Jamal Amin
Asked June 29, 2016

Vehicle sold, but not transferred. Legal liability?

  • 1 Answer

Mere papa ne ek gadi li thi 2009 mein. 2011 mei vo bech di. Mere papa ki death 2013 mei hui is liye gadi transffer nai ki thi. Abhi kuch din pehle uss gadi ka accident hogaya, usme ek admi ki death ho gayi aur vo log compensation ki claim kr rahe hai. Gadi full insured hai. plz suggest me what to do.

Answer 1

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Saurabh Kumar

It is to be noted that you sold the vehicle in 2011 itself, but you failed to transfer ownership through valid paperwork. This means that legally you still remain the owner of the vehicle, and not that person, and are thus you are responsible for whatever incidents take place that involve the vehicle.

According to the Indian Motor Vehicle (IMV) Act 50, the transferor (seller) has to inform the Regional Transport Offices (RTO) within 14 days of the transfer of ownership. Similarly the Act also instructs the transferee (buyer) to inform the RTO about the change in vehicle ownership and produce all the required documents within 30 days of the transfer.

Both parties should file an application before the change of ownership and forms have been provided for the purpose. The transferor is required to fill Form 29 while the transferee is required to fill in the Form 30. Thus, you were supposed to make sure that the vehicle registration had been changed in the name of the transferee.

As a result, you remain liable for the accident that took place. There is no such legal recourse that can spare you from the liability.

Thus, I advise you to settle the compensation part in these ways-

  • Via litigation, which is time consuming and costly.
  • People's Court or Lok Adalat- Relatively less expensive option, and better. It is a good alternative to the Motor Accident Claims Tribunal (MACT), which is  overloaded with motor accident cases.
  • Insurance Companies- Private General insurance companies are taking active interest these days in solving motor claims expeditiously. They are seen to directly approach the victim's family for negotiations as against the legal recourse.


    Thus, I suggest you file a case in a Lok Adalat or negotiate through your insurance company.

    The procedure followed at a Lok Adalat is very simple. The Lok Adalat is presided over by a sitting or retired judicial officer as the chairman, with two other members, usually a lawyer and a social worker. In Lok Adalats, it is easier to settle money claims since in most such cases the quantum alone may be in dispute. Thus the motor accident compensation claim cases are brought before the Lok Adalat and a number of cases were disposed of in each Lok Adalat. One important condition is that both parties in dispute should agree for settlement through Lok Adalat and abide by its decision.[1]

    If the parties fail to agree to get the dispute resolved through Lok Adalat, the regular litigation process remains open for the contesting parties.


    SOURCE- http://www.thehindu.com/news/cities/bangalore/transfer-vehicle-to-buyers-name-after-it-is-sold/article3939442.ece






    [1] In several instances, the Supreme Court has held that if there was no consent the award of the Lok Adalat is not executable

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