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Oriental Fire And General Insurance Co. ... vs Smt. Gurdev Kaur And Ors. on 12 May, 1966

In the case of Oriental Fire and General Insurance Co. Ltd. v. Gurdev Kaur [1967] 37 Comp Case 577 (P & H), the Full Bench of the Punjab High Court was considering questions with regard to sub-section (1) of section 96 and proviso (ii) to clause (b) of sub-section (1) of section 95 of the Act. The facts in the that case were that a truck was hired by certain persons for carrying their goods. All the five persons were also on the truck as owners of the hides. The total number of persons in the truck was more than six. The truck collided with another truck coming from the apposite direction and as a result of the accident, three persons were killed. The truck was insured under a policy of insurance with the insurer, covering liability in terms of section 95 of the Act and it specifically said that use of the vehicle was only under a public carrier permit within the meaning of the Motor Vehicles Act, 1939, and that it did not cover the use for conveyance of passengers of hire or reward. The Full Bench held that the decision of the House of Lords had settled the expression "contract of employment" in clause (ii) of the proviso to sub-section (1) of section 95 of the Act. The Full Bench held as under (at page 583):
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