C.N.KRISHNAN Vs. GANGA PRADEEPAN

JUDGEMENT

(1.) THIS appeal is preferred against the award of the Motor Accidents Claims Tribunal, Kottayam in O.P. (MV)No.1458 of 1998. The claim petition was dismissed on the ground that the policy holder was not impleaded as a party.

(2.) HEARD the counsel for the insurance company as well as the claimant. It can be seen from the documents made available that the vehicle originally stood in the name of one P.M.Youseff and with effect from 110.1997, the vehicle has been transferred in the name of the first respondent. I give this date for the reason that it is the date on which the transfer has been noted in the particulars. The policy was taken in the name of the original owner P.M.Youseff for the period from 19.1997 to 19.1998. The accident took place on 16.3.1998. So one thing is evident that the first respondent was the registered owner of the vehicle on the date of accident. But, the policy stood in the name of the previous owner. Under Section 157 of the Motor Vehicles Act, it is the vehicle that is transferred and therefore the policy runs with the vehicle and the obligation cast is to give intimation. Under Section 103 of the old Act of 1939 there was a contract of insurance only between the owner and the insurer or in other words, there was a privity of contract between the two and therefore there was no enabling provision to have a deemed transfer. By virtue of Section 157 of the Act, there is a deemed transfer and therefore it has to be held that though the policy stood in the name of the previous owner there is a deemed transfer of the policy and therefore the owner of the vehicle is liable to be indemnified by the insurance company.

(3.) IT can be seen that the appeal has been filed with a delay of 1436 days and the insurance company cannot be saddled with the liability of paying interest during that period. So, from 29.2003 to 19.7.2007, the claimant will not be entitled to get any interest. Therefore, MACA is allowed and the claimant is awarded a sum of Rs.18,750/ -with 7% interest on the said sum from the date of petition till 29.2003 and thereafter from 20.7.2007 till realisation and the respondent insurance company is directed to deposit the amount within 60 days from the date of receipt of a copy of this judgment.