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Issues involved: Challenge to order under Section 173 of the Motor Vehicle Act, 1988 regarding the date of commencement of the insurance policy.
Summary: The Supreme Court addressed the challenge to an order passed by a learned single Judge of the Allahabad High Court dismissing an appeal under Section 173 of the Motor Vehicle Act, 1988. The dispute centered around the date of commencement of the insurance policy in relation to an accident on 28/5/1996 and a policy covering the period from 29/5/1996 to 28/5/1997. The High Court upheld the liability on the appellant based on the cover note issued on 28/5/1996. However, the appellant argued that the policy was valid from 29/5/1996 to 28/5/1997 as per the cover note. Citing precedents, the Supreme Court emphasized that if a specific time for the purchase of the policy is mentioned, the policy becomes effective from that time. As the High Court did not consider this aspect, the Supreme Court set aside the judgment and remitted the matter for fresh consideration. Ultimately, the appeal was disposed of.
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