Facts

In the present case, an accident had taken place where the Tribunal  had granted  an award holding the first respondent (original owner/first owner) responsible together with the driver. It was contended that there were a series of transfers which took place,however, the name in the records were not changed/altered.

Issue

Who was the owner of the vehicle & liable to pay compensation

View

It was observed by the apex court that the expression ‘Owner’ in S.2(30), it is the person in whose name the motor vehicle stands registered who, for the purposes   of the Act, would be treated as the ‘owner’. However,  where a person is a minor,  the guardian of the minor would be treated as the owner.

In a situation such as the present where the registered owner has purported to transfer the vehicle but continues to be reflected in the records of the registering authority as the owner of the vehicle, he would not stand absolved of liability.

The principle underlying the provisions of Section 2(30) is that the victim of a motor accident or, in the case of a death, the legal heirs of the deceased victim should not be left in a state of uncertainty. A claimant for compensation ought    not to be burdened with following a trail of successive transfers, which are not registered with the registering authority. To hold otherwise would be to  defeat  the salutary object and purpose of the Act. Hence, the interpretation to be placed must facilitate the fulfilment of the object of the law.

Held

That since in the present case, the First respondent was the ‘owner’ of the vehicle involved in the accident within the meaning of Section 2(30). The liability to pay compensation stands fastened upon him. (CA No 1427 of 2018 (Arising out of SLP (C) No. 18943 of 2016 dt.6-2-2018)

Editorial: The ratio laid down in this decision is very important not only with respect to the claims under the Motor Vehicle Act, 1988. But, it has ramifications where the vehicles are used in illegal activity after the same are sold but the transfer of the same has not been effected in the records maintained by the authorities under the Motor Vehicle Act, 1988.

“I believe in the fundamental truth of all great religions of the world.”

– Mahatma Gandhi