In Brief
A cyclist was fatally hit by a bus hired by the U.P. State Road Transport Corporation. The Motor Accident Claims Tribunal awarded compensation of Rs. 1.65 lakhs, initially holding the Corporation liable. The High Court upheld this. On appeal, the Supreme Court held that when a Corporation hires a vehicle and exercises effective control over it and the driver, it becomes the 'owner' for statutory purposes. The vehicle's insurance policy is deemed to transfer with it, and the insurance company remains liable for third-party compensation. The Court distinguished an earlier precedent and allowed the appeal, making the insurance company solely liable for payment.
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