Kerala High Court Upholds Tribunal's Decision on Motor Accident Compensation

Registered Vehicle Owner Held Liable Despite Claims of Ownership Transfer

In a recent ruling, the Kerala High Court upheld the decision of the Motor Accident Claims Tribunal, Irinjalakuda, which held the registered owner of a motorcycle liable for compensation in a motor accident case. The case, Abdul Khader v. Arumugan, revolved around the liability of compensation following a tragic accident that resulted in the death of Sujith, the victim.

The accident occurred on September 7, 2006, when Sujith was hit by a motorcycle ridden by the second respondent in a rash and negligent manner. The claimants, the legal representatives of the deceased, approached the tribunal seeking compensation.

The primary contention in the appeal was the liability of Abdul Khader, the registered owner of the offending vehicle, who argued that he had transferred ownership of the motorcycle to Ansari, the additional fifth respondent, prior to the accident. Despite this claim, the tribunal found that the transfer of ownership was not reflected in the official registration records, which still listed Abdul Khader as the owner.

The High Court, presided over by Justice Shoba Annamma Eapen, reiterated that under Section 2(30) of the Motor Vehicles Act, 1988, the registered owner of a vehicle is deemed liable for any compensation claims arising from accidents, irrespective of any unregistered transfers. The court emphasized that the purpose of this provision is to ensure that victims or their legal heirs are not left in uncertainty regarding compensation claims.

The appellant also claimed that an indemnity bond was executed by the transferee and the rider, which was not considered by the tribunal. However, upon review, the High Court noted that there was no evidence of such a bond being produced before the tribunal, thereby rejecting the appellant's argument.

The tribunal had previously directed the insurance company to compensate the claimants and subsequently recover the amount from both the registered owner and the rider. The High Court supported this decision, making it clear that Abdul Khader could seek recovery of the compensated amount from the additional fifth respondent through due legal process, should the compensation be realized from him.

The appeal was partly allowed, with the High Court affirming the tribunal's decision and clarifying the legal recourse available to Abdul Khader for recovering the compensation amount.

Bottom Line:

Liability of compensation in motor accident cases primarily rests with the registered owner of the vehicle as per Section 2(30) of the Motor Vehicles Act, 1988. Indemnity bonds, if not produced or proven, cannot be considered for exoneration of liability.

Statutory provision(s): Section 2(30), Section 50 of the Motor Vehicles Act, 1988

Abdul Khader v. Arumugan, (Kerala) : Law Finder Doc Id # 2777129