Managing Director, K.S.R.T.C vs New India Assurance Co.Ltd & Anr

The Supreme Court held that under the Motor Vehicles Act, 1988, the liability for compensation in a vehicular accident can be jointly and severally imposed on the registered owner and the insurer, but not on the Karnataka State Road Transport Corporation (KSRTC) if a lease agreement exists. The Court clarified that the registered owner remains liable despite the vehicle being operated under KSRTC's control, as per Section 2(30) of the Act. The appeals were allowed, reversing the High Court's decision that placed liability solely on KSRTC.