PUSHPA @ LEELA & ORS. versus SHAKUNTALA & ORS.

PUSHPA @ LEELA & ORS. versus SHAKUNTALA & ORS.

Where ownership transfer of a vehicle is not recorded in the certificate of registration, the registered owner remains liable for compensation under the Motor Vehicles Act, and since the insurance policy is taken in the registered owner's name, the insurer is liable to pay compensation.

Parties
Appellant: Pushpa @ Leela & Ors.; Respondent: Shakuntala & Ors.; Respondent: Salig Ram; Respondent: Jitender Gupta; Respondent: Oriental Insurance Company Ltd.
Jurisdiction
India
Judgment Date
12 January 2011
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
appeal allowed
Legal Topics
Accident Compensation, Insurance Liability, Ownership Transfer, Registration Certificate
Motor Vehicles Accident Compensation Insurance Liability Ownership Transfer Registration Certificate

Case Brief

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Parties

Pushpa @ Leela & Ors.

Appellant

Shakuntala & Ors.

Respondent

Salig Ram

Respondent

Jitender Gupta

Respondent

Oriental Insurance Company Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether liability to pay compensation is solely of the purchaser of the vehicle or is coextensive with the recorded owner and insurer when ownership change is not recorded in registration certificate.

Ratio Decidendi

Where ownership transfer of a vehicle is not recorded in the certificate of registration, the registered owner remains liable for compensation under the Motor Vehicles Act, and since the insurance policy is taken in the registered owner's name, the insurer is liable to pay compensation.

Court Disposition

appeal allowed

Orders

  • Oriental Insurance Company Ltd. directed to make full payment of compensation amount as determined by the Claims Tribunal to heirs of Prem Chand (Rs.5,16,000/-) and Nikku Ram (Rs.2,42,000/-) within two months if not already realized from transferee.
  • No order as to costs.