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2014 Supreme(P&H) 1680

IN THE HIGH COURT OF PUNJAB AND HARYANA
MAHAVIR SINGH CHAUHAN, J.
Darshan Singh - Appellant
Vs.
Kewal Mohan and Others - Respondent
FAO No. 10082 of 2014 (O and M)
Decided On : 15-12-2014

Advocates Appeared:
For the Appellant : Subhash Kumar

The main legal point established in the judgment is that the registered owner of a vehicle remains liable until the change of ownership is recorded with the registering authority, as per the provisions of the Motor Vehicles Act, 1988.

Headnote:

Motor Vehicles Act - Liability of Registered Owner - Section 166, Section 168, Section 2(30), Section 50 - The court discussed the liability of the registered owner of a vehicle under the Motor Vehicles Act, 1988. It emphasized that the owner, as defined in Section 2(30), is the person in whose name the vehicle stands registered. The court also highlighted the provisions of Section 168, which specify the liability of the owner or driver of the vehicle involved in an accident. The judgment referenced key legal provisions and their interpretations, emphasizing that the registered owner remains liable until the change of ownership is recorded with the registering authority.

Fact of the Case:

The case involved a motor accident resulting in the death of a skilled laborer. The claimants filed for compensation under Section 166 of the Motor Vehicles Act, 1988, alleging rash and negligent driving by the respondent. The appellant, the registered owner of the vehicle, contested the claim, arguing that he was not the owner at the time of the accident.

Finding of the Court:

The court found that the accident occurred due to the negligent driving of the respondent and awarded compensation to the claimants, holding the appellant and the respondent jointly liable to pay the compensation.

Issues: The main issue was whether the appellant, as the registered owner of the vehicle, was liable to pay the compensation or if the responsibility fell on the transferee who had not completed the change of ownership with the registering authority.

Ratio Decidendi: The court emphasized that the registered owner remains liable until the change of ownership is recorded with the registering authority, as per the provisions of the Motor Vehicles Act, 1988.

Final Decision: The appeal was dismissed, and the court held that the appellant, as the registered owner, was liable to pay the compensation. The court also noted that the appellant could pursue appropriate proceedings against the financer and/or the vendee.

JUDGMENT :

Mahavir Singh Chauhan, J.

1. This, is owner's appeal against award dated August 13, 2014 passed by learned Motor Accident Claims Tribunal, Jalandhar (for short "the Tribunal") awarding in favour of respondent Nos. 4 to 7 (herein-after referred to as, "the claimants") compensation amounting to Rs. 8,25,000/- with interest at the rate of 7.5% per annum from the date of filling of the claim application till realisation. As per case of the claimants, at or around 10.30 p.m. on July 29, 2012 Davinder Kumar alias Dara, aged between 26-28 years, a skilled labourer, died in an accident which took place between the motor-cycle driven by him and a four wheeler bearing registration No. RJ 13 IG 1221 being driven by Rakesh Kumar, respondent No. 2 in a rash and negligent manner. Widow, a minor son, mother and father of Davinder Kumar alias Dara, respondent Nos. 4 to 7, respectively, filed claim application No. 29903 of 2013 under Section 166 of the Motor Vehicles Act, 1988 (for short 'the Act') claiming compensation for loss of dependency caused by death of Davinder Kumar alias Dara. The application was contested by the driver, the owner (appellant herein) and the financer of the offending four wheeler (respondent No. 3 here in). The appellant, however, took a stand that he was not the owner of the offending vehicle on the date of accident as it had already been seized by the financer and sold to Kewal Mohan, respondent No. 1, way back in the year 2006.

2. Learned Tribunal framed issues, took evidence and on appreciation of the evidence adduced on record by the parties came to the conclusion that the accident took place due to rash and negligent driving of the four wheeler bearing registration No. RJ 13 IG 1221 by Rakesh Kumar, respondent No. 1 and awarded compensation in favour of the claimants holding the appellant/respondent No. 2(a) and respondent No. 2, Kewal Mohan jointly and severally liable to pay the compensation.

3. Feeling aggrieved by the afore-said award, the present appeal has been filed by the registered owner of the offending four wheeler.

4. Though the appeal is barred by time but I have heard learned counsel for the appellant on merits besides perusing the impugned award.

5. Learned counsel for the appellant submitted that the appellant was not the owner of the offending vehicle as it had been seized by respondent No. 2 and had been sold by it to respondent No. 1 in the year 2006 and physical possession of the vehicle was also delivered to first respondent under the orders of Consumer Court, which fact was admitted by the first respondent in his statement recorded under Section 161 of the Criminal Procedure Code, 1973. According to learned counsel only because name of the appellant is recorded as owner of the vehicle in question in the Registration Certificate he cannot be held liable to pay the amount of compensation, rather it is the last owner - Kewal Mohan, i.e., respondent No. 1 herein, who is liable to pay the amount of compensation to the claimants.

6. Factum and manner of occurrence, as also entitlement of the claimants to receive compensation and the quantum of compensation awarded by the learned Tribunal, are not in dispute.

7. The only question which requires determination in this appeal is whether the appellant, the registered owner of the offending vehicle, is liable or the first respondent, the transferee, who has purchased the motor vehicle but did not get change ownership effected with the Registering Authority and in the registration certificate thereafter, is to pay the compensation.

8. To find an answer to the riddle involved herein, it would be of benefit to refer to relevant provisions of the Motor Vehicles Act, 1988 (for short - the Act'). Section 168 of the Act deals with the Award of the Claims Tribunal. It reads thus:-

"168. Award of the Claims Tribunal - (1) On receipt of an application for compensation made under Section 166, the Claims Tribunal shall, after giving notice of the application to


































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