Calcutta HC: Award May Be Set Aside if Tribunal Rewrites Contract or Ignores Key Clauses  ||  Delhi HC Suspends Kuldeep Singh Sengar’s Life Term, Holding Section 5(C) of POCSO Not Made Out  ||  Calcutta High Court: Arbitration Clause in an Expired Lease Cannot be Invoked For a Fresh Lease  ||  Delhi High Court: 120-Day Timeline under Section 132B Of Income Tax Act is Not Mandatory  ||  NCLAT Reaffirms That Borrower's Debt Acknowledgment Also Extends Limitation Period for Guarantors  ||  NCLAT: Oppression & Mismanagement Petition Cannot Be Filed Without Company Membership on Filing Date  ||  Supreme Court Quashes Rajasthan Village Renaming, Says Government Must Follow its Own Policy  ||  NCLAT: NCLT Can Order Forensic Audit on its Own, No Separate Application Required  ||  NCLAT Reiterates That IBC Cannot be Invoked as a Recovery Tool for Contractual Disputes  ||  Delhi HC: DRI or Central Revenues Control Lab Presence in Delhi Alone Does Not Confer Jurisdiction    

Prakash Chand Daga Vs. Saveta Sharma and Ors. - (Supreme Court) (14 Dec 2018)

Owner of a vehicle who transfers it to another person is liable to pay compensation in case of an accident unless sale is reflected in Regional Transport Authority (RTA) records

MANU/SC/1487/2018

Motor Vehicles

Present appeal challenges the judgment passed by the High Court. The Appellant, original owner of a Santro Car sold said vehicle to Saveta Sharma, first Respondent on 11th September, 2009. According to Appellant, after receiving due consideration, possession was transferred to said first Respondent. An accident occurred on 9th October, 2009 in which one Rakesh Kumar, second Respondent, received injuries. In a claim lodged by second Respondent, Motor Accident Claims Tribunal assessed the compensation at Rs. 12.47 lakhs.

Since the liability was fastened on the driver and first Respondent, the aforesaid decision was challenged by them in the High Court. The High Court found that despite the sale of the vehicle, no transfer of ownership, in accordance with Section 50 of the Motor Vehicles Act, 1988 ('the Act') was effected and as such the Appellant continued to be the owner in terms of definition as incorporated in Section 2(30) of the Act.

In terms of Section 50 of the Act, the transfer of a vehicle ought to be registered within 30 days of the sale. Section 50(1) of the Act obliges the transferor to report the fact of transfer within 14 days of the transfer. In case the vehicle is sold outside State, the period within which the transfer ought to be reported gets extended. On the other hand, the transferee is also obliged to report the transfer to the registering authority within whose jurisdiction the transferee has the residence or place of business where the vehicle is normally kept. Section 50 thus prescribes timelines within which the transferor and the transferee are required to report the factum of transfer. As per Sub-Section 3 of said Section 50, if there be failure to report the fact of transfer, fine could be imposed and an action under Section 177 could thereafter be taken if there is failure to pay the amount of fine. These timelines and obligations are only to facilitate the reporting of the transfer. It is not as if that if an accident occurs within the period prescribed for reporting said transfer, the transferor is absolved of the liability.

The law is thus well settled and can be summarised that, even though in law there would be a transfer of ownership of the vehicle, that, by itself, would not absolve the party, in whose name the vehicle stands in RTO records, from liability to a third person. Merely because the vehicle was transferred does not mean that such registered owner stands absolved of his liability to a third person. So long as his name continues in RTO records, he remains liable to a third person. The High Court was therefore absolutely right in allowing the appeal. The challenge raised by the Appellant must fail. Appeal dismissed.

Tags : COMPENSATION   ACCIDENT   LIABILITY  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved