FAO No.3028 of 2010 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ***** FAO No.3028 of 2010 Date of decision : 10.5.2011 Gulab Singh .........Appellant Vs. United India Assurance Company and others .......Respondents CORAM : HON'BLE MR. JUSTICE K.KANNAN Present:- Mr.Amit Singla, Advocate, for the appellant Mr.R.K.Bashamboo, Advocate, for respondent No.1 Mr.Ashwani Gaur, Advocate, for respondents No.2 & 3 --- K.KANNAN, J (ORAL) :- This appeal filed by the owner-driver costing the liability on them and exonerating the Insurance Company on the ground that the transfer of vehicle was not informed in terms of Section 157 Clause (2) of the Motor Vehicles Act, 1988. Section 157 Clause (2) makes only a procedure to be followed and does not anywhere set out that the Insurance Company could plead that it shall not be liable. Section 157 makes a deemed transfer of policy in case where a vehicle is transferred in favour of a third party during the currency of policy. The Insurance Company could not have been exonerated in view of the express provisions made for deemed FAO No.3028 of 2010 -2- transfer of the policy. It is irrelevant that the purchaser had not informed the Insurance Company, especially when the claim emanates from a third party. The liability shall be on the Insurance Company and the claimant shall be entitled to enforce the same against the insurer. Accordingly, the award is modified and the appeal is allowed. (K.KANNAN) JUDGE 10.5.2011 akm