Allowed

U.P. State Road Transport Corporation v. Mahendra Pal and Others

Allahabad HC4 Dec 2021FAFO/3363/2003

Case brief

AI extract

What is this about?

The Single Judge allowed the Corporation's appeal against an expert tribunal award. Citing the Supreme Court in U.P. State Road Transport Corporation v. National Insurance Co. Ltd., the Court held that liability lies with the Insurance Company because the vehicle was under the Corporation's control and supervision. The award was substituted to shift payment from the Corporation to the Insurer.

What did the court decide?

Tribunal award is substituted; Liability for payment shifts from the appellant-Corporation to the Insurance Company; Corporation may recover amounts deposited from the Insurer with interest.

U.P. State Road Transport Corporation Vs Mahendra Pal and Others — Allahabad HC (2021) — LawSathi Research

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Court No. - 45 Case :- FIRST APPEAL FROM ORDER No. - 3363 of 2003 Appellant :- U.P. State Road Transport Corporation Respondent :- Mahendra Pal And Others Counsel for Appellant :- Samir Sharma,Mritunjay Mohan Sahai

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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 Insurance Co. Ltd. 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/Mukesh

U.P. State Road Transport Corporation v. Mahendra Pal and Others

Case brief

What is this about?

What did the court decide?

U.P. State Road Transport Corporation v. Mahendra Pal and Others

Case brief

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What did the court decide?

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