RC Owner Liability

You may be criminally liable if the driver had no driving licence, but You can't escape from liabilty if the injured filed claim petition.

Yes, the driver did not have a driving licence nor insured the vehicle.

Can I not prove that I did not have any relationship with the driver as the driver has purchased the same from some dealer and the same is recorded in the FIR

Since the vehicle would have changed many hands in last 15 years, I was not even aware whether the vehicle is still in my name or not, how can I ensure that the vehicle is used with insurance and driven by licenced people.

Is there any way out for fighting the case.

Police have recovered the vehicle along with Original RC from the driver and the driver has admitted that he purchased the same from some local trader

Have you got the copy of sale agreement? or an affidavit of sale? or any document regarding the sale of vehicle? Pls checkup?  You may prove that you have sold the vehicle long time back.