Judgments related to Hypothecation & Transfer of vehicle under MV Act:

 

Judgments related to  Hypothecation & Transfer of vehicle under MV Act:

 

Hypothecation

 

1.Motor Vehicles Act, 1988 S.94, 95, 145, 147,149(2), 155 truck

was insured with the appellant in the name of the husband of respondent truck was hypothecated to a Bank renewal of contract of insurance used to be done by the Bank no step was taken either by the Bank or the legal heirs of deceased to get the registration of vehicle transferred in their names vehicle met with

accident driver died driver's legal heirs filed an application for grant of compensation against the widow of the deceased and the appellant. Insurance Company Workmen's Compensation Commissioner directed payment of compensation to widow of truck driver High Court dismissed appeal. Appeal against held, one of the grounds which is available to the Insurance Company for denying its statutory liability is that the policy is void having been obtained by reason of nondisclosure of a material fact or by a representation of fact which was false in some material particular once a valid contract is entered into, only because of a mistake, the name of original owner not been mentioned in the certificates of registration, it cannot be said that the contract itself is void unless it was shown that in obtaining the said contract, a fraud has been practiced no particulars of fraud pleaded no infirmity in High Court's judgment

2009(1) SCC 558 –U.I.I v/s Santro Devi

2.Hypothecation finance company is not liable to pay compensation.

2015 ACJ 1 (SC) – HDFC Bank Resham (FB), 2015

ACJ 1513 (SC) – Central Bank v/s Jagbir Singh.

2016 ACJ 1112 (CHH) – Judgement of Godavari

Finance Com v/s Degala Satyanarayanamma,

reported in 2008 ACJ 1612 (SC)

3.Hirepurchase agreement – u/s 2(30) – registered owner sold vehicle on Hire purchase agreement and vehicle was in possession and control of the purchaser at the time of accident – who can be held liable? Held ; Transferee owner and driver of the said vehicle and registered owner.

2017 ACJ 2614 (HP) HDFC

Bank Resham (FB), 2015

ACJ 1513 (SC) followed

When control of the vehicle hired is with the hirer, policy is deemed to be transferred along with the vehicle – UPSRTC v/s. National Insurance Com. 2021 ACJ 2282 (SC)

4. IC issued policy in favour of a person who is in the actual possession of the vehicle but the registered owner – accident occurred – IC disputed its liability on the ground that insured is not the registered owner – whether sustainable? Held ; No.

It was the duty of the IC to verify said fact before issuing the Policy.

2017 ACJ 2636 (HP)

Transfer of the Vehicle:

1.Accident insurance damage to the vehicle transferof the vehicle liability of the IC – Transferee never got policy transferred in his name Transferee contended that transfer of ownership takes place by delivery of goods and by passing of consideration under the Sale of Goods Act u/s 50 of the MV Act, transfer of registration is required. Held ; transfer of vehicle is different from transfer of registration of vehicle Right to enforce an obligation under the policy against IC could arise for the transferee only

by obtaining a transfer of policy failure to obtain a transfer of policy may not affect the right of third party under the Act but will have bearing on the right of the transferee himself claim by

transferee for damage to his vehicle is maintainable against the IC, without getting the policy transferred in his name is not maintainable.

2012 ACJ 1110 (P&H)

1A. Own damage – claim by a person who is not the registered owner of the damaged vehicle – whether claim petition at his behest is maintainable? Held.Yes. As provided under the Sale of Goods Act.

2018 ACJ 714 (Mad)

1AA. Agent of the owner is not empowered to file petition for own damage under the M V Ac.

2019 ACJ 162 (Kar)

1AAA Vehicle transferred in favour of third party but the insurance policy not trandferred whether it amounts to violation of Section 157(2) of the MV Act? No. As provided u/s 157(1) of the Act, insurance policy is deemed to be transferred.

2022 ACJ 1468 (AP)

2.Transfer of vehicle IC dispute it's liability on the ground that insurer had transfer his vehicle and obligation to indemnify the insured arises when insured is held vicariously liable for negligence of driver whether sustainable? Held ; No. IP stands,

deemed to be transfer in the name of transferee IC is liable.

2013 ACJ 2235 (Mad)

3.U/s 157(1) Transfer of vehicle Deemed transfer of certificate of insurance Whether IC can be held liable? Held;Yes.

2014 ACJ 818 (Ker), 2016 ACJ 2417 (HP) – 2003

ACJ 534 (SC), Rikhi Ram v/s Sukhrania and 2006 ACJ

1441 (SC), UII Com v/s Tilak Singh followed.

4. Transfer of the vehicle certificate of insurance – once possession is taken over by the transferee along with certificate of insurance, IC can not evade it's liability to pay compensation.

2014 ACJ 1266 (SC) – Mallamma v/s NI Com, 2014

ACJ 2751 (All), 2017 ACJ 796 (Ker)

5. Vehicle transferred to transferee – policy renewed in the name of original owner, though vehicle was transferred – whether in such situation IC can be allowed to take stand that nonrenewal

of the policy in the name of new owner will give it a chance to absolve its liability? Held – No.

2017 ACJ 2267 (HP)