ORIENTAL FIRE AND GENERAL INSURANCE CO LTD Vs. TIPPANNA GADAGEPPA KUNDGOL
LAWS(KAR)-1981-3-9
HIGH COURT OF KARNATAKA
Decided on March 07,1981

ORIENTAL FIRE AND GENERAL INSURANCE CO.LTD. Appellant
VERSUS
TIPPANNA GADAGEPPA KUNDGOL Respondents

JUDGEMENT

Nagappa, J. - (1.) This appeal by the insurer is directed against the judgment and award dated December 18, 1979, passed by the Motor Accidents Claims Tribunal, Dharwad, in M.C. (M.V.C.) No. 76 of 1978 fixing the liability of the insurance company along with the owner and the amount awarded to be paid by the insurance company under s. 110B of the M.V. Act.
(2.) The only point that was canvassed for our consideration by the learned counsel for the appellant is that the vehicle was not insured on the date of accident, namely, on February 11, 1978. If that is so, the Tribunal was not justified in fixing the liability on the insurance company.
(3.) A perusal of the records indicate that the insurance company has issued renewal receipt on February 14, 1978, after having received the premium due thereunder on February 13, 1978, and with effect from February 10, 1978, for a period of one year thereafter. The accident happened on February 11, 1978. Therefore, it is clear that policy was in force on the date of the accident, in which case the insurance company cannot escape its liability to pay the amount in question. Section 96(1) of the M.V. Act, 1939, reads thus : "If, after a certificate of insurance has been issued under sub-section (4) of section 95 in favour of the person by whom a policy has been effected, judgment in respect of any such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section 95 (being a liability covered by the terms of the policy) is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the decree any sum not exceeding the sum assured payable thereunder, as if he were the judgment-debtor, in respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments.";


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