This appeal is at the instance of the Insurance

Company calling in question the correctness of judgment and

award dated 9.9.2010 in MVC No.145/2009 (Old MVC

No.251/2007) passed by the learned Fast Track Court and

Addl.

MACT,

Haveri

(for

short,

‘Tribunal’)

awarding

compensation of Rs.47,000/- with interest thereon at 6% per

annum from the date of petition till date of payment.

2.

In view of nature of grounds urged by the

Insurance Company, reference to the facts of the case is

wholly unnecessary and in any case the same has been dealt

with in great detail in the impugned judgment.

3.

The only ground urged by the learned counsel for

the Insurance Company in support of his appeal to impugn

the judgment and award in question is that premium amount

paid by way of cheque by the insured was unrealized on

account of the same being dishonoured by Banker and

therefore, the learned Tribunal was in error in fastening the

liability on the part of Insurance Company as the appellant

had cancelled the Policy of Insurance. In support of said

- 3 -

contention, learned counsel placed reliance on a decision of

Hon’ble Apex Court in National Insurance Co. Ltd. Vs.

Seema

Malhotra

&

Others,

AIR

2001

SC

1197

(paragraphs 17 to 19). Therefore, he submitted that the

appeal is required to be allowed and Insurance Company is

entitled

to

be

disclaimed

from

its

liability

to

pay

compensation.

4.

Learned

counsel

appearing

for

respondent

No.1/claimant, per contra, submits that the appellant has

totally failed to produce any material to show that the

alleged notice of cancellation of policy issued by the

appellant had reached the insured before the date of

accident and therefore, in view of decision of Hon’ble Apex

Court in United India Insurance Co. Ltd. Vs. Laxmamma

& Others, AIR 2012 SC 2817, insurance company is liable

to pay compensation and there is no error in the judgment

and award of the learned Tribunal.

5.

I have carefully considered the submissions

made on both sides and I have perused the records and also

two decisions cited before me by respective counsel.

- 4 -

6.

Records show that the Insurance Company has

produced Ex.R2 which is a notice of dishonour of cheque and

it reads as follows:

THE ORIENTAL INSURANCE CO. LTD.

(Subsidiary of General Insurance Corpn. Of India)

Regd. Office: Oriental House Asaf ali Road, N.Delhi-110002..

Place: M.CD.09,10, Homi Modi St., Fort

Mumbai-23, Tel.No.204 3321, Email

oicmu21800@vsnl.net

Pin Code :

Fax/Tel: 2043321/6196

Dated: 28-Feb-06

Dept. : Motor

Registered

To:

MR. SURINDERSINHG JAGGI

A-4, NILESH CHAMBERS SEC 19-C

VASHI NEW BOMBAY.

DEAR SIR/SIRS/MADAM,

Re: Dishonoured Cheque No.91177 dt. 23.02.2006 for Rs.17436

drawn on ICICI Banking Corpn. Ltd. towards premium against

Cover/Note no.0 dt. Endt.No.o and Policy No.5372 Vehicle No.MH-43-

E-4471 Make TATA.

Please note that the above cheque has been dishonoured with the remarks INSUFFICIENT

FUND.

It is therefore, understood and declared that the above policy stands cancelled abinitio due to

non-receipt of consideration and our Co. is not on risk nor any claim will be entertained.

Further, cover shall again commence from the time of receipt of fresh remittance of Rs.17436

including bank charges of Rs.100 in cash or bank draft, favouring The Oriental Insurance Co.

Ltd. You are requested to surrender the original policy/covernote/receipt for our records. You

are further requested to bring the vehicle along for inspection to enable us to grant the cover.

Thanking you,

Your faithfully,

Sd/-

(Divisional/Branch Manager)

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7.

However, admittedly, the appellant-insurer has

not produced any document to show that the said notice had

reached the insured and if it had reached, whether it was

prior to the date of accident. The Hon’ble Apex Court in

Laxmamma & Others¹ (supra) has observed at paragraph

19 of the judgment as under:

“19. In our view, the legal position is this: where

the policy of insurance is issued by an author