Gujarat High Court Dismisses Appeal of Registered Owner in Motor Accident Claim — Transfer of Ownership Not Proved. Owner Held Liable Despite Alleged Sale of Vehicle Before Accident Under Section 166 of Motor Vehicles Act, 1988.

High Court: Gujarat High Court In Favour of Prosecution

Admin

2026-05-18 23:33:45

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Case Note & Summary

The appellant, Meghvilal Narayanlal Sharma, was the registered owner of a car bearing registration No. RJ-27-CD-4506. The car was involved in an accident on 21.10.2015, resulting in the death of Jasvantsinh Zala, who was a passenger on a tractor that the car collided with. The legal heirs of the deceased filed a claim petition under Section 166 of the Motor Vehicles Act, 1988, before the Motor Accident Claims Tribunal, Gandhinagar. The Tribunal partly allowed the claim and awarded compensation of Rs. 4,74,844/- with interest at 8% per annum, directing the appellant (original opponent No. 1) to pay the same. Aggrieved, the appellant filed the present appeal under Section 173 of the MV Act. The appellant argued that he was not the owner of the car at the time of the accident because the car had been damaged in a flood on 26.07.2015, declared a total loss by the insurance company, and sold as salvage to one Mohammed Saied Nattekha Sheikh on 16.10.2015, before the accident. Therefore, he claimed he was not liable to pay compensation. The court examined the evidence and found that the appellant failed to produce any document to show that the transfer of ownership was recorded with the registering authority as required under the Motor Vehicles Act. The court held that the appellant remained the registered owner and was liable for the accident. The appeal was dismissed, and the impugned judgment and award of the Tribunal were confirmed.

Headnote

A) Motor Vehicles Act - Liability of Registered Owner - Transfer of Ownership - Sections 166, 173 Motor Vehicles Act, 1988 - The appellant, registered owner of the car, contended that the vehicle was damaged in flood and sold as salvage to a third party before the accident, and therefore he was not the owner at the time of accident. The court held that the appellant failed to prove that the transfer of ownership was effected in accordance with the provisions of the Motor Vehicles Act, 1988, and thus remained liable as the registered owner. The appeal was dismissed. (Paras 1-5)

Issue of Consideration

Whether the appellant, as the registered owner of the car involved in the accident, can escape liability by claiming that the vehicle was sold to a third party before the accident, when the transfer was not reflected in the records of the registering authority.

Final Decision

The appeal is dismissed. The impugned judgment and award dated 19.12.2019 passed by the learned Motor Accident Claims Tribunal (Main), Gandhinagar in Motor Accident Claim Petition No. 209/2016 is confirmed. No order as to costs.

Law Points

Liability of registered owner
Transfer of ownership
Burden of proof
Section 166 Motor Vehicles Act
1988
Section 173 Motor Vehicles Act

Case Details

2026:GUJHC:3659

R/First Appeal No. 3942 of 2023

2026-01-19

Hasmukh D. Suthar

2026:GUJHC:3659

Mr. Nishit A Bhalodi for Appellant, Mr. Rathin P Raval for Respondent No. 5

Meghvilal Narayanlal Sharma

Asuba Jaswantsinh Zala & Ors.

Nature of Litigation

First appeal under Section 173 of the Motor Vehicles Act, 1988 against judgment and award of Motor Accident Claims Tribunal.

Remedy Sought

Appellant sought to set aside the Tribunal's award directing him to pay compensation, claiming he was not the owner of the vehicle at the time of accident.

Filing Reason

Appellant aggrieved by the Tribunal's finding that he was liable as owner of the car involved in the accident.

Previous Decisions

Motor Accident Claims Tribunal (Main), Gandhinagar partly allowed Claim Petition No. 209/2016 and awarded Rs. 4,74,844/- with 8% interest against the appellant.

Issues

Whether the appellant proved that he was not the owner of the car at the time of the accident due to prior sale of the vehicle.

Submissions/Arguments

Appellant argued that the car was damaged in flood on 26.07.2015, declared total loss by insurance company, and sold as salvage to a third party on 16.10.2015, before the accident. Hence, he was not the owner or in possession at the time of accident. Respondent No. 5 (insurance company) supported the Tribunal's finding that the appellant remained the registered owner and was liable.

Ratio Decidendi

The registered owner of a motor vehicle remains liable for accidents involving the vehicle unless the transfer of ownership is duly recorded with the registering authority under the Motor Vehicles Act, 1988. The burden of proving such transfer lies on the owner claiming non-liability.

Judgment Excerpts

the learned Tribunal has committed gross error in holding the present appellant liable to pay the compensation though it was proved on the record that on the date of accident, present appellant was not the owner of the Car No.RJ-27-CD-4506. the appellant failed to produce any document to show that the transfer of ownership was recorded with the registering authority as required under the Motor Vehicles Act.

Procedural History

The claim petition was filed under Section 166 of the MV Act before the Motor Accident Claims Tribunal, Gandhinagar, which partly allowed it on 19.12.2019. The appellant filed the present first appeal under Section 173 of the MV Act on 19.01.2026.