Car ownership transfer: The Himachal Pradesh High Court has said that if a person sells their vehicle but does not officially transfer the ownership, they will still be held responsible for any accident involving that vehicle. The court said the seller remains the “legal owner” until the registration transfer is completed under Section 50 of the Motor Vehicles Act, 1988.
A Tragic Case
The case began with a tragic accident in 2016. A car registered under the name of Boby Chauhan rolled down a hill in Himachal Pradesh, killing three people. Chauhan said he had sold the car to the driver, Gian Chand, before the crash. But since the name change was never officially done with the transport department, the court said Chauhan was still the legal owner.
The court pointed to Section 50 of the Motor Vehicles Act, which clearly says that when a car is sold, both the buyer and the seller must inform the Regional Transport Office (RTO) using Form 29 and Form 30. The new owner’s name must appear in the records. Only then does the legal responsibility move to the buyer.
Court Explains Legal Responsibility
The High Court said selling a vehicle alone does not change who owns it legally. Until the transfer papers reach the RTO and the records are updated, the person whose name appears on the registration certificate stays responsible for everything, including accidents.
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The judges made it clear that people often sell vehicles casually and hand them over without paperwork. This creates confusion and legal trouble later. If an accident happens, the registered owner has to face the law, even if they have already sold the car, reported Business Standard.
As one legal expert puts it “Section 2(30) defines the ‘owner’ as the person in whose name the vehicle is registered. Under Section 50, transfer of ownership takes effect only when duly intimated and endorsed by the registering authority. Until then, the seller remains the registered owner and is legally liable for any accident involving the vehicle.”
What Vehicle Owners Should Do?
The court advised all vehicle owners to follow the law strictly when selling their cars or bikes. The seller must submit Form 29, which informs the RTO that the vehicle is being transferred, and Form 30, which confirms that the buyer has taken ownership.
