Search This Blog

Sunday, July 17, 2016

Motor Vehicle liability ~ after sale of vehicle but RC not getting transferred !! -legal position

Half a century ago, buying a Vespa or Bajaj Chetak was cherished dream for Indian middle class. Not any longer.  On every Indian city, you see so many new cars ~ many high end models too ! – yet buying a car is a cherished dream for the working class who would proudly display the photo of taking delivery of the car; or post the photo on Instagram / facebook and other social media.

Karakattakaran, released in 1989 directed by Gangai Amaran starring Ramarajan and Kanaka was a big hit with tickling comedy of Goundamani and Senthil.  The dancer team will own a very old car which many a times would have to be pushed.  In one such instance, Goundamani would reel off the earlier owners of the car trying to claim superiority – Senthil would ask him a Q on its erstwhile owner, which provoked peels of laughter !!!

The proof of ownership is ‘RC Book’ ~ the Registration Certificate.  The Motor Vehicles Act provides for the registration of all motor vehicles in the country. Each motor vehicle is assigned with a unique Registration Number.  Once the vehicle is registered, a certificate is issued to the owner of the vehicle. When the owner moves from one State to another, technically, the vehicle will have to re-registered.  .. .. and when people move up in the ladder, they sell their old car and buy a higher model.  The sale process is not complete by mere handing over the vehicle upon receipt of consideration. Name transfer in favour of buyer should be done ~ else there could be some trouble. [many sell their vehicles in Used car market or exchange their vehicle with the dealer and do not care to see what happens next] – in a recent instance, a person came for claiming NCB and upon checking Online, it was pointed to him that the old vehicle still stood in his name even after 2 ½ years !  

For transfer, one has to submit to Road Transport Authorities : Notice of transfer in Form-29 (in Duplicate);  Application in Form-30 in Duplicate; PAN or GIR or Form-60/61; surrender the original RC; Insurance Certificate, Proof of address; NOC from Financiers if vehicle has been under Hire purchase; tax payment proof.

There have been instances when the Court has held the Registered Owner responsible and liable to pay compensation to Third parties under Motor Vehicles Act, despite the proof of sale but transfer not effected in Registration Certificate.  Holding the former owner still liable  to third parties in respect of claims for insurance in motor vehicle accident, the Supreme Court held so, considering the question; " whether the liability of the recorded owner of the vehicle was coextensive and from the recorded owner it would pass on to the insurer of the vehicle?   In an earlier instance, the Supreme Court in Pushpa @ Leela v. Shakuntala declared the law in the following terms;  It is undeniable that notwithstanding the sale of the vehicle neither the transferor Jitender Gupta nor the transferee Salig Ram took any step for the change of the name of the owner in the certificate of registration of the vehicle. In view of this omission Jitender Gupta must be deemed to continue as the owner of the vehicle for the purposes of the Act, even though under the civil law he ceased to be its owner after its sale on February 2, 1993.   In another instance in (2001) 8 SCC 748  the Court observed and held  that despite oral evidence proving that the appellant was not the owner of the car on the date of accident, still foisted liability on the registered owner of the vehicle.  For this purpose, it makes sense to keep the Act Only liability insurance in force till transfer is effected and name change is registered. 

It is not so, in all jurisdictions.  In USA,  the certificate of title for a vehicle (also known as a car title or pink slip; or pinks in the plural) is a legal form, establishing a person or business as the legal owner of a vehicle. Vehicle titles normally specifies: Identifying information about the vehicle, normally at minimum its vehicle identification number, make, and year of manufacture; the license plate no.’ technical info of the vehicle; name & address of purchase or registered owner who would normally possess and use it.  In the United Kingdom, there is not an equivalent of a vehicle title. Instead, there is a document known as the 'vehicle registration document', and is issued by the Driver and Vehicle Licensing Agency (DVLA).  It is the  V5 document that records who the Registered Keeper of the vehicle is; it does not establish legal ownership of the vehicle. These documents used to be blue on the front. However, they were changed to red in 2010/11 after approximately 2.2 million blank blue V5 documents were stolen, allowing thieves to clone stolen vehicles much more easily.

Now read this interesting article in Times of India, Chennai edition of date :  Can a registered owner of a car be made liable to pay compensation in case of a road accident even if he had sold his vehicle to another person but continued to be the owner on paper?  The Supreme Court has agreed to adjudicate whether mere transfer of a vehicle without change of registered ownership would absolve the registered owner of the liability under the Motor Vehicles Act to pay compensation to a victim if the vehicle met with an accident.

