PUSHPABAI PURSHOTTAM UDESHI & ORS. vs RANJIT GINNING & PRESSING CO. (P) LTD. & ANR.

The Supreme Court held that under Section 95 and Section 110 of the Motor Vehicles Act, 1939, an insurance company is liable for compensation in cases of negligent driving, even if the passenger is not paying for the ride. The Court found that the accident was caused by the negligent driving of the Manager, establishing vicarious liability of the employer. The Court overturned the High Court's ruling, affirming the Tribunal's award of Rs. 31,209 as general damages and Rs. 2,000 as special damages for funeral expenses.