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1986 (6) TMI 242

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..... endants Nos. 1 to 9 against whom the appellants made the claim for compensation. The eleventh defendant is the person in whose favour the ownership of the bus is said to have been transferred as early as July 9, 1970. 3. The trial court rejected the contention of the defendants that the accident was not the result of the negligence on the part of the bus driver. The learned sub-judge found that the appellants are entitled to be compensated on account of the death of Vijayan. However, the learned sub-judge accepted the contention of defendants Nos. 1 to 9 that the ownership of the bus was transferred to the eleventh defendant on July 9, 1970. Hence, a decree was passed against defendants Nos. 10 and 11 for a sum of ₹ 36,100 with int .....

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..... in favour of the appellants and they have not been challenged now. The only question which is urged in this appeal is whether the legal representatives of Shri Mathai (the registered owner) are liable to pay compensation to the appellants. 7. Admittedly, Shri Mathai was the registered owner of the vehicle at the time of the accident Exhibit B-3 shows that the said bus was sold to the eleventh defendant on July 9, 1970. Of course, learned counsel for the appellants has argued that exhibit B-3 is a sham document and the transfer mentioned therein was not intended to come into effect. This contention raised during the appellate stage appears to us to be an afterthought because the appellants never raised such a contention in the court belo .....

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..... vehicle notwithstanding the transfer of ownership of the vehicle to some other person. In support of that contention, learned counsel has referred us to the decision in Northern India General Insurance Co. Ltd. v. Kanwarjit Singh [1973] ACJ 119 (All). In that case, a truck was acquired by 'A' in his name and subsequently he got a transfer entry made in the certificate of registration in the name of 'B', who was a domestic servant of 'A'. In an action for compensation arising from an accident involving the said truck, the insurer contended that since the ownership of the truck was transferred in the name of 'B', without prior notice to the insurer, no liability can be fastened on the insurer. The Tribunal foun .....

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..... ertificate of registration. Section 31 is the important provision as it deals with the transfer of ownership. The material portions of Section 31(1) read thus : Transfer of ownership.--(1) Where the ownership of any motor vehicle registered under this Chapter is transferred -- (a) the transferor shall-- (i) within fourteen days of the transfer, report the fact of transfer to the registering authority within whose jurisdiction the transfer is to be effected and shall simultaneously send a copy of the said report to the transferee ;... (b) the transferee shall, within thirty days of the transfer, report the transfer to the registering authority within whose jurisdiction he resides, and shall forward the certificate of registratio .....

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..... ewalal, AIR 1977 Raj 121, adopted the same view. In that decision, the Bench dissented from the views expressed in some of the earlier decisions of the same High Court in Smt. Padmadevi v. Gurbaksh Singh, AIR 1973 Raj 317 and Champalal v. Ramchander, AIR 1976 Raj 75. The Division Bench consisting of their Lordships A. P. Sen and M. L. Jain JJ. in Dewalal's case, AIR 1977 Raj 121, had observed that (at page 128) : ... the sale of a motor vehicle is not governed by Section 54 of the Transfer of Property Act but it being a movable property was to be governed by the provisions of the Sale of Goods Act . . . The provisions of the Act regarding registration and issue of permit have nothing to do with the ownership of the vehicle. They onl .....

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