Insurance liability ceases post-cancellation due to dishonoured premium cheque; only the vehicle owner is liable for compensation.

1. These appeals, M.A. (C) Nos. 706 and 710 of 2010, were heard analogously and disposed of by this common order as common question of fact and law are involved and both have arisen out of the same accident.

2. Invoking the appellate jurisdiction of this court under S.173 of the Motor Vehicles Act , 1988 (to be referred to as 'the M.V. Act') appellant New India Assurance Co. Ltd. has filed these appeals questioning the legality and validity of impugned award dated 26.2.2010 passed by Eighth Additional Motor Accidents Claims Tribunal, Durg in Claim Case Nos. 110 and 111 of 2008, by which claimants' applications have been partly allowed and the appellant insurance company has been directed to indemnify the amount under impugned award and thereafter recover the same from the owner of the vehicle.

3. The brief facts in nutshell necessary for adjudication of these appeals are as under:
3.1. On 13.11.2006 Dr. Manisha Hirpurkar and Dr. Sanjay Ingole were going from Durg to Raipur in Maruti car bearing registration No. CG 07-0208. When they reached near Ring Road No. 1, a truck (offending vehicle) bearing registration No. CG 04 - J 5094, driven by respondent / driver Siyaram, owned by respondent / owner Mohd. Shahid Jamal and insured with the appellant insurance company, rashly and negligently, dashed Maruti car, by which claimants suffered grievous injuries. They filed Claim Petition Nos. 110 and 111 of 2008 before the Tribunal, seeking compensation of Rs. 3,75,000 and Rs. 4,46,000 respectively from owner, driver and insurer of the offending vehicle jointly and severally.
3.2. After service of notice, driver and owner of the offending truck proceeded ex parte. Appellant insurance company filed its written statement, in which it raised plea that the insurance policy No. 451800/31/05 / 01/00015559, dated 1.2.2006 issued by it covered the risk of said truck for the period of 1.2.2006 to 31.1.2007 was not operative on the date of accident as the premium was paid through cheque No. 106987 and the said premium cheque got dishonoured, which was duly intimated to the owner of the vehicle by cancelling the policy. Therefore, appellant insurance company was not liable to indemnify the impugned award.
3.3. The Claims Tribunal after recording evidence and after hearing the parties held that the policy was cancelled by the insurance company before the accident, duly intimated to the owner of the vehicle and the concerned Regional Transport Office. It has been further held that firstly, the appellant insurance company indemnify the amount under award, and then, same will be recovered from the owner of the vehicle. The Claims Tribunal in its award dated 26.2.2010 held that the claimants are entitled for compensation of Rs. 34,671 and Rs. 98,887 along with 6 per cent interest in their respective claim case.
3.4. Feeling dissatisfied with the impugned award, instant appeals have been filed by the appellant insurance company.

4. Mr. Raj Awasthi, the learned counsel appearing for the appellant insurance company, would submit that having regard to the undisputed fact that the cheque issued by the respondent owner of the vehicle towards the premium for insurance of vehicle was dishonoured and thereafter cancellation of policy was intimated to the respondent owner before the date of accident, the contract of insurance became void and the appellant insurer could not be compelled to perform its part of promise under the policy. According to Mr. Awasthi, no liability can be fastened on the insurer qua third party as the policy of insurance is rendered void for want of consideration to the app