NEW INDIA ASSURANCE COMPANY LIMITED Vs. NEENA GOEL

JUDGEMENT

(1.) The only ground of challenge, raised in this appeal, filed by New India Assurance Co. Ltd., appellant herein, under Section 110-D(1) of the Motor Vehicles Act, 1939, is that the insurance policy, in favour of the insured/owner, bad lapsed, because, the offending vehicle, had already been sold by the owner to athird person, prior to the date of accident, and, as such the third party liability of the Insurance Company ended.

(2.) Notice was issued to respondents to show cause, as to why the appeal be not admitted. Respondents I to 9 have filed answer to show cause. The appeal is at the stage of admission.

(3.) Briefly stated, the facts of the case are : on September 10, 1971 at about 5.30 P.M., Shri Bishan Lal Goel, now deceased, was going on his motor cycle, bearing No. DHO 2745, from Delhi to Ghaziabad on G.T. Road. A car bearing no. UPD 8851, which was driven rashly, recklessly and negligently by the driver, took a sudden turn for going towards petrol pump, and in the process, hit the motor cycle, on wch the deceased was going. As a result of this, the deceased, along with the motor cycle, fell down and received severe bead injuries.