FAO No.3216 of 2011(O&M) -1- IN THE HIGH COURT FOR THE STATE OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.3216 of 2011(O&M) Date of Decision:19.05.2011 Oriental Insurance Company Ltd., through its Regional Manager, SCO No.109-111, Sector 17-D, Chandigarh .......Appellant Versus Vinod son of Shri Sada Ram and another ......Respondents Present: Mr. Ashwani Talwar, Advocate for the appellant. CORAM: HON'BLE MR. JUSTICE K. KANNAN 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. Delay in filing the appeal is condoned. 2. The appeal by the insurance company was on the issue of liability taking up the plea that the premium had not been received at the time of issuance of policy and there was, therefore, no liability for the insurance company to cover the risk. The contention was that the liability would arise only if the premium had been paid in terms of Section 64 BB of the Insurance Act. 3. It is not now seriously denied that the amount was not paid by the insured. The issue involved was that the broker Shri Ram Finance Company had collected the money but it was not remitted to the insurance company. The non-payment by the finance company, which was the broker for the insurance company, must be taken as only giving right of cause of action to proceed against its own broker, which was it FAO No.3216 of 2011(O&M) -2- agent but cannot make possible for an insurer to contend that the amount had not been paid and the liability itself would cease to exist. 4. The liability cast on the insurance company in a situation where the insured cannot be found to be at fault was perfectly justified and I find no reason to interfere with the same. 5. The award is confirmed and the appeal is dismissed. (K. KANNAN) JUDGE May 19, 2011 Pankaj*