‘Seller liable to claims if vehicle ownership not transferred’

The Bombay high court (HC) has held that registered owner of the vehicle is liable to pay accident claim compensation to the victim even after selling the vehicle,

The Bombay high court (HC) has held that registered owner of the vehicle is liable to pay accident claim compensation to the victim even after selling the vehicle, if the registration is not transferred to the buyer’s name.

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Justice RD Dhanuka recently dismissed an appeal filed by Bandra resident Hufriz Adi Sonawala, challenging the October 2012 order passed by the Motor Accident Claims Tribunal (MACT), holding him liable to pay compensation to an accident victim.

The accident claim liability had arisen out of an accident caused by a vehicle which Sonawala had sold to Kalpesh Panchal on February 6, 2008, but it continued to be on Sonawala’s name in the Regional Transport Office’s (RTO) records at the time of the mishap.

Sonawala claimed he had sold the vehicle on February 6, 2008, and on the same day he handed over the vehicle along with a delivery note and requisite documents.

On March 8, 2008, the vehicle, with Panchal behind the steering, knocked down one Bharat Dave. Dave filed an accident claim and acting on his claim the MACT held Sonawala liable to pay compensation amount of ₹1.34 lakh along with interest at the rate of 7.4% from the date of Dave’s application.

Justice Dhanuka rejected the argument in view of section 50 of the Motor Vehicle Act, 1988, which requires the transfer of registration to be effected within 14 days of the sale of a vehicle.