1. The present revision-application is directed against the order dated 18.10.1996 passed in Claim Case No. 82/95, by the 7th Additional Motor Accidents Claims Tribunal, Raipur.

2. Heard the learned counsel for the applicant.

3. The revision involves the question of law and is being accordingly disposed of finally at the motion stage with the consent of the learned counsel for the applicant.

4. The question for consideration as formulated by the learned counsel is as:

"Whether the policy or the certificate of insurance to be operative with effect from the time when the insurance of the vehicle was obtained and whether the order in question suffers from illegality?" Detailed facts' for determination of this question are not 'necessary except the facts which may have peripheral relevance. One Dhannumal met with an accident with Hero Honda No. MP-23-F/4634 as a result whereof he died on the spot. According to the applicant the accident took place on 9.9.1993 at 12.30 p.m. and the premium for insurance was paid the same date subsequently on 3.50 p.m.

5. The Claims Tribunal under no fault liability clause gave an award u/s. 140 of the Motor Vehicles Act, 1988 (for brievity hereinafter referred to as 'the Act') on 23.1.1996 for a sum of Rs. 25,000/-. Subsequent to the passing of the award an application u/s. 149 (2) (b) and (6) of the Act read with section 151 of the Code of Civil Procedure (for brevity hereinafter referred to as' the Code') as well as a separate application u/s. 151 of the Code was also made by the applicant. In this connection, learned counsel relied on the provisions of section 64- VB of the Insurance Act, 1938, which is extracted as below:

"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 by post, the risk may be assumed on the date on which the money-order is booked or the cheque is posted, as the case may be.

(3) Any refund of premium which may become due to an insured on account of the - cancellation of a policy or alteration in its terms and conditions or otherwise shall be paid by the insurer directly to the insured by a crossed or order cheque or by postal money-order and a proper receipt shall be obtained by the insurer from the insured, and such refund shall in no case be credited to the account of the agent.

(4) Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with, or despatch by post to, the insurer, the premium so collected in full without deduction of his commission within twenty four hours of the collections excluding bank and postal holidays.

(5) The Central Government may, by rules, relax the requirements of sub-section (1) in respect of particular categories in insurance policies." Learned counsel submitted that no risk could be covered by the insurer anterior to the time when the premium payable is received by the insurer. He placed reliance on the words used in sub-section (1) of section 64- VB. ------ 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" According to him these words go to indicate that it is the time of insurance i.e. time when the payment is made is relevant; as the same is the