IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN MONDAY, THE 8TH MARCH 2010 / 17TH PHALGUNA 1931 MACA.No. 1281 of 2007() ----------------------- OPMV.1368/1999 of MOTOR ACCIDENT CLAIMS TRIBUNAL, ERNAKULAM .................... APPELLANT/3RD RESPONDENT: ------------------------------------------------- NATIONAL INSURANCE COMPANY LTD, COCHIN 38 REP.BY THE MANAGER,MTPD REGIONAL OFFICE ANNEXE,KCOCHI. BY ADV. MR.RAJAN P.KALIYATH RESPONDENT(S): CLAIMANTS& R 1 & 2: ----------------------------------------------------------- 1. SANDHYA, W/O.P.P.ANTONY, PURAKKATTU POTHAM VEETTIL, KUMBALAM SOUTH, KUMBALAM POST. 2. C.V.RADHAMANI, BAIJU NIVAS, PANANGAD POST, ERNAKULAM DISTRICT. 3. LAIJU, BAIJU NIVAS, PANANGAD POST, ERNAKULAM DISTRICT. R2 & R3 BY ADV. MR.E.A.THANKAPPAN THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 08/03/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss M.N. KRISHNAN, J. ........................................... M.A.C.A.No.1281 OF 2007 ............................................. Dated this the 8th day of March, 2010. J U D G M E N T This appeal is preferred against the award of the Claims Tribunal, Ernakulam in O.P.(MV)No.1368/1999. The Tribunal, on a consideration of the materials, has granted an award in favour of the claimant for Rs.11,200/= and directed the insurance company to deposit the amount. It is against that award, the insurance company has come up appeal. 2. The contention of the insurance company is to the effect that the policy issued has been subsequently cancelled on account of the dishonour of the cheque and therefore, it is liable to be exonerated from the liability. The tribunal has dealt with the matter in para-15 of the award. It does not show the details which are necessary for determination of the matter. The Hon'ble Supreme Court in the decision reported in Deddappa v. National Insurance Co. Ltd (2008 (1) KLT 296) held that when cheque issued towards premium is dishonured and policy is cancelled and that the : 2 : M.A.C.A.No.1281 OF 2007 insured and RTO are informed of the cancellation of the policy, then it amounts to cancellation of the contract of insurance and the insurance company would not be liable to satisfy the claim. So it has to be stated that on account of the dishonour of the cheque if the policy issued is cancelled prior to the accident and due intimation has been given to the authorities, then there will not be any insurance contract between the insurer and the insured and so the insurance company will not be liable. It has not been considered in that aspect by the tribunal and the parties are bound to produce documents to prove the same. 3. Therefore the award under challenge is set aside and the matter is remitted back to the tribunal with a direction to the insurance company to produce all details and the owner also be permitted to adduce evidence and produce documents and thereafter the matter be disposed of in accordance with law. The insurance company is directed to appear before the tribunal on 16.4.2010 and thereafter take notice to the owner and the claimant for further proceedings. : 3 : M.A.C.A.No.1281 OF 2007 Disposed of accordingly M.N. KRISHNAN, JUDGE cl : 4 : M.A.C.A.No.1281 OF 2007