A. D. DESAI, B. J. DIVAN, D. P. DESAI, J.

( 1 ) THIS matter has been placed before the Full Bench in pursuance of the following order passed by a Division Bench consisting one of us (A. D. Desai J.) and N. H. Bhatt J. on October 14 1977 The order is in these terms :refer to Full Bench as the decision of this Court in 15 G. L. R. 428 is admittedly toned down by the decision of the Supreme Court in A. I. R. 1977. s. C 1735 and the question raised is an important and arises in many pending cases. THE question that arose for consideration before the Division Bench consisting of J. B. Mehta and S. H. Sheth JJ. in Sakinabibi v. Gordhanbhai Prabhudas 15 G. L. R. 428 was in connection with the provisions of sec. 95 (1) (b) read with see. 95 (2) of the Motor Vehicles Act (4 of 1939) and Rule 118 of the Motor Vehicles Rules framed under the Motor Vehicles Act. The same question was considered by the Supreme Court in Pushpabai v. Ranjit G. and P. Co. A. I. R. 1977 S. C. 1735.

( 2 ) SEC. 42 of the Motor Vehicles Act hereinafter referred to as the Act providesno owner of a transport vehicle shall use or permit the use of the vehicle in any public place whether or not such vehicle is actually carrying any passenger or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or the Commission authorising the use of the vehicle in that place in the manner in which the vehicle is being used. Sec. 94 provides that no person shall use except as a passenger or cause or allow any other person to use a motor vehicle in a public place unless there is in force in relation to the use of the vehicle by that person or that other person as the case may he a policy of insurance complying with the requirements of Chapter VIII in which secs. 94 and 95 occur. A few definitions are required to be noted in this connection. Sec. 2 (8) defines goods vehicle to mean any motor vehicle constructed or adapted for use for the carriage of goods or any motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers. Sec. 2 (25) defines public service vehicle to mean any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward and includes a motor cab contract carriage and stage carriage. Sec. 2 (23) defines public carrier to mean an owner of transport vehicle who transports or undertake to transport goods or any class of goods for another person at any time and in any public place for hire or reward whether in pursuance of the terms of a contract or agreement or otherwise and includes any person body association or company engaged in the business of carrying the goods of persons associated with that person body association or company for the purpose of having their goods transported. Sec. 2 (33) defines transport vehicle to mean a public service vehicle or a goods vehicle.

( 3 ) SEC. 95 (1) of the Act as amended by Act 56 of 1959 is in these terms :in order to comply with the requirements of the Chapter a policy of insurance must be a policy which (A) is issued by a person who is an authorised insurer or by a Cooperative Society allowed under sec. 108 to transact the business of an insurer and (B) insures the person or classes of persons specified in the policy to the extent specified in sub-sec. (2) (i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person or damage to any property of a third party caused by or arising out of the use of the vehicle in a public place: (ii) against the death of or bodily injury to any passenger of a public service vehicle caused by or arising out of the use of the vehicle in a public place;provided that a policy shall not be required (i) to cover liability in respect of the death arising out of and in the course of his employment of the employee of a person insured by the policy or in respect of bodily injury sustained by such an em

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