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Amount Would First Be Paid by the Company With Right to It to Recover the Same From Owner of the Vehicle

Amount Would First Be Paid by the Company With Right to It to Recover the Same From Owner of the Vehicle

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liability of the Insurance Company is exclusive and absolute
liability of the Insurance Company is exclusive and absolute

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IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTIONCIVIL APPEAL NO. 5901 of 2011[Arising out of S.L.P. (C) No.1969 of 2008]Uttar Pradesh State Road Transport Corporation ...Appellant VersusKulsum & Ors....Respondents W I T HC.A.No.5902/2011[Arising out of SLP(C) No.1964 of 2008];C.A.No.5903/2011[Arising out of SLP(C) No.1966 of 2008];C.A.No.5904/2011[Arising out of SLP(C) No.1970 of 2008];C.A.No.5905/2011[Arising out of SLP(C) No.27075 of 2008];C.A.No.5906/2011[Arising out of SLP(C) No.2746 of 2008]; A N DC.A.No.5907/2011[Arising out of SLP(C) No.3086 of 2008]J U D G M E N TDeepak Verma, J.1.Leave granted.2.Since common questions of law and facts are involved inthis batch of appeals, six of which have been filed byUttar Pradesh State Road Transport Corporation,
C.A. @ SLP(C)No.1969 of 2008 etc. ...(contd.) 
(hereinafter referred to as 'Corporation'), and one has been preferred by Insurance Company, against theidentical judgments and orders passed by High Court of Allahabad, it is proposed to dispose of the same by thiscommon judgment. For the sake of brevity anconvenience, facts of appeal arising out ofS.L.P.(C)No.1969 of 2008 have been taken intoconsideration.3.The Appellant herein (UPSRTC) had challenged the award  passed by Motor Accident Claims Tribunal (hereinafterreferred to as the 'MACT'), Barabanki in claim casetherein, holding the Appellant - Corporation along with Ajai Vishen and Narottam, owner and driver of the mini bus, respectively, liable to pay compensation to theclaimants.4.In appeal before the High Court of Allahabad, it awarded compensation to the claimants vide impugned judgment and order dated 12.04.2007, recording the findings againstthe Appellant. The question of law that arises forconsideration in the instant and connected appeals isformulated as under:
C.A. @ SLP(C)No.1969 of 2008 etc. ...(contd.) 
If insured vehicle (in this case a mini bus) is plyingunder an Agreement of Contract with the Corporation, onthe route as per permit granted in favour of theCorporation, in case of an accident, whether the InsuranceCompany would be liable to pay compensation or would it bethe responsibility of the Corporation or the owner?5. Since it is a vexed question, with no unanimity in thejudgments of various High Courts and as it has not beenconsidered directly so far by this Court, we deem it fitand appropriate to do so.6. Thumbnail sketch of the facts is mentionehereinbelow:- Ajai Vishen, the owner of mini bus, bearingRegistration No. UP 32T/7344 entered into an Agreement ofContract with the Corporation on 07.08.1997 for allowingit to ply mini bus, as per the permit issued in favour ofCorporation, by the concerned Road Transport Office(R.T.O.). On account of State amendment incorporated inSection 103 of the Motor Vehicles Act, 1988 (hereinaftercalled 'the Act') vide Uttar Pradesh Amendment Act 5 of1993; the Corporation is vested with right to take the

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Dear Mr. Babu, You are really doing a great job for social cause. You have matured broad mind. Keep it up. arunprakaash, Advocate High Court of Bombay.
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