Judgment :- N. K. JAIN, ACTG. C.J. This matter was referred by a Division Bench of this court on the following question of law : "Whether on the transfer/sale of the vehicle, the policy of insurance issued already in favour of the transferor/seller, in the absence of intimation about such transfer, lapses and the insurance company cannot be fastened with liability ?" The necessary facts for the disposal of the said reference are : On March 3, 1981, while travelling in a van bearing Registration No. TMQ 257, four persons met with an accident, as the said van dashed against the stationary lorry. The Tribunal awarded compensation fastening liability on the first respondent owner. The Tribunal came to the conclusion following the decision of a Division Bench in Hema Ramaswami v. K. M. Valarance Panjani. The matter, on appeal, was heard in extenso. The Bench considered various aspects made by Mr. V. Radhakrishnan, learned counsel appearing for the appellants. In Dharman v. N. C. Srinivasan, 1990 AIR(Mad) 14, a Division Bench of this court had taken the view that on the transfer/sale of the vehicle during the period of cover, the policy had lapsed will not be available by way of defence to the insurance company. In the decision of the Division Bench in Oriental Insurance Co. Ltd. v. Rajamani 1991 1 LW 635 a view had been taken to the effect that on the transfer/sale, the cover under the policy lapses and the transferee cannot take advantage of the policy in favour of the transferor/vendor. On these conflicting decisions, the matter had been referred to the Full Bench, as stated above. We have heard learned counsel appearing on either side and perused the materials on record and the case-law.It is seen that in section 157 of the Motor Vehicles Act, 1988, in sub-section (1) the Explanation was inserted on November 12, 1994, which says that, section 157(1) involves two transfers, (i) the transfer of ownership of the vehicle in respect of which insurance is taken and (ii) the policy of insurance of policy relating thereto. It is also stated that once both the transfers take place the deeming provision operates in respect of insurance and policy described thereon. It is also stated that once both the transfers take place the deeming provision operates in respect of insurance and policy described thereon. We are of the view that it is not necessary to deal with the case-laws, cited before us, as our attention had been drawn to the latest decisions of the Supreme Court rendered in Complete Insulations (P.) Ltd. v. New India Assurance Co. Ltd. and Rajamani v. Oriental Insurance Co. Ltd. In both the abovementioned decisions, the effect of transfer of certificate of insurance and the liability of insurance company had been considered. In Complete Insulations (P.) Ltd. v. New India Assurance Co. Ltd. when the policy was not transferred and the vehicle was damaged in accident, whether the transferee was entitled to be indemnified by the insurer for the damage to the vehicle was considered and it had been held thus (p. 375) : "In the present case, since there was no such agreement and since the insurer had not transferred the policy of insurance in relation thereto to the transferee, the insurer was not liable to make good the damage to the vehicle." In Oriental Insurance Co. Ltd.'s case the above-mentioned decision in Complete Insulations (P.) Ltd. v. New India Assurance Co. Ltd. was relied upon. Considering the same, the apex court held as follows (page 642) : "It was contended that, in any event, the first respondent was liable and reliance was placed upon the judgment of this court in Complete Insulations (P.) Ltd. v. New India Assurance Co. Ltd. In that judgment, this court considered the provisions of section 103A of the Motor Vehicles Act, 1939 and section 157 of the Motor Vehicles Act, 1988, both of which deal with the transfer of certificates of insurance. The provisions of the 1988 Act in this regard are different from those of the 1939 Act. By reason of the provisions of the latter Act, the certificate and policy of insurance are deemed to be transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of such transfer. The provisions of the 1988 Act in this regard are different from those of the 1939 Act. By reason of the provisions of the latter Act, the certificate and policy of insurance are deemed to be transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of such transfer. The provisions in the earlier Act were that where an application for transfer of the certificate and policy of insurance to the intending purchaser has been made and no refusal to do so has been received within 15 days, the certificate and policy are deemed to be transferred in favour of the transferee of the motor vehicle from the date of its transfer. The two provisions being different and there having been no application for transfer by the second respondent to the third respondent of the certificate and policy of insurance of the truck, it is not possible to hold that they were deemed to be transferred in favour of the third respondent with effect from October 5, 1979, the date of the transfer." The controversy, which has arisen in this reference, has been set at rest in view of the decision of the Supreme Court, mentioned above. Under these circumstances and the facts of the case, in the absence of such intimation of transfer/sale of the vehicle, the insurance company is not liable to be fastened with the liability. We answer this reference accordingly.Post the CMA before a Division Bench for appropriate orders.