IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE J.B.KOSHY & THE HONOURABLE MR. JUSTICE THOMAS P.JOSEPH WEDNESDAY, THE 12TH NOVEMBER 2008 / 21ST KARTHIKA 1930 MACA.No. 1573 of 2005(G) ------------------------------------- OP(MV).NO.2280/1995 OF II ADDL. M.A.C.T., KOZHIKODE. .................... APPELLANT/ 3RD RESPONDENT: ----------------------------------------------- THE NEW INDIA ASSURANCE COMPANY LTD., SILVER PLAZA BUILDINGS, INDIRA GANDHI ROAD, KOZHIKODE, REP. BY ITS ASSISTANT ADMINISTRATIVE OFFICER. BY ADV. SRI.K.K.M.SHERIF, ADV. SRI.A.A.ZIYAD RAHMAN. RESPONDENTS/ PETITIONER/ RESPONDENTS/ RESPONDENTS 1 & 2: --------------------------------------------------------------------------------------------------- 1. V.SUSANTH, MINOR, REPRESENTED BY MOTHER AND GUARDIAN, V.SUSHEELA, VELLIYARAMBATH HOUSE, PALATTU PARAMBA, P.O.ARAKKANAR, NADUVATTOM AMSOM DESOM, KOZHIKODE TALUK. 2. M.RAMESH, S/O.GOPALAN, KALYANI NILAYAM, CHELAD, THALASSERY. 3. P.SASIDHARAN, S/O.RAMAKRISHNAN, 29/95, VALACHIL HOUSE, CHERUVANNUR AMSOM DESOM, KOZHIKODE TALUK. R1 BY ADV. SRI.JACOB ABRAHAM, R3 BY ADV. SRI.U.BALAGANGADHARAN. THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING COME UP FOR ADMISSION ON 12/11/2008,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. J.B. Koshy & Thomas P.Joseph, JJ. -------------------------------------- M.A.C.A. No. 1573 of 2005 --------------------------------------- Dated this the 12th day of November, 2008 Judgment Koshy,J. Appellant insurance company questions the award of the Motor Accidents Claims Tribunal against the liability to pay the award amount for the injuries sustained by the motor accident victim (1st respondent). The contention of the insurance company is that the cheque issued by the owner was dishonoured and, therefore, it has no liability to pay the amount. The counsel for the appellant relied on a decision of the Hon'ble Supreme Court of India in Deddappa and others v. Branch Manager, National Insurance Company ((2008) 2 SCC 595), but, in that case, notice of dishonour and cancellation of insurance was also intimated to the insured as well as to the RTO before the date of accident. In this case, as per the statement of the appellant insurance company itself, insurance policy was issued on 11.4.1995. Cheque issued by the claimant towards premium was dishonoured on 18.4.1995. The vehicle met with accident on 24.4.1995. Communication was given to the insured on 15.5.1995 regarding cancellation of the policy and the M.A.C.A.No. 1573/2005 2 matter was informed to the RTO only on 15.6.1995. Therefore, insurance policy was not cancelled before the accident. The matter is squarely covered by the decision of the Supreme Court in National Insurance Company v. Abhaysing Pratapsing Waghela and others ((2008) 9 SCC 133). The above decision was rendered after considering the decision in Deddappa's case (supra). It is stated that if cover note is issued, it will be valid till it is cancelled. Here, it is cancelled only after the accident. Therefore, insurance company is liable to pay the amount and Supreme Court dismissed the appeal of the insurance company in Abhaysing's case (supra) with Rs.25,000/- cost. We are not awarding cost. Appeal is dismissed. J.B.Koshy Judge Thomas P. Joseph Judge vaa M.A.C.A.No. 1573/2005 3 J.B. KOSHY AND THOMAS P.JOSEPH,JJ. ------------------------------------- M.A.C.A.No. 1573/2005 ------------------------------------- Judgment Date:12th November,2008