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Govt is 'owner' of requisitioned vehicle

The Supreme Court held last week that when a motor vehicle requisitioned by the government for public purpose meets with an accident and kills a person, it is not the registered owner, but the government which is liable to compensate the dependants. In this case, Purnya Kala Devi vs State of Assam, the Gauhati High Court ruled that the registered owner, the insurer or driver or any of them was liable to pay. The widow and four children appealed to the Supreme Court. It held that the definition of 'owner' in the Motor Vehicles Act included a person "in possession of the vehicle either under an agreement of lease, hypothecation or hire purchase". The court emphasised that the intention of the law-makers was that a person who is in "control or possession" of the vehicle should be deemed to be the owner for purpose of compensation.

 Article referred: http://www.business-standard.com/article/opinion/one-fire-doesn-t-lead-to-insolvency-114041300639_1.html

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