National Insurance Co.Ltd vs Parvathneni & Anr

The Supreme Court addressed the issue of insurance liability under the Motor Vehicles Act, specifically questioning whether an insurance company can be compelled to pay compensation if it proves it has no liability due to dishonored premium payment. The Court expressed reservations about previous rulings that mandated payment despite lack of liability, asserting that Article 142 of the Constitution does not permit such compulsion. The matter was referred to a larger bench to resolve the legal questions regarding the insurance company's obligations in such scenarios.