Chhattisgarh High Court

Liability for motor accident compensation extends to registered owner, possessor, and dealer.

DOCTOR DAS MAHANT @ LUKKY DAS MAHANT vs KANHAIYA LAL SAHU

Chhattisgarh High CourtJUDGMENT: March 16, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

On September 15, 2018, Ku. Sonam Sahu was returning home on a scooter when an offending tractor (registration No. CG-06-GC-7757), driven by appellant No. 1, negligently collided with her scooter from the rear, causing grievous injuries from which she died on the way to the hospital.

Source reference: para. 2

The claimants, parents of the deceased, filed a claim petition seeking compensation, alleging the deceased was a 27-year-old tutor earning Rs. 30,000 per month.

Source reference: para. 3

The appellants (driver and possession holder) argued the deceased was negligent and that appellant No. 2 (possession holder) never possessed the offending vehicle.

Source reference: para. 3

Respondent No. 4 (dealer) stated that Lingraj Sahu (respondent No. 3) was the registered owner, but the vehicle was in possession of Radheshyam Patel (appellant No. 2).

Source reference: para. 3

Lingraj Sahu, the registered owner, remained ex-parte before the Tribunal.

Source reference: para. 4

The dealer's witness stated that Lingraj Sahu was the owner but Radheshyam Patel purchased the vehicle through a sale certificate dated December 7, 2018.

Source reference: para. 7

Radheshyam Patel's Section 161 Cr.P.C. statement indicated the dealer recovered the tractor from Lingraj Sahu due to non-payment of installments and then sold it to Radheshyam Patel without Lingraj Sahu's consent.

Source reference: para. 7

No steps were taken to transfer the name in the registering authority's records from Lingraj Sahu.

Source reference: para. 8

The Tribunal awarded Rs. 11,72,400/- and fastened liability jointly and severally upon the driver, possession holder, registered owner, and dealer.

Source reference: para. 1, 6, 8
02

Issues

1. Whether the Motor Accident Claims Tribunal erred in fastening liability jointly and severally on the driver, possession holder, registered owner, and dealer of the offending vehicle.

Source reference: para. 4
03

Law Applied

The court applied the principle that liability for motor accident compensation should generally be fastened upon the registered owner of the vehicle.

Source reference: para. 9

It relied on the Supreme Court's judgment in Naveen Kumar Versus Vijay Kumar and Others (2018) 2 SCC 14, which defined "owner" as the person whose name is reflected in the records of the registering authority, and held such person liable to pay compensation.

Source reference: para. 4
04

Reasoning

The court affirmed the Tribunal's decision by applying the rule that the registered owner is typically liable.

Source reference: para. 9

However, it reasoned that in this specific case, both the possession holder (Radheshyam Patel) and the dealer (M/s Swami Agro Engineering Works) were aware that Lingraj Sahu remained the registered owner, yet they proceeded with the sale transaction.

Source reference: para. 8, 9

Despite this knowledge, no steps were taken to formally transfer the ownership in the registering authority's records.

Source reference: para. 8

Therefore, the court concluded that the Tribunal was correct in broadening the liability beyond just the registered owner to include the driver, possession holder, and dealer, given their respective roles and knowledge of the ownership status and transaction.

Source reference: para. 8, 9

The court also found the compensation awarded by the Tribunal to be "just and proper."

Source reference: para. 6
05

Holding

The High Court dismissed the appeal, holding that no case was made out to interfere with the impugned award.

The court upheld the Tribunal's decision to fasten liability jointly and severally upon the driver, possession holder, registered owner, and dealer of the offending vehicle.

Source reference: para. 1, 9
Chhattisgarh High Court

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DOCTOR DAS MAHANT @ LUKKY DAS MAHANTvsKANHAIYA LAL SAHU

Chhattisgarh High Court · March 16, 2026

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