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  • Section 60-B of the Motor Vehicles' Act. 1939,
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  • Section 60-B of the Motor Vehicles' Act. 1939,
Smart Summary

Factual and Procedural Background

The applicants (now appellants) had originally filed Motor Accident Claim Application No. 60 of 1975 before the Motor Accidents Claims Tribunal, Rajkot, seeking Rs. 51,000 as compensation for the death of Jusab Ibrahim (husband of applicant No. 1 and father of the minor applicants). The Tribunal dismissed their application by an order dated 30 July 1977. The present appeal challenges that dismissal.

Facts pleaded by the applicants: the deceased was given a lift on a water-tanker driven by opponent No. 1 (Hematlal Ratilal), who was employed by opponent No. 2 (the owner/State). While returning from filling the tanker, the vehicle allegedly was driven at high speed, took a sharp curve without braking, capsized, and the deceased was crushed and killed. The deceased was described as a man in good health who earned about Rs. 10 per day and was aged about 29–30 years; the applicants included his wife and young children.

Defendants' (opponents') responses: opponents Nos. 1 and 2 denied negligence; opponent No. 1 stated the deceased had persistently requested a lift, that he was driving slowly, a herd of cattle appeared, he swerved to avoid them during which a main spring broke, and attempts to avert falling into a roadside pit resulted in the tanker capsizing — characterising the event as an inevitable accident. The State (opponent No. 2) further contended the driver had no authority to give lifts and, if he did so, it was outside his duties, absolving the State from vicarious liability.

Legal Issues Presented

  1. Whether the accident and death of the deceased were caused by rash and negligent driving of opponent No. 1 (the driver), thereby attracting liability for compensation.
  2. Whether the asserted mechanical failure (sudden breakage of the main spring) constituted a defence absolving the driver and owner of negligence, and what onus rests on the opponents to prove such a mechanical failure.
  3. Whether opponent No. 2 (the owner/State) is vicariously liable for the acts of opponent No. 1 in giving a lift to the deceased in a non-passenger State vehicle — i.e., whether the act was within the scope of employment or outside it such that the owner should not be held liable.

Arguments of the Parties

Applicants' Arguments

  • The deceased was given a lift by opponent No. 1 and was sitting beside him when the tanker was driven at high speed in a rash and negligent manner, took a sharp curve without braking, lost control, capsized, and the deceased was crushed and killed.
  • The deceased was earning about Rs. 10 per day and had dependents (wife and two young children), establishing loss deserving compensation.
  • The accident was caused by the driver's negligent conduct and not by any excusable mechanical failure or inevitable accident.

Opponents' (Defendants') Arguments

  • Opponents Nos. 1 and 2 denied negligence and denied liability to pay compensation.
  • Opponent No. 1 pleaded that the death resulted from an inevitable accident caused by sudden mechanical failure (main spring broke) while he was taking evasive action to avoid cattle and a roadside pit; he asserted he had checked the tanker before use and found no defect.
  • Opponent No. 2 (the State) contended the driver had no authority to give lifts in the State vehicle and that giving a lift (if it occurred) was outside the scope of employment, so the State would not be vicariously liable.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Wright v. International Tea Company (unreported; referred in Bingham's Motor Claims Cases, 8th Edn.) Authority on vicarious liability when a servant/driver acts outside instructions (relevance to owner's liability for unauthorized acts of driver). The court observed these authorities would assist the opponents only if they proved that the owner (opponent No. 2) had issued positive prohibitory instructions forbidding lifts. Because no such instructions were proved, the authorities were not dispositive here.
Conway v. George Wimpey & Co. (1951) 2 KB 266; (1951) 1 All ER 363 Principles concerning master’s liability where an employee acts outside or contrary to instructions (relevance to whether an owner is vicariously liable when driver gives unauthorized lifts). The court indicated this case would help the opponents only if prohibitory instructions from the owner to the driver were established; since no such evidence was produced, the case did not absolve the owner here.
Amthiben Maganlal v. Superintending Geophysicist, O.N.G.C. (1976 Ace CJ 72) Sets out that, where a driver is driving on the master's business, a presumption arises that he acts in the scope of employment; owner remains liable unless that presumption is rebutted. The court relied on this decision to hold that giving a lift in a non-passenger vehicle does not, by itself, negate the presumption that the driver was acting in the course of employment; absent rebuttal, the owner is vicariously liable.
Sitaram v. Santanu Prasad, AIR 1966 SC 1697 Authority indicating a presumption that a truck driven for the master's purpose is driven in the scope of employment; owner may choose the risk of allowing such use but is liable if risk is taken. The court followed this precedent to reinforce the presumption that the truck was driven for the master's purpose and that the owner would be liable unless evidence rebutted this presumption.

