The passing of property in the goods is dependent upon the intention of the parties as evidenced from the contract.

K. KANNAN J. (ORAL) - 1. The appeal is filed by a registered owner of the vehicle, who during the trial contended that the vehicle had been transferred to the respondent. The 6th respondent-Sumer Chand, who was the purchaser, was the 2nd respondent before the Tribunal and he had been represented through counsel Sh. O.K. Thakur. The fact of transfer of the vehicle was sought to be established through evidence by the registered owner. The fact of transfer in favour of the 2nd respondent was itself not denied by the purchaser. On the other hand, the statement of Sumer Chand before the Police in the FIR No.161 dated 2.8.2008 was that he had purchased the vehicle and the accident had taken place when his driver was driving the vehicle.

2. The procedure set out under Section 50 of the Motor Vehicles Act for transfer of ownership is only an evidence of ownership and not at all times conclusive. The transfer of title in a motor vehicle takes place by delivery and by passing of consideration for sale. The ownership in goods is transferred under Section 19 of the Sale of Goods Act and the distinction between the sale of goods and a transfer of ownership by registration under Section 50 was dealt with by the Hon'ble Supreme Court in Vasantha Vishwanathan and others Vs. V.K. Elayalwara nd others 2001(8) SCC 133. The Supreme Court held the following:-

"Section 31 of the Motor Vehicles Act, 1939 lays down that where the ownership of any motor vehicle registered under the Motor Vehicles Act is transferred, the trasnferor and transferee both are required to report the fact of transfer to the registering authority so that particulars of transfer of ownership may be entered in the certificate. The trasnfer is not effected under Section 31 of the Motor Vehciles Act, 1939, but the same simply prescribes procedure for entering the factum of transfer in the registration certificate, which is an act posterior to the transfer. The transfer of vehicles in question would be governed by the provisions of Section 19 of the Sale of Goods Act according to which property in the vehicle would pass to Defendant 1 at such time as the parties to the contract intend it to be tranferred. Thus the passing of property in the goods would be dependent upon the intention of the parties, as evidenced from the contract."

3. In a case where the subsequent purchaser is not made a party and the case is prosecuted against a registered owner only without any objection from the registered owner or without any steps being taken to implead the subsequent purchaser, a liability to be fastened on the registered owner could be perfectly understood. The learned counsel appearing for the claimant refers to a decision of this Court in Rulda Singh and others Vs. Amarvir Kaur and others 2009(1) RCR (Civil) 690 to the effect that the registered owner will still liable.

4. The learned judge was referring to the judgment of the Supreme Court in T.V. Jose (Dr.) V. Chacko P.M. (2001) 8 SCC 748 to hold that the registered owner who was the transferor and whos ename continued to be in the records with the tranferring authority would continue to be liable. In my view, the judgment of the Supreme Court must be understood in the context when the subsequent purchaser is not made party. In that case, the registered owner sought impleadment of the transferee before the Supreme Court for the first time. The court rejected the attempt and held as follows:-

"We agree with Mr. Iyer that the High Court was not right in holding that the appellant continued to be the owner as the name had not been changed in the records of RTO. There can be transfer of title by payment of consideration and delivery of the car. The evidence on record shows that ownership of the car had been transferred. However, the appellant still continued to remain liable to third parties as his name continued in the records of RTO as the owner. The appellant could not escape that liability by merely joining Mr. Roy Thomas in the