A bench of Justices S A Bobde and Ashok Bhushan stayed the order of the Punjab and Haryana high court which held that the person who had purchased the car would be liable to pay compensation in case of an accident even if the vehicle is not registered in his name. The HC had directed one Naveen Kumar to pay compensation of `5.23 lakh to the family of a person who was killed after being hit by his car . Challenging the order of the HC, advocate Rishi Malhotra, appearing for Kumar , contended that the car was not registered in his name and he could not be asked to pay compensation.

Referring to the Motor Vehicles Act, Malhotra told the bench that law recognised registered the owner and not the `real owner' of the vehicle and only the registered owner could be made liable to pay compensation. He said the Motor Accident Claims Tribunal had rightly held that only registered owner be made liable to pay compensation and the HC erred in setting aside the tribunal's order by wrongly interpreting the Act. “The high court by its judgement created a third contingency which is not contemplated under the Act wherein mere transfer of a vehicle without change of registered ownership would absolve the registered owner from the liability under the Act,“ he said.

The bench after hearing his arguments agreed to look into it and issued notice to the registered owner of the offending vehicle.

With regards – S. Sampathkumar
17th July 2016.


68 comments:


  1. I am a regular reader of your blog. the blog is very interesting and will be much useful for us.
    Informatica Training in Chennai ECR

    ReplyDelete
  2. The number one reason people go without home insurance or renters insurance is affordability, or the perceived notion that these type of insurance products are expensive. http://www.magruderagency.com/

    ReplyDelete
  3. Portability is the greatest feature of the dash camera, and is also the main reason of its high demand in the market. A user does not have to think twice when he is looking for a portable entertainment device. Just pick the dash camera and carry it around. Best Front And Rear Dash Cam

    ReplyDelete
  4. Thanks for splitting your comprehension with us. It’s really useful to me & I hope it helps the people who in need of this vital information.Software Testing Training Institute in Chennai | Software Testing Training in Velachery.

    ReplyDelete
  5. Good informational content i can see in here and i think we can get more data from Dash Cam Dave technology. To make our life so more easy it help us to get more safety in our life.

    ReplyDelete
  6. Among various types of cameras around us, car cameras are designed for convenient functions more than entertainment.Shooting a photo or video in a car can be rather tricky without a proper mount. Dash Cam Reviews

    ReplyDelete
  7. Before buying this type of car please check the VIN code. This is for your own safety. The super cool car is depicted in the picture, but suddenly only the body remained from Chevrolet Impala and the internal parts have long been replaced by others. Reinsert in advance with the help of https://vincarhistory.com/license-plate-lookup/wisconsin. I just wanted to warn you about a possible misunderstanding in the future. Be especially attentive when you buy vehicles from private sellers.

    ReplyDelete
  8. Nice and informative article.Thanks for sharing such nice article, keep on updating..Summer Courses in Chennai | Summer Courses in BesantNagar

    ReplyDelete
  9. Good post but I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further. Appreciate it..! auto hail repair denver

    ReplyDelete
  10. All autos utilized for the business, including those that are not claimed, contracted and additionally rented.Missouri RV dealer in Missouri

    ReplyDelete
  11. Hi! I have more than 4 Years of experience and I am the Founder of a Website Development Company in Rohini, Delhi. I just want to say thank you for posting such a useful, impressive and a wicked article.

    ReplyDelete
  12. These are regularly somewhere down in the outback and it takes a devoted and experienced individual to contact them and complete them.used car dealerships near me

    ReplyDelete
  13. This comment has been removed by the author.

    ReplyDelete
  14. This comment has been removed by the author.

    ReplyDelete
  15. Totally survey your tenant agreement before leaving. A few organizations have mileage constraints or different cutoff points to where you can or can't drive. Be acquainted with everything in the agreement. car rental cancun

    ReplyDelete
  16. When choosing according to body style, choose a vehicle that best suits your needs, especially with huge vehicles, like used trucks.RVs for Sale in Missouri

    ReplyDelete
  17. Extremely intriguing online journal. A lot of web journals I see nowadays don't generally give anything that I'm keen on, however I'm most definitely inspired by this one. Recently felt that I would post and let you know. AZ

    ReplyDelete
  18. Having the correct vehicle protection could help in repairing the auto. It could likewise cover any wounds managed by the driver. Protection could likewise incorporate outsider harms that happen in a mischance."Terex parts

