KOKJE, J. - (1.) THE short point involved in this case is as to whether the liability of the Insurance Company comes to an end after the vehicle insured is sold by the insured person to a third party even when the transfer is not recorded with the Transport Authority and the Registration Certificate of the vehicle continues to be in the name of the insured person. THE learned counsel for the appellant submits that the moment the insured person ceases to have any interest in the vehicle insured, the liability of the Insurance Company comes to an end because when the vehicle which met with accident did not belong to the insured person on the date of the accident, no liability can be fastened on him as owner of the vehicle. THE learned counsel for the respondent on the other hand submits that unless the registration of the vehicle is transferred in the name of a third person, the registered owner of the vehicle continues to be the owner of the vehicle and therefore continues to be responsible for the claim and because such registered owner of the vehicle continues to be liable, the Insurance Company would also under the contract of insurance be liable to pay the amount of compensation to the claimants. In support of his contention of the learned counsel for the respondent relies on a Single Bench decision of this Court in Sajid Mian vs. Ganga (1), as also a Division Bench decision of this Court in Padmadevi vs. Gurbaksh Singh (2) He also relies on another Single Bench decision of this Court in United Insurance Company Ltd. vs. Dhali and Ors. (3) THE learned counsel also placed reliance on a Single Bench decision of the High Court of Madhaya Pradesh in Harcharan Singh vs. Turza Bai, (4)
(2.) I have heard the learned counsel, perused the record and considered the citations. Apart from the reasoning given in the rulings cited at the Bar, I find that the bare provisions of the Motor Vehicles Act, 1988 are clear enough to hold that the insured and the insurer continue to be liable if the transfer of ownership of the Vehicle is not recorded with the Registering Authority. Section 2 (30) of the Act defines the term `owner' to mean a person in whose name a Motor Vehicle stands registered. For the purposes of the Motor Vehicles Act, therefore, "owner" would mean a registered owner and whenever the word `owner' is used in the Motor Vehicles Act it has to be taken to mean the registered owner of the Vehicle. I find that the view that the owner of a vehicle continues to be liable till the registration is transferred from his name to the name of the purchaser is the correct view. The provisions of the Motor Vehicles Act relating to insurance are made with the object of facilitating recovery of compensation from those who are liable. The object is to see that the Insurance Companies liable under the contract of insurance are made to pay the amount without creating any difficulty for the claimants. The claimants can have the only source of knowing as to who is the owner of the vehicle involved in the accident in the Register maintained by the authorities registering the vehicles under the Motor Vehicles Act. Unless a transfer is recorded with the Registering Authorities it would not be possible for the claimants to know as to whether the vehicle has been sold or still owned by the registered owner of the same. In such a situation to hold that the registered owner ceases to have interest in title to the vehicle, the moment the sale is complete under the Sale of Goods Act, would be defeating the very purpose of provisions of Motor Vehicles Act relating to compulsory third party insurance. In such matters hypertechnicalities should not hamper the course of justice. In the light of the view I take this appeal has no force, it has to be dismissed. The learned counsel for the appellant submitted that the Insurance Company will have to pay the amount when under the law the amount is not due because of a specific condition in the contract of insurance that the Insurance Company would not be liable after the insured ceases to have interest in the vehicle. In my opinion in such cases the only course open to the Insurance Company is to pay the amount of award to the claimants and then sue the insured person for reimbursement on the ground that if the insured after having ceased to be the legal owner of the vehicle registered the factum of his ceasing to be the owner by transferring the vehicle in the name of the purchaser in the records of the Registering Authorities, the Insurance Company would not have been liable to pay the amount. Though the Insurance Company cannot refuse to make payment to the claiments it can certainly recover the amount from the insured person if it can prove that the accident had taken place after the insured person had ceased to be the owner of the vehicle under the Sale of Goods Act, though the transfer of ownership was not recorded with the Registering Authorities. The appeal is dismissed. .;