66 0 Ili the HighCourt ofPunjaband Haryanaat Chandigarh F0N0945 of2008 Date ofdecisionl December 172009 The Oriental InsuranceCompany Limited Appellant Vs 1 Mamu Ram and others 0 Coraml Honble Mre Justice AN JindaI C Present Mr DP GuptaAdvocate theappellant I None for the No2 and3 C5 I ANe Jindal J This appealfiled byThe Oriental IlisuranceCompany Limited Z Olereinreferred as the appellantis againstthe award dated 3 1102006 passed by the Motor Accident Claims Tribunal KamaI herein refened as the Tribunal awarding to thetutle ofRs00001 alongwith interest 6Io per annum in favour ofthe claimlu Nol lerein 05 referredas the No 19 and againstthe appellant as well as Nol and 3 jointlyand severalIy 7 Z The main grouseof the is that the accident lll the case took placeon 1832005 at l15 pm whereas the vehicle was CL insuredwef 2115 hours on 1932005 to 1832006 vide insurancepolicy ExR4 The policy ExR49stipulates that it would take effect wef 193005 therefore the accident havingtaken placemuch prior to 1932005 ie on 1832005 at about l5 pm the company cannotbe held liable To the contrary leamed counsel for the has submittedthat since the company had received thepremium as well as the papers were got signedon 1832005 therefore the stipulationifany with regardto commencement ofthe poiicyfrom 1932005 would hardlyeffect theirrightsand will not givespeech to the company to say that the policy l was not in force Perusal of the cover note issued on 1832005 was to commence from 1932005 This cover note was signedbythe Parkash Om 2013.04.11 17: 49 True Scanned Copy Of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:57 I attest to the accuracy and integrity of this document 67 0 FAOe Noe945 of2008 m ThpolicyExl24 also containsthe same terms that it would be effective from 193005 to 183006 The policyof insurancebeingcontractbetweenthe insurer and insuredtheywere boundbythe terms and conditions containedtherein In the absenceof any time or date as to when thepolicywas to commence it would commence from theprevious mid nightIn the instant case the cover notewas issued on 1832005 but it was mentionedthat it will be effective wef 1932005 till mid nightof 1832006 While the effective dateofcommencement ofthe insurancepolicyfor the purposeofact from O 0 0clock the Apex Court in case New India Assuiance CompanyLimited C3 vseSita BaSmtJ and other199997SCC 575 observed as under l 0 6 The correctness and of the judgment ln Ram Dayalcase1990 2 SCC 680 came upforconsideration Z beforethis Court ln a number of cases In New India Assurance Co vs BhagwatiDevi1999 6 SCC 534 a threeJudgesBench ofthisCourt relied upon the view taken in National Insurance Coe Ltde vs Jikubhai NathujiDabhi otj 1997 1 SCC 66 wherein it had been held that if there lS Cl special contract mentioning in thepolicythe time when it was se broughtthe lnsurance policywould be operativefrom that Z time and not from thepreviousmidnightas was the case in tl Ram Dayalcase where no time fromwhich the insurance policywasto becomeective had been mentioned It was held that should there be no contract to the contrar an lnSUrance policy becomes operativefrom the previous when boughtduringthe dayfollowingbut ln cases where there is a mention ofthespecifictimeforthepurpose of t thepolicy then a specialcontract comes lnto beingand the policybecomeseffective fromthe timementioned in the cover itself The judgmentin Jikubhai case has been followedln Oriental Insurance Co Ltd vs SunitaRathi 1998ml 118 PR 19SC 09981l SCC 365 bya threeJudgesBench ofthisCourt also 11 Parkash Om 2013.04.11 17: 49 True Scanned Copy Of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:57 I attest to the accuracy and integrity of this document 68 VO 0 J FA0 No945 of2008 3 Thus the ratio as drawn from the aforesaidjudgment is that 111 case thepolicyor the cover note come into exlstence bearingcertaln terms then the contract would be complete and commence from the dateand time whenit was soughtto be so commenced Similar observationswere made by the Apex Court in case Oriental Insurance Co Ltde vse Porselvi and another 0098 PR 65 The Tribunal hastaken wrong note ofthe fact while makingobservations that when the company had received the 1 premlum thenthat policywould be treatedas issued and taken effect but the parties were bound bythe as contained in the policy As 0 such the findings as recordedbythe Tribunalfastening the liabilityof the C InsuranceCompany do not standto the reason andneedto be reversed I C while reversingthe findingsreturned by the I Tribunal on issue No this appealis acceptedand it is ordered that the standsexoneratedfrom the liabilityas fastenedby the Tribunal Z Howeverthe liabilityto compensate the claimant which has been fastened bythe Tribunal upon the Nol and3 would remain inta 1 I December 17 2009 AeNe JindaO cS deepak Judge 7 Z 5 Parkash Om 2013.04.11 17: 49 True Scanned Copy Of Original PHHC,Chandigarh JOYTI RANI 2016.03.28 15:57 I attest to the accuracy and integrity of this document