You Sell Your Car, Not Your Liability: Understanding Owner Liability Under the Motor Vehicles Act, 1988
YOU SELL YOUR CAR, NOT YOUR LIABILITY The subject matter revolves around a critical legal conflict arising from the definition of "owner" under the Motor Vehicles Act, 1988 (MV Act) , specifically in the context of vehicle sales and subsequent third-party accident liability. The core issue is that the law creates a distinction between the actual, commercial ownership (which transfers upon sale and delivery) and statutory ownership (which is strictly tied to the vehicle's registration record). 1. THE STATUTORY POSITION: LIABILITY BY REGISTRATION SECTION 2(30) OF THE MV ACT : This section defines the "owner" as the person in whose name the motor vehicle stands registered with the registering authority (RTO). PURPOSE OF THE DEFINITION: The Supreme Court has consistently upheld this definition, primarily to protect third-party victims of road accidents. The law aims to ensure that a victim can easily identify the lega...