Financier of vehicles not liable to pay compensation

LEGAL DIGEST

A financier of a motor vehicle would not be liable to pay compensation for death in a road accident, the Supreme Court ruled last week in Godavari Finance Company vs Degala Satyanarayanamma, setting aside the ruling of the tribunal and the Andhra Pradesh High Court.

The financier's name was shown along with that of the owner in the register. Therefore, the tribunal held that the firm can also be fastened with liability along with the actual owner. The Supreme Court ruled that this view was wrong.

As the vehicle was the subject matter of the hire purchase agreement, the financier's name was mentioned in the register. It is the possession or control of the vehicle which plays the vital role, the Supreme Court said.

Appeal against Orissa mining contracts dismissed

The Supreme Court has dismissed the appeals of SS & Company and Faridabad Gurgaon Minerals against the judgment of the Orissa High Court in the dispute over their eligibility to get contract for iron ore mining in Daitari mines of Orissa.

After a detailed examination of the facts, the Supreme Court rejected their argument that the rules of the tenders were changed to keep them out of the competition.

Hindalco appeal turned down

The Supreme Court has dismissed the appeal of Hindalco Industries Ltd against the Bombay High Court judgment and asked the public sector undertaking to absorb its canteen workers on the rolls.

The company had argued that the canteen was run by contractors and the workers were not direct employees of its aluminium manufacturing unit.

The industrial court rejected that contention and held that in 1998 the company had indulged in unfair trade practice. It had asked the company to absorb them as permanent staff and pay wages and other benefits.

The company has not implemented that order so far. Therefore, the Supreme Court asked the company to implement the industrial court order within three months.

SC sets aside Karnataka HC judgment

The Supreme Court last week set aside the ruling of the Karnataka High Court and ruled that the State Advised Price paid by a sugar company formed part of the purchase price paid to the sugarcane growers and, therefore, that required to be included in the turnover of the dealer for the purpose of computation of state tax.

Allowing the appeal of the state government in the case, State of Karnataka vs Sri Chamundeswari Sugar, the court also sorted out apparent contradictions in two sets of its earlier judgments regarding the liability of sugar mills in the payment of purchase tax to the state governments.

Fake driving licence: National Insurance Company appeal dismissed

The Supreme Court has dismissed the appeal of National Insurance Co and directed it to pay the compensation awarded by the motor accident claims tribunal, though the driver was holding a fake licence.

Normally it is a breach of the insurance contract, but the court ruled that the insurance company has failed to prove that the owner was aware of it.

Therefore, the court directed the company to pay the compensation to the heirs of the accident victim and then recover the amount from the owner and driver of the vehicle.

'Swaging' is manufacture: SC

The process of 'swaging' by which the shape of metal bars of tubes are changed for joining or fastening or other functions amounts to 'manufacture' under the Central Excise Act and therefore it invited duty.

The Supreme Court said so while dismissing the appeal of Prachi Industries and upholding the view of the excise tribunal. In the present case, the rotary swaging machine with different dyes imparted changes of lasting character to the plane pipe or tube by use of dyes. This was manufacture and the company must pay excise, according to the judgment.