- (1.) The Oriental Insurance Company Ltd.(for short, 'the Company') has assailed the validity of the order passed by the Permanent Lok Adalat (PUS), Sonepat Camp at Panipat dated 28.10.2013 by which an application filed by respondent No. 1 under Section 22C of the Legal Services Authorities Act, 1987 (for short, 'the Act') has been allowed.
(2.) In short, the facts of the case are that respondent No. 1 had purchased "Happy Family Floater Policy" of Rs. 1,00,000/- w.e.f. 18.10.2011 to 17.10.2012 from the petitioner. For the purpose of renewal of this policy for Rs.1,50,000/- w.e.f 18.10.2011 to 17.10.2012 respondent No. 1 handed over a cheque bearing No. 540425 of Rs.3,715/- on 10.10.2012 out of the total premium of Rs.5,124/- and also deposited Rs.1409/- in cash. The policy was issued on 11.10.2012 for the period w.e.f 18.10.2012 to 17.10.2013 and identity card was also issued in favour of the whole family. However, the cheque bearing No. 540425 dated 10.10.2012 was dishonored by the drawee bank. The petitioner cancelled the policy on 23.10.2012 on the ground that his cheque bearing No. 540425 dated 10.10.2012 was dishonored by the drawee bank. Petitioner sent this information to respondent No. 1 on 10.11.2012 which was received on 12.11.2012. Respondent No. 1 deposited a cheque of Rs.3715/- drawn on 10.11.2012 with the petitioner which was not accepted and the amount of Rs.1409/- deposited in cash also returned in February, 2013.
(3.) Aggrieved against the aforesaid action of the petitioner, respondent No. 1 filed an application under Section 22-C of the Act before the Permanent Lok Adalat (PUS)(for short, 'the Adalat') which has been allowed on the ground that there was clerical mistake in the cheque as it was wrongly mentioned Rs.3750/- instead of Rs.3715/- and as such there was no intention on the part of respondent No. 1 of not paying the premium by way of cheque in time. Accordingly, while allowing the application, it was also held that respondent No. 1 is entitled to the continuity of the policy from the beginning till date.;