Motor vehicle sale remains valid despite untransferred registration where the transferee must secure endorsement and report the transfer.

A sale of a motor vehicle is not rendered ineffective merely because registration is not transferred into the transferee's name. The Motor Vehicles Act, 1939 contemplated transfer of ownership and placed on the transferee the duty to report the transfer within thirty days and produce the registration certificate for endorsement. Where the sale papers and registration documents were handed over, the transferee's failure to approach the registering authority could not invalidate the sale or support a claim for refund of the purchase money or damages. The sale therefore remained effective, and recovery based solely on non-transfer of registration was not maintainable.

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Issues: Whether the sale of a motor vehicle became ineffective or merely an agreement to sell because the registration was not transferred in the transferee's name, and whether the transferee could claim refund of the purchase money and damages on that ground.

Analysis: The Motor Vehicles Act, 1939 did not prohibit the sale of a motor vehicle. Section 31 contemplated transfer of ownership and required the transferee, within thirty days, to report the transfer to the registering authority and forward the certificate of registration for endorsement of the transfer. The obligation to seek transfer of registration lay on the transferee. Since the registration papers and memo of sale had been handed over, failure to approach the registering authority could not be used to contend that the sale was invalid or that the transferee was entitled to recover the price or claim damages.

Conclusion: The sale remained effective despite the absence of transfer of registration, and the claim for refund and damages was not maintainable.

Final Conclusion: The appeal failed because the transferee's omission to secure registration transfer did not vitiate the sale or justify recovery of the purchase money.

Ratio Decidendi: A sale of a motor vehicle is not invalid merely because the registration has not been transferred, where the statute places the duty to report and secure transfer on the transferee.

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