The transfer of a motor vehicle is not valid unless it is registered with the authorities and the permit for the vehicle is transferred.

JAIN, J.

( 1 ) THIS is a plaintiffs appeal, whose suit for damages has been decreed against respondents Nos. 1 and 5 only, seeking a decree against respondents Nos. 2, 3 and 4 as well.

( 2 ) ONE Manakchand, who was a lower division clerk in the office of the Assistant director of Industries, Jaipur, was coming from his office on 11-10-1960 at about 5. 30 p. m. and going towards Ajmeri Gate on Mirza Ismail Road, was struck by truck No. RJD-672, driven by Gurbaksh Singh, defendant-respondent No. 1. This accident took place near the Show Room of Globe Motors, on the Mirza Ismail road, Jaipur. As a result of this accident Manakchand sustained injuries and he died on the spot soon after. The deceased was 30 years old and was drawing Rs. 110 p. m. He was survived by his widow Mst. Padma Devi, plaintiff No. 1, his son tarachand, plaintiff No. 2 and three daughters, plaintiffs Nos. 3, 4 and 5. They claimed damages on account of the death of Manakchand in a sum of Rs. 20,000/, from Gurbaksh Singh, driver of the truck, Har-charan Lal, defendant No. 2, (owner of the truck) and the New India Insurance Company Ltd. , defendant No. 4. Since the plaintiffs were informed that the truck had been transferred prior to the date of the accident to Sardar Brijendra Singh under a hire-purchase agreement with Narula Finance Company, they also impleaded the said company as defendant no. 3 and the alleged transferee as defendant No. 5 and a decree was claimed against them as well.

( 3 ) GURBAKSH Singh did not put in appearance and the case proceeded against him ex parte.

( 4 ) DEFENDANT No. 5 Sardar Brijendra Singh filed his written-statement and pleaded that the driver of the truck was not instructed to take the vehicle on the Mirza ismail Road. It was also contended that there was no rash and negligent driving on the part of the driver. Another defence taken up by him was that he was holding the truck under the hire-purchase agreement. The financier of the truck was defendant No. 3 Narula Finance Company and as such till the instalments were paid, it was the Company which was the real owner of the truck. After filing the written-statement this defendant did not put in appearance and the case against him as well proceeded ex parte. It was admitted by him that the truck was insured with defendant No. 4 and it was the insurance company which was liable to pay the damages.

( 5 ) HARCHARAN Lal, defendant No. 2, pleaded in his written-statement that the truck had been sold out to defendant No. 5 and as such he was no longer liable for accident having taken place with the said vehicle. He, however, admitted that the truck was insured with defendant No. 4, the Indian Insurance Company.

( 6 ) DEFENDANT No. 3 contended that the vehicle belonged to defendant No. 5, but the Company was the owner being the financier till the entire instalments were paid by defendant No. 5. According to this defendant, hire-purchase agreement was executed by defendant No. 5 first on 10-2-1960, but it was later superseded by agreement dated 23-2-1960 by which the defendant No. 5 agreed to pay Rs. 27,000/- in 24 instalments at the monthly rate of Rs. 1125/ -.

( 7 ) DEFENDANT No. 4 admitted that the truck No. RJD-672 was insured with the company in the name of Messrs. Harcharan Lal and Sons. But as the truck had been transferred to defendant No. 5 without the sanc-tion of the Company, Clause 5 of Section 2 of the policy has been contravened and, therefore, the insurance company was not liable for the damages on account of the accident.

( 8 ) THE Senior Civil Judge No. 2, Jaipur City, tried the case on the issues arising on the pleadings of the parties. It was held that Manakchand died on account of the accident which had taken place on the Mirza Ismail Road on 11-10-1960 on account of rash and negligent driving by Gurbaksh Singh, driver of the truck No. RJD-672. The learned Judge also came to the conclusion that the truck had been transferred by defendant No. 2 to def