U.P. STATE ROAD TRANSPORT CORPORATION versus RAJENDRI DEVI & ORS.

U.P. STATE ROAD TRANSPORT CORPORATION versus RAJENDRI DEVI & ORS.

The insurance company is liable to pay the MACT award with interest because the vehicle was insured and the effective control of the vehicle was transferred under the agreement such that the insurance policy remained operative; moreover, a contractual clause between the Corporation and the owner does not bind third-party victims.

Parties
Appellant: U.P. State Road Transport Corporation; Respondent: Rajendri Devi & Ors.
Jurisdiction
India
Judgment Date
08 June 2020
Procedural Posture
Civil Appeal / Appeal to the Supreme Court From High Court Judgment Dated 27.09.2016
Outcome
Appeal allowed.
Legal Topics
Compulsory Third Party Insurance, Vicarious Liability, Motor Accident Claims Tribunal Awards, Interpretation of 'owner' Under the Motor Vehicles Act
Motor Vehicles Law Tort Insurance Compulsory Third Party Insurance Vicarious Liability Motor Accident Claims Tribunal Awards Interpretation of 'owner' Under the Motor Vehicles Act

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

U.P. State Road Transport Corporation

Appellant

Rajendri Devi & Ors.

Respondent

Procedural Posture

Civil Appeal / Appeal to the Supreme Court From High Court Judgment Dated 27.09.2016

Legal Issues

  1. 1 Whether the insurance company is liable to pay compensation where a vehicle insured by the owner is hired/controlled by a State Road Transport Corporation under an agreement
  2. 2 Whether a contractual clause between the Corporation and the vehicle owner (Clause 10) can absolve the Corporation or bind third-party claimants
  3. 3 Whether the decision in Rajasthan State Road Transport Corporation v. Kailash Nath Kothari applies in light of the Motor Vehicles Act, 1988 and subsequent authority Kulsum

Ratio Decidendi

The insurance company is liable to pay the MACT award with interest because the vehicle was insured and the effective control of the vehicle was transferred under the agreement such that the insurance policy remained operative; moreover, a contractual clause between the Corporation and the owner does not bind third-party victims.

Court Disposition

Appeal allowed.

Orders

  • Appeal allowed.
  • The sum awarded by the Motor Accident Claims Tribunal shall be payable by the Insurance Company with interest at the stated rate within a period of three months from today.