Case Note & Summary
The case involves a motor accident claim where the appellant, Hufriz Adi Sonawala, was the registered owner of a vehicle (No. MH-3 7791) which he claimed to have sold to respondent No.2, Kalpesh M. Panchal, prior to the accident. On 8th March 2008, respondent No.1, Bharat Punamchand Dave, was knocked down by the vehicle driven by respondent No.2 and sustained injuries requiring hospitalization. Respondent No.1 filed an application under Section 166 of the Motor Vehicles Act, 1988 before the Motor Accident Claims Tribunal (MACT), Mumbai, seeking compensation from both the appellant and respondent No.2. The MACT, by judgment and order dated 31st October 2012, held the appellant liable to pay the entire compensation of Rs.1,34,000/- with interest at 7.4% per annum from the date of application till realization. The appellant appealed to the High Court, arguing that since he had sold the vehicle and handed over possession along with the delivery note and requisite documents to respondent No.2, he should not be held liable. The court considered the issue of whether the registered owner remains liable despite sale. The appellant's counsel relied on the judgment in Kishan Pandurang Kagde vs. Baldev Singh Gian Singh and another [(1977) Mh.L.J 6569]. However, the court dismissed the appeal, holding that under the Motor Vehicles Act, the registered owner continues to be liable for compensation until the transfer of ownership is duly recorded with the Regional Transport Office. Mere delivery of possession and documents does not absolve the registered owner of liability.
Headnote
A) Motor Vehicles Act - Liability of Registered Owner - Transfer of Ownership - Section 166 of Motor Vehicles Act, 1988 - The appellant sold the vehicle to respondent No.2 and handed over possession and documents, but the registration was not transferred in RTO records. The court held that the registered owner remains liable for compensation under Section 166 until the transfer is completed with the RTO. The appeal was dismissed. (Paras 1-4)
Issue of Consideration
Whether the appellant, who claims to have sold the vehicle to respondent No.2 but continued to be the registered owner in the records of the Regional Transport Office on the date of accident, is liable to pay compensation to the injured respondent No.1.
Final Decision
Appeal dismissed. The appellant is liable to pay the entire compensation amount of Rs.1,34,000/- with interest at 7.4% p.a. from the date of application till realization.
Law Points
- Registered owner remains liable for compensation under Motor Vehicles Act until transfer of registration is completed with RTO
- Delivery of possession and documents does not transfer ownership under the Act
- Section 166 of Motor Vehicles Act
- 1988 imposes liability on registered owner
