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2024 Supreme(Online)(Mad) 61982
IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.Rajasekar, J
Sree Sakthi Bajaj – Appellant
Versus
S.Prabakaran – Respondent
Civil Miscellaneous Appeal No.2326 of 2021
For the Appellants/Petitioners: Mr.P.Kannan Kumar
For the Respondents: Mr.S.P.Yuvaraj
A vehicle must be registered before use on public roads; failure to do so renders the dealer liable for accidents involving the vehicle.
Headnote:(A) Motor Vehicles Act, 1988 - Section 39 - Civil Miscellaneous Appeal filed under Section 173 challenging the liability of the dealer to pay compensation due to an accident involving an unregistered vehicle - The Tribunal held the dealer liable as the vehicle was not registered and thus violated statutory provisions. (Paras 1, 9, 30)
(B) Liability of dealers - A dealer cannot permit the use of an unregistered vehicle on public roads, and failure to obtain registration renders them liable for accidents caused by the vehicle. (Paras 19, 20, 30)
(C) The principle of ownership and possession - Ownership does not transfer until registration is complete, and the dealer retains obligations until then. (Paras 26, 30)
Facts of the case:
The dealer sold an unregistered two-wheeler to the first respondent, who, while driving without a valid license, caused an accident resulting in injuries to the claimant. The claimant sought compensation of Rs.20,00,000/- against the dealer, owner, and insurer.
Findings of Court:
The Tribunal found the dealer and owner liable for the accident due to the unregistered status of the vehicle and awarded Rs.4,03,000/- as compensation.
Issues: The primary issues were the liability of the dealer for the accident caused by an unregistered vehicle and the conditions under which ownership and possession transfer.
Ratio Decidendi: The court emphasized that under Section 39 of the Motor Vehicles Act, a vehicle must be registered before being driven on public roads; hence, the dealer is liable for any accidents involving an unregistered vehicle.
Result: Civil Miscellaneous Appeal dismissed; award confirmed.
| Table of Content |
|---|
| 1. the appeal challenges the tribunal's award on liability. (Para 1 , 2) |
| 2. accident details and claimant's claims are outlined. (Para 3 , 4) |
| 3. defendants contest liability based on vehicle registration status. (Para 5 , 6 , 7) |
| 4. tribunal's findings on negligence and policy violations. (Para 9 , 10 , 11 , 12) |
| 5. court evaluates evidence and delivery of vehicle's legality. (Para 13 , 14 , 15 , 16 , 17) |
| 6. legal principles regarding vehicle registration and liability discussed. (Para 18 , 19 , 20 , 21) |
| 7. court's interpretation of statutory provisions affecting liability. (Para 22 , 23 , 24) |
| 8. analysis of ownership transfer and conditions for liability. (Para 25 , 26 , 27) |
| 9. final assessment of liability based on statutory compliance. (Para 28 , 29) |
| 10. the appeal is dismissed, confirming the tribunal's award. (Para 30) |
JUDGMENT
This Civil Miscellaneous Appeal has been filed by the third respondent in M.C.O.P.No.388 of 2017 challenging the award dated 27.11.2020, whereby, the Tribunal has held that the third respondent/appellant herein is liable to pay compensation to the claimant therein along with the first respondent.
2. For the sake of convenience, the parties are referred herein according to their litigative status and rank before the Tribunal.
3. The facts leading to the filing of this appeal is as follows: The appellant herein is a two wheeler dealer, sold the unregistered two wheeler bearing Chassis No.MD2A55FZ90CGA 13859 and Engine No.JLZCGA26256, to the first respondent insured with the second respondent. Before effecting registration of the vehicle, the first respondent, who is the holder of learner's licence, while driving the vehicle on 01.06.2016 at about 8.30 AM met with an accident by hitting on the two wheeler driven by the claimant. The accident resulted in causing severe injuries to the claimant and he had come forward with the claim petition seeking compensation for a sum of Rs.20,00,000/- against the owner, dealer and insurer of the two wheeler.
4. The case of the claimant before the Tribunal is that on 01.06.2016 at about 8.30 AM, when he was riding a motorcycle bearing Registration No.TN 33 AD 2089 on the Solar to Moolapalayam Road near Manickkavasagar Colony, Erode, at the left hand side of the road by observing traffic rules and regulations, opposite to the very same road, the first respondent riding an unregistered two wheeler in negligent manner and uncontrollable speed, came in the wrong side and dashed on the two wheeler of the claimant, which resulted in causing grievous injuries. After undergoing treatment, he came forward with the claim petition under Section 166 of the Motor Vehicles Act, 1988 .
5. The first respondent/purchaser filed a counter and contended that he is not responsible for the accident and on the date of accident, originally, his two wheeler was hit by an unknown Splendor motorcyle, as a result of which, he fell down and at that time, the claimant was driving his two wheeler in a rash and negligent manner and dashed on the first respondent's unregistered vehicle.
6. The Insurance Company contested the claim on the ground that the unregistered vehicle was plied in the road by the person, who was not having valid driving licence and without proper registration, thereby statutory violations are committed. Hence, the Insurance Company is not liable to pay the compensation and the owner and the dealer of the vehicle alone are liable to pay compensation.
7. The dealer of the vehicle disputed the manner in which the accident had taken place and also submitted that the unregistered vehicle was properly insured and on the date of occurrence, insurance was in force. The first respondent has already purchased the vehicle on 11.05.2016 and as per the Motor Vehicles Act, the vehicle sold unregistered has to be registered with the Regional Transport Authority within a period of one month. The Regional Transport Authority was not issuing temporary registration in Erode District. For the purpo