    ReplyDelete
  19. Monthly payments aren't the only way to save money on a leased vehicle. Sales tax amounts are lower on a leased vehicle than on a vehicle that has been purchased outright, or a vehicle that is being funded through a financing plan. deals on cheap used RV for sale

    ReplyDelete
  20. The municipality will also necessitate that they be added to your liability policy as extra insured and they will want you to supply a certificate of insurance showing these provisions have been met. General Liability Insurance

    ReplyDelete
  21. Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. Automatic Car Sales Reading

    ReplyDelete
  22. Liability Insurance is a type of insurance coverage that provides financial protection against a loss of business due to injury, or property damage, to another party.

    ReplyDelete
  23. There's more to assessing brakes than simply listening for strange sounds. You can get some solid clues on the health of the vehicle braking system (and what you're going to have to do to get it healthy again) by noting any of these unusual symptoms. material handling equipment malaysia

    ReplyDelete
  24. The items of common sense of automated airborne vehicles can be found in military just as regular citizen use, for example, the utilization in crop observing, fish school area, and so on. Europa-Road Kft

    ReplyDelete
  25. HHO energized automobiles is multiple times more successful than gas powered ones. Commonly gas energized vehicles devour about 80% of the effectiveness of your vehicle however the mix of exhaust, vanishings, unburned fuel, and vibrations. best reviews of car accessories

    ReplyDelete
  26. With the fast increment in petroleum and diesel rates, the elective force frameworks for automobiles turned into the need. An elective fuel motor was created in 2002 in the United States that utilized condensed oil gas (LPG) and compacted flammable gas (CNG). Best Car Air Compressors

    ReplyDelete
  27. Oil changes directed at the suggested spans are the absolute most significant advance you can take to keep your vehicle sound.Used rvs for sale in Arkansas

    ReplyDelete
  28. When you use a genuine service, you will be able to provide instructions, share materials and choose the formatting style. carros PCs 2021

    ReplyDelete
  29. I found your this post while searching for some related information on blog search...Its a good post..keep posting and update the information. rastreamento veicular

    ReplyDelete
  30. i love reading this article so beautiful!!great job! Rolstoeltaxi Rotterdam

    ReplyDelete
  31. i read a lot of stuff and i found that the way of writing to clearifing that exactly want to say was very good so i am impressed and ilike to come again in future.. power harrow

    ReplyDelete
  32. Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for. The Best Food Safe Epoxy

    ReplyDelete
  33. This article gives the light in which we can observe the reality. This is very nice one and gives indepth information. Thanks for this nice article. fogging machine uk

    ReplyDelete
  34. Get free car removal services all over Brisbane region. We offer cash for your cars, vans, trucks, Utes, 4wds. Our rates are higher than usual wreckers | Address: 135 Bradman St, Acacia Ridge QLD 4110, Australia | Phone: 0423514111 | Email: info@apluscarremoval.com.au | Car Removal Free

    ReplyDelete
  35. High techniques of driving are taught in Advanced 5 hour driving class Courses are always divided into classroom and on-track lessons, and last from hours to days. Drivers are taught skills such as accident avoidance and skid avoidance, among others.

    ReplyDelete
  36. Thank you for taking the time to publish this information very useful! mijnsherenland

    ReplyDelete
  37. This is my first time i visit here. I found so many entertaining stuff in your blog, especially its discussion. From the tons of comments on your posts, I guess I am not the only one having all the enjoyment here! Keep up the excellent work. cash for car brisbane

    ReplyDelete
  38. Car Removal Free have been offering services across Brisbane regions, including Inner Brisbane, Northern Regions, Southern part, Eastern Suburbs, Western Region, Ipswich, Logan City, Gold Coast and surrounding areas.
    Top cash for cars is the right company when it comes to selling a car fast and quickly 0483-333-444 Cash For Cars Brisbane

    ReplyDelete
  39. I just couldn't leave your website before telling you that I truly enjoyed the top quality info you present to your visitors? Will be back again frequently to check up on new posts. polyurea

    ReplyDelete
  40. When tractors were introduced, farmers quickly found that engine driven tractors were more economical to use, as compared to keeping animals for tillage, and tractors began selling widely. In many cases agricultural machinery dealers received cattle for the barter for tractors and they and in turn sold the cattle in the meat market. compact tractors

    ReplyDelete
  41. Great content material and great layout. Your website deserves all of the positive feedback it’s been getting. 안전놀이터

