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1991 Supreme(MP) 506

1993 ACJ 317
D.M. Dharmadhikari, K. Issrani
Sikia And Ors.
vs
Dhanraj Singh And Ors.
Decided On : 25 November, 1991

The transfer of ownership of a vehicle is not complete until the full price has been paid, and the original owner remains liable for compensation in case of an accident.

Headnote:

MOTOR VEHICLES ACT - SECTION 19 - TRANSFER OF OWNERSHIP - SALE OF GOODS ACT - SECTION 19 - OWNERSHIP OF GOODS - COMPENSATION - QUANTUM - ENHANCEMENT - MOTOR VEHICLES ACT, 1988 - NO FAULT COMPENSATION - SUMMARY

Fact of the Case:

In a motor accident case, the Claims Tribunal awarded compensation to the claimants jointly and severally against the driver and the subsequent owner of the vehicle, but not against the original owner or the insurance company. The claimants appealed, arguing that the original owner should also be held liable and that the compensation should be enhanced.

Finding of the Court:

The court found that the transfer of ownership of the vehicle from the original owner to the subsequent owner was not complete at the time of the accident, as the full price had not been paid. Therefore, the original owner remained the owner of the vehicle and was liable for compensation.

Issues: 1. Whether the original owner of the vehicle could be held liable for compensation, even though he had transferred ownership to another person before the accident. 2. Whether the quantum of compensation awarded by the Claims Tribunal was adequate.

Ratio Decidendi: 1. The court held that the original owner of the vehicle remained liable for compensation, as the transfer of ownership was not complete at the time of the accident. The court relied on Section 19 of the Sale of Goods Act, which provides that the property in the goods transferred passes at such time as the parties to the contract intend it to be transferred. In this case, the parties intended the ownership to be transferred only on payment of the full price, which had not happened at the time of the accident. 2. The court held that the quantum of compensation awarded by the Claims Tribunal was inadequate and enhanced it to Rs. 25,000, the minimum amount of compensation prescribed for death under the Motor Vehicles Act, 1988.

Final Decision: The court modified the award of the Claims Tribunal by directing that the compensation of Rs. 25,000 be jointly and severally payable by the original owner, the driver, and the subsequent owner of the vehicle. The compensation amount was to carry interest at the rate of 8% per annum from the date of the petition to its recovery.

JUDGMENT

D.M. Dharmadhikari, J.

1. The appellants are the claimants who are the heirs of deceased Ganeshlal, who died in a motor accident on Ganeshlal, who died in a motor accident on 3.2.1982.

2. The Claims Tribunal passed an award in the sum of Rs. 20,000/- jointly and severally against the respondent No. 2, Bhaiyalal driver and the respondent No. 4, Dalli Singh. The Claims Tribunal did not pass any award against the respondent No. 3, National Insurance Co. Ltd., on the ground that the motor vehicle was not insured. The Claims Tribunal also did not pass any award against respondent No. 1, Dhanraj Singh, accepting his case that he, only about a month before the date of accident, on 1.1.1982 vide documents Exh. D/2 and Exh. D/3, had transferred the vehicle involved in the accident, i.e., truck No. MRW 5973 in favour of the respondent No. 4. The respondent No. 5, Mahraj Singh, was the person on the vehicle, on behalf of the owner and, therefore, no award was passed against him.

3. The learned Counsel appearing for the appellants, Mr. Alok Aradha, assailed the impugned award on two grounds. Firstly, it is submitted that an award should have also been passed against the respondent No. 1, Dhanraj Singh, as he was the real owner of the vehicle involved, but only to avoid his liability ante-dated documents of transfer of vehicle were manipulated by him. The second ground urged is on the question of quantum. It is urged that the deceased Ganeshlal was a young man of 38 years and as a barber, he was earning Rs. 1,000/- per month and on that basis the award passed in the sum of Rs. 20,000/- is too low and the compensation amount is liable to be enhanced.

4. The first question that falls for consideration before us is whether the respondent No. 1, Dhanraj Singh, can also be held liable for payment of compensation to the claimants. Learned counsel, Mr. L.S. Baghel, appearing for him, contended that the movable property can be transferred by only delivery of possession and even on payment of part of price. It was argued that there is nothing on record to disbelieve the respondent No. 1, Dhanraj Singh and the respondent No. 4, Dalli Singh, that such a transfer was made. In this respect it is argued that the respondent No. 4, Dalli Singh, examined as NAW No. 4 before the Claims Tribunal has accepted the fact of transfer of the vehicle in his favour and there are no circumstances to disbelieve him as he claimed ownership to the vehicle and did not disown his liability on that count.

5. The learned Counsel appearing for the appellants took us through the testimony of the respondent No. 4, Dalli Singh, NAW No. 4 and of the respondent No. 1, Dhanraj Singh, examined as NAW No. 5 in the case. Dhanraj Singh states that the registered owner of the vehicle was one Sangram Singh, from whom he purchased it. Dhanraj Singh did not get his name registered under the provisions of the Motor Vehicles Act. He admits that the agreed price was Rs. 21,000/- out of which Rs. 10,000/- were paid by Dalli Singh and for the rest instalments were fixed of Rs. 1,000/- per month. He also admits that he himself is Sarpanch and Dalli Singh is Panch and they were intimate. He further admits that he could not get the vehicle registered in the name of Dalli Singh as he himself was not a registered owner. He also admitted that the balance price of vehicle was received by him in small amounts and he did not give any receipt for the same.

6. The respondent No. 4, so-called subsequent owner of the vehicle, was examined as NAW No. 4. He admits in his cross-examination that he has not done in the past any business of running a vehicle on hire. He runs a small kirana shop. So far as the source of money for purchasing the vehicle is concerned, he says that he had sold one cow for Rs. 1,000/- but neither remembers the name of the purchaser nor has produced any receipt for the same. He also says that from kirana shop he had saved about Rs. 7,000-8,000/-. The remaining amount he says that he














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