1 IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL CIVIL CIVIL APPELLATE JURISDICTION APPELLATE JURISDICTION APPELLATE JURISDICTION FIRST FIRST FIRST APPEAL (ST) NO.1906 of 2008 APPEAL (ST) NO.1906 of 2008 APPEAL (ST) NO.1906 of 2008 The The The National Insurance Co Ltd ..Appellant National Insurance Co Ltd ..Appellant National Insurance Co Ltd ..Appellant vs vs vs Kumari Kumari Kumari Dipali Sukhdev Sutar & anr..Respondents Dipali Sukhdev Sutar & anr..Respondents Dipali Sukhdev Sutar & anr..Respondents Ms.Poonam Ms.Poonam Ms.Poonam Mittal for Appellant Mittal for Appellant Mittal for Appellant CORAM CORAM CORAM : : : A.S.OKA, A.S.OKA, A.S.OKA, J J J DATED DATED DATED : : : 31st 31st 31st January, 2008 January, 2008 January, 2008 P.C. P.C. P.C. 1. 1. 1. Heard advocate for the appellant. The Heard advocate for the appellant. The Heard advocate for the appellant. The challenge challenge challenge by the appellant-insurer is to the by the appellant-insurer is to the by the appellant-insurer is to the judgment judgment judgment and award made under section 140 of the and award made under section 140 of the and award made under section 140 of the Motor Motor Motor Vehicle Act,1988. The appellant is the Vehicle Act,1988. The appellant is the Vehicle Act,1988. The appellant is the alleged alleged alleged insurer of the vehicle involved in the insurer of the vehicle involved in the insurer of the vehicle involved in the accident. accident. accident. Statutory compensation of Rs.25,000/- Statutory compensation of Rs.25,000/- Statutory compensation of Rs.25,000/- has has has been awarded by the tribunal to the victim of been awarded by the tribunal to the victim of been awarded by the tribunal to the victim of the the the accident. accident. accident. 2. 2. 2. Submission of the learned advocate for the Submission of the learned advocate for the Submission of the learned advocate for the appellant appellant appellant is that though a policy of insurance was is that though a policy of insurance was is that though a policy of insurance was issued issued issued by the appellant which was for the period by the appellant which was for the period by the appellant which was for the period from from from 29th November, 2005 to 28th November, 2006, 29th November, 2005 to 28th November, 2006, 29th November, 2005 to 28th November, 2006, the the the cheque issued by the insured towards premium cheque issued by the insured towards premium cheque issued by the insured towards premium amount amount amount was dishonoured and therefore, the policy was dishonoured and therefore, the policy was dishonoured and therefore, the policy was was was cancelled before the date of accident. It is, cancelled before the date of accident. It is, cancelled before the date of accident. It is, therefore, therefore, therefore, submitted that the appellant-insurer is submitted that the appellant-insurer is submitted that the appellant-insurer is not not not liable. liable. liable. 3. 3. 3. The law on this point is well settled. The law on this point is well settled. The law on this point is well settled. Assuming Assuming Assuming that what is contended by the that what is contended by the that what is contended by the 2 appellant-insurer appellant-insurer appellant-insurer is correct, the liability of the is correct, the liability of the is correct, the liability of the appellant-insurer appellant-insurer appellant-insurer to the third parties continues to the third parties continues to the third parties continues to to to exist. In view of the settled position of law, exist. In view of the settled position of law, exist. In view of the settled position of law, no no no fault can be found with the impugned order. fault can be found with the impugned order. fault can be found with the impugned order. Appeal Appeal Appeal is accordingly, dismissed. No order as is accordingly, dismissed. No order as is accordingly, dismissed. No order as to to to costs. costs. costs. (A.S.Oka, (A.S.Oka, (A.S.Oka, J) J) J)