    ReplyDelete
  42. It was designed at a time when cars were just cars. There wasn't a futuristic car such as this one! OK, so I have sold you on buying the car! What is next is to be able to actually find one. Lamborghini Rental Orlando

    ReplyDelete
  43. for that reason, frequently the testing is directed in the airspace of Scandinavia. Thinking about this reality, car decoration

    ReplyDelete
  44. This is a truly good site post. Not too many people would actually, the way you just did. I am really impressed that there is so much information about this subject that have been uncovered and you’ve done your best, with so much class. If wanted to know more about green smoke reviews, than by all means come in and check our stuff. 메이저사이트

    ReplyDelete
  45. I am unable to read articles online very often, but I’m glad I did today. This is very well written and your points are well-expressed. Please, don’t ever stop writing. 먹튀검증사이트

    ReplyDelete
  46. Keep up the good work , I read few posts on this web site and I conceive that your blog is very interesting and has sets of fantastic information. 토토커뮤니티

    ReplyDelete
  47. An fascinating discussion is value comment. I think that it is best to write extra on this matter, it won’t be a taboo topic however generally people are not enough to talk on such topics. To the next. Cheers สล็อตออนไลน์

    ReplyDelete
  48. Good website! I truly love how it is easy on my eyes it is. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your RSS which may do the trick? Have a great day! 토토사이트

    ReplyDelete
  49. This is the type of information I’ve long been trying to find. Thank you for writing this information. 팔팔카

    ReplyDelete
  50. I haven’t any word to appreciate this post.....Really i am impressed from this post....the person who create this post it was a great human..thanks for shared this with us. 안전놀이터

    ReplyDelete
  51. Your content is nothing short of brilliant in many ways. I think this is engaging and eye-opening material. Thank you so much for caring about your content and your readers. 파워볼게임

    ReplyDelete
  52. This is my first time visit to your blog and I am very interested in the articles that you serve. Provide enough knowledge for me. Thank you for sharing useful and don't forget, keep sharing useful info: 대전건마

    ReplyDelete
  53. it's totally the most part hugely meanful. it's truly cool blog. Unimportance is head thing.you have truly helped stores of people who visit blog and give them usefull information. https://www.buyyoutubeviewsindia.in/youtube-marketing/

    ReplyDelete
  54. At RSJ, we are dedicated to serving a diverse client group. Our professionals have experience serving clients across many industries in both domestic and international capacities. SEC Compliance

    ReplyDelete
  55. Excellent blog! I found it while surfing around on Google. Content of this page is unique as well as well researched. Appreciate it. 온라인바둑이

    ReplyDelete
  56. i am for the first time here. I found this board and I in finding It truly helpful & it helped me out a lot. I hope to present something back and help others such as you helped me. 먹튀검증

    ReplyDelete
  57. hideouttv
    AdsRePay is an online rewards and cashback site. It's completely FREE to register and use, and best of all, you can start earning right away. Complete simple offers from our partners, earn points and then simply redeem your points anytime for instant Paypal and Amazon Gift Cards

    ReplyDelete
  58. Thank you so much for sharing such valuable content I really love it. We are unwanted car removal brisbane we provide different services scrap car removal,
    Brisbane wreckers and many more. Best car purchasing company in Australia you must visit there if you want to sell any type of vehicle

    ReplyDelete
  59. water and in the air. Every one of the automated elevated vehicles has different innovative requirements, for example, Bus Rental Singapore

    ReplyDelete
  60. They are experienced in the printing business and Order Online many of them have an online chat line available so you can discuss your order right on the spot, so to speak.

    ReplyDelete
  61. You possess lifted an essential offspring..Blesss for using..I would want to study better latest transactions from this blog..preserve posting.. Satta king online

    ReplyDelete
  62. In this article understand the most important thing, the item will give you a keyword rich link a great useful website page: Satta result

    ReplyDelete
  63. I see some amazingly important and kept up to length of your strength searching for in your on the site 사설토토사이트

    ReplyDelete
  64. Open air boat storage is frequently sold from boat proprietor to boat proprietor.
    rvparkodessa.com

    ReplyDelete
  65. We have years of experience removing damaged vehicles and providing our customers with the best Cash For Cars Sydney. To us, our customer satisfaction is an utmost priority; thus, we make sure when you choose us, you get cash for cars in Sydney up to $8,500.

    ReplyDelete