NEW INDIA INSURANCE CO LTD Vs. N GANAPATHY

JUDGEMENT

(1.) On 18th Mar. 1975, at about 1 P.M., one Kalidas was coming on his cycle near the Town Hall, Nethaji Road, Cuddalore. The bus bearing registration number MDB 1291, which was driven in a rash and negligent manner, dashed against the said Kalidas and caused him multiple injuries resulting in his instantaneous death. The parents of the deceased, respondents 1 and 2 herein, filed claim petition No. 24 of 1975 before the Motor Accidents Claims Tribunal, Cuddalore, claiming a compensation of Rs. 75,000. The vehicle was originally owned by M.Thiagaraian and it was transferred in favour of G. Govindan on 15-8-1974, and they are arrayed as respondents 3 and 4 herein. New India Insurance Company, with whom the vehicle was insured, is the appellant herein. The 3rd respondent wanted to be absolved of t4e liability by pointing out that long before the accident, he had parted with the, ownership of the vehicle to and in favour of the, 4th respondent, The appellant herein, the Insurance company contended that since the vehicle was transferred by the insured, the 3rd respondent, to and in favour of the 4th respondent, the policy of insurance lapsed on such transfer of ownership of the vehicle. The transferee the 4th respondent admitted the change of ownership but contested the claim on other grounds. There was a general contest that the accident was not due to the rash and negligent driving of the vehicle and with regard to the quantum of compensation claimed. The Tribunal rendered a finding that the accident was due to rash and negligent driving of the vehicle and determined the compensation at Rs. 38,000. The Tribunal accepted that there was a change of ownership of the vehicle long prior to the date of accident, but it opined that since the Insurance Company, the appellant, had knowledge of the transfer of ownership, it cannot escape liability under, the policy. In this view, the Tribunal passed an award directing the Insurance Company, the appellant only to pay the compensation to respondents 1 and 2 with interest at 5 per cent per annum from the date of petition till date of payment.

(2.) The appellant, Insurance Company, questions the award, putting forth the contention that since the ownership of the vehicle was transferred even on 15th August, 1974 long before the date of accident on 18th May, 1975, the insurance policy lapsed and no liability could be pinned down on the Insurance Company.

(3.) No submissions were made before us attacking the finding of the Tribunal that the accident was due to the rash and negligent driving of the vehicle and with regard to the determination of the compensation at Rs. 38,000. Hence, the only question that arises for consideration in this appeal is, whether the Tribunal was correct in directing the appellant to pay the compensation in spite of the fact that the ownership of the vehicle, which was originally with the 3rd respondent, got transferred in favour of the 4th respondent long prior to the date of the accident on I 8th May, 1975.