When most of us buy a car financed by a bank on hire-purchase agreement, the financier has ownership rights over the vehicle and could take it back on default of payment. So, if the vehicle meets with an accident, should the financier, as virtual owner, be made liable to compensate the victims?
This interesting question reached SC for adjudication after a Motor Accident Claims Tribunal (MACT) and the Andhra Pradesh HC fastened the liability on the financier and asked it to compensate the accident victim.
A Bench comprising Justices S B Sinha and V S Sirpurkar ruled, “In a case of a motor vehicle which is subjected to a hire purchase agreement, the financier cannot ordinarily be treated to be the owner. The person who is in possession of the vehicle, and not the financier, being the owner would be liable to pay damages for motor accidents.”
One Praveen Kumar bought a mini truck with Rs 50,000 financed by Godavari Finance Company in 1995. Before he could discharge the liability, the vehicle met with an accident and one D Balakrishna died leading to filing of claims petition by the widow.
The Times of India 15th April 2008 Delhi P15
With thanks from The Time of India
©All rights reserved with the Bennett Coleman & Co. Ltd
For any query:- legalpoint@aol.in
The Times of India 15th April 2008 Delhi P15
With thanks from The Time of India
©All rights reserved with the Bennett Coleman & Co. Ltd
For any query:- legalpoint@aol.in
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