NEW INDIA ASSURANCE CO. LTD.versusRAM DAYAL AND ORS.

                  NEW INDIA ASSURANCE CO. LTD.
A                                      v.
                         RAM DAYAL AND ORS.

                               APRIL 20, 1990

B        [RANGANATH MISRA AND K. RAMASWAMY, JJ.]

           Motor Vehicles Act, 1939: Insurance Policy--When becomes
    effective.

        In a claim for compensation, the Motor Accident Claims Tribunal
  held that the insurer was not liable to meet the award of compensation
C against the owner of the vehicle, as the policy had been taken after the      ---1- ·
  accident. On appeal, the High Court held that the insurance policy
  obtained on the date of accident became operative from the commence-
  ment of the date of insurance, i.e. from the previous mid-night, and
  since the accident took place on the date of the policy, the insurer          -~
D became liable.

          Dismissing the appeals by the insurer, this Court.

          HELD: When a policy is taken on a particiuar date, its effective-
    ness is from the commencement of the date.
E
           In the instant case, the insurance was taken from 28th September,    -A-
    1984, which is the date of the accident. The High Court was, therefore,
    right in holding that the insurer wa.. liable in terms of the Act to meet
    the liability of the owner under the award. [571F-G]

p          Jaddoo Singh & Anr. v. Smt. Ma/ti Devi & Anr., AIR 1983 All.
    8 7, approved.                                                               --I
          In re. F.B. Warren, [1938] Ch. 725, referred to.

          Stroud's Judicial Dictionary. referred to.
G
         CIVIL APPELLATE JURISDICTION: Civil Appeal Nos.
    1188-89 of 1987.

        From the Judgment and Order dated 21. 11.1986 of the Punjab &
    Haryana High Court in First Appeal Order Nos. 620 & 619 of 1986.
H

                                       570
                 NEW INDIA ASSURANCE v. RAM DAYAL [MISRA, J.]               571

              K.K. Jain and Pramod Dayal for the Appellant.                         A

              Meera Chhabra and Ms. Pani Chhabra for the Respondents.

              The Judgment of the Court was delivered by

              RANGANATH MISRA, J. These are appeals by special leave                B
        challenging the reversing common decision of the Punjab & Haryana
        High Court holding the insurer liable for compensation under the
        Motor Vehicles Act of 1939.

              The insurer repudiated its liability by maintaining that the policy
        had been taken aner the accident and, therefore, it had no liability to     C
        meet the award of compensation against the owner. The Tribunal
        accepted this stand and rejected the claim against the insurer. In
        appeal, the High Court took the view relying upon certain decisions
        that the insurance policy obtained on the date of the accident became
        operative from the commencement of the date of insurance-Le. from
        the previous mid-night and since the accident took place on the date of     D
        the policy the insurer became liable.

              Apart from the judgment under appeal, we find that this view is
        supported by two judgments of the Madras High Court and an earlier
        decision of the Punjab & Haryana High Court. Two Division Benches
        of the Madras High Court have taken the view after discussing the           E
        law at length that the policy taken during any part of the day
        becomes operative from the commencement of that day. Besides these
        judgments a Division Bench decision of the Allahabad High Court in
        Jaddoo Singh & Anr. v. Smt. Malti Devi & Anr., AIR 1983 All. 87
        supports this view on principle.
>----                                                                               F
             There is evidence in this case that the vehicle was insured earlier
        upto 31.8.1984 and the same was available to be renewed but instead
        of obtaining renewal, a fresh insurance was taken from 28th of
        September, 1984, which is the date of the accident. We are inclined to
        agree with the view indicated in these decisions that when a policy is
        taken on a particular date its effectiveness is from the commencement       G
        of the date and, therefore, the High Court, in our opinion, was right in
        holding that the insurer was liable in terms of the Act to meet the
        liab1Jity of the ow:ier under the award.

              As pointed out in Stroud's judicial Dictionary 'Date' means day,
        so that where a cover not providing for temporary insurance of a motor      H
                                                                   .
    572                                        .
                           SUPREME COURT REPORTS              [1990] 2 S.C.R.

A car expires 15 days after date of commencement, it runs for the full 15
  days after the day on which it was to commence."

          Similarly it has been stated in Stroud that "a bill of exchange, or
                                                                                   -- -
    note, is of the date expressed on its face, not the time when it is
    actually issued."
B
         . To the same effect is the decision in Re F & B Warren, [1938] Ch.
    725 where it has been held that a judicial act will be referred to the first
    moment of the day on which it is done. A payment made by a bankrupt
    in the morning of a day is, therefore, not made, within section 45 of the
    Bankruptcy Act, 1914 before the date of a receiving order made later in
c   the same day.

          The ratio of these also supports the view we have taken.

         The appeals fails and are dismissed. There would, however, be
    no order for costs.

    N.P.V.                                                 Appeals dismissed.




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