Allowed

Icici Bank Limited v. the Joint Regional Transport Officer/ Additional Registering Authority

Kerala HC17 Sept 2021WP(C)/14145/2021

Case brief

AI extract

What is this about?

In this writ petition, the High Court of Kerala held that the Joint Regional Transport Officer must consider the Bank's application for a fresh Registration Certificate under Motor Vehicles Act Section 51(5) after giving the registered owner notice and an opportunity of hearing.

What did the court decide?

The application (Ext.P2) for a fresh RC is directed to be considered by the First Respondent in compliance with Section 51(5) of the Motor Vehicles Act, 1988, with notice and opportunity of hearing to

Icici Bank Limited Vs the Joint Regional Transport… — Banking and Recovery | Kerala HC (2021)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT

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THE HONOURABLE MR. JUSTICE SATHISH NINAN

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FRIDAY, THE 17^TH DAY OF SEPTEMBER 2021 / 26TH BHADRA, 1943 WP(C) NO. 14145 OF 2021

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PETITIONER:

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ICICI BANK LIMITED ZONAL OFFICE, PUSHAPAMANGALAM ESTATE, NH BYPASS ROAD, EDAPPALLY, ERNAKULAM, KOCHI - 682024, REPRESENTED BY AUTHORISED SIGNATORY / MANAGER SHIBIN P.

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BY ADV I.DINESH MENON

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RESPONDENTS:

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1 THE JOINT REGIONAL TRANSPORT OFFICER/ ADDITIONAL REGISTERING AUTHORITY TALIPARAMBA, JOINT REGIONAL TRANSPORT OFFICE, THALIPARAMBA P. O., THALIPARAMBA - 670141.

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2 BABU K. P. AGED 63 YEARS S/O. C. P. KARUNAKARAN, KUNNIPARAMBATH HOUSE, KARIVELLOOR P. O., PAYYANNUR, KANNUR - 670521.

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BY ADVS. JAWAHAR JOSE CISSY MATHEWS JAISON ANTONY BY SRI.BIMAL K. NATH, SR. GOVT. PLEADER

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17.09.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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SATHISH NINAN, J.

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= = = = = = = = = = = = = = = = = = W. P. (C) No.14145 of 2021

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= = = = = = = = = = = = = = = = = = Dated this the 17^th day of September, 2021

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J U D G M E N T

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The petitioner confines his relief for a direction

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to the first respondent to consider Ext.P2 application filed in terms of Section 51(5) of the Motor Vehicles

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Act, 1988 for issuance of fresh Registration Certificate.

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Heard Sri.I.Dinesh Menon, learned counsel for

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the petitioner, learned Government Pleader for the first respondent and Sri.Jawahar Jose, learned counsel for the second respondent.

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The stage carriage vehicle bearing No.KL-59Q

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1959 was purchased by the second respondent by availing credit facility from the petitioner Bank. According to the petitioner, consequent on the default in payment of the loan amounts, the petitioner took possession of the

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vehicle through the proceedings before the Chief Judicial Magistrate under the Securitisation and

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W. P. (C) No.14145 of 2021

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-: 2 :-

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Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Pursuant thereto, the petitioner submitted Ext.P2 application before the first respondent seeking issuance of fresh certificate of registration in the name of the petitioner.

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The second respondent contends that, the taking

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over of possession was not in accordance with the provisions of the SARFAESI Act and Rules, and that, he understands that the petitioner has purported to transfer the vehicle to a third party in violation of and without complying with the provisions of the SARFAESI Act and Rules. The second respondent further contends that, challenging the taking over of possession

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of the vehicle and the subsequent sale, he has approached the Debt Recovery Tribunal, Ernakulam in SA 163/2021 and the same is pending. The interlocutory application moved therein is not being considered by the Tribunal for the reason of pendency of this writ petition. In the meanwhile, a consideration of the

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W. P. (C) No.14145 of 2021

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-: 3 :-

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application for fresh RC will cause prejudice, contends the 2^nd respondent.

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Section 51(5) of the Motor Vehicles Act provides

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for the cancellation and issuance of a fresh

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Registration Certificate in the name of the financier from whom the registered owner had availed facility, if, the registered owner failed to adhere to the terms of the agreement with financier and consