Motor Vehicles Act, 1988 (59 of 1988), Section 166 – Corporation had hired a bus – Effective control and command of the bus is with the Corporation, the Corporation becomes the owner of the vehicle for the specified period – When the actual possession of the vehicle is with the Corporation, the vehicle, the driver and the conductor were under the direct control and supervision of the Corporation – Therefore, through the definition of “vicarious liability” it can be inferred that the person supervising the driver is liable to pay the compensation to the victim – During such time, however, it will be deemed that that vehicle was transferred along with the insurance policy, even if it were insured at the instance of the original owner – Insurance Company liable. U.P. State Road Transport Corporation, Kulsum, (2011)18 SCC 142, followed.
Editor : see also U.P. State Road Transport Corporation v. Rajendri Devi . (2020-4)200 PLR 622 (SC)