The Oriental Insurance Co. Ltd. v. Ramachandraiah
MOTOR ACCIDENT CLAIM APPEAL BY INSURER – Dishonour of premium cheque
Case brief
What is this about?
High Court of Karnataka appeal (number illegible) by an insurance company against a Claims Tribunal (motor accident) Judgment and Award; insurer pleaded dishonour of the premium cheque, cancellation of policy from inception, sought exoneration or pay-and-recover against the owner; Court found the premium cheque exceeded the policy premium without explanation, no notice of dishonour to the insured, no steps to intimate dishonour, pay-and-recover refused as not automatic; appeal dismissed, deposit transferred to Tribunal, balance with interest within six weeks, no costs; (2018) 3 SCC 208 referred; Negotiable Instruments Act referred on notice requirement; source document heavily corrupted.
What did the court decide?
Appeal dismissed. The amount in deposit made by the Insurance Company before this Court shall be transferred to the Tribunal along with interest, if any. Balance amount with interest at [rate illegible]% per annum from the date of petition till realisation shall be deposited by the appellant-Insurance Company within six weeks from the date of receipt of copy of the order, before the concerned Tribunal. No order as to costs.