Page 52 - The Motor Vehicles Act, 1988

38 THE MOTOR VEHICLES ACT, 1988 SECTION 51

section (2) (hereafter in this section referred to as the other person) fails to make such
application with the period prescribed, the registering authority may, having, regard
to the circumstances of the case, require the transferor or the transferee, or the other
person, as the case may be, to pay, in lieu of any action that may be taken against him
under section 177 such amount not exceeding one hundred rupees as may be prescribed
under sub-section (5):
PROVIDED that action under section 177 shall be taken against the transferor or
the transferee or the other person, as the case may be, where he fails to pay the said
amount.
(4) Where a person has paid the amount under sub-section (3), no action shall be
taken against him under section 177.
(5) For the purposes of sub-section (3), a State Government may prescribe different
amounts having regard to the period of delay on the part of the transferor or the transferee
in reporting the fact of transfer of ownership of the motor vehicle or of the other person
in making the application under sub-section (2).
(6) On receipt of a report under sub-section (1), or an application under sub-section
(2), the registering authority may cause the transfer of ownership to be entered in the
certificate of registration.
(7) A registering authority making any such entry shall communicate the transfer
of ownership to the transferor and to the original registering authority, if it is not the
original registering authority.
COMMENT
The person, in whose name the vehicle has been registered under the provisions of Motor
Vehicles Act, 1988, shall be deemed to be the owner of the vehicle.—Balbir Singh v. Pushpa
Singh 1993(2) ACC 525
Even though the vehicle has been transferred prior to the accident taking place, but the
registration continues in the name of registered owner at the time of accident, registered owner is
to bear the liability of the accident.—Dr.Gopal Ramchandani v. Onkar Singh 1993 ACJ 577
The provisions only cast an obligation on the transferor and the transferee to report to the
registering authority after the transfer of vehicle has already taken place. The provisions have
nothing to say as regards the ownership of vehicles.—Anand Sarup Sharma v. P.P. Khurana AIR
1989 Del 88
51. Special provisions regarding motor vehicle subject to hire-purchase
agreement
(1) Where an application of registration of motor vehicle which is held under a
hire-purchase, lease or hypothecation agreement (hereafter in this section referred to as
the said agreement) is made, the registering authority shall make an entry in the certificate
of registration regarding the existence of the said agreement.
(2) Where the ownership of any motor vehicle registered under this Chapter is
1
transferred and the transferee enters into the said agreement with any person, the [last
registering authority] shall, on receipt of an application in such form as the Central
Government may prescribe from the parties to the said agreement, make an entry as to
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the existence of the said agreement in the certificate of registration [and an intimation
in this regard shall be sent to the original registering authority if the last registering
authority is not the original registering authority].