S M YAHAYA Vs. PUSHPA BAI

JUDGEMENT

(1.) THE legal representatives of one late Sri Shanthilal, filed a claim petition claiming compensation for the death of late shantilal before the motor accident claims tribunal. The tribunal on assessment of the evidence has awarded a sum of Rs. 1,85,000/- together with interest at the rate of 6% per annum as compensation. The tribunal after quantifying the compensation absolved the liability of the insurance company of satisfying the award holding that the insurer is entitled to avoid the liability against third party risk on the ground that the insured has sold the vehicle covered by the insurance policy before the date of the accident. Aggrieved by the order and award passed by the tribunal, the original owner Sri S. M. Yahaya has filed this appeal.

(2.) THE appellant has raised several contentions in the appeal. But at the time of arguments, learned counsel for the appellant restricted his a rgument only to one point, that is,

(3.) SRI B. V. Acharya, learned senior counsel submitted that on transfer, the policy will not lapse and consequently the composite policy covering the risk of third party continues till the transferor discharges the statutory obligation as provided under the Motor Vehicles Act, 1939 (for short, 'the act of 1939' ).