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2014 (1) TMI 1853

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..... 166 of 2009 - - - Dated:- 17-1-2014 - Mr T.V. Nalawade, J. For The Appellant : Shri E. Afonso, Advocate For The Respondents : Shri D. Pangam, Advocate for Respondents Nos. 1 and 2, Shri Y.V. Nadkarni, Ms. D. Shirgam, Advocate for Respondent No. 6 and Shri V. Palekar, Advocate JUDGMENT T.V. Nalawade, J. 1. The appeal is filed against the judgment and award of Claim Petition No. 86/2000 which was pending before MACT, Salcete, Margao. Both the sides are heard. 2. During arguments, the learned Counsel for appellant submitted that original respondent No. 5, The United India Assurance Company Ltd. was liable to pay the compensation as the vehicle was insured by the owner with this Insurance Company and if it is found that respondent No. 2 from the Claim Petition was wrongly deleted, the matter be remanded back. Other side was heard on this point also. Learned Counsel for original respondent No. 3, the dealer of the vehicle supported the appellant on the aforesaid point. 3. In short, the facts leading to the institution of the appeal can be stated as follows: The accident took place on 2/03/2000. One Mahindra jeep bearing Temporary Registration .....

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..... nsurance for further period till it was delivered to the proposed purchaser. It is the case of respondent No. 2 that accordingly respondent No. 3 had insured that vehicle with respondent No. 4, the appellant. 7. Respondent No. 5, the United India Assurance Company Ltd. Filed written statement and took the defence that it had issued the policy only to cover the risk during the transit of vehicle from the place of manufacture to Goa. It took the defence that the vehicle left Nashik on 16/02/2000 and it reached Goa on 19/02/2000 and it was reached to the dealer, respondent No. 3 on the same day and so the period of policy expired on 19/02/2000. It took the defence that the respondent No. 4 had given the cover of policy to this vehicle after 19/02/2000 and it was in existence on the date of the accident. 8. Respondent No. 6, MPT took the defence that the vehicle involved in the accident was never purchased by it. It gave the numbers of the vehicle which were sold to it by respondent No. 2. 9. The remaining respondents including the dealer did not file written statement. The Tribunal deleted respondent No. 5, the United India Assurance Company Ltd. from the proceedings on its r .....

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..... amination shows that on 2/03/2000 i.e. on the date of the accident the vehicle was in the possession of respondent No. 3, dealer. His evidence shows that the vehicle was with the dealer for pre-delivery inspection and trial. Copy of cover note issued by present appellant in respect of Trade Certificate No. GDM 1005/A is on the record. The cover note shows that insurance cover was given in respect of such vehicles by appellant for the period 30/03/1999 to 29/03/2000. The rules framed with regard to the necessity of taking such steps by the dealer are being discussed hereinafter. This record is also not disputed. 12. Central Motor Vehicles Rules, 1989 were referred by the learned Counsel for the appellant. Rules 33,35(1),37,39,41(a,c,g) and 42 were referred, which read as follows: 33. Condition for exemption from registration -For the purpose of the proviso to section 39, a motor vehicle in the possession of a dealer shall be exempted from the necessity of registration subject to the condition that he obtains a trade certificate from the registering authority having jurisdiction in the area in which the dealer has his place of business in accordance with the provisions of this .....

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..... id rules, submission was made by the learned Counsel for the appellant that the Trade Certificate could not have been used by the dealer. The Rules show that they give procedure which is required to be followed by the dealer. The Temporary Registration Certificate is issued for different purpose and the Trade Certificate is issued for other purpose. The provisions with regard to issue of Temporary Registration Certificate are as follows: Sections 39, 40, 43(1) 43(2) and 146(1) of the Motor Vehicles Act provide as under: 39. Necessity for registration - No person shall drive any motor vehicle and no owner of a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place unless the vehicle is registered in accordance with this Chapter and the certificate of registration of the vehicle has not been suspended or cancelled and the vehicle carries a registration mark displayed in the prescribed manner: Provided that nothing in this section shall apply to a motor vehicle in possession of a dealer subject to such conditions as may be prescribed by the Central Government. 40. Registration, where to be made - Subject to the provisions o .....

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..... held jointly and severally liable along with the other two respondents. No fault can be found with the decision given by the Tribunal. 15. Another defence taken by the appellant that the dealer cannot be treated as the owner and MPT was the owner due to the Sale Certificate issued by the manufacturer has also no force. Firstly, when the Insurance Company had issued the cover note in respect of the vehicle in favour of the dealer such defence is not available. Secondly, in view of the record and provisions of law, it cannot be said that MPT had become the owner of the vehicle. It can be said that purchase order was placed by MPT, but the sale was not completed. Routine things had to be done like checking the vehicle, testing of the vehicle and only after that the proposed owner would have accepted the vehicle. Till that time, the manufacturing company remained the owner. The evidence given by the claimant shows that the vehicle was subsequently sold by the manufacturing company to other party. The word owner is not used and the word insured is used to describe the party in chapter XI of the Act and person like dealer who is having possession of the vehicle under agreement wi .....

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