M/s. Tamil Nadu State Transport Corporation, Tanjore, rep. by its MD -Appellant versus Natarajan & Ors. -Respondents

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1939 — Contributory Negligence — Vicarious Liability of Employer

Civil Procedure — Appellate Jurisdiction — Suo Motu Impleadment and Liability

Issues for determination

• Whether the Division Bench of the High Court was justified in suo motu impleading the Corporation and fastening 50% liability for compensation on it, when the claimant himself was found 50% negligent and had not made the Corporation a party?

Ratio decidendi

• An employer (Corporation) cannot be held vicariously liable for the negligence of its own employee (claimant-driver) when the employee himself is found to be contributorily negligent in causing the accident.
• A High Court, in a Letters Patent Appeal, cannot suo motu implead a party (Corporation) and fasten liability for compensation on it, especially when that party was not a defendant in the original claim and the claimant himself did not seek compensation from them, having opted to proceed under the Motor Vehicles Act against other parties.

Important points

• Set Aside: High Court's order fastening 50% liability on the Corporation for compensation was set aside as the claimant-driver himself was 50% negligent.
• Held: The insurance company of the private bus is liable to pay Rs. 1,04,900/- (50% of total compensation) with 9% interest from the claim petition date.