Vehicle ownership transfer: Hand over only after submitting Form 29

Seller must ensure the vehicle remains insured during ownership transfer so that any liability is borne by the insurer, as per the Himachal Pradesh High Court ruling

The Himachal Pradesh (HP) High Court recently ruled that a vehicle’s registered owner remains legally responsible for any accident until its ownership is officially transferred, even if the vehicle was sold earlier. 

The case 

In 2016, a car registered in the name of  Boby Chauhan rolled down a ravine in Himachal Pradesh, killing three people. Chauhan claimed he had sold the car to the driver, Gian Chand, before the accident. However, the HP High Court held that under Section 50 of the Motor Vehicles Act, 1988, the ownership had not been officially transferred as the required intimation of transfer had