In Bachan Singh v. The Road Transport Officer, Rourkela, and others
Case Details
Signature Not Verified Digitally Signed Signed by: SASANKA SEKHAR SATAPATHY Designation: AR-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA CUTTACK Date: 18-Jul-2024 12:46:53 IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) NO. 16070 OF 2024 Sundaram Finance Limited Petitioner …. Mr. Nalini Kanta Dash, Advocate -versus- Regional Transport Officer, Jagatsinghpur and another …. Opp. Parties
Legal Reasoning
Mr. Pravakar Behera, Standing Counsel (For Transport Department) CORAM: JUSTICE K.R. MOHAPATRA Order No.
Decision
ORDER 16.07.2024 1. 1. This matter is taken up through hybrid mode. 2. The Petitioner in this writ petition prays for a direction to the Regional Transport Officer, Jagatsinghpur-Opposite Party No.1 to accept the M.V. tax for the vehicle bearing Registration No.OD-21-L-8421 and to allow transfer of the ownership. 3. It is submitted by Mr. Dash, learned counsel that the Petitioner-Financer provided loan to the Opposite Party No.2 to purchase the aforesaid vehicle. The vehicle was seized by the Petitioner- Financer for non-payment of the loan dues by the registered owner. It is also submitted that since the Petitioner is in possession of the aforesaid vehicle, it is liable to pay the M.V. tax including the arrear amount. In support of his case, he relies upon the decision of this Court in the case of Sk. Imran Ahmad –v- R.T.O., Bhubaneswar in W.P.(C) No.15548 of Page 1 of 4 Signature Not Verified Digitally Signed Signed by: SASANKA SEKHAR SATAPATHY Designation: AR-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA CUTTACK Date: 18-Jul-2024 12:46:53 // 2 // 2014, which was disposed of on 10th April, 2015 with the following observation: “In Bachan Singh v. The Road Transport Officer, Rourkela, and others, 2009 (II) OLR 183, a Division Bench of this Court succinctly dealt with the law on the subject. It was held that a transferee of the vehicle or the person who is in possession or control of the vehicle shall be liable to pay the arrears of tax payable by the previous owner or the person who had possession or control of such vehicle and remained unpaid at the time of transfer of the vehicle. Thus, the irresistible conclusion is that the petitioner is only liable to pay tax. In view of the same, the writ application is disposed of with a direction to the opposite party no.1 to accept the tax and thereafter transfer the vehicle in the name of petitioner.” 4. In view of the above, he prays for a direction to the R.T.O., Jagatsinghpur -Opposite Party No.1 to accept the M.V. tax including the arrear amount, if any, in respect of the vehicle bearing Registration No.OD-21-L-8421 and to take steps for transfer of ownership in the name of the Petitioner. 5. Mr. Behera, learned Standing Counsel for the Transport Department submits that since the Petitioner is in possession of the vehicle, it is liable to pay the tax including the arrear amount in respect of the aforesaid vehicle. But, the ownership of the vehicle cannot be transferred without complying with the provision of Section 51(5) of the Motor Vehicles Act, 1988 (for short ‘the Act’). In many cases, the Financers without following the procedure laid down in Section 51(5) of the Act are conducting auction and is parting with possession of the vehicle, which is contrary to law. He also draws attention of Page 2 of 4 Signature Not Verified Digitally Signed Signed by: SASANKA SEKHAR SATAPATHY Designation: AR-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA CUTTACK Date: 18-Jul-2024 12:46:53 // 3 // this Court to Section 50 of the Act, relevant portion of which reads as under: “50.Transfer of ownership.- xxx xxx xxx (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.” The Petitioner is required to follow the procedure provided under provisions of Section 50(2) of the Act for transfer of ownership of the vehicle in its name. 6. Taking into consideration the rival contentions of the parties, this Court finds that the Petitioner being in possession of the vehicle is liable to pay the M.V. tax including the arrear amount. It is further submitted by Mr. Behera, learned Standing Counsel for the Transport Department that if the certificate proceeding has been initiated against owner of the vehicle, then the entire certificate amount has to be deposited. 7. In view of the above, this Court disposes of the writ petition with a direction that on payment of M.V. tax including the arrear amount as on date, if any, within a period of fifteen Page 3 of 4 Signature Not Verified Digitally Signed Signed by: SASANKA SEKHAR SATAPATHY Designation: AR-cum-Senior Secretary Reason: Authentication Location: HIGH COURT OF ORISSA CUTTACK Date: 18-Jul-2024 12:46:53 // 4 // days hence together with application for transfer of ownership in its name along with certified copy of this order, the R.T.O., Jagatsinghpur-Opposite Party No.1 shall consider transfer of ownership of the vehicle bearing Registration No. OD-21-L- 8421 adhering to the provision under Section 51(5) of the Act and providing an opportunity of hearing to the registered owner as expeditiously as possible within a period of four weeks from the date of production of certified copy of this order provided that no other case in respect of the said vehicle is pending before any forum or Court or any certificate case has been initiated against the registered owner. 8. With the aforesaid observation and direction, this writ petition is disposed of. Urgent certified copy of this order be granted on proper application. (K.R. Mohapatra) Judge s.s.satapathy Page 4 of 4