Full Judgment
E. Dharma Rao, J.
1. This Civil Miscellaneous Appeal was filed against the judgment and decree dated 31-8-1991 in O.P. No. 61 of 1991 on the file of the Motor Accidents Claims Tribunal-cum-I Addl. Dist. Judge, Cuddapah.
2. The above O.P. was filed seeking compensation of Rs. 25,000/- for the death of the deceased Batchigari Sarasa Nagaswathi on 29-12-1990 at about 9.00 A.M. near I.T.I, junction on Kurnool-Chittoor Road, on account of the accident occurred due to the rash and negligent driving of the driver of the lorry bearing No. ABK 8689.
3. The Tribunal has examined P.W.I B. Subba Rao, the father of the minor petitioner herein, and marked, Exs.A-1 to A-24. After evaluating the oral and documentary evidence, the Tribunal held that she died in the accident due to the rash and negligent driving of the lorry after sustaining injuries and therefore, the Tribunal awarded a sum of Rs. 5,000/ - with interest at 12% p.a. from the date of the petition till realisation.
4. Against this judgment and decree, the present C.M.A. is filed.
5. By order dated 26-2-1998 of this Court, the appeal against the first respondent herein, who is owner of the lorry involved in the accident, was dismissed. It is settled law that when the appeal against the owner of the lorry is dismissed, the Insurance Company, who stands to indemnify the amounts on behalf of the insured, cannot be made liable to pay the amounts which are going to be enhanced in the appeal; inasmuch as the insurer steps into the shoes of the insured by virtue of the contract. In a recent judgment of the Apex Court in Oriental Insurance Company v. Sunitha Rathi, AIR 1998 SC 256, the issue with regard to the operation of the policy and cover note issued by the insurer came up for consideration. The Supreme Court held that the operation of the policy and cover note come into operation from the date mentioned in them and before that date, the Court cannot fix the liability on the insurer, if any accident takes place prior to the date mentioned in the policy or cover note. Accordingly it held that the liability of the insurer arises only when the liability of the insured is upheld.
6. Therefore, in the present case, when the appeal is dismissed against the insured, the liability cannot be upheld against the insurer. Following the above judgment of the Supreme Court, this C.M.A. is dismissed, in the circumstances without costs.