High Court Of Madhya Pradesh
MR. JUSTICE ARUN MISHRA Mr. JUSTICE K. S. CHAUHAN
BRIJLAL KHILWANI - Appellant
Versus
SOHAN - Respondents
M. A. 1460 Of 2000
Decided On : 03/29/2007
liability - Motor Vehicles - 2 (30) of the Motor Vehicles act, 1988 - Section 2 (30)
Fact of the Case:
The appellant, registered owner, challenged the liability to pay compensation for an accident involving a truck that was claimed to have been transferred to another party. The appellant argued that the liability should be on the transferee, while the respondent contended that the liability of the registered owner continues due to non-payment of instalments.
Finding of the Court:
The court found that the registered owner was not liable to pay the compensation as the possession and control of the vehicle had been transferred to the transferee, as evidenced by an agreement. The liability was held to be of the transferee and the driver who was in possession and control of the vehicle at the time of the accident.
Issues: The main issue was the determination of liability for compensation in a road accident involving a transferred vehicle.
Ratio Decidendi: The court relied on the definition of 'owner' under Section 2 (30) of the Motor Vehicles Act, 1988, and interpreted it to include the person in possession and control of the vehicle under an agreement. The court also considered precedents to determine liability based on possession and control of the vehicle.
Final Decision: The court set aside the finding of the Claims Tribunal and held that the liability for compensation was on the transferee and the driver who was in possession and control of the vehicle at the time of the accident. The appeal was allowed to that extent.
ARUN MISHRA, J.
( 1 ) THIS appeal has been preferred by appellant registered owner challenging the saddling of liability to pay the compensation though the vehicle stood transferred to Sohan alias Sanu Narwaria, respondent No. 1. Tribunal has awarded compensation of Rs. 1,11,500 along with interest at the rate of 12 per cent per annum from the date of filing of application till realisation.
( 2 ) FACTS, shorn of unnecessary details, indicate that Sitaram (since deceased) was going to the market from the bus stand in order to supply milk. Saleem Shah drove truck No. MP 11-A 0829 rashly and negligently and dashed Sitaram, who sustained injuries and died. It was claimed that he used to earn about Rs. 150 per day, besides having agricultural income. His monthly income was Rs. 7,000. Compensation of rs. 12,60,000 was claimed. Driver Saleem shah was proceeded ex pane. Brijlal Khilwani, registered owner of the truck, took the stand that real owner of the vehicle was sohan alias Sanu Narwaria. The truck was sold to him prior to the date of accident. Possession of the truck was with Sohan alias Sanu Narwaria. He had obtained the custody of the truck from the court. It was submitted that excessive amount was claimed and as the vehicle stood transferred, he was not liable to pay the compensation. It was further contended that on 17. 9. 1998, an agreement was entered into between appellant and the respondent No. 1, for sale of the truck for Rs. 1,15,000. Sum of rs. 50,000 was paid to him and remaining amount was to be paid in 18 equal monthly instalments. Said amount was not paid.
( 3 ) SOHAN alias Sanu Narwaria, in his written statement, inter alia, contended that he was not aware who the registered owner of the vehicle was. He was not in possession of the truck. Saleem Shah was not his driver. Excessive compensation was claimed. Truck was not transferred to him. He was unnecessarily impleaded. As the truck was not in his possession, he was not liable to pay the compensation.
( 4 ) THE Claims Tribunal has found that accident had occurred on account of rash and negligent driving of truck by Saleem shah. The registered owner of the truck was Brijlal Khilwani, though the truck was agreed to be sold to one Sohan alias Sanu narwaria on 17. 9. 1998 and at his instance saleem Shah was driving the truck. As complete ownership was not transferred, registered owner has been held liable to make the payment of compensation.
( 5 ) REGISTERED owner has come up in this appeal assailing the liability imposed by the Tribunal.
( 6 ) MR. Anil Lala, the learned counsel appearing for the appellant, has submitted that the complete control over the truck, in question, along with possession was that of Sohan alias Sanu Narwaria. He had paid a sum of Rs. 50,000 and obtained the possession of the truck before one month of the accident. Agreement was entered into on 17. 9. 1998 and accident took place on 23. 10. 1998. Thus Sohan alias Sanu narwaria was the owner as contemplated under section 2 (30) of the Motor Vehicles act, 1988. Thus, he has submitted that liability ought to have been saddled on Sohan alias Sanu Narwaria and driver Saleem shah.
( 7 ) MR. Deepak Pendharkar, the learned counsel appearing for the respondents submitted that as transfer was not completed ultimately, due to non-payment of instalments, liability of registered owner continues. Hence, no case for interference in this appeal is made out.
( 8 ) SECTION 2 (30) of the Motor Vehicles act, 1988, defines 'owner as under:
" 'owner' means a person in whose name a motor vehicle stands registered, and where such person is a minor, the guardian of such minor, and in relation to a motor vehicle which is the subject of a hire-purchase, agreement, or an agreement of lease or an agreement of hypothecation, the person in possession of the vehicle under that agreement. "
( 9 ) NO doubt about it, that Brijlal Khilwani was the registered owner. However, brijlal Khilwani, NAW 1, has stated that after
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