NEW INDIA ASSURANCE CO Vs. JAGIYA DEVI

JUDGEMENT

(1.) I have heard Sri S.K. Barkataky, Learned Advocate for the petitioner, New India Assurance Co., none appeared for the respondents and as such I requested Sri B.K. Sarma, Learned Advocate assisted by Sri S.K. Medhi, Learned Advocate to appear in this case to help me and that was admittedly done by them. I express my thanks to them.

(2.) This revision arises out an order dated 24.6.93 passed by the Member, Motor Accident Claims Tribunal, Kamrup, Guwahati and the prayer was made before the Tribunal to modify the earlier order dated 12.1.93. By the order dated 12.1.93 the liability to pay the no fault liability was fixed on the owner of the vehicle and thereafter, the owner of the vehicle filed an application to shift the no fault liability to the Insurance Company i.e., New India Assurance Co. The policy in that case commenced with effect from 31.12.86 at 10.00 AM and the admitted position is that the accident took place at 7 AM i.e., before the commencement of the policy and as such stand of the Insurance Company was that it is not liable to pay any amount as at the time of the accident there was no insurance of the vehicle. The law with regard to this as enunciated by the Apex Court is as follows:

(3.) In AIR 1990(2) SCC Page 680 (New India Assurance Co. Ltd.-Vs-Ram Dayal and Ors.) The two judges Bench of the Apex Court considering the question regarding when the policy of insurance company becomes operative when the police is obtained on the date of the accident, it was held that when the policy is taken on the particular date its effectiveness is from the commencement of that date. The Insurance Policy obtained on the date of accident become operative from the commencement of the date of insurance i.e., from the previous midnight since the incident took place on the date of policy insured became liable. There in paragraphs 3, 4, 5, 6 and 7 the Supreme Court held as follows: