[S.50 MV Act] Registered Owner of Offending Vehicle Liable to Compensate for Accident, Can Recover Amount from Transferee: Kerala High Court

 

The Kerala High Court addressed a dispute concerning liability under Section 50 of the Motor Vehicles Act and clarified that the registered owner of a vehicle remains liable to compensate victims of a motor vehicle accident, even if the vehicle had been transferred before the accident, provided the transfer was not valid under Section 50. In a case before it, the legal heirs of a deceased victim had secured a compensation award against the person named in the registration certificate of the offending vehicle. The appellant, who held title in records as the owner, contended that the vehicle had been transferred to another individual prior to the accident, and thus he should not be held liable.

Justice Shoba Annamma Eapen considered the definition of “owner” under Section 2(30) of the Act, which contemplates that for purposes of the statute, “owner” means the person in whose name the vehicle is registered. The Court observed that a fundamental aim behind this definition is to ensure certainty for victims or their heirs, so that they may reliably identify a liable party without prolonged or ambiguous litigation. Drawing upon precedent, the Court reiterated that, under the Motor Vehicles Act, the person whose name appears in the registering authority’s records is held liable for compensation, to prevent uncertainties in relief to victims.

In the facts before it, the Court found that the purported transfer of the offending vehicle to the additional respondent had not complied with the requirements of Section 50. Because the transfer was not valid, the appellant remained the registered owner in law and could be held liable for compensation. However, the Court clarified that the registered owner (here, the appellant) would have recourse: if he is compelled to pay the compensation awarded by the Tribunal, he is entitled to recover that amount (along with interest) from the purported transferee, by following due legal procedure. Accordingly, the appeal was partly allowed: the liability on the registered owner was upheld, but the right of recovery from the transferee was preserved.

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