ALVITO DIAS Vs. NATIONAL INSURANCE CO LTD

JUDGEMENT

(1.) THIS appeal under section 110d of the Motor Vehicles Act, 1939, by the owner of the bus bearing registration No. GDT-2388 is against the award dated December 30, 1988, made in claim Petition No. 167 of 1985. The CLAIM petition had been filed by the present respondents nos. 2 and 3 in respect of the accident which arose on May 27, 1985, in which their son Esso narayan Naik, a young man of 26 years of age died on the spot. The claim petition prayed for a total compensation of Rs. 1,50,000. The first respondent, the insurer, strangely took the defence that, on the relevant date of the accident,l the insurer had not covered the risk as the appellant had failed to renew the policy. The Tribunal, on absolving the insurer, directed the present appellant (owner) and respondent No. 4, the driver, to jointly an severally pay a total compensation of Rs. 40,000 together with interest at the rate of 10 per cent. per annum from the date of filing of the petition till payment. The no-fault liability in the amount of Rs. 15,000 awarded to the original claimants under section 92a of theact, admittedly paid by the insurer, was directed to be adjusted against the compensation granted.

(2.) THOUGH several challenges have been taken in this appeal, Shri Diniz, learned counsel appearing for the appellant, has, however, restricted his challenge to one sole ground that the insurer could not have been absolved as, on the relevant date, the bus No. GDT-2388 was covered by insurance as the old policy had been duly transferred in favour of the appellant and the policy was in full force.

(3.) SHRI Mulgaonkar, counsel for the insurer, has fairly mentioned that the defence initially adopted by the insurer was not true and that the insurance policy originally issued in favour of one Smt. Usha R. Kuwelkar covered the risk for the period from June 30, 1984, to June 29, 1985, and duly stood transferred in favour of the appellant as from May 1, 1985, once the bus changed hands. Admittedly, the accident took place on May 27, 1985, and, therefore, this matter need not detain the court any further.