Reliance General Insurance Co. Ltd v. Usha Devi & Ors.

1. Whether Reporters of Local papers may YES be allowed to see the Judgment?

2. To be referred to the Reporter or not? YES

3. Whether the judgment should be YES reported in the Digest? JUDGMENT (Oral) MAC.APP. No.6/2009 and CM No.146/2009

1. The appellant has challenged the interim award passed by the learned Tribunal whereby compensation of Rs.50,000/- has been awarded to respondent No.1.

2. The accident dated 21st October, 2007 resulted in the death of Surinder Kumar. The deceased was survived by his widow, two daughters, one son and father who filed the claim petition before the learned Tribunal.

3. The appellant contested the claim petition on the ground that the cheque towards the premium was dishonoured and the cover note was cancelled. 2009:DHC:3293

4. The learned counsel for the appellant submits that the intimation of cancellation has not been given by the appellant to the Road Transport Authority.

5. It is well settled that, if the cancellation of the policy is not intimated to the Road Transport Authority, the Insurance Company remains liable towards the third party.

6. For the aforesaid reasons, the appeal is dismissed.

7. The interest on the interim award amount of Rs.50,000/from the date of filing of the petition, i.e., 14th December, 2007 up to the date is calculated to be Rs.6,666/-. The total award amount along with interest is computed to be Rs.56,666/- (Rs.50,000 + interest of Rs.6,666).

8. The appellant has deposited the statutory amount of Rs.25,000/- along with the appeal. The appellant had filed cheque No.164788 dated 11th April, 2009 for Rs.29,471/- drawn in the name of respondent No.1 which is today handed over to claimant/respondent No.1.

9. The Registry is directed to release the statutory amount of Rs.25,000/- deposited by the appellant and interest thereon along with this appeal to claimant/respondent No.1 within a period of two weeks. After adjusting the statutory amount of Rs.25,000/and interest thereon, i.e, Rs.1,010/- and the amount of Rs.29,471/- paid over to claimant/respondent No.1 today, a sum of Rs.1,185/- is due and payable by the appellant to claimant/respondent No.1 towards the up to date interest on the interim award amount of Rs.50,000/-.

10. The claimant/respondent No.1 is permanent resident of Village Saraya Ismail, Tehsil Handia, District Allahabad and has attended the Court to collect the award amount.

11. The learned counsel for the appellant has on direction of this Court, paid the balance interest of Rs.1,185/- to claimant/respondent No.1 in cash. The appellant is directed to reimburse the said amount to learned counsel for the appellant.

12. The entire interim award passed by the learned Tribunal stands satisfied.