Authority: High Court of Gujarat, Ahmedabad Bench

Order Date: 09/10/2026

Case Overview

  • Parties: Shriram Finance Company Limited (appellant) vs. Aartiben Bharatbhai Pethani & Ors. (respondents).
  • Appeal filed under Section 173 of the Motor Vehicles Act, 1988 against the judgment and award dated 17‑01‑2017 passed by the Motor Accident Claims Tribunal, Rajkot in Motor Accident Claim Petition No. 1026 of 2011.
  • Core dispute: Whether Shriram Finance, as holder of a Hire‑Purchase Agreement (HPA) and hypothecation of the Bajaj auto‑rickshaw involved in the accident, qualifies as the "owner" under Section 2(19) of the Motor Vehicles Act and is therefore liable for compensation.
  • The appellant, represented by Advocate Mr. Manish J. Patel, contended that the vehicle’s legal owner was Mr. Vijaybhai Vachhrajani, the purchaser, and that the Tribunal erred in holding the financier liable.
  • No respondents appeared before the High Court.
  • The Tribunal’s findings (para 11 of the impugned judgment) relied on the retail invoice (dated 07‑04‑2011) and sale certificate (dated 15‑04‑2011) showing the vehicle was under a hire‑purchase/hypothecation agreement with Shriram Finance at the time of the accident (13‑04‑2011).
  • The Tribunal applied the definition of "owner" from Section 2(19) of the MV Act, interpreting the possessor under a hire‑purchase or hypothecation agreement as the owner.
  • The Court referenced Gujarat High Court judgment in Himmatnagar Nagarik Sahakari Bank Ltd. vs. Sureshkumar Jayantilal Thakkar (2016 ACJ 2821) and Supreme Court decision in Godavari Finance Co. (2006 ACJ 1612), which endorse the same interpretation.
  • The Court concluded that the Tribunal correctly held Shriram Finance as an owner and therefore jointly and severally liable for compensation.

Final Outcome

  • The First Appeal filed by Shriram Finance Company Limited fails and is dismissed.
  • The Motor Accident Claims Tribunal is directed to disburse the entire awarded compensation amount, together with any accrued interest, to the claimant via account‑payee cheque, NEFT or RTGS after proper verification.
  • The Tribunal must deduct any unpaid court fees in accordance with applicable rules before payment.
  • The record and proceedings are to be sent back to the concerned Tribunal forthwith.

Topics: Motor Accident Liability, Owner Definition under Motor Vehicles Act