IN THE HIGH COURT OF JUDICATURE OF ANDHRAPRADESH AT HYDERABAD HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU M.A.C.M.A.No.4851 of 2008 DATE:24.06.2010 Between: The Nalgonda District. Coop. Central Bank Limited, Nidamanuru Branch, Nalgonda District. …… Appellant And: Md.Khasim Bee and others …..Respondents HONOURABLE SRI JUSTICE SAMUDRALA GOVINDARAJULU M.A.C.M.A. No.4851 of 2008 JUDGMENT : The Nalgonda District Co-operative Bank Limited (in short, the Bank) who lent vehicle loan on hypothecation of the accident tractor is the appellant. When there was default in repayment of the loan, the Bank exercised its option of seizure of the vehicle as per the terms of hypothecation agreement executed by the borrower. The Bank engaged a driver for the limited purpose of bringing the seized tractor from the place of borrower to the Bank premises. On the way, the tractor was involved in accident resulting in death of the deceased in this case. The only point raised in this appeal by the appellant is about liability of the Bank for payment of compensation since it is not owner in respect of the vehicle. It is also contended that driver who was driving the vehicle was not bank employee. Admittedly the bank engaged services of the driver for the limited purpose of bringing the seized vehicle to the Bank; and during the course of bringing that vehicle to the Bank premises by the driver, the accident took place. The accident took place during the course of temporary employment of the driver by the Bank. So, the Bank cannot get over its liability on the ground that the driver was hired for a limited purpose and was not a permanent employee of the Bank. 2. Secondly the Bank is owner of the vehicle for the purpose of the Motor Vehicles Act in view of Section 2(30) of the said Act. Section 2(30) reads as follows: “OWNER means a person in whose name a motor vehicle stands registered, and where such person is a minor, the guardian of such minor, and in relation 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”. Thus, the Bank was having agreement of hypothecation of the vehicle in its favour and it was in possession of the vehicle under that agreement by the date of the accident. So, the Bank becomes owner of the vehicle in view of Section 2(30) of the Act. Thus, viewed from any angle, the Bank cannot avoid its liability to pay compensation for death of the deceased. 3. In the result, the appeal is dismissed with costs. _______________________________ SAMUDRALA GOVINDARAJULU, J June 24, 2010 KSH