NEW INDIA ASSURANCE COMPANY LTD. vs AFROZ BI .

The Supreme Court held that the insurance company cannot be held liable for the accident that occurred on 17.8.1992, as the insurance policy in question was not in effect at that time due to the dishonor of the premium cheque. The Court emphasized that the relevant insurance cover was for the period from 7.11.1992 to 6.11.1993, which was after the date of the accident. Consequently, the appeal was allowed, overturning the High Court's decision that had partially held the insurance company liable under the Motor Vehicles Act.