KHURSHID Vs. RELIANCE GENERAL INSURANCE CO. LTD.

JUDGEMENT

(1.) Challenge in the present appeal has been directed against award dated 21.08.2015 passed by the Motor Accidents Claims Tribunal, Mewat (in short 'the Tribunal') whereby compensation has been assessed in respect of injuries sustained by Johruddin in a motor vehicular accident that took place on 25.06.2014.

(2.) The appeal has been filed by the owner and driver of offending vehicle to express their grievance against exoneration of insurance company to pay compensation on the premise that the vehicle was transferred by the owner but the insurance policy was not transferred in the name of transferee. Counsel for the appellants would argue that under Section 157(1) of the Motor Vehicles Act, 1988 (in short 'the Act'), the certificate of insurance and policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer. It is argued that since on the date of occurrence, the registration certificate already stood transferred in the name of transferee, the insurance company has wrongly been exonerated of liability to pay compensation. In support of his contention, he has relied upon judgments of Hon'ble the Supreme Court Managing Director, K.S.R.T.C. Vs. New India Assurance Co. Ltd. and another 2015(4) RR (Civil) 938; G. Govindan Vs. New India Assurance Co. Ltd. 1999 (2) RCR (Civil) 489 and United India Insurance Co. Ltd. Shimla Vs. Tilak Singh and others, 2006(3) RCR (Civil) 168. Further reference has been made to judgment of this Court Gobind Ram Vs. Umed Singh and others, 2008(3) RCR (Civil) 276.

(3.) Counsel for the insurance company, while refuting contention of counsel for the appellants, has submitted that as the transferee, in compliance with the provisions of Section 157(2) of the Act did not apply within 14 days from the date of transfer to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour, the insurance company has rightly been exonerated of liability to pay compensation. For this purpose, reliance has been placed upon judgment of Hon'ble the Supreme Court Rikhi Ram and another Vs. Smt. Sukhrania and others, 2003(1) RCR (Civil) 756. Further reference has been made to judgments of Karnataka High Court M/s United India Assurance Co. Ltd. Mysore Vs. M.N. Ravikumar and others, 2008 ACJ 1681 and Krishnashetty Vs. Oriental Insurance Co. Ltd. and others, 2010 ACJ 2427.