JUDGMENT

Deepak Verma, J.

1. Leave granted.

2. Since common questions of law and facts are involved in this batch of appeals, six of which have been filed by Uttar Pradesh State Road Transport Corporation, (hereinafter referred to as 'Corporation'), and one has been preferred by Insurance Company, against the identical judgments and orders passed by High Court of Allahabad, it is proposed to dispose of the same by this common judgment. For the sake of brevity and convenience, facts of appeal arising out of S.L.P. (C) No. 1969 of 2008 have been taken into consideration.

3. The Appellant herein (UPSRTC) had challenged the award passed by Motor Accident Claims Tribunal (hereinafter referred to as the 'MACT'), Barabanki in claim case therein, holding the Appellant - Corporation along with Ajai Vishen and Narottam, owner and driver of the mini bus, respectively, liable to pay compensation to the claimants.

4. In appeal before the High Court of Allahabad, it awarded compensation to the claimants vide impugned judgment and order dated 12.04.2007, recording the findings against the Appellant. The question of law that arises for consideration in the instant and connected appeals is formulated as under:

If insured vehicle (in this case a mini bus) is plying under an Agreement of Contract with the Corporation, on the route as per permit granted in favour of the Corporation, in case of an accident, whether the Insurance Company would be liable to pay compensation or would it be the responsibility of the Corporation or the owner?

5. Since it is a vexed question, with no unanimity in the judgments of various High Courts and as it has not been considered directly so far by this Court, we deem it fit and appropriate to do so.

6. Thumbnail sketch of the facts is mentioned hereinbelow:

Ajai Vishen, the owner of mini bus, bearing Registration No. UP 32T/7344 entered into an Agreement of Contract with the Corporation on 07.08.1997 for allowing it to ply mini bus, as per the permit issued in favour of Corporation, by the concerned Road Transport Office (R.T.O.). On account of State amendment incorporated in Section 103 of the Motor Vehicles Act, 1988 (hereinafter called 'the Act') vide Uttar Pradesh Amendment Act 5 of 1993; the Corporation is vested with right to take the vehicles on hire as per the contract and to ply the same on the routes as per the permit granted to it. According to the terms and conditions of the Agreement, the mini bus was to be plied by the Corporation, on the routes as per the permit issued by R.T.O. in its favour. Except for the services of the driver, which were to be provided by the owner, all other rights of owner were to be exercised by the Corporation only. The conductor was to be an employee of the Corporation, and he was authorised and entitled to collect money after issuing tickets to the passengers and had the duty to perform all the incidental and connected activities as a conductor on behalf of the Corporation. The collection so made was to be deposited with the Corporation.

7. While the mini bus was running on the specified route on 13.06.1998, at about 9.00 a.m., Vijay Pal Singh (deceased), along with his minor children namely, Km. Rupa (deceased), Rohit (deceased) and Km. Laxmi (deceased), was present near Gumti shop of a Barber at the side of National Highway, near Swastic Biscuit Factory, Police Chauki Mohammadpur, Post Safedabad, District Barabanki.

8. The Mini Bus, plying under the contract of the Corporation, driven by Narottam, suddenly rammed into the Gumti causing injuries to Vijay Pal, his children and also to the Barber- Majeed, owner of the Gumti shop. On account of severe bodily injuries suffered by them, they died.

9. Smt. Lallan Devi, w/o deceased Vijay Pal Singh and mother of the three deceased children filed four claim petitions claiming compensation. Smt. Kulsum w/o deceased Majeed, filed a separate claim petition for awarding compensation for death of Majeed in the said accident before the aforesaid M.