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Judgment
B. Sreenivase Gowda
This appeal is by the Corporation challenging the judgment and award of the Tribunal on the ground of liability.
Heard, the appeal is admitted and with the consent of the Learned Counsel appearing for the parties, it is taken up for final disposal.
For the sake of convenience, the parties are referred to as they are referred to in the claim petition before the Tribunal.
The Learned Counsel for the appellant submits that it is a case of lease of a private bus by its registered owner in favour of the Corporation and in view of the judgment of the Apex Court in the case of Uttarpradesh State Road Transport Corporation vs. Kulsum & Ors., the appellant has to be exonerated from the liability to pay compensation to the claimant and same has to be fastened against the insurer of the private bus and therefore he prays for allowing the appeal.
Per contra, Learned Counsel for insurer of the private bus does not dispute the said position of law and he submits that in the event of breach of policy, they may be at liberty to recover the compensation from the owner.
The submissions of Learned Counsel appearing for parties are placed on record.
Accordingly, the appeal is allowed. The judgment and award passed by the Tribunal is modified to the extent stated herein above. The appellant is exonerated from liability to pay compensation to the claimant and the same is fastened against respondent No.5, insurance company.
The Insurance Company is directed to pay the compensation amount to the claimant as awarded by the Tribunal together with interest within two months from the date of receipt of a copy of this judgment.
The appellant as well as Insurance Company are directed to intimate the claimants that they are entitled to recover the compensation awarded by the Tribunal from Respondent No.5, the insurer of private bus.
The insurance company is at liberty to recover the compensation amount from the owner in the event of breach of policy by initiating appropriate proceedings against them.
The amount in deposit is ordered to be refunded to the appellant-Corporation. Sri. S.V.Hegde Mulkhand, adv., who is directed to take notice for Respondent No.5 and has argued the case on behalf of respondent No.5, is granted two weeks time to file vakalath for Respondent No.5.
No order as to costs.