NATIONAL INSURANCE COMPANY LIMITED BANGALORE Vs. LAKSHMI

JUDGEMENT

(1.) this appeal is by the insurance company challenging the judgment and award dated 13-9-1995 on the file of the motor accident claims tribunal, Bangalore, in motor vehicles case No. 1203 of 1991.

(2.) this appeal is by the insurance company. The main contention raised by the insurance company in this case is that the policy that was issued in favour of g.n. druvakumar was for a period from 15-6-1990 to 14-6-1991. During this period the vehicle was transferred in favour of one sayed khasim with effect from 10-12-1990 and the said sayed khasim in turn sold the vehicle in favour of m. Basavaraj on 14-1-1991.

(3.) the accident occurred on 6-4-1991. On the basis of the abovesaid facts it is contended by the insurance company that in view of sub-section (2) of Section 157 of the Motor Vehicles Act, 1988, (the 'act' for short) the deemed transfer of certificate of insurance as contemplated under sub-section (1) of Section 157 of the act is only for a period of 14 days from the date of transfer and not beyond, since the transferee has not made any application within 14 days from the date of transfer intimating the fact of transfer. For the purpose of considering this contention it is relevant to extract Section 157 of the Motor Vehicles Act, 1988 which reads as follows: