The main legal principle established in the judgment is that the registered owner of a vehicle is liable for compensation to third parties if the ownership transfer is not reported to the registering authority, as required by the Motor Vehicles Act.

1. The State has filed the present appeal challenging the judgment and order passed by the Motor Accident Claims Tribunal at Beed in M.A.C.P. No.54/2013, decided on 7th of July, 2015.

2. Transfer of the ownership of the vehicle sold in a public auction by the State Government whether can be distinguished from the 'sale simpliciter' is an issue raised in the present appeal.

3. Present respondent nos. 1 to 5 ( hereinafter referred to as the original claimants), had filed the aforesaid claim petition claiming compensation on account of death of one Hakim Qureshi who died in a vehicular accident happened on 29th of February, 2012 having involvement of a Jeep bearing registration No.MH-12-W-4573. Present respondent no.6 was plying the aforesaid Jeep when the alleged accident happened. The appellant i.e. the Deputy Director of Health Services was made respondent no.1 in the aforesaid claim petition since the Jeep involved in the alleged accident was registered in the name of the said respondent in the Office of the Regional Transport Office. It was the contention of the original claimants that on 29th of February, 2012, when deceased Hakim was returning to his home from village Pimpalner by an Appay Rickshaw, the said Rickshaw was dashed by offending Jeep and in the accident so happened, said Hakim received severe injuries and though he was immediately taken to the hospital at Beed, he was declared to have been died. According to the claimants, age of the deceased was 40 years on the date of the accident and he was a skilled mason and was earning around Rs.2,00,000/- (Rs. two lakhs) per annum. It was the further contention of the claimants that they all were dependent upon the income of deceased Hakim. It was alleged by the claimants that the alleged accident happened because of the negligence of the Jeep driver i.e. respondent no.6 in the present appeal. The claimants had, therefore, claimed compensation of Rs.10,00,000/- (Rs. ten lakhs) from the driver and owner of the said Jeep.

4. The claim petition so filed was resisted by the appellant on various grounds. It was the main contention of the appellant that on the date of the accident, the said jeep was not owned by the appellant. It was the further contention of the appellant that the said jeep was sold in a public auction and was purchased in the said auction by one Shaikh Faruk Shaikh Yakub, resident of Jalna Road, Beed, along with some other vehicles for total consideration of Rs.7,75,000/-. It was the further contention of the appellants that on 1.3.2011 all the sold vehicles, including the offending Jeep, were given in possession of said Faruk. It was the further contention of the appellant that after the date of auction and from the date the possession was handed over to said Shaikh Faruk, he had become the owner of the offending Jeep. It was the further contention of the appellant that the auction purchaser was to retrieve metal from the vehicles and the vehicles were not to be repaired and / or to be used on the road. It was the further contention of the appellant that the person who was driving the said vehicle was not an employee of the appellant and, as such, the appellant was not responsible for any wrongful act committed by the said Driver.

5. In order to substantiate the defenses raised in the written statement, one Ashok Macchindranath Pastapure had deposed before the Tribunal and Shaikh Faruk Shaikh Yakub was also examined by the appellant. Learned Tribunal, however, turned down the objections raised by the appellant and held the appellant liable to pay the amount of compensation to the claimants. Learned Tribunal has held the claimants entitled for the total compensation of Rs.5,49,000/- and has directed present respondent no.6 and the appellant to jointly and severally pay the aforesaid amount of compensation to the claimants together with interest thereon at the rate of 7.5 per cent from the date of application till realization. Aggrieved thereby, appella