The owner of a vehicle, as defined under Section 2(19) of the Motor Vehicles Act, is liable to pay compensation for accidents caused by the negligence of the driver, even if there is an agreement between the owner and a hirer that the owner will not be liable.

ELIPE DHARMA RAO, J.

( 1 ) HEARD the learned Counsel for the appellants and also the respondents.

( 2 ) THE above five appeals can be disposed of by a common judgment, as these appeals arise out of a common judgment in OP Nos. 271, 248, 485, 247 and 486 of 1988 respectively, dt. 17-8-1989 on the file of the Chairman (Additional District judge), Motor Accidents Claims Tribunal, khammam.

( 3 ) THE accident took place on 20-2-1988 when the Andhra Pradesh State Road transport Corporation (hereinafter referred as the Corporation) hired bus bearing no. AEK-4899 reached near Mangapuram major Canal situated in between venkatapuram and Gokinapally villages, the bus turned turtle to its right side in a road side ditch as the driver of the bus lost control over the steering of the bus due to its driving in a rash and negligent manner at high speed, as a result of which one passenger by name B. P. Kanaka ratnam succumbed to the injuries at government Hospital, Khammam and that ananthalaxmi, Seetharamamma, Pandu ranga Murthy and some other passenger who were travelling in the bus received fractures grievous and multiple injuries all over the body. The police registered a case in Crime No. 12/1988 against the driver of the Corporation Bus. In those circumstances, the victims-claimants filed claim petition and are allowed based on both oral and documentary evidence on record and awarded compensation as per their entitlement, but fastened the liability on the owner of the vehicle, Insurance company and the Corporation.

( 4 ) ASSAILING the above finding, the corporation filed these appeals on the ground that as per Condition 4 (iv) of the bilateral Agreement dt. 7-4-1986, entered between owner of the bus and the corporation, the Corporation is not liable but the owner of the bus is liable to pay the compensation.

( 5 ) THE Tribunal after evaluating both oral and documentary evidence, while awarding compensation directed all the respondents to pay the compensation jointly and severally, as awarded by the tribunal in each of the claim petitions as under:- (1) O. P. No. 247/1988: claiming compensation for the injuries sustained, the Tribunal awarded compensation of Rs. 30,000/- (2) O. P. No. 248/1988: was filed claiming compensation for the injuries sustained, the Tribunal awarded compensation of rs. 6,000/- (3) O. P. No. 271/1988: was filed by the legal representatives of the deceased Kanakaratnam, claiming compensation for his untimely death, the Tribunal awarded compensation of Rs. 45,000/- (4) O. P. No. 285/1988: was filed claiming compensation for the injuries sustained, the Tribunal awarded compensation of rs. 2,000/- (5) O. P. No. 486/1988: was filed claiming compensation for the injuries sustained, the Tribunal awarded compensation of rs. 27,500/-

( 6 ) IN the backdrop of the above submissions, let us examine the recitals of the Bilateral Agreement entered into between the Corporation and the owner of the bus bearing No. AEK 4899, smt. Chennupati Suguna, on 7th April, 1986. The owner of the bus agreed to lend her vehicle on hire in favour of the corporation for the purpose of plying on notified routes, routes covered by drawn schemes or on any route covered by a permit either pucca or temporary issued by either State Transport Authority or regional Transport Authority. As per the terms and conditions of the agreement, the owner of the bus agreed to give the vehicle bearing No. AEK-4899 having a seating capacity of 48 excluding the seat of driver and the conductor, on hire basis to the corporation with effect from 7-4-1986 on a fixed remuneration of Rs. 265/- per day. The above said agreement was valid for a period of two years from the date of commencement i. e. , 7-4-1986. It further envisages that the owner shall make available the vehicle on all days except two days in a calendar month for the maintenance of the vehicle, that the owner shall give atleast 24 hours notice in case the owner fails to make available the vehicle and the Corp

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