The driver of the car that was parked in front of the no parking sign is at fault for violating the parking regulation. The driver of the car that backed into the parked car is also at fault for failing to exercise caution when backing up. Both drivers are responsible for the damages caused to the parked car.
It's important to note that the specific laws and regulations regarding parking and traffic violations can vary from one jurisdiction to another. Therefore, it's always a good idea to familiarize yourself with the local laws and regulations in your area to avoid any potential legal issues or accidents.