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Judgment
This appeal is filed against the order dated 31-7-1997 passed in WCA:CR:No. 60 of 1996 awarding compensation to the first respondent-petitioner in a sum of Rs. 1,08,455/- with interest at the rate of 6% p.a. and further directing the appellant to deposit the sum within 30 days from the date of the order.
The first respondent filed the petition WCA:CR: No. 60 of 1996 claiming compensation on account of the injury sustained by him in the accident that occurred on 31-3-1995 involving lorry bearing No. MED 6804. The appellant is directed to pay the compensation on the ground that the vehicle in question was insured. Sri A.M. Venkatesh, learned Counsel for the appellant submits that the policy was issued for the period commencing from 23-9-1994 to 22-9-1995. The cheque was issued. But the cheque was not encashed. The accident took place on 31-3-1995. Even on the date of the accident no amount was paid. According to him, once the cheque is bounced, the Insurance Company is not liable and for this he relied upon a decision in the case of United India Insurance Company Limited v Ayeb Mohd. and Others. This is a decision by the Supreme Court wherein their Lordships have held that once the cheque was dishonoured, the Insurance Company was not liable. As against this, Mr. Mahesh Uppin relied upon a decision in the case of Oriental Insurance Co. Ltd. Vs. Inderjit Kaur and Others, . According to this decision, the Insurance Company is liable. In this decision, the decision cited by Mr. A.M. Venkatesh is also referred in addition to another decision viz., Montreal Street Railway Company v Normandin . In view of the decision relied on by Mr. Uppin it goes without saying that the Insurance Company is liable. Hence the appeal is devoid of merits. As such it is dismissed. The compensation deposited in this Court shall stand transferred to the Commissioner for Workmen Compensation, Davanagere for payment within one month after the receipt of the deposit.