IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE M.N.KRISHNAN MONDAY, THE 30TH NOVEMBER 2009 / 9TH AGRAHAYANA 1931 MACA.No. 1802 of 2009(B) ----------------------- OPMV.3597/2003 of MOTOR ACCIDENT CLAIMS TRIBUNAL, THRISSUR .................... APPELLANT(S)/2ND RESPONDENT : ----------------------------------------- THE ORIENTAL INSURANCE CO.LTD., BADAGARA, REPRESENTED BY ITS ASSISTANT MANAGER, REGIONAL OFFICE, ERNAKULAM NORTH, KOCHI-18. BY ADV. SRI.GEORGE CHERIAN (THIRUVALLA) RESPONDENT(S): CLAIMANT: -------------------------------- 1. DAMODHARAN, UDUMPANATHU HOUSE, P.O.PANAVALLY, CHERTHALA, ALAPPUZHA, NOW RESIDING AT C.K.SAJEEVAN, KUNNATHNJALIL HOUSE, P.O.KADAVALLUR, KUNNAMKULAM, TRICHUR DISTRICT. 2. T.P.SHAJI, NELLIYULLAPARAMBATH HOUSE, P.O.MOILATHARA, KAVILUMPARA, THOTTILPALAM. ADV. SRI.P.R.SREEJITH FOR R2 THIS MOTOR ACCIDENT CLAIMS APPEAL HAVING BEEN FINALLY HEARD ON 30/11/2009, THE COURT ON THE SAME DAY PASSED THE FOLLOWING: M.N. KRISHNAN, J. = = = = = = = = = = = = = = M.A.C.A. NO. 1802 OF 2009 = = = = = = = = = = = = = = = Dated this the 30th day of November, 2009. J U D G M E N T This appeal is preferred against the award of the Motor Accidents Claims Tribunal, Thrissur in O.P.(MV)3597/03. The claimant sustained injuries in a road accident and he had been awarded a compensation of Rs.15,600/- with 7% interest. The insurance company raised a contention that a policy which was issued on the basis of a cheque was cancelled on account of the dishonour of the cheque and the dishonour was duly intimated to the Road Transport Authority as well as the insured and the policy has been cancelled. The Tribunal did not find in its favour and directed the insurance company to pay the amount. It is against that decision the Company has come up in appeal. 2. Heard the learned counsel for the insurance company. The few facts necessary for the disposal of the appeal are that the cheque was issued on 7.6.2002 and it was dishonoured on 18.6.02. Intimation was given by virtue M.A.C.A. 1802 OF 2009 -:2:- of the dishonour of the cheque to the insured on 23.7.02 and it has been received by acknowledgment, Ext.B4 dated 25.7.02. The R.T.O. Vadakara has also been intimated about the same and Ext.B6 is the copy of the policy cancelled. The accident had taken place on 10.11.2002. So this is a case where the policy which was taken for a period from 7.6.02 to 6.7.03 was cancelled on account of the dishonour of the cheque and the non receipt of the premium was intimated not only to the owner but also to the RTA. It is in this back ground one has to consider about the liability of the insurance company. This is squarely covered by a decision of the Hon'ble Supreme Court of India in Deddappa v. National Insurance Co. Ltd. (2008 (1) KLT 296). It was a case where a cheque was issued on 15.10.97. The cheque was dishonoured on 21.10.97. Insured and RTO were informed of cancellation of the policy by letter dated 6.11.97. The accident had occurred on 6.2.98. The Hon'ble Supreme Court held that, “If contract of insurance has been cancelled and all concerned intimated thereabout, insurance company would not be liable to satisfy claim.” M.A.C.A. 1802 OF 2009 -:3:- I have perused the letter issued by the insurance company to the insured with a copy addressed to the RTO. It clearly indicates about the cancellation notice as well. Therefore in the light of the decision of the Apex Court, as the policy has been cancelled for non payment of premium sufficiently earlier and as no fresh policy is taken insurance company cannot be saddled with the liability and therefore the award of the Tribunal casting the liability on the insurance company is liable to be set aside and I do so. Therefore the appeal is allowed and the insurance company is exonerated from the liability and the claimant is given the liberty to proceed against the respondent, owner cum driver for the realisation of the amount. The appeal is disposed of accordingly. M.N. KRISHNAN, JUDGE. ul/-