Ajit pundit 21 October 2019

Notice from court of small causes - reg motor accident claim

Dear experts, This is with respect to a court notice I received from 'Court of small causes' Bangalore. Case summary: I have exchanged my old car in Mandovi motors for a new car on 27-12-2018. They sold my old used car to another person after few months. I received a call from the showroom by July - 2019 that the ownership has been transferred to the new buyer's name. I verified the same on RTO Parivahan website. Insurance from HDFC Ergo continues to be in my name even now. The original insurance at the time of sale got expired by Feb-2019 and Mandovi motors must have renewed it in my name itself, without my written permission. Now the new owner met with an accident injuring a third person. This incident happened in August 2019, clearly after the ownership was transferred to the new buyer. This third person has claimed for insurance coverage and I was served court notice being the policy holder. I am asked to appear before the court on 28th this month. First party is the current owner who is responsible for the accident. Second party is myself Third party is HDFC ergo insurance. I would seriously appreciate if you experts can answer my following questions. 1. Is it mandatory for me to go to the court? If not, any implications in the above mentioned scenario where I am just a policy holder. 2. If I have to go, should I hire a lawyer? 3. Any other things I may need to know regarding this case. Thanks in advance,

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3 Replies

Shashi Dhara 22 October 2019

You engage advocate and file objections and also file application to implead the show room owner as additional party

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 23 October 2019

Has the vehicle been transferred to the new owner in RTO records? RTO will not transfer the vehicle to the new owner unless there is insurance in his own name. He has to submit his application along with insurance. Most probably the vehicle was not transferred to the name of the new owner in RTO records on the date of the accident. There are judgments saying that the seller has vicarious responsibility for any accident until and unless the vehicle is tranferred to the name of the buyer in RTO records. Hence you have a tough time. You have to go to court on the specified date. You appear beofre the court and pray for adjourment to enable you to collect facts for your defence and engage a lawyer. You collect all facts regarding ownership transfer, insurance transfer etc. Generally used car dealers keep all documents as they are until they sell the car to the new owner. In between if they have to take a new insurance they can take it only in the name of the seller owner and not in their own name. RTO will insist in the name of the new owner before tranfer of the vehicle. This is a problem in selling used vehicles and it is more so when you sell through a used car dealer.