded, it must be apportioned.

( 4. ) NATIONAL Insurance Co. Ltd. submitted that the driver of the dumper was not holding valid and effective driving licence to drive the vehicle. The owner of the dumper approached the company on 30. 3. 1998 and proposed for the insurance of the vehicle. Premium amount for the policy was paid through cheque No. 0346732, dated 30. 3. 98 drawn on Bank of Baroda, Kotra, Sultanbagh, Bhopal. This cheque was tendered towards premium and deposited in the bank with the account of the company. It was dishonoured on the ground that sufficient funds were not there in the account of the owner of the dumper. Immediately after return of the cheque by the bank, the cover note/policy was cancelled from the date of its inception and owner of the dumper was duly informed about the dishonour of the cheque tendered by him. This information was sent by registered letter, duly received by the insured, but he did not turn up for obtaining a fresh insurance policy. Therefore, the insurance policy was issued after accepting the premium in cash on 22. 6. 1998.

( 5. ) ON the basis of respective pleadings of parties, the Claims Tribunal framed issues and the parties led evidence thereon. One of the findings recorded by the Claims Tribunal is that the accident took place due to rash and negligent driving of the dumper as a result of which Dawood died and that claimants were entitled for compensation and, therefore, award of Rs. 1,92,000 is made carrying interest at the rate of 12 per cent per annum from the date of application. This award has been assailed through this appeal by National Insurance Co. Ltd. with which the dumper was insured. There is no appeal for enhancement.

( 6. ) MR. Subramaniam, learned Counsel appearing for the appellant, contended that the order of the Claims Tribunal is not sustainable on facts and law; the dumper was not insured on the date of accident, since the cheque issued towards premium, stood dishonoured, information of which had been sent to the owner of the vehicle by registered letter, copy of which and postal receipt thereof are on record. That being so, contract of insurance did not exist between the parties on the date of accident, therefore, the appellant was not liable to pay the compensation. Reliance was p