Karnataka high court rules registered vehicle owner liableuntil official ownership transfer, orders Rs 47 lakh payout

Bengaluru: The Karnataka high court has ruled that the liability of a vehicle remains with the registered owner until the ownership transfer is officially recorded in the registration certificate (RC).A division bench, comprising Justices SG Pandit and KV Aravind, made the observation recently while relying on a Supreme Court decision.The court directed Marathahalli resident Sunil Kumar to pay the entire modified compensation of Rs 47 lakh to the family of Hanumantha, who died after being hit by a motorcycle on June 18, 2020.However, Kumar claimed he had sold the vehicle to one Shabrez, who denied the transaction. The Motor Accident Claims Tribunal on Dec 31, 2024, awarded Rs 33 lakh to the victim's family, holding both Kumar and Shabrez jointly liable for the payment.Both Kumar and Shabrez challenged the tribunal's verdict. The family members of Hanumantha filed a separate appeal, citing the income tax returns filed by the deceased.Hanumantha owned earthmover equipment and was a vendor in a wine shop.The division bench noted that the registration of the motorcycle still remains in the name of Kumar and hence he is liable to pay the compensation amount.Tribunal erred In Its calculationThe division bench pointed out that the tribunal had erred in taking the average of the annual income (at Rs 2.9 lakh) of the deceased as per his income tax returns for computing the compensation amount."The last of the returns showing the highest income can be the basis, subject to there being a gradual increase and such return having been filed before the date of the accident. We emphasise that consistent income is the basis for the computation of compensation," the bench said.The tribunal committed an error in taking the average income of the three years. The return nearest to the accident date was for the assessment year 2018–19 and the I-T returns were filed on Aug 29, 2018, declaring an income of Rs 3.5 lakh and after deduction of tax, it is Rs 3.4 lakh, the bench said. "We find that Rs 3.4 lakh would be appropriate to be taken as the basis for computing the compensation," the division bench observed while enhancing the compensation amount by Rs 14 lakh over and above that awarded by the tribunal.While the appeals filed by Hanumantha's family and Shabrez were partly allowed, the one filed by Kumar was dismissed.