Summary
A seller remained the registered owner when the transferred car caused an accident within thirty days of sale. The Supreme Court held that the statutory reporting period did not exempt him from liability to third parties. For motor-accident claims the registered ownership definition governed, notwithstanding transfer of title and possession under civil law. The seller’s appeal against the insurer’s recovery right was dismissed.
Issues
- Whether an accident during the transfer-reporting period absolved the registered seller from third-party liability.
Provisions considered
- Section 2(30), Motor Vehicles Act, 1988For the third-party compensation liability in issue, the person continuing in the registration record remained the owner despite the sale. (¶¶ 6, 7, 8, 9)
- Section 50(1), transfer-reporting timelines, Motor Vehicles Act, 1988The reporting periods facilitated intimation of transfer and did not create a period of immunity from third-party liability. (¶¶ 4, 5)
Held
- The transferor’s and transferee’s reporting obligations and timelines did not absolve the registered owner if an accident occurred before the reporting period expired. (¶¶ 4, 5)
- Civil-law transfer of ownership by sale and delivery did not displace the statutory ownership rule for the compensation claim. Victims need not trace successive unregistered transfers; the seller remained liable while his name continued in the registration records. (¶¶ 6, 7, 8, 9)
- The High Court’s direction requiring the insurer to pay the claimant with recovery rights against the registered owner was sustained and the seller’s challenge failed. (¶¶ 3, 9, 10)
Result
Appeal dismissed; insurer’s payment obligation with recovery rights against the registered owner left undisturbed. No costs.