Court's Reasoning and Analysis

The court conducted a two-part analysis corresponding to the main contested issues: (A) whether the accident resulted from the driver's negligence as opposed to an excusable mechanical failure, and (B) whether the owner (opponent No. 2) is vicariously liable for the driver's act of giving a lift.

A. Mechanical Failure Defence and Negligence

The Tribunal had exonerated the driver primarily on the basis of a sudden breakage of the main spring, accepting the driver's bare statement that he had checked the tanker before use and found no defect. The appellate court explained the appropriate legal standard for the defence of mechanical failure: when a latent mechanical defect is pleaded, the burden on the opponent (and owner) is more than the uncorroborated statement of the driver that a pre-use check revealed no defect.

The appellate court outlined the kinds of evidence required to discharge the onus: proof of what care was taken to keep the vehicle road-worthy, the vehicle's age and mileage, the intervals and practice of periodical checks, the last occasion when the vehicle was certified fit and by whom (mechanic), and other relevant factors. These facts are necessary to satisfy the court that the mechanical failure occurred despite all reasonable care by the owner and driver.

On the record before it, the appellate court found only the driver's bare testimony and no corroborative material addressing the factors listed above. Consequently, the court held the Tribunal had over-emphasised the driver's statement; the defence of mechanical failure did not succeed on the available evidence. The court therefore set aside the Tribunal's finding that the accident could not be attributed to the driver's negligence and held that the deceased died because of the driver's rash and negligent driving.

B. Vicarious Liability of the Owner (Opponent No. 2)

The opponents argued the driver was not authorised to give lifts and therefore the act was outside the course of employment, absolving the owner from vicarious liability. The appellate court examined the evidence and noted that the driver expressly stated in cross-examination that he had not been given instructions forbidding him from giving lifts, even though he was aware that State vehicles should not carry lifts.

The court reiterated the legal principle (following the Division Bench decision in Amthiben Maganlal and the Supreme Court decision in Sitaram) that, when a driver is driving on the master's business, a presumption arises that he acted within the scope of employment and that the owner is liable for wrongful acts unless that presumption is rebutted by evidence showing the driver was acting wholly outside the scope of employment (for instance, by following a personal frolic or by disobeying positive prohibitory instructions that were in fact given and relied upon).

Because no evidence was produced to show that opponent No. 2 gave positive prohibitory instructions to the driver, and the driver himself denied any such instruction, the appellate court concluded that the presumption was not rebutted. Accordingly, the Tribunal was correct in holding opponent No. 2 vicariously liable for the acts of opponent No. 1, and the appellate court confirmed that position.

Holding and Implications

Core Ruling: The appeal was allowed. The appellate court set aside the Tribunal's finding absolving the driver of negligence and held that the deceased died as a result of the tanker accident caused by opponent No. 1 driving in a rash and negligent manner. The court also confirmed that opponent No. 2 (the owner/State) was vicariously liable because the presumption that the driver was acting in the course of employment was not rebutted.

Implications and immediate consequences:

  • The Tribunal's exoneration of the driver on the basis of a bare statement of mechanical failure was reversed.
  • The driver is held to have acted negligently, and the owner (opponent No. 2) is held vicariously liable for the consequences of that negligence in the absence of evidence rebutting the presumption of acting in the course of employment.
  • No detailed order as to quantum or distribution of compensation is contained in the provided text; the opinion confines itself to liability and sets aside the Tribunal's finding on negligence while affirming vicarious liability.
  • The court applied existing authorities (Amthiben Maganlal; Sitaram v. Santanu Prasad) rather than establishing a novel legal principle — the decision resolves the dispute on the facts and by applying established law on mechanical-failure defences and vicarious liability.

