MINU B. MEHTA AND ANOTHER vs BALKRISHNA RAMCHANDRA NAYAN AND ANOTHER

The Supreme Court clarified that under Section 95(1)(b) of the Motor Vehicles Act, proof of negligence is essential for establishing liability of the vehicle owner or insurer in motor vehicle accident claims. The Court held that the High Court's interpretation, which suggested absolute liability irrespective of negligence, misreads the statutory provisions. It emphasized that liability arises from the law of negligence and vicarious liability, and without establishing a cause of action against the responsible party, compensation cannot be claimed.