Allowed

U.P. State Road Transport Corporation v. Smt. Usha Sharma and Others

Allahabad HC4 Dec 2021FAFO/1107/2004

Case brief

AI extract

What is this about?

The High Court allowed an appeal challenging a Tribunal's award that held the U.P. State Road Transport Corporation liable for a driver's tort. Relying on the Supreme Court's decision in U.P. State Road Transport Corporation v. National Insurance Co. Ltd. (2021), the Court held that because the vehicle was under the Corporation's direct control, the Insurance Company was liable to indemnify.

What did the court decide?

The Tribunal's judgment regarding payment is substituted to make payment by the Insurance Company; the Corporation permitted to withdraw the amount and recover from the respondent with interest.

U.P. State Road Transport Corporation Vs Smt. Usha Sharma and… — Insurance | Allahabad HC (2021)

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Court No. - 45

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Case :- FIRST APPEAL FROM ORDER No. - 1107 of 2004 Appellant :- U.P. State Road Transport Corporation Respondent :- Smt. Usha Sharma And Others Counsel for Appellant :- Samir Sharma Counsel for Respondent :- Sudhanshu Srivastava

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Hon'ble Dr. Kaushal Jayendra Thaker,J.

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Uttar Pradesh State Road Transport Corporation (for short 'Corporation') has given list of the matters which are covered by the decision of the Apex Court in U.P. State Road Transport Corporation Vs. Kulsum and others, 2011(8) S.C.C. 142. As they are not settled in Lok Adalat, they are listed before this Court today.

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Learned Advocates representing Corporation and Insurance Company are present.

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By way of this appeal, the Corporation has challenged the award and decree passed by the Tribunal whereby the Tribunal held that it will be the Corporation who would be liable to pay for the tortuous act of the driver and it will be not be the duty of the Insurance Company with which the vehicle was insured to indemnify the Corporation.

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The issue whether the Insurance Company would be liable or not is no longer res integra. Recently while affirming the judgment of the Apex Court in Kulsum (Supra), in Uttar Pradesh State Road Transport Corporation v. National Insurance Co. Ltd. and others, 2021 (3) T.A.C. 337 (SC), the Apex Court has held that because the possession of the vehicle was with the Corporation, the vehicle was under direct control and supervision of the Corporation, hence, the liability would be that of the Insurance Company as there is no violation of any of the policy conditions.

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Having regard to the above proposition of law, this Court is of the view that the Tribunal was not justified in fastening the liability upon the appellant-Corporation.

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This appeal succeeds and is accordingly allowed. The Judgment of the Tribunal as far as it relates to payment be made by the Corporation is substituted by payment be made by the Insurance Company. The appellant Corporation to withdraw the said amount and/or recover the same from respondent-Insurance Company with interest as directed by the Tribunal till the date the money was deposited by the Corporation. The amounts laying with the Tribunal will be permitted to be withdrawn by the claimants as long time has elapsed.

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As this appeal is disposed of only on the short point of liability on Insurance Company, in case of difficulty, either party may file application for restoration/recall of this order which may be placed before the undersigned immediately.

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Order Date :- 4.12.2021 DKS

U.P. State Road Transport Corporation v. Smt. Usha Sharma and Others

Case brief

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U.P. State Road Transport Corporation v. Smt. Usha Sharma and Others

Case brief

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