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2008 (4) TMI 766

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..... hicle had all along been in possession and control of the fourth respondent herein. It met with an accident on 29th May, 1995. In the said accident one Degala Balakrishana died. Respondent Nos. 1 and 2 filed an application claiming compensation alleging rash and negligent driving on the part of the driver of the said vehicle. 5. On or about 18th June, 1998, the appellant herein was impleaded in the proceeding on the premises that it was the financer of the said vehicle. 6. The name of the appellant as a financer indisputably was incorporated in the Registration Book of the vehicle. However, the extract of Registration Book revealed that the vehicle was registered in the name of the 4th respondent only w.e.f. 3rd June, 1992. It further .....

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..... and it is in his custody, in my view, it cannot absolve R-4 from the burden of establishing this fact in order of avoid the liability. P.W.1 a widow and a third party cannot be attributed with knowledge of control over the vehicle and the actual contract between the parties. Thus, it is quite evident that R-2 and R-4 did not place any material to show as to who is in actual control of the vehicle and what are the rights of R-4 over it. 8. An appeal preferred thereagainst by the appellant herein, by reason of the impugned judgment, dated 8th August, 2006 has been dismissed. 9. Ms. Bina Madhavan, appearing on behalf of the appellant, would submit : (1) In terms of Section 168 of the Act a financer cannot be held liable to pay compe .....

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..... uld be presumed to be the owner but such a presumption can be drawn only in the absence of any other material brought on record or unless the context otherwise requires. 13. In case of a motor vehicle which is subjected to a hire purchase agreement, the financer cannot ordinarily be treated to be the owner. The person who is in possession of the vehicle, and not the financer being the owner would be liable to pay damages for the motor accident. 14. Motor Accident Claims Tribunals are constituted in terms of Section 165 of the Act occurring in Chapter XII thereof. Section 166 lays down the manner in which the application for compensation should be filed and who can file the same. Section 168 deals with the award of the Claims Tribunal, .....

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..... o it can specify the amount which could be paid by the insured or owner or driver of the vehicle involved in the accident or by all or any of them, as the case may be. 16. An application for payment of compensation is filed before the Tribunal constituted under Section 165 of the Act for adjudicating upon the claim for compensation in respect of accident involving the death of, or bodily injury to, persons arising out of the use of motor vehicles, or damages to any property of a third party so arising, or both. Use of the motor vehicle is a sine qua non for entertaining a claim for compensation. Ordinarily if driver of the vehicle would use the same, he remains in possession or control thereof. Owner of the vehicle, although may not have .....

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..... r safety therefore became the responsibility of the RSRTC while travelling in the bus. They had no privity of contract with Shri Sanjay Kumar, the owner of the bus at all. Had it been a case only of transfer of services of the driver and not of transfer of control of the driver from the owner to RSRTC, the matter may have been somewhat different. But on facts in this case and in view of Conditions 4 to 7 of the agreement (supra), the RSRTC must be held to be vicariously liable for the tort committed by the driver while plying the bus under contract of the RSRTC. The general proposition of law and the presumption arising therefrom that an employer, that is the person who has the right to hire and fire the employee, is generally responsible v .....

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..... ent either under the 1939 Act or the 1988 Act did not take into consideration a situation of this nature. No doubt, Respondent Nos. 3 and 4 Page 4561 continued to be the registered owner of the vehicle despite the fact that the same was requisitioned by the District Magistrate in exercise of its power conferred upon it under the Representation of People Act. A vehicle is requisitioned by a statutory authority, pursuant to the provisions contained in a statute. The owner of the vehicle cannot refuse to abide by the order of requisition of the vehicle by the Deputy Commissioner. While the vehicle remains under requisition, the owner does not exercise any control thereover. The driver may still be the employee of the owner of the vehicle but h .....

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