F.A.O.NO. 3122 OF 1996 and F.A.O.NO. 3123 OF 1996 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH F.A.O.NO. 3122 OF 1996(O&M) Date of decision:1st September, 2010 The Oriental Insurance Company Mandhak through its Regional Manager. .......Appellant Versus Smt. Surinder Kaur and others ........Respondents F.A.O.NO. 3123 OF 1996 The Oriental Insurance Company through its Regional Manager. ........Appellant Versus Shrimati Surinder Kaur and others ........Respondents BEFORE: HON'BLE MR. JUSTICE K.KANNAN Present: Mr. Tejinder Pal Singh, Advocate, for the Insurance Company. Mr. C.L.Sharma, Advocate, for the respondents. 1. Whether Reporters of local papers may be allowed to see the judgment? Yes/No 2. To be referred to the Reporters or not?Yes/No 3. Whether the judgment should be reported in the Digest? Yes/No K.Kannan, J.(Oral) 1. The Insurance Company is in appeal challenging the liability on the ground that on the relevant date of accident on 15.06.1994, there was no valid policy at all. The contention is F.A.O.NO. 3122 OF 1996 and F.A.O.NO. 3123 OF 1996 2 that cheque had been issued for towards the premium on 7.04.1994 but it had been returned by the drawee banker as dishonored on 15.04.1994. The policy was purported to have been cancelled on 22.06.1994. 2. The accident had taken place on 15.06.1994 but the policy was cancelled subsequently on 22.06.1994. There is no way for the Insurance Company to plead for exclusion of liability. This has been held to be so by the decision of the Hon'ble Supreme Court in National Insurance Company Limited versus AbhaySingPratapsingh Waghela and others (2008) 9 SCC 133. In the first place, even if there was cancellation of policy, the liability of the Insurance Company to satisfy the claimants who are third parties could have been never be in doubt. There have been consistent string of authorities on this issue and it was last considered even in Deddappa and others versus The Branch Manager, National Insurance Co.Ltd. (2008) 2 SCC 565, where the cancellation itself had preceded the accident but still the claimants were entitled to secure the awards against the insurer. 3. Even this discussion seems academic for there was not even a specific plea by the insurer before the Tribunal that there was no valid policy of insurance at the time of the accident. All these details relating to the alleged dishonor have come through by means of application for additional evidence. Cancellation of a policy is a matter that would require to be communicated to the insured and it has to be founded on express pleadings and proof. F.A.O.NO. 3122 OF 1996 and F.A.O.NO. 3123 OF 1996 3 It was neither pleaded nor proof of communication of the fact of cancellation of policy adduced. 4. The awards are confirmed and the appeals are dismissed. [K.KANNAN] JUDGE 1st September, 2010 Shivani Kaushik