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Head Note

Motor Vehicles Act,1988  - Section 157 (1) , Section 103 , Section 147 , Workmens Compensation Act, 1923  - Section 3 , Section 4 , Section 30

Accident claim - Compensation - Transfer of ownership of vehicle - Effect on liability of insurer to pay - High Court discharged respondent No. 1 from the liability of payment of compensation to claimant-appellants - Commissioner in view of employer-employee relationship between deceased and respondent awarded Rs. 2,16,910 - As per Section 157 (1) of MV Act, whenever a vehicle is transferred from one person to another, the benefits of insurance policy shall also be transferred to the new owner - However, High Court excluded the liability of insurer on the ground that the contention of deemed transfer of the insurance policy in favour of new owner was not urged before the commissioner - Challenge against - Once the ownership of vehicle is admittedly proved to have been transferred to new owner, the existing policy in respect of the same vehicle will also be deemed to have been transferred to the new owner - Deceased workman was in employment of respondent in whose name the ownership of vehicle stood transferred - High Court ought not have simply brushed aside the decision of Commissioner fastening joint liability on the Insurance Company in the light of deeming provision as contained in Section 157 (1) of MV Act - Impugned judgment of High Court set aside and of Trial Court restored - Appeal allowed.

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