HIGH COURT OF JAMMU AND KASHMIR AND LADAKH

AT JAMMU

Reserved on 21.02.2022

Pronounced on 25.02.2022

MA No. 169/2007(O&M)

Oriental Insurance Co. Ltd.

…..Appellant(s)/Petitioner(s)

Through: Mr. D. S. Chauhan, Advocate

Ms. Sheeba Sethi, Advocate

vs

Gian Singh and others

.…. Respondent(s)

Through: Mr. Ved Bhushan Gupta, Advocate

Coram: HON’BLE MR. JUSTICE RAJNESH OSWAL, JUDGE

JUDGMENT

1.

This appeal has been preferred by the appellant-Insurance Company

against the judgment and award dated 18.10.2004 passed by the learned

Commissioner, Workmen’s Compensation Act, Udhampur in file No.

IWC/2001/7, tilted, Gian Singh verses Pawan Kumar and others by virtue

of which, the compensation of Rs. 76,244/- was awarded in favour of

respondent No. 1 along with 6% simple interest from the date of accident

and the appellant being the insurer was directed to satisfy the award.

2.

In the memo of appeal, following questions have been formulated by the

appellant for the determination of the Court:

i) When a registered owner of a motor vehicle covered by an

insurance policy transfers the vehicle to another, but does

not secure certificate of transfer of the insurance policy

covering the vehicle to the transferee of the vehicle, whether

the insurance company is liable to answer the liability

arising out of an accident met with by the vehicle after

2 MA No. 169/2007

transfer of ownership of the vehicle but during the period

for which the insurance policy had been issued?

ii)

whether

Learned

Commissioner,

Workmen’s

Compensation

Act,

Udhampur

(Assistant

Labour

Commissioner)Udhampur, was justified in passing the

impugned award/judgment dated 18.10.2004 in File No.

IWC/2001/7 titled, Gian Singh versus Pawan Kumar and

others especially when the insured had sold the vehicle i.e.

Matador No. JK02B-5215, covered by the insurance policy,

before the date of accident to respondent No. 3 namely Shri

Kuldeep Singh, without any intimation to the insurer i.e.

Oriental Insurance Co. Ltd and the insured, as per the

insurance policy, had no longer any insurable interest to

which the insurance policy could relate to any continue to

have the force?

3.

Heard Mr. D. S. Chauhan, learned counsel for the appellant and Mr. Ved

Bhushan Gupta, learned counsel for respondent No. 1.

4.

The issue is no more res integra that even if the vehicle is transferred by

the registered owner to the transferee owner, the insurance coverage is

deemed to have been transferred in favour of the transferee owner. The

Apex Court in Firdaus v Oriental Insurance Company Limited and

others, 2017 ACJ 2608 has held as under:

<13. Even if it is assumed for the sake of arguments that

vehicle was transferred from defendant No.1 to defendant No.4,

there will be no consequence with regard to liability of Oriental

Insurance Co. Ltd. to pay compensation. The issue has been

answered in Rikhi Ram Case (Supra) also. The vehicle involved

in the accident in the aforesaid case was insured by another

owner, namely M/s Bhagwan Rai Amrit Lal, which was

purchased by two other persons subsequently. No intimation of

transfer was given to Oriental Insurance Co. Ltd. The question

arose in the above case, as to whether in absence of intimation of

3 MA No. 169/2007

transfer to the Insurer the liability to pay the compensation to the

third party shall cease.....=

5.

Viewed thus, both the aforementioned issues raised are squarely covered

by the judgment in Firdaus’s case (supra), as such, the present appeal is

found to be without any merit and the same is dismissed.

6.

Disposed of.