PARAGOUNDA Vs. BHIMAPPA FB

JUDGEMENT

(1.) In this reference under Section 7 of the Karnataka High Court Act, the following questions are referred for the opinion of the Full Bench :-

(2.) Since the reference has arisen in a review petition, the brief facts of the case leading to the reference are stated as under :- On 24-2-1987, the car bearing Registration No. MR- 5694 driven by respondent-5, while proceeding on Saundatti-Munawalli Road in Belgaum District, dashed against P.W. 1 Gujjawwa and Tulasawwa, causing injuries to the former and instant death of the latter person. The accident and the resultant death of Tulasawwa and injuries sustained by P.W. 1 are not disputed. It is also established that the accident was due to the negligence of the driver of the vehicle.

(3.) The Insurance Company (respondent4 herein) resisted the claim on the ground that since the original owner i.e. respondent-2, had sold and delivered possession of the vehicle to respondent-1 prior to the accident on 12-2-1987, the insurance policy issued to the original owner lapsed immediately on the event of a sale. As such, the car was not at all covered by insurance on 24-2-1987, the date of the accident and consequently it is not liable to meet the claim.