IN THE HIGH COURT OF KARNATAKA CIRCUIT BENCH AT GULBARGA DATED THIS THE 14 DAY OF DECEMBER, 2011 BEFORE THE HON’BLE MR. JUSTICE ARAVIND KUMAR M.F.A.No.30045 OF 2009 (MV) BE’PWEEN THE DIVISIONAL CONTROLLER NEKRTC, DEPOT NO.1. DIVISIONAL OFFICE, RAICHUR, THE APPELLANT IS REP BY ITS CHIEF LAW OF CENTRALL OFFICE SARIGE SADANA. GULBARGA. .APPELLANT (BY M/S SRI SHIVAYOGIMATH ASSOCIATES, ADVOCATES) AND SMT SHIVAMMA W/O NARASAYYA. AGE: 56 YEARS. 0CC VEGETABLE VENDOR, R/O. TMC VEGGETABLE MARKET RAICHUR, RAICHUR DIST. 2. HUSSAIN PATEL Sb. LALUSAB. AGE: MAJOR. 0CC DRIVER, RIO. ARAKERE, TQ SHORAPUR. NOW R/O SAIMITRA TRAVELER, H.NO. 1, 204, NIJALINGAPPA CLNY. RAICHUR. DIST RAICHUR. 3. MIS. SR1.SAI MITRA, TRAVELLERS PLAT NO.203, PLOT NO.16 & 17 ROCKY APARTMENTS SIKH VILLAGE, SECUNDERABAD, AP. THROUGH ITS MANAGER. SRI SAl MITRA TRAVELLERS. H.N0.L204, NIJALINGAPPA COLONY, RAICHUR DIST., RAICHUR 4. TEH NEW INDIA ASSURANCE CO. LTD.. HYDERABAD THROUGH BRANCH MANAGER, BRANCH OFFICE. GUNJ ROAD. RAICHUR DIST. RAICHUR. RESPONDENTS (BY SRI. SHIVANAND PATIL, ADVOCATE FOR R4. SRI. MANJUNATH M. CHIDALLI, ADVOCATE FOR Ri) THIS MFA IS FILED U/S 173(1) OF MV ACT AGAINST ThE JUDGMENT AND AWARD DATED: 24.10.2008 PASSED IN MVC NO. 143/2008 ON THE FILE OF THE MACT AND FAST TRACK COURL4, AWARDING COMPENSATION OF Rs.34200/- WITH INTEREST AT 6%P.A. THIS APPEAL COMING ON FOR FURThER ORDERS THIS DAY, THE COURT DELIVERED THE FOLLOWING: JUDGMENT This appeal is by the Corporation questioning the correctness and legality of the judgment and award dated 24.10.2008 passed in MVC.No. 143/2008 by the MACT & VFC-I. Raichur, whereunder claim petition was allowed in part and liability has been fastened on the appellant. -3- 2. Heard learned counsel appearing for appellant and learned counsel appearing for respondent No.1 and 4. NotIce to respondent Nos.2 and 3 has been dispensed with. Perused the judgment and award passed by the Thbunal. 3. Though the matter Is listed for orders same Is taken up for final disposal since It Is submitted by the learned advocates appearing for parties that Issue Involved In this appeal Is no more res-Integra and same Is covered by the judgment of Hon’ble Apex Court in the case of Uttor Pradesh State Road Transport Corporation Vs. Kulsum and others reported in 2011(8) SCC 142. 4. Issue in this appeal relates to the liability fastened on the Corporation. Tribunal has fastened llabifity on the appellant-Corporation on the ground that vehicle in questIon had been taken on hIre and there was no prlvlty of contract between passengers -4- travelling in the Bus and the Insurance Company. Admittedly, claimant is a third party and the Insurance Company cannot escape its liability since vehicle in question was insured and policy was in force as on the date of the accident. The Hon’ble Supreme Court in Kulsum’s case referred to supra at Paragraph 45 has held as under: 45. “Thus, looking to the matter from every angle, we are of the considered opinion that Insurance Company cannot escape its liability of payment of compensation to Third Parties or claimants. Admittedly, owner of the vehicle has not violated any of the terms and conditions of the policy or provisions of the Act. The owner had taken the insurance so as to meet such type of liability which may arise on account of use of the vehicle. 5. In fact, Division Bench of this Court in MFA.No.8444/2007 and other connected matters disposed of on 2 1.09.2010 has held that liability to pay compensation is on the Insurance company and it cannot be absolved of its liability. The principles laid down in these judgments are squarely applicable to the facts on hand. 6. In view of the law laid down by the Apex Court as well as this Court in the judgments referred to supra, I am of the considered view that present appeal deserves to be allowed by modifying the judgment and award passed by the Tribunal. Hence, following order is passed: ORDER 1. Appeal is allowed. 2. Judgment and award passed by the Tribunal is modified and liability is fastened on the Insurance Company. The appellant is absolved of its liability. 3. Registry to draw the award accordingly. 4. Amount in deposit before this Court is ordered to be refunded to appellant corporation by the registry. 5. Insurance company is hereby directed to deposit the award amount with interest upto date before the Jurisdictional Tribunal within an outer limit of six weeks from the date of receipt of certified copy of this order. Sri. Shivanand Patil, learned counsel is permitted to file vakalathnama on behalf of respondent No.4 within three weeks from today. JUDGE Srt