NEW INDIA ASSURANCE COMPANY LIMITED Vs. RAM DAYAL

JUDGEMENT

(1.) These are appeals by special leave challenging the reversing common decision of the Punjab and Haryana High court holding the insurer, liable for compensation under the Motor Vehicles Act of 1939.

(2.) The insurer repudiated its liability by maintaining that the policy had been taken after the accident and, therefore, it had no liability to meet the award of compensation against the owner. The tribunal accepted this stand and rejected the claim against the insurer. In appeal, the High court took the view relying upon certain decisions that the insurance policy obtained on the date of the accident became operative from the commencement of the date of insurance i. e. from the previous midnight and since the accident took place-on the date of the policy the insurer became liable.

(3.) Apart from the judgment under appeal, we find that this view is supported by two judgments of the Madras High court and an earlier decision of the Punjab and Haryana High court. Two Division benches of the Madras High court have taken the view after discussing the law at length that the policy taken during any part of the day becomes operative from the commencement of that day. Besides these judgments a division bench decision of the Allahabad High court in Jaddoo Singh v. Malti Devi supports this view on principle.