The appellant Company in this appeal has not challenged the award of compensation, but has challenged its liability as an insurer to indemnify the owner or to pay compensation to satisfy the award on the ground that respondent No. 2, the registered owner transferred the possession of the truck to respondents No. 1 and 4, on receipt of payment of Rs. 21,100/-, who were plying the truck. Therefore, on transfer of the vehicle, the policy of insurance lapsed, hence the appellant could not have been made liable to pay compensation.

Shri P.R. Bhave, learned counsel for the respondents No. 5 to 12 submitted that transfer was not effected as the Tribunal has recorded a categorical finding that the contract was not concluded. Respondent No. 2 continued to be the registered owner as defined under section 2(19) of the Motor Vehicles Act, 1939 (for short 'the Act'), therefore, the appellant Company cannot escape its liability to indemnify or to pay compensation to the claimants.

From the evidence on record, it is amply established that the contract of transfer was not concluded as the whole of the consideration was not paid and that there was a clause in the agreement to take back the