M V Act
Even if the vehicle sold the registered owner of the vehicle shall be liable to pay compensation in case of an accident.
Till the name of the purchaser of vehicle is not recorded in RTO office, the seller of vehicle shall be responsible to pay compensation.
In view of the definition of the expression “owner” in Section 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.
Where a motor vehicle is subject to an agreement of hire purchase, lease or hypothecation, the person in possession of the vehicle under that agreement is 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.
Naveen Kumar v. Vijay Kumar and others, MANU/SC/0077/2018 : (2018) 3 SCC 1,
Rlied in
Ajeet Rajbhar vs. Badami Devi and Ors. (21.03.2023 – ALLHC) : MANU/UP/2152/2023