Disposition as recorded in the opinion: "Appeal allowed."

    Smt. Mariyam Jusab And Others v. Hematlal Ratilal And Others

    1. The appellants herein were originally the applicants in Motor Accident Claim Application No. 60 of 1975 before the Motor Accidents Claims Tribunal, Rajkot District at Rajkot, wherein they had claimed compensation of Rs. 51,000/- for the death of Jusab Ibrahim. husband of applicant No. 1. and father of minor applicants Nos. 2 and 3, represented by their mother, -applicant No. 1. Their application was dismissed by the judgment and order dated 30th July, 1977 against which they have filed the present appeal. Original opponent No.1 was the driver of a water-tanker bearing No. GTX 5131, which was of the owners ship of opponent No. 2, Opponents Nos. 3 and 4 are the parents of the de ceased Jusab Ibrahim.

    2. The applicants' case is that deceased Jusab Ibrahim and Opponent No. 1, Hematlal Ratilal, were friends and opponent No.1 had taught the deceased driving of a heavy vehicle and -had also pr6mised him to secure a Government service for driving a water-tanker. It is their further case that opponent No 1' used to give lifts to deceased quite often. On 26-9-1974 at about 8-30 A. M. opponent, No. 1 gave a lift in the water tanker to the deceased. The water-tanker was taken to Fofal dam for filling in water and from there they were proceeding to Mandilkpur village to supply water to the villagers. At that time. opponent No. 1 was driving the said water tanker and the Deceased was sitting by his side in the driver's cabin. At ;. distance of about two furlongs away from Mandilkpur village, the accident occurred to the water-tanker. -The applicants averred that opponent No. 1 drove the water-tanker at a high speed and in a rash and negligent manner. He took a sharp curve without applying the brakes and lost control over the tanker with the result that it capsized and its door got broken. The deceased was thrown off was crushed below the tanker and died on the spot. The applicants averred that the deceased was in good health and was engaged in running a 'Tonga' from which occupation he was earning approximately Rs. 10/- per day. He was also likely to get a service as a motor driver in the near future. The deceased was at, the time of the fatal accident to him about 29 to 30 years of age, whereas the applicant No. 1 was aged about 23 years, applicant No. 2 about 11/2 years and applicant No. 3 only four months old.

    3. The opponents Nos. 1 and 2 contested the proceedings by filing their respective written statements at Exhs. 16 and 20 respectively. They have denied the averments made in the application and have denied any liability on their part to Day the compensation to the applicants. It is Specifically denied that the water-tanker was being driven in a high speed and in a rash and negligent manner. It is also denied that opponent No. 1 had taken with him the deceased in the water-tanker. According to opponent No. 1, while he was proceeding towards Mandilkpur deceased had requested him very insistently that opponent No. 1 should give him a lift in the tanker and therefore he had acceded to the request of the deceased. He was proceeding slowly. There was a curve at the road and a herd of cattle came from the opposite side on the right hand side (that is to say on his left-hand side) and in order to avert an accident to the cattle, he swerved the tanker to his right but in that act of his the main lift of the spring broke. He further found while he swerved the tanker to his right that by the side of the edge of the road. there was a pit wherein he feared that the tanker might fall and therefore he again swerved the tanker to the left in which Process he applied brakes but the tanker capsized on-the road the door of it got opened, the deceased was thrown out on the road and was crushed under - the wheels. In brief. opponent No.1 -pleaded that it was an inevitable accident and that the accident had not occurred on account of his negligence.

    4. The State, opponent No. 2. contended that the opponent No.1 had no authority to vive a lift to any person in the tanker and if he did so it was not in the discharge of his duties and therefore the State would not stand vicariously liable for the wrongful act. if any, of opponent No.1 in driving the vehicle.

    5. to 13. x x x x x x x

    14. The main argument of the Tribunal, however. for exonerating the driver is the sudden breakage of the main spring. The Tribunal has considered that he was not responsible for this mechanical, defect which developed on the way, more so because he had checked the tanker before he took charge of. it. and that at that time he had found no defect in it. It is not so easy for the opponents to get away from the liability for negligence on the plea of mechanical failure of some important Parts in the vehicle just prior to the occurrence of the accident.

