BHAWANI SINGH, C. J.

( 1 ) AWARD dated 30. 1. 1997, of the Motor Accidents Claims tribunal, Mandsaur, passed in Motor Accident Claim Case No. 81 of 1994, has been challenged through this appeal by the New india Assurance Co. Ltd. , Sanghi Colony, agra-Bombay Road, Indore.

( 2 ) ON 24. 12. 1992, the claimant Ram ratan (34) was travelling by tractor-trolley no. MIU 6731 for going to market. This vehicle was owned by Paraslal, respondent no. 6, driven by Satya Narayan, respondent No. 4 and insured with Oriental insurance Co. Ltd. , respondent No. 7. Truck No. MBN 1232 was owned by Abdul Rashid, respondent No. 3, driven by Satbir Singh, respondent No. 2 and insured with the New india Assurance Co. Ltd. , appellant. The accident took place on 24. 12. 1992, at 8 a. m. , when the truck hit the tractor-trolley, which had been parked on the roadside. As a result of this accident, the claimant, who was sitting in rear portion of the tractor, was injured resulting in amputation of his right leg below knee, resulting in disability to the extent of 70 per cent. Compensation of Rs. 13,75,283. 69 has been claimed. However, the Claims Tribunal has awarded compensation of Rs. . 1,79,100, carrying interest at the rate of 12 per cent per annum from the date of application.

( 3 ) THE owner and driver of truck No. MBN 1232 have been proceeded ex pane. The owner, driver and the insurer of the tractor-trolley No. MIU 6731 filed written statement, in which allegations have been denied. It has been stated that the tractor-trolley had been parked by the side of road and it was the truck, which committed the accident. It is also stated that criminal case under sections 279, 337 and 338 of the indian Penal Code has been registered against the driver of the truck No. MBN 1232. Consequently, liability for accident and payment of compensation has been denied.

( 4 ) THE defence of New India Assurance co. Ltd. is that it is not liable to pay compensation because the vehicle was insured at 2 o'clock while the accident took place at 8 a. m. The contract of insurance has not come into force, apart from the fact that it had been produced by concealment of fact as to the taking place of incident in the same morning.

( 5 ) THE Claims Tribunal has found that the accident took place due to rash and negligent driving of truck No. MBN 1232 and not due to rash and negligent driving of tractor-trolley No. MIU 6731. It is further found that as a result of this accident, the claimant had suffered serious injuries resulting in permanent disability. Consequently, the compensation of Rs. 1,79,100 carrying interest at the rate of 12 per cent per annum from the date of application has been awarded, payable by the owner and driver of truck No. MBN 1232, jointly and severally and since it was insured with new India Assurance Co. Ltd. , the liability, therefore, rested on this company.

( 6 ) ORIENTAL Insurance Co. Ltd. , with which tractor-trolley No. MIU 6731 was insured, has been exonerated. Consequently, this appeal is at the instance of the New india Assurance Co. Ltd. The claimant is not satisfied with the award, therefore, cross-objections for enhancement of compensation and fixing of liability on both, new India Assurance Co. Ltd. and Oriental Insurance Co. Ltd. , has been made.

( 7 ) HEARD the learned counsel for the parties and record perused. Mr. S. S. Dandvate, learned counsel for New India Assurance Co. Ltd. , forcefully contends that the award of Claims Tribunal dated 30. 1. 1997, is liable to be set aside. So far as his claim is concerned, the contract of insurance policy commenced from 24. 12. 1992, at 2 o'clock as per cover note issued by the insurance company, apart from the fact that, it was procured by the insured without disclosing the factum of incident, which had taken place in the same morning. With a view to support this submission, learned counsel brought to our notice three decisions reported in New India Assurance Co. Ltd. v. Ram Dayal, 1990 ACJ 545 (SC)

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