FAO No.684 of 2004 -1- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH FAO No.684 of 2004 Date of Decision. 13.09.2010 National Insurance Company Ltd., Cheema Chowk Ludhiana through its Asstt. Manager ......Appellant Versus Joginder Singh son of Karnail Singh r/o Basti Manni Singh, Gali No.2, Rahon Road, Ludhiana and others ......Respondents Present: Mr. Deepak Manchanada, Advocate for the appellant. Mr. S.P. Singh, Advocate for Mr. Amit Rawal, Advocate for the respondents. CORAM:HON'BLE MR. JUSTICE K. KANNAN 1. Whether Reporters of local papers may be allowed to see the judgment ? 2. To be referred to the Reporters or not ? 3. Whether the judgment should be reported in the Digest? -.- K. KANNAN J.(ORAL) 1. The insurance company is on appeal challenging the liability on the ground that at the relevant time when the accident had taken place, the vehicle had not been insured. The accident had taken place on 26.03.2001 at 10 AM. The policy of insurance had been issued at 4:18 PM. The terms of the policy as found in Column No.3 as “effective date and time of commencement of insurance for the purpose of the Act from 26.03.2001 time 4:18 PM.” Column No.4 states “date of expiry of insurance on 25.03.2002 to midnight.” Learned counsel appearing on behalf of FAO No.684 of 2004 -2- the claimants would contend that since the period of expiry of the policy has been referred till 26.03.2002 midnight, it must only be taken that the policy commenced from 25.03.2001 mid night. Such a contention, in my view, is wrong, for if we must understand the commencement of the policy with reference to the expiry of time of the policy, then even the date must be changed that instead of 26.03.2001, 4:18 PM, it must be read as 25.03.2001 mid night. I cannot accommodate such a plea in view of the law laid down by the Hon'ble Supreme Court in National Insurance Company Limited Vs. Smt. Sobina Iaqai and others 2007(7) SCC 786 that dealt with the case of an insurance policy that had been taken at 2 PM and the accident had taken place on the earlier part of the day at 9.15 A.M. The Hon'ble Supreme Court held that the insurance company would not be liable and that the policy would be effective from the date and time mentioned in the policy and if it had contained a reference to the commencement of the policy specifically at 4:18 P.M., we cannot make an interpretation about the commencement from the point of view how the policy was to enure till midnight the following year. It just shows that the insurance company was prepared to cover the risk for a little over 365 days and provides for another 12 hours till end of the midnight. It is literally re-writing the policy with reference to the period of insurance cover, if the contention of the respondents were to be accepted. The award passed against the insurer is not tenable and the same is set aside. 2. In case, the claimants have recovered any claim from the FAO No.684 of 2004 -3- insurance company, the insurance company will enforce its right of recovery against the insured and not against the claimants. Subject to this modification the appeal is allowed. (K. KANNAN) JUDGE September 13, 2010 Pankaj*