The main legal point established is that the hirer of a vehicle can be deemed the 'owner' and held vicariously liable for accidents under the Motor Vehicles Act.

( 1 ) THIS order shall govern the disposal of both the appeals, viz. , misc. Appeal Nos. 599 and 609 of 1997.

( 2 ) MISC. Appeal No. 599 of 1997 is filed by the claimant for enhancement of the compensation whereas Misc. Appeal no. 609 of 1997 is filed by the owner of the vehicle claiming therein that there should be joint liability of the State Bank of India and the owner of the vehicle for payment of compensation.

( 3 ) BRIEF facts of the case are that the appellant in M. A. No. 609 of 1997 is the owner of the jeep bearing registration No. CPW 100. This jeep was hired by the State bank of India on a written agreement, Exh. D-2. As per the term of the agreement, the vehicle was taken on hire at the rate of rs. 1,200 per month by the bank on the conditions enumerated in the agreement exh. D-2. On 31. 5. 1982 when the claimant along with one Om Prakash Jain was travelling from Gwalior to Delhi in his car bearing registration No. CPW 179 when the car has proceeded about half kilometre from Rairu Petrol Pump, jeep bearing registration No. CPW 100 dashed against the car. Jeep was driven in a rash and negligent manner. This accident caused injuries to claimant and damage to the car. Claimant had suffered a fracture in the socket of femur bone of the left leg and injury in the head. The claimant was operated upon at delhi. He remained immobile and confined to bed for a period which caused him loss in his business. Claimant had claimed that he had suffered permanent disability in his left leg and claimed a compensation of rs. 6,96,000. Claim was denied. Owner of the vehicle/jeep submitted that since the vehicle was in possession of the bank, therefore, at the relevant time bank was the owner of the said vehicle and the bank is liable to pay the compensation.

( 4 ) MR. K. N. Gupta, the counsel for the appellant in M. A. No. 609 of 1997 (owner of vehicle) invited attention of this court to the document Exh. D-2 and submitted that the jeep was taken on hire on a rate of Rs. 1,200 per month. According to the agreement, fuel of the vehicle was at the bank's cost and the vehicle was to be kept overnight in the garage of the bank at the risk of the owner. The average running of vehicle should not be below 6 km. per litre. The driver of the vehicle will report for duty as required by the authorised officers of the bank. The owner was required to maintain the jeep at his costs and to provide a full-time driver. In case average of the vehicle is found to be poor, cost of petrol shall be deducted from the hiring charges. As and when the jeep is not available for the bank's use, the hiring charges for that day shall not be payable. The bank has right to terminate the agreement without assigning any reason. The owner was required to keep tools in the jeep. Counsel for the appellant submitted that the Claims tribunal has committed an error in holding that the bank is not liable to pay the compensation. He assailed the findings recorded by the Claims Tribunal in para 22 of the judgment wherein the Claims Tribunal has held that under section 2 (19) of the Motor vehicles Act, 1939 State Bank of India is not the owner of the vehicle. The Claims tribunal has distinguished the judgment in the case of State of Madhya Pradesh v. Premabai, 1979 ACJ 503 (MP ). ( 5 ) QUESTION involved in this case is when the vehicle is taken on hire by the bank, then whether the bank is also liable to pay compensation and shall be deemed to be the owner of the vehicle? Counsel for the appellant in support of his contention has relied upon the judgment in the case of Rajasthan State Road Trans. Corpn. v. Kailash Nath Kothari, 1997 ACJ 1148 (SC) and submitted that the owner includes hirer who is in possession and in actual control of the vehicle. In support of this contention, he has also placed reliance on the decisions in the cases of Leelawati v. Ravindra Kumar, 1998 ACJ 1306 (MP); bhagwan Das Tiwari v. Ratni Bai, 2001 acj 289 (MP) and General Manager, andhra