Skip to main content

Even A Stationary Vehicle Can Cause Accident

In Kalim Khan vs Fimidabee & Others, a person had died when a piece of rock fell on him from an adjacent field where blasting operations for the digging of a well had been going on. The blasting machine was powered using the battery of a tractor. The issue before the Court was whether the accident caused by blasting operations powered by the battery of an immobile tractor could be termed as “arising out of use of vehicle” within the phraseology of Section 165 of MV Act.

The Tribunal held that accident had a causal connection with the use of the vehicle. The Tribunal also found that use of the tractor for blasting operations to dig a well in an agricultural field was incidental to agricultural operations, and hence not a commercial activity. In an appeal by the insurer, the High Court reversed the findings. The High Court found that the batteries were detached from the vehicle, and hence it could not be said that the accident had any causal link with use of a vehicle. The High Court also opined that the use was commercial in nature.

The Supreme Court on appeal referred to Shivaji Dayanu Patil and another v .Smt. Vatschala Uttam More .,Samir Chanda v. Managing Director, Assam State Transport Corporation & Union of India v. Bhagwati Prasad (Dead) and others and found that in each case the court wanted to see whether there has been some causal relation or the event is related to the act. It held that there was some causal link between the falling of rock piece and use of vehicle, which was sufficient to attract jurisdiction under MV Act.

The battery was installed in the tractor and the explosives were charged by the battery. The purpose was to dig the well in the field. In such an obtaining factual matrix, it would be an erroneous perception to say that the vehicle was not in use as stipulated under Section 165 of the Act, the Court held on facts.

Comments

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...