    15. While sitting with A. M. Ahmadi. J. in First Appeal No. 470 of 1976, 1 had an occasion to discuss this aspect of the question. In that case. we have considered the nature of the burden which the opponents must discharge in order to disprove any charge of negligence in a case where there was an occurrence of a latent mechanical failure. It is not enough that the driver had checked the tanker before he started to run it on that day. The opponent in general and the owner of the vehicle in particular must prove by evidence what care was taken of the vehicle to make it road-worthy, how old was the vehicle and what was the mileage covered by it. at what Periodical intervals it is their practice to check it and on which last occasion was it found to be fit and proper and again by which mechanic. When mechanical failure is, pleaded, all these relevant questions are required to be gone into and the onus is on the Opponents to satisfy the conscience of the Court that mechanical failure had resulted despite all care and caution on their part; which they exercised from time to time, to keep the vehicle in a road-worthy condition. In the present case, the Tribunal has relied only on a bare statement of the driver that he had checked the tanker and had found it Drover. That statement stands uncorroborated and we have to accept it on the bare testimony of the driver. But apart from that fact. what is necessary in order to take up this defence is not to prove it by the statement of a driver but there are other relevant factors. some of them observed above which must go into the evidence to enable the Court to come to the conclusion that for such a mechanical failure the driver and the owner were not to be blamed. In our view, therefore, the Tribunal has over emphasised the value of the statement of the driver. We are of the further view that considering the evidence on the record the defence of mechanical failure cannot come to the rescue of the opponents Nos. 1 and 2. The Tribunal was thus entirely in the wrong to come to the conclusion that the occurrence of the accident could not be attributed to the negligence of the driver. We set aside the Tribunal's finding with regard to the question of negligence and hold that the deceased had died on account of the accident which was caused by opponent No.1 by driving the tanker in a rash and negligent manner.

    16. The next Plea of opponents Nos. 1and 2 was that opponent No. 1 the driver was not authorised to give lift to a third Party and therefore the act of opponent No. 1 of giving a lift to the deceased was in it an unauthorised ,act and therefore outside the course of his employment. This contention of the opponents Nos. 1 and 2 is covered by issued No. 2. It has been answered in the negative. If we refer to the deposition of. opponent No. 1 himself. he is found to have stated in his cross-examination that he was not given any instructions by opponent No. 2 that he should not give lift to anybody although he knew that in a State vehicle no lift can be given. There are two distinct Positions which must be noted. it is one thing that in a vehicle of this nature no lift should be given to a stranger. It is also a different thing that in a State vehicle, the driver is not authorised to give a lift to a stranger. However, it is entirely a different matter that the driver was given Positive instructions prohibiting him from giving lift to a stranger. In the written statement of opponent No. 2 at Para 8. a contention is raised this-wise. The opponent No.1 was not required to take any Person with him in discharge of his duties as a driver. It is absolutely an independent act of opponent No. 1 in taking the deceased with him in the tanker as alleged or Permitting the deceased to sit in the tanker by the opponent No. 1. Such an act has nothing to do with the discharge of duties by opponent No.1 in the course of employment. It is outside the course of employment and hence the State is not liable for compensation. if any, arising out of the accident. " It is pertinent to observe that not a word is stated to the effect that Positive instructions, were given to opponent No.1 Prohibiting him from giving a lift to a stranger. No. oral evidence is also led to that effect. As seen above. the driver himself has in terms states that no such instructions were given. We are not, therefore. required to consider the legal position about the vicarious liability of the Principal when the agent has either deviated from or disobeyed the prohibitive instructions which are restrictive of the scope of his employment. Mr. Takwani, referred us to an unreported case of Wright v. International Tea Company, referred to in Bingham's Motor Claims Cases, Eighth Edition, 154. He also refer red us to a second case of Conway v.George Wimpey & Co.. reported in (1951) 2 KB 266: (1951) 1 All ER 363. These two cases would indeed help him Provided however he succeeds in proving that opponent No. 2 had issued prohibitory instructions to opponent No. 1. Mr.Takwani. however, very fairly conceded that these authorities would be beside the point, if we did not accept his contention that opponent No. 2 had issued Prohibitory instructions to opponent No. 1.

