Motor Vehicles Act Section 50 — Transfer of ownership
CHAPTER IV REGISTRATION OF MOTOR VEHICLES
Civil
Summary
Sub-section (1) deals with what happens when the ownership of a registered motor vehicle is transferred. It sets out separate duties for the person selling or giving away the vehicle (the transferor) and the person receiving it (the transferee).
Under clause (a) of sub-section (1), the transferor must report the transfer to the registering authority. If the vehicle is registered within the same State, this report must be made within fourteen days of the transfer, in the form, with the documents, and in the manner prescribed by the Central Government, and a copy of the report must be sent to the transferee at the same time.
Under sub-clause (ii) of clause (a) of sub-section (1), if the vehicle is registered outside the State, the transferor must, within forty-five days of the transfer, forward to the registering authority either the no objection certificate obtained under section 48, or, if no such certificate was obtained, either the receipt obtained under sub-section (2) of section 48, or the postal acknowledgement received if the transferor sent an application by registered post with acknowledgement due to the registering authority, along with a declaration that no communication refusing the certificate or requiring compliance with any direction has been received.
Under clause (b) of sub-section (1), the transferee must, within thirty days of the transfer, report the transfer to the registering authority in whose jurisdiction the transferee has his residence or place of business where the vehicle is normally kept, and must forward the certificate of registration to that authority along with the prescribed fee and a copy of the report received from the transferor, so that the transfer of ownership can be entered in the certificate.
Sub-section (2) covers two situations: where the person in whose name the vehicle is registered dies, or where the vehicle has been purchased or acquired at a public auction conducted by or on behalf of the Government. In either case, the person who succeeds to possession of the vehicle or who purchased or acquired it must apply to the registering authority in whose jurisdiction he has his residence or place of business where the vehicle is normally kept, in the manner, with the fee, and within the period prescribed by the Central Government, to transfer the ownership into his name.
Sub-section (3) states that if the transferor or transferee fails to report the transfer within the specified period, or if the person required to apply under sub-section (2) fails to do so within the prescribed period, the registering authority may, considering the circumstances, require that person to pay an amount not exceeding one hundred rupees, as prescribed under sub-section (5), instead of any action that may be taken under section 177. However, if that person fails to pay the amount, action under section 177 shall be taken against him.
Sub-section (4) provides that once a person has paid the amount under sub-section (3), no action shall be taken against him under section 177.
Sub-section (5) allows a State Government to prescribe different amounts for the purposes of sub-section (3), depending on the period of delay by the transferor or transferee in reporting the transfer, or by the other person in making the application under sub-section (2).
Sub-section (6) states that upon receiving a report under sub-section (1) or an application under sub-section (2), the registering authority may cause the transfer of ownership to be entered in the certificate of registration.
Sub-section (7) provides that when a registering authority makes such an entry, it shall communicate the transfer of ownership to the transferor and to the original registering authority, if it is not the original registering authority.
Official Text
(1) Where the ownership of any motor vehicle registered under this Chapter is transferred,—
(a) the transferor shall,—
(i) in the case of a vehicle registered within the same State, within fourteen days of the transfer, report the fact of transfer, in such form with such documents and in such manner, as may be prescribed by the Central Government to the registering authority within whose jurisdiction the transfer is to be effected and shall simultaneously send a copy of the said report to the transferee; and
(ii) in the case of a vehicle registered outside the State, within forty-five days of the transfer, forward to the registering authority referred to in sub-clause (i)— (A) the no objection certificate obtained under section 48; or (B) in a case where no such certificate has been obtained,— (I) the receipt obtained under sub-section (2) of section 48; or (II) the postal acknowledgement received by the transferred if he has sent an application in this behalf by registered post acknowledgement due to the registering authority referred to in section 48, together with a declaration that he has not received any communication from such authority refusing to grant such certificate or requiring him to comply with any direction subject to which such certificate may be granted;
(b) the transferee shall, within thirty days of the transfer, report the transfer to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward the certificate of registration to that registering authority together with the prescribed fee and a copy of the report received by him from the transferor in order that particulars of the transfer of ownership may be entered in the certificate of registration.
(2) Where—
(a) the person in whose name a motor vehicle stands registered dies, or
(b) a motor vehicle has been purchased or acquired at a public auction conducted by, or on behalf of, Government, the person succeeding to the possession of the vehicle or, as the case may be, who has purchased or acquired the motor vehicle, shall make an application for the purpose of transferring the ownership of the vehicle in his name, to the registering authority in whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, in such manner, accompanied with such fee, and within such period as may be prescribed by the Central Government.
(3) If the transferor or the transferee fails to report to the registering authority the fact of transfer within the period specified in clause (a) or clause (b) of sub-section (1), as the case may be, or if the person who is required to make an application under sub-section (2) (hereafter in this section referred to as the other person) fails to make such application within the period prescribed, the registering authority may, having regard to the circumstances of the case, require the transferor or the transferee, or the other person, as the case may be, to pay, in lieu of any action that may be taken against him under section 177 such amount not exceeding one hundred rupees as may be prescribed under sub-section (5):
Provided that action under section 177 shall be taken against the transferor or the transferee or the other person, as the case may be, where he fails to pay the said amount.
(4) Where a person has paid the amount under sub-section (3), no action shall be taken against him under section 177.
(5) For the purposes of sub-section (3), a State Government may prescribe different amounts having regard to the period of delay on the part of the transferor or the transferee in reporting the fact of transfer of ownership of the motor vehicle or of the other person in making the application under sub-section (2).
(6) On receipt of a report under sub-section (1), or an application under sub-section (2), the registering authority may cause the transfer of ownership to be entered in the certificate of registration.
(7) A registering authority making any such entry shall communicate the transfer of ownership to the transferor and to the original registering authority, if it is not the original registering authority.