Judgment

Verma, CJI.-This appeal by the insurer involves for decision only a short point relating to its liability under the policy of insurance issued subsequent to the accident even though it was issued some time later on the same day. The Tribunal as well as the High Court have held against the insurer placing reliance on a two-Judge Bench deci­sion of this Court in New India Assurance Co. Ltd. v. Ram Dayal & Others1. The question is whether that decision has been correctly applied in the facts of the present case.

2. The motor accident occurred on 10th December, 1991 at 2.20 PM. It was only thereafter the same day at 2.55 PM that the insurance policy and the cover note were obtained by the insured, owner of the motor vehicle involved in the accident. There is express mention in the cover note that the effective date and time of commencement of the insurance for the purpose of the Act was 10th December, 1991 at 2.55 PM. The applicability of the decision in Ram Dayal’s case (supra) has to be considered on these facts. In our opinion the decision in Ram Dayal’s case (supra) is distinguishable and has no application to the facts of this case. The facts of that decision show that th