NATIONAL INSURANCE CO. LTD. vs BALKAR RAM .

The Supreme Court dismissed the appeal by National Insurance Co. Ltd., affirming the High Court's decision that the insurance company was liable to pay compensation despite the dishonour of the cheque prior to the accident. The Court cited the precedent in United India Insurance Co. Ltd. Vs. Laxmamma, establishing that if the intimation of dishonour is communicated after the accident, the insurance remains valid. The Court held that the insurance policy was effective as the policyholder was not informed of the dishonour until after the accident occurred.