National Insurance Company Ltd. - Appellant Versus Kur Singh & Ors. - Respondents

Core ratio / Key holding

Headnote

Motor Vehicles Act, 1988 – Section 166 – Compensation – Liability – 'Use of motor vehicle' – Strict Liability – Negligence.

Motor Vehicles Act, 1988 – 'Use of motor vehicle' – Disabled vehicle – Towing – Duty of care – Liability of driver.

Motor Vehicles Act, 1988 – Defence – Volenti non fit injuria – Contributory negligence – Proof.

Issues for determination

• Whether compensation under the Motor Vehicles Act, 1988, for an accident involving a motor vehicle, requires proof of negligence in driving, or if liability can arise from the 'use of motor vehicle' even when it is disabled and being towed.

Ratio decidendi

• The cause for compensation under the Motor Vehicles Act, 1988 arises when loss is caused by the 'use of motor vehicle', and not solely for driving, as negligence is only one species of causes of action for claims in motor vehicle accidents.
• Motor vehicles answer the description of 'dangerous thing' for the purpose of strict liability rule, making a person responsible even for accidental harm caused by their use, irrespective of wrongful intent or negligence.
• When a disabled motor vehicle is being towed, it remains 'in use', and its driver has a higher duty of care to ensure the safety of the towing vehicle and its driver, especially if the towing is at the disabled vehicle driver's request.

Important points

• Held, liability under Motor Vehicles Act arises from 'use of motor vehicle', not merely negligent driving, extending to disabled vehicles being towed.
• Clarified, motor vehicles are 'dangerous things' under strict liability, making users responsible for accidental harm irrespective of intent or negligence.
• Rejected, defence of 'volenti non fit injuria' for tractor driver towing heavier vehicle, as no evidence of fault was adduced by the insurer.
• Affirmed, the truck driver was solely at fault for the accident, having a higher duty of care for the disabled vehicle being towed at his request.

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