    17. This leads us to examine the position about the vicarious liability of opponent No. 2 for the act of opponent No. 1 giving a lift to the deceased in a water-tanker which was obviously not a Passenger vehicle. This aspect of the question is neatly covered by a judgment of the Division Bench of this Court. reported in 1976 Ace CJ 72 (Amthiben Maganlal v. Superintending Geophysicist O. N. G. C.). Therein, the accident 'took place on the Deesa Palanyur Highway at about' 10-00 v. m. on July 21. 1969. The deceased Manganlal Mistry and the injured claimant, Maganlal Prajapati, had been given a lift by respondent No. 7. Deputy Engineer Mr. Patel who had gone for a visit on the site at Deesa. On the return journey. after leaving Deesa at about 9-15 P. m. when they had travelled for about 12 miles away between Chandisar and Chadotar villages on the Highway in the Sim of Badarpura villages, the accident - had taken, place between the Jeep and the O. N. G. C. truck in question bearing No. CTD 5497. The claimants, jeep was left-hand vehicle and it was driven by respondent No. 7 Mr. Patel. The offending truck had dashed with the jeep. It did not stop and had gone away. The relevant question was discussed aft Para 14 of the judgment and that is a question as to the liability of the owners that is master of these two tort-feasors, the driver of the said jeep. respondent No. 7, and respondent No. 3, the driver. So far as the owner of the jeer). that is to say the State was concerned. it was sought to be exonerated on the ground that respondent No. 7 had no authority to give any such lift to these two persons. J. B. Mehta. J.. speaking for the Division Bench, observed as under:-

    "The material question which always arises in such case when there is collision by negligent driving of the driver would always have to be examined by reference to the fact that whether at 'the time of negligent driving which injured these persons he was driving the vehicle for the master's Purpose or on the frolic of his own."

    Further he observed as under:-

    We had followed the earlier devision of this Court in F. A. No. 106 of 1972 decided on April 9, 1973, where it had been in terms held that Section 60-B of the Motor Vehicles' Act. 1939, which Permitted the authority to cancel the permit of the vehicle if the holder allowed the vehicle to be used in a manner not authorised by the Permit. could not be invoked because the court had not to go into the question whether taking of such Passenger by the driver of the vehicle was illegal or not. It was the owner who had to decide whether to run the risk or not. If however the risk was taken the owner would be liable for the damages. The decision in Sitaram v. santanu prasad, (AIR 1966 SC 1697) was in terms followed by Pointing out that the presumption would always be raised by the Court that the truck was driven for the master's purpose and the driver was acting in the scope of employment unless the Presumption was rebutted. Therefore, it was in terms held that in absence of any evidence to show that the owner had not authorised the driver to take passengers for payment on the truck in question. this salutary presumption raised by the Courts in such cases would not be rebutted. It was further pointed out that the matter can be looked at from another angle. If the driver had while driving the vehicle on, the master's business killed a Pedestrian the master would have been liable in damages to the heirs and legal representatives of the deceased. Merely because the deceased had been sitting on the truck and was not a Pedestrian Passing on the road, it made no difference so far as the liability of the owner is concerned. If the driver drives a truck of the master on the master's business. it does not make any difference if he kills a Pedestrian or one sitting in the truck."

    18. That the opponent No. 1 driver could not have given a lift to the deceased as a passenger on the water tanker since it was not a passenger vehicle makes no difference. He indeed was driving the vehicle on the master's business and that raises a presumption that he was driving the tanker in the course of his employment. That presumption is required to be rebutted and it has not been rebutted in this case. -The Tribunal has therefore rightly decided the question of the vicarious liability of opponent No. 2 and has, correctly held that opponent No.1 was at the time of the occurrence an authorised driver of the opponent No. 2.

    19. Appeal allowed.

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    Comments

    Smt. Mariyam Jusab And Others v. Hematlal Ratilal And Others
    (Jul 8, 1981)