A transfer of ownership of a vehicle is not effective for the purpose of insurance if the seller retains control over the vehicle.

1. The first appeal filed by Jupiter General Insurance Co. Ltd. (hereinafter referred to as the insurance company) and Ranjit Singh, the insured, is directed against an order passed by the Motor Accidents Claims Tribunal awarding Rs. 2000/- as compensation to Gurcharan Singh respondent No. 1, for the death of his only son aged 1½ years.

2. Respondent No. 1. along with other partners runs the petrol pump on the road coming from Delhi to Gurgaon and running onwards to Sona and Alwar. He has got his residential bouse just behind the petrol pump. A truck which was admittedly owned by Ranjit Singh to begin with and which was driven by Lal Chand driver, came to the petrol pump for getting diesel and air. After getting diesel, the truck backed without the driver taking the precaution of directing the cleaner to be on the backside and to see if that was clear or otherwise taking the precaution himself and seeing if it was safe to do so. The small child of Gurcharan Singh was just be hind the truck and got crushed under-neath. Claim was made by the father and it has been found by the Claims Tribunal :

(a) That the truck was driven by Lal Chand. (b) that Lal Chand was negligent in backing the truck, resulting in the accident. (c) that the truck was owned by Ranjit Singh and the alleged transfer by him in favour of Punnu Ram was not sufficient in the circumstances of the case to absolve Ranjit Singh from his liability and, as such, he being the insured, the insurance company was also liable for damages ; and (d) that Rs. 2000/- would be reasonable damages

3. The first two findings are not seriously challenged before me except that it was urged that the parents, in allowing such a small child to come over to the petrol pump near the road, themselves were guilty of contributory negligence and, to that extent, the damages should be reduced. As I have said above the child had his house just behind the petrol pump and it has been brought out in the cross-examination of Gurcharan Singh that the house has got a gate, but the child could escape through the gate, and if he has walked from his house to the petrol pump, I do not think it can be said that the parents were guilty of contributory negligence. As a matter of fact, this point does not seem to have been argued before the Claims Tribunal because there is no mention thereof in the detailed and well-written judgment of the Tribunal.

4. It was, however, vehemently urged that, according to the statements of Ranjit Singh and Punnu Ram, the vehicle had been sold on or before 1st of June, 1960, by Ranjit Singh to Punnu Ram for a sum of Rs. 31,000/-, and in view of this transfer, the insurance policy with the company lapsed and, therefore, Ranjit Singh, who had transferred the vehicle to Punnu Ram, was not liable, and, in any case, the policy not being in force, the company was not liable to indemnify Ranjit Singh. The learned counsel referred to a number of rulings to the effect that if there is transfer of the vehicle the insurance company would not be liable under the policy. It is not necessary to examine these rulings for the simple reason that the circumstances in the present case show that there was, in fact, no actual transfer of ownership of the vehicle. According to Ranjit Singh and Punnu Ram, money was passed but the arrangement arrived at between the two was such as clearly indicated that the intention of the parties was that the ownership in the vehicle was not to pass to Punnu Ram, and Ranjit Singh kept full control over the vehicle although the income derived from the vehicle was utilised by Punnu Ram Ranjit Singh who wouid be interested in helping the insurance company, as R.W. 1 stated as follows :

"I purchased the offending truck PNR 1733 as new in 1958 I sold the same on 1-6-1960 to Punnu Ram I produce stamped agreement (seen and returned), copy is Exhibit R.W. 1/1. The permit was in my name and Punnu Ram was to use the truck. I had not received any money for the loan of