JUDGMENTBY: ONG HOCK THYE FJ, THOMSON LP, ISMAIL KHAN J

ONG HOCK THYE FJ This is an appeal against a judges finding of fact. On February 4, 1960 the respondents husband died in a road accident involving a vehicle which was covered by a policy of insurance against third party risks issued by the appellants. The accident occurred while the car was being driven by one Chong Swee Peow, into whose possession it had been delivered by Chua Hock Lee, the insured, a few days earlier.

In February 1962 the respondent sued both Chua and Chong for damages but failed in her action. She appealed and a retrial was ordered against Chong alone. [ [1968] MLJ 289 CA] On December 11, 1963 he suffered judgment by default to be passed against him for $ 10,000 and costs. In the event payment was claimed against the appellants under section 75 of the Road Traffic Ordinance, 1958, as insurers and the question that fell to be decided was whether, at the date of the accident, the policy issued by the company to Chua as owner was in force or had lapsed by reason of an alleged sale and transfer of the car to Chong.

Evidence adduced at the second trial (which was held on April 5, 1965) showed that the car w

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