PUSHPABAI PURSHOTTAM UDESHI & ORS. versus RANJIT GINNING & PRESSING CO, (P) LTD. & ANR.

PUSHPABAI PURSHOTTAM UDESHI & ORS. versus RANJIT GINNING & PRESSING CO, (P) LTD. & ANR.

The car was driven rashly and negligently by the manager of respondent No. 1 in the course of his employment, making respondent No. 1 vicariously liable for the accident. Under section 95 of the Motor Vehicles Act, 1939, the insurance company's liability is limited to Rs. 15,000 for injury to passengers, and not for the entire quantum of compensation awarded.

Parties
Appellant: Pushpabai Purshottam Udeshi & Ors.; Respondent No. 1: Ranjit Ginning & Pressing Co (P) Ltd.; Respondent No. 2: Union Fire Accident and General Insurance Co. Ltd.
Jurisdiction
India
Judgment Date
25 March 1977
Procedural Posture
Civil Appeal / Supreme Court Appeal by Certificate Under Article 133(1)(a) From High Court
Outcome
Appeal allowed
Legal Topics
Negligence, Vicarious Liability, Quantum of Compensation, Motor Vehicles Accident, Scope of Insurance Cover
Torts Motor Vehicles Law Insurance Law Negligence Vicarious Liability Quantum of Compensation Motor Vehicles Accident Scope of Insurance Cover

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Parties

Pushpabai Purshottam Udeshi & Ors.

Appellant

Ranjit Ginning & Pressing Co (P) Ltd.

Respondent No. 1

Union Fire Accident and General Insurance Co. Ltd.

Respondent No. 2

Procedural Posture

Civil Appeal / Supreme Court Appeal by Certificate Under Article 133(1)(a) From High Court

Legal Issues

  1. 1 Whether the accident was caused by rash and negligent driving by the manager of respondent No. 1
  2. 2 Whether the act of carrying the deceased as a passenger was in the course of employment so as to make respondent No. 1 vicariously liable
  3. 3 Whether the insurance company (respondent No. 2) is liable under the policy and to what extent

Ratio Decidendi

The car was driven rashly and negligently by the manager of respondent No. 1 in the course of his employment, making respondent No. 1 vicariously liable for the accident. Under section 95 of the Motor Vehicles Act, 1939, the insurance company's liability is limited to Rs. 15,000 for injury to passengers, and not for the entire quantum of compensation awarded.

Court Disposition

Appeal allowed

Orders

  • Decree in favour of claimants-appellants for Rs. 27,500; liability of insurance company (respondent No. 2) restricted to Rs. 15,000; respondents to pay costs of appellant in equal share.