IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.3131 of 2009 (O&M) Date of decision : 4.8.2009 ICICI Lombard General Insurance Company … Appellant Versus Smt.Manju Rani & others …Respondents CORAM : HON’BLE MR.JUSTICE A.N.JINDAL Present: Mr.Subhash Goyal, Advocate for the appellant. A.N.Jindal, J. (Oral) The Insurance company (herein appellant) has challenged the award dated 3.11.2008 rendered by learned Motor Accident Claims Tribunal, Kaithal whereby, a compensation to the tune of Rs.7,35,000/- was awarded in favour of the claimants (hereinafter referred as the ‘respondents’) and it was also ordered that first the Insurance company would make payment of compensation to the claimants and thereafter, it would be at liberty to recover the same from the insured. Without challenging the other aspects of the case, the appellant has assailed the impugned judgment stating that the cheque for payment of Insurance money stood dishonoured on 8.9.2006 therefore, there was a breach of contract of the policy as payment of premium is condition precedent before the contract of insurance comes into existence and for non- payment of premium by the insured and company could not be held liable for payment at all. Heard learned counsel for the appellant. Factual background of the case is that company had issued policy of insurance against the payment of premium to the tune of Rs.26,338/- and cover note was issued in this regard. However, cheque FAO No.3131 of 2009 issued by the insured stood dishonoured by the bank on 8.9.2006. Consequently, the insured was informed on 31.10.2006 regarding dishonouring of the cheque and cancellation of the policy. But the accident took place on 9.10.2006, this means that the Insurance company remained completely silent between 8.9.2006 till 30.10.2006 and it was only after accident that the Insurance company might have become wise under some legal advice. As a matter of fact, the payment of premium and subsequent cancellation of policy due to dis-honouring of cheque is not the concern of the third party and it would not effect its rights to be indemnified by the company in case of any loss or damage suffered at the hands of the insured which had accrued on the date of accident. I find support to my this view from the apex court judgment New India Assurance Company Ltd. Vs. Rula and others, as reported in 2000 ACJ, 630 as also in the case of National Insurance Company Ltd. vs. Yellamma, as reported in 2008(4) Law Herald 2460 wherein it was observed that the Insurance company was bound to compensate to the complainants and may be at liberty to recover the same from the insured. Resultantly, finding no merit in the appeal, the same is dismissed. [ A.N.Jindal ] Judge 4.08.2009 sd 2