R. K. ABICHANDANI, J.

( 1 ) ). The appellants have challenged the judgment and order dated 13-7-1979 of the Motor Accident Claims Tribunal Bhavnagar awarding compensation of Rs. 21 0 with interest at 7 1/2 per cent per annum to the claimants against the appellants.

( 2 ) ). In a motor accident that took place on November 29 1978 on Gogha Road at Bhavnagar one Dahyabhai Bachubhai died and therefore his parents and minor brother and sister referred the Claim Petition against the driver the State of Gujarat who was the owner of the vehicle and the Bhavnagar Municipality i. e. the appellant No. 1 (now Municipal Corporation) who had used the vehicle through its driver-the appellant No. 2. It was found by the Tribunal that the accident had occurred due to rash and negligent driving of the appellant No. 2 of tanker No. GTP 4645 which had dashed against the deceased while he was walking by the road side. The deceased was 19 years of age doing masonary work but the Tribunal assessed his income only at Rs. 200. 00 per month. Applying the multiplier of 15 and assessing the dependency at Rs. 100. 00 per month the Tribunal calculated the economic loss to the claimants at Rs. 18 0 and adding to that some conventional figure of Rs. 3 0 on the count of loss of expectation of life awarded Rs. 21 0 to them.

( 3 ) ). The only contention which is raised on behalf of the appellants was that the Tribunal had committed an error in holding that the appellant Municipality was vicariously liable for the tort committed by its driver and that the present respondent No. 5-State of Gujarat was not liable as the owner of the vehicle. As the State of Gujarat was held not to be liable because it had allotted the tanker to the Municipality for distribution of water. to the citizens the Insurance Company which is respondent No. 6 in this appeal also could not be liable. In fact the Insurance Company was not impleaded as a party in the claim petition but the Tribunal had issued a notice to the Insurance Company and given it an opportunity of hearing in the matter as required by the law.

( 4 ) ). The facts on record disclose that the vehicle in question which belonged to the State of Gujarat was at the relevant time handed over to the Bhavnagar Municipality for supply of water by it under the allotment orders issued by the Government. According to the State of Gujarat after the vehicle was allotted to the Municipality it was driven by a driver employed by the Municipality and therefore the vehicle was under the supervision and control of the said Municipality and not of the State Government. This contention found favour with the Tribunal which held that the vehicle was being driven by an employee of the Municipality and not by an employee of the State Government and since only master would be vicariously liable for the tort committed by his employee and not the real owner of the vehicle i. e. the State the Municipality alone was vicariously liable for the tort committed by his driver. The Tribunal found that the State had entrusted the vehicle to the Municipality for distribution of water to its citizens and it had not retained any control on the vehicle and had no control whatsoever over the driver employed by the Municipality. Since the insured State of Gujarat was held to he not liable the Insurance Company also could not be held to be liable.

( 5 ) ). The anxiety of the appellants appears to be that if the Insurance Company is not liable the appellant will have to shell out the amount of compensation. No contention was urged by the appellants that they would not be themselves liable in respect of the said accident but the entire efforts was to implicate the Insurance Company so that ultimately the insurer pays the amount. On behalf of the Insurance Company heavy reliance was placed on a decision or this Court in Rajkot Municipal a Corporation v. Apabhai and Others rendered on 13-3-1981 in First Appeal No. 282 of 1977 by Honble Mr. Justice D. C. Gheewala in whi

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