( 1 ) THIS Letters Patent Appeal is directed against the judgment and order dated 28th April 1995 of the learned Single Judge, partly allowing First Appeal No. 1127 of 1987, arising from M. A. C. Case No. 232 of 1985 and the order dated 23. 6. 1997 passed by the learned Single Judge in Misc. Civil Application No. 1842 of 1995 rejecting the said review application.

( 2 ) RESPONDENT No. 2 herein filed the above numbered Claim Petition before the Motor Accident Claims Tribunal, Ahmedabad for claiming compensation of Rs. 1,00,000/- for the injuries sustained by him in the vehicular accident which took place on 8th August 1984 at 3. 15 p. m. As the claimant was minor at the relevant point of time, the claim petition was filed through his father.

( 3 ) THE owner and the Insurance Company contested the claim petition. After considering the evidence on record, the Tribunal rendered its award dated 15th January 1987 awarding compensation of Rs. 62,800/- with proportionate costs and interest to the claimant. However, the Tribunal absolved the Insurance Company, i. e. appellant herein, from its liability to answer the award and the liability was fastened on the driver and owner of the offending vehicle. Hence, the award of the Tribunal came to be challenged in First Appeal by the owner. The First Appeal, which came to be accepted by the learned Single Judge by his judgment under Appeal holding that since the Demand Draft for premium for the policy and the proposal form signed by the insured, were given to the authorised agent of the Insurance Company on 7th August 1984 i. e. one day before the date of accident, the Insurance Company was liable to satisfy the award. The application for review of the said order, being Misc. Civil Application No. 1842 of 1995 filed by the Insurance Company came to be rejected by the learned Single Judge vide order dated 23. 6. 1997 which is also under challenge in this appeal.

( 4 ) MR. AJAY Mehta, learned Counsel appearing for the appellant Insurance Company has submitted that since the Insurance Company received the proposal Form and the premium amount on 13th August 1984 which was after the date of the accident (8th August 1984), the Insurance Company was rightly absolved by the Tribunal from the liability to answer the award. Mr Mehta has heavily relied on the provisions of Sub-section (4) of Section 64-VB of the Insurance Act, 1938 in support of his contention that since the amount was not received by the appellant-Insurance Company within 24 hours of the collection of premium from the insured by the agent of the appellant, the appellant cannot be fastened with the liability to satisfy the award.

( 5 ) MR. AKIL Kureshi, learned Counsel appearing for the respondent-claimant, however, points out that the learned Single Judge has given a finding of fact that the owner of the vehicle had given the proposal as well as the premium amount by Demand Draft dated 7th August 1984 to the authorised agent of the Insurance Company on 7th August 1984 itself which was prior to the date of the accident. Hence, the Insurance Company has rightly been held to be liable.

( 6 ) SECTION 64-VB of the Insurance Act, 1938 reads as under :- "64-VB. No risk to be assumed unless premium is received in advance : (1) no insurer shall assume any risk in India in respect of any insurance business on which premium is not ordinarily payable outside India unless and until the premium payable is received by him or is guaranteed to be paid by such person in such manner and within such time as may be prescribed or unless and until deposit of such amount as may be prescribed, is made in advance in the prescribed manner. (2) for the purposes of this section, in the case of risks for which premium can be ascertained in advance, the risk may be assumed not earlier than the date on which the premium has been paid in cash or by cheque to the insurer. EXPLANATION : Where the premium is tendered by postal money order or cheque sent b