MV Act | Registered Owner Liable In Accident Cases Until Legal Transfer Of Vehicle Is Completed: HP High Court
The Himachal Pradesh High Court held that a registered vehicle owner remains legally liable for an accident until ownership is formally transferred under Section 50 of the Motor Vehicles Act, 1988, even if a sale agreement had been executed prior to the accident.
The Court reiterated that: “Section 50 of the Motor Vehicles Act provides that where ownership of any motor vehicle registered under the MV Act is transferred, transferor shall have to report the fact of transfer to Registration Authority within 14 days and Transferee shall report within 30 days thereafter.”
Justice Vivek Singh Thakur noted that: “In present case, prior to expiry of 30 days vehicle met with an accident… therefore, at the relevant point of time there was no complete transfer of the vehicle”
In 2016, Ghanshyam, his wife Neetu Devi, and one Usha, along with driver Gian Chand, were traveling when the driver lost control of the car and all three died on the spot.
Thereafter, their dependants filed two separate claim petitions before the Motor Accident Claims Tribunal seeking compensation.
However, the Motor Accident Claims Tribunal dismissed the petitions on the ground that the claimants failed to prove rash and negligent driving by the deceased driver.
Aggrieved, they approached the High Court.
The Court observed that the tribunal misread the as there was clear evidence which showed negligience of the deceased driver.
Further the Court noted that even from the statement of witness it was clear that the accident occurred due to high speed, rash and negligent driving on the part of the driver.
Thus, the court remarked that offence was committed under Sections 279 (Rash driving), 337 (Causing hurt by a rash or neglient act) and 304A (Causing death by rash or negligent act) of the Indian Penal Code.
In response, the respondent contended that he had sold the car to Gian Chand prior to the accident. However, the Court noted that the ownership transfer process under Section 50 of the Motor Vehicles Act was incomplete at the time of accident.
Therefore, the respondent Boby Chauhan continued to be the registered owner and remained liable.
Thus, the Court allowed both appeals and set aside the tribunal's order.
Case Name: Kamli and others v/s Boby Chauhan & others
Case No.: FAO (MVA) NoS. 50 & 51 of 2024
Date of Decision: 07.10.2025
For the appellants: Mr.H.S. Rangra, Advocate, for the
appellants in both appeals.
For the Respondent: Mr.Jai Dev, Advocate, for respondent No. 1 in both appeals.
Mr.Gurinder Singh Parmar, Advocate, for respondent No. 2, in both appeals.
Mr.Bhupinder Singh Pathania, Advocate, for respondent No.3, in both appeals.