U.P.S.R.T.C. Thru Regional ... vs Smt. Shahnaz Saleem @ Shahnaz ...
2023 Latest Caselaw 10225 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 44
 

 
Case :- FIRST APPEAL FROM ORDER No. - 1682 of 2005
 

 
Appellant :- U.P.S.R.T.C. Thru Regional Manager
 
Respondent :- Smt. Shahnaz Saleem @ Shahnaz Begum And Others
 
Counsel for Appellant :- Avanish Mishra,Vishesh Kumar Gupta
 
Counsel for Respondent :- Syed Ali Murtaza,M. Sirajul Haq,Mohd. Afzal,Radhey Shyam,Shivangi Singh
 

 
Hon'ble Dr. Kaushal Jayendra Thaker,J.

Sri Vishesh Kumar Gupta, learned counsel representing Corporation, Sri Radhey Shyam, learned counsel for National Insurance Co. Ltd. and Mr Syed Ali Murtaza, learned counsel for the claimant are present.

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.

After arguing the matter, learned counsel for the appellant states that all other grounds which are raised are not pressed into the service as the sole ground remains is whether it is U.P.S.R.T.C or the insurance company which would be liable. The learned counsel for the appellant has relied on U.P.S.R.T.C Vs. Sukha Devi & Others, Division Bench judgment of this Court arising in similar matter.

Sri Radhey Shyam, learned counsel for the insurance company could not dispute this fact that the vehicle was insured with insurance company and not granting the recovery rights to U.P.S.R.T.C and mulcting the liability on them is correct. If U.P.S.R.T.C has deposited the amount they would recover the same from their insurer and if U.P.S.R.T.C has not deposited the amount and the execution is going on, the insurance company would deposit. The amount is already deposited, hence, the entire amount should be paid to the claimant as 17 years has passed after filing of this appeal.

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.

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.

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.

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.

Order Date :- 7.4.2023

PS