THE HON’BLE SRI JUSTICE N.R.L.NAGESWARA RAO M.A.C.M.A. No.2705 OF 2011 JUDGMENT:- The appeal is filed by the appellants/ Insurance Company against the award in O.P.No.159 of 2002 on the file of the Court of II Additional District Judge, Medak at Sangareddy challenging the liability under the award. A claim for a compensation of Rs.1,00,000/- was made for the death of deceased-G.Malla Reddy and the Tribunal after considering the material on record granted a compensation of Rs.70,000/- and held that both respondents are liable to pay the compensation. The appellant who is the second respondent in the lower court has contended that there is no valid coverage of the policy. Now the point that arises for consideration is:- Whether the appellant/Insurance Company is not liable to pay the compensation? POINT:- According to the counsel for the appellant, the policy was obtained on 30-01-2002 by the owner of the vehicle by seeking coverage from 29- 01-2002 by suppressing the factum of incident on 30-01-2002 at 9.45 A.M and, therefore, the contract is vitiated and the Insurance Company is not liable to pay any compensation. In fact, when once a valid policy effective from 29-01-2002 covering the risk by the date of accident is in force, if there is any fraud or misrepresentation made by the owner of the vehicle, the Insurance Company is at liberty to proceed against the owner of the vehicle, but, however, it cannot avoid its liability to the claimants who are not parties to the contract and who are not expected to know the realities of the contract. Therefore, for the above observation, I find no merits in the appeal and the appeal deserves to be dismissed. Accordingly, the Appeal is dismissed while granting liberty to the appellant to proceed against the owner of the vehicle. _______________________ N.R.L. NĀGESWARA RĀO,J 08-11-2011 TSNR