Respondents 1 and 2 filed O.P.No.59 of 2004 before the Motor Accidents Claims Tribunal - cum - II Additional District Judge. Karimnagar, claiming compensation for the death of their child in an accident involving an auto bearing No.AP 1 T 4266. The vehicle was owned by the third respondent and insured with the appellant herein. It was pleaded that when the second respondent was travelling on 02-09-2001 in the said auto from Chelgal to Venkatapoor, it met with an accident at Medipally and the infant, by name P. Venkatesh aged about one year died. It was alleged that the accident took place on account of rash and negligent driving of the vehicle.

2. The second (sic. third) respondent filed a counter-affidavit stating that he sold the vehicle to one B. Krishnam Raju, the fourth respondent herein, on 02-08-2001. Thereupon, the said Krishnam Raju was impleaded in the O.P. and he did not file any counter.

3. The O.P. was resisted by the appellant herein. It was alleged that the appellant did not receive any information about the accident and that the driver of the vehicle did not hold valid and subsisting licence. The appellant also alleged that the claim of respondents 1 and 2 is