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29. Brij Bihari Gupta vs. Manmet and Ors.
Civil Appeal No. 6338 – 6339 of 2024/
2025 INSC 948
August 8, 2025
Motor Vehicle – Compensation – Liability – Transfer of vehicle from owner to driver – Not a legal transfer in the eyes of the law – Owner liable to compensate – Insurance company liable to indemnify owner – Insurance company cannot seek extinguishment of insurance policy on the basis of unrecognised transfer of vehicle. [S. 50, Motor Vehicle Act, 1988].
FACTS
The case arose out of a motor accident involving a goods vehicle in Chhattisgarh. Several petitions were made before the Hon’ble Motor Accident Claims Tribunal. The Hon’ble Tribunal awarded compensation and held that (i) the registered owner, (ii) the driver (Appellant/ostensible owner of the vehicle), and (iii) the insurance company (Respondent) were jointly liable. Aggrieved, an appeal was filed before the Hon’ble Chhattisgarh High Court by the Insurance company - Respondent. The Hon'ble High Court observed that the car was not yet legally transferred in the name of the driver (i.e. the Appellant/ostensible
