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TMI Blog2007 (12) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance policy provided: For private car IXI and Motor Cycle/Scooter IYI. Use only for social, domestic and pleasures and insured's own purpose 4. The car in question was requisitioned during the Assembly Elections in the year 1993 by the Sub-Divisional Magistrate Rampur through the Deputy Commissioner, Shimla. The said vehicle was in possession as also under the control of the said officer. On or about 17.11.1993 while the Sub- Divisional Magistrate Rampur was travelling in the said vehicle, an accident occurred as a result whereof a boy named Satish Kumar sustained injuries. He later on expired. 5. Respondent No. 1 Deepa Devi and Joginder being the heirs and legal representatives of the deceased filed an application for compensation in terms of Section 166 of the 1988 Act. The State of Himachal Pradesh as also the Sub-Divisional Magistrate Rampur were impleaded therein. The Motor Accident Claims Tribunal in its judgment dated 28.09.1996 upheld the contention of the Insurance Company that under the terms of the insurance policy, it was not liable to reimburse the owner of the vehicle as regards his liability to pay compensation on account of said accident. A Div ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation to a motor vehicle which is the subject of a hire-purchase, agreement, or an agreement of lease or an agreement of hypothecation, the person in possession of the vehicle under that agreement; 10. Parliament 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 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 he has to drive it as per the direction of the officer of the State, who is put in-charge thereof. Save and except for legal ownership, for all intent and purport, the registered owner of the vehicle loses entire control thereover. He has no say as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given by the State Government and permission to establish a new medical college is to be given by the State Government under Section 64 of the Act. If we give the defined meaning to the expression management occurring in Section 64 of the Act, it would mean the State Government is required to apply to itself for grant of permission to set up a government medical college through the University. Similarly it would also mean the State Government applying to itself for grant of Essentiality Certificate under para 3 of the Regulation. We are afraid the defined meaning of the expression management cannot be assigned to the expression management occurring in Section 64 of the Act. In the present case, the context does not permit or requires to apply the defined meaning to the word management occurring in Section 64 of the Act.' [See also Pandey Co. Builders (P) Ltd. v. State of Bihar and Anr. AIR2007SC465 ] 12. In Guru Govekar (supra), this Court was considering the definition of 'owner' under the 1939 Act. Therein the car was handed over to a mechanic for carrying out certain electrical repairs to the car, when the accident occurred. This Court in the said fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the third parties to the contract and the other third party is for whose benefit the vehicle was insured. So far, the transferee who is the third party in the contract, cannot get any personal benefit under the policy unless there is a compliance with the provisions of the Act. However, so far as third-party injured or victim is concerned, he can enforce liability undertaken by the insurer. We are also not concerned with such a situation. 15. In Kailash Nath Kothari (supra), however, this Court in a case, where a bus was given on lease by the owner of the vehicle Shri Sanjay Kumar in favour of the Rajasthan State Road Transport Corporation, held that when an accident takes place when the bus was plied under the control of the Corporation, it was the Corporation alone who would be liable for payment of compensation, stating: Driver of the bus, even though an employee of the owner, was at the relevant time performing his duties under the order and command of the conductor of RSRTC for operation of the bus. So far as the passengers of the ill-fated bus are concerned, their privity of contract was only with the RSRTC to whom they had paid the fare for travelling in that bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he driver in the present case. [See also New India Assurance Co. Ltd. v. S. Ramulamma and Ors. 1989 ACJ 596 17. In Chief Officer, Bhavnagar Municipality and Anr. v. Bachubhai Arjanbhai and Ors. AIR1996Guj51 , the High Court of Gujarat held: 7. The facts on record clearly indicate that the vehicle in question which belonged to the State of Gujarat was entrusted to the Municipality for distribution of water to the citizens. It was implicit in allowing the vehicle being used for such purpose that the State of Gujarat which owned the vehicle also caused or allowed any driver of the Municipality who was engaged in the work of distribution of water to the citizens, to use motor vehicle for the purpose. Therefore, when the vehicle was driven by the driver of the Municipality and the accident resulted due to his negligence, the insurer of the vehicle became liable to pay the compensation under the provisions of the Act. It is, therefore, held that the State, as the owner of the vehicle and the respondent Insurance Company as its insurer were also liable to pay the compensation awarded by the Tribunal 18. We, therefore, are of the opinion that the State shall be liable to pay th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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