The main legal point established in the judgment is that an Insurance Company cannot be held liable for payment of compensation during a period when there was no insurance coverage for the vehicle involved in the accident.

JUDGMENT :

Rajnish Kumar, J.

1. Heard, Shri R.C.Sharma, learned counsel for the appellant. None appeared for the respondents even in the revised list.

2. The instant First Appeal From Order under Section 173 of the Motor Vehicles Act, 1988 has emanated from the judgment and award dated 30.03.1996, passed in Motor Accident Claim Petition No.19 of 1994 (Smt.Neelam and others Versus Sohan Lal Tandon and others) by the Motor Accident Claims Tribunal/IV Additional District Judge, Hardoi. By the impugned judgment and award in appeal the learned Motor Accident Claims Tribunal (hereinafter referred as MACT) has awarded compensation of Rs.1,20,000/- to the legal heirs of the deceased Daya Shanker as per the apportionment made in the order.

3. Brief facts of the case giving rise to the instant appeal are that the deceased Daya Shanker was going from Mallawan to Hardoi on 26.10.1993 by Bus No.USD-3940. The accident occurred at about 6.30 p.m. due to collision between the Bus No.USD-3940 and Tractor No.UP-30-5741. On account of accident, the deceased suffered serious injuries and he died. Therefore the claim petition No.19 of 1994, claiming compensation, was filed by his wife Smt. Neelam @ Dayawati and the minor daughters and son, namely, Km.Anupam, Rahul, Km.Ruby and Km.Suchi and the widow mother of the deceased Smt. Rama Devi against the owner of the vehicles and the Insurance Companies, namely, the Oriental Insurance Company and the National Insurance Company.

4. After exchange of pleadings, seven issues were framed and certain documents were filed by the parties. Thereafter, after evidence and hearing the parties, the learned Tribunal allowed the claim petition and awarded an amount of Rs.1,20,000/- as compensation holding the contributory negligence of the bus and the tractor involved in the accident and directed to the Oriental Insurance Company Limited and the National Insurance Company Limited i.e. insurer of the vehicles to pay Rs.60,000/- each along with 12% interest. It has further been provided that out of the compensation awarded Smt. Nilam @ Dayawati will get Rs.35,000/- Km. Anupam Rs.20,000/-, Rahul Rs.20,000/-, Km. Ruby Rs.20,000/- and Km. Suchi Rs.20,000/- and Smt. Rama Devi Rs.5,000/-. It has further been provided that the amount awarded to Km. Anupam, Km. Ruby, Km. Suchi and Rahul would be deposited in the State Bank of India for a period of 8 years. Hence the present appeal has been filed by the National Insurance Company Limited (opposite party no.8 in the Claim Petition) for setting aside the impugned award dated 30.03.1996 to the extent of the liability fixed on the appellant; National Insurance Company Ltd.

5. Submission of learned counsel for the appellant is that the tractor involved in the accident bearing Registration No.UP-35-7541 belonging to the respondents no.10, 11 and 12 was ensured by the appellant Insurance Company w.e.f. 30.09.1992 to 29.09.1993 and thereafter w.e.f. 01.11.1993 to 31.10.1994 as such, there was a gap between the earlier policy which lapsed on 29.09.1993 and the next policy which had started w.e.f. 01.11.1993 so it was not insured on the date of accident in question i.e. 26.10.1993. Therefore, there was no contract of insurance between the appellant and the owners of the Tractor i.e. the respondents no.10, 11 and 12 on the said date. As there was no contract of insurance on the date of accident, therefore, the appellant is not liable to pay any compensation on account of death of Daya Shanker as a consequence to the accident in question.

6. Learned counsel for the appellant, relying on Section 64-VB of the Insurance Act, 1938, submitted that no insurer shall assume any risk till the premium is received in advance. In other words, the insurance cover becomes available only on payment of premium and in the present case premium was paid on 01.11.1993, five days after the accident. Learned coun