Mr. Justice A.L. Bahri, President—The present case is covered by the decision of the Supreme Court in National Insurance Company Ltd. v. Sunita Rathi & Anr., JT 1997 (9) SC 767, wherein it has been held that if occurrence had taken place on the day of purchasing the insurance policy prior to the time of effectiveness of the policy mentioned therein, the Insurance Company will not be liable. The District Forum vide order dated December 23,1996 allowed the complaint filed by Gurmit Singh and Paramjit Singh with a direction to the National Insurance Company to pay a sum of Rs. 1,65,000/- along with 18% p.a. interest thereon w.e.f. the date of the complaint till payment. The complainants after taking loan from The Gangsar Jaitu Primary Co- operative Agricultural Bank Ltd.-opposite party No. 1 purchased a tractor of Ford make-3620 in May, 1995. The aforesaid Bank was given the margin money of Rs. 33,262/- alongwith Rs. 2,253/- as premium for obtaining the insurance policy for the tractor. The said tractor was purchased by the complainants vide Bill No. 22 dated June 7,1995. On the following day, i.e. June 8,1995, the complainants were taking their tractor for cultivating their land. It was being driven by Sukhdev Singh. An accident took place involving the tractor with Oil Tanker No. DNG-0984 driven by one Lal Chand resulting in death of Sukhdev Singh and Kuldip Singh. Two she-buffaloes which were being carried in tractor trolley also died alongwith one calf. FIR No. 194 was registered at Police Station, Dabwali against the driver of the Oil Tanker. A claim was lodged with the National Insurance Company opposite party No. 2, who had issued cover note covering risk for the period June 8, 1995 to June 7, 1996. The Insurance Company repudiated the claim on April 26,1996 on the ground that the accident had taken place at about 9.00 a.m. on June 8, 1995 whereas the Cover Note was issued at 10.00 a.m. This led the complainants to approach the District Forum. The Insurance Company contested the claim on the ground on which the claim was repudiated as briefly mentioned above. The Bank was also impleaded as a party and broadly admitted the sale of the tractor and purchase of the policy. On evidence led by the parties on affidavits and documents, the impugned order was passed by the District Forum. It was held by the District Forum that a policy issued on a particular day would have effect from the midnight and thus the risk of the tractor was covered and the repudiation made was illegal. As assessed by the Surveyor appointed by the Insurance Company the amount of Rs. 1,65,000/- was ordered to be paid to the complainant by the Insurance Company.

2. Copy of the insurance policy/Cover Note is Annexure 1. Clause 3 thereof provides for effective date of commencement of Insurance for the purpose of the Act from 8.6.1995, time 10.00 a.m. The time of issuing of the policy is also as above. In this way of the matter and in view of the decision of the Supreme Court in Sunita Rathi's case (supra), the Insurance Company cannot be made liable for damage caused to the tractor on account of accident which had occurred at about 9.00 a.m. i.e. prior to the effective time of enforcement of the policy. Earlier decision of the Supreme Court in New India Insurance Company v. Ram Dayal and Others, JT 1990 (2) SC 680, holding that the insurance policy would be effective from midnight was distinguished on the ground that in Sunita Rathi's case, the insurance policy specifically mentioned the time of enforcement of the policy. Hence in the present case the incident having occurred before that time as mentioned in the policy, the Insurance Company was not liable under the policy.

3. Further question that arises in this case is as to whether the repudiation of the claim by the Insurance Company is illegal or arbitrary? That depends upon the material collected by the Insurance Company to come to the conclusion that the accident had in fact taken place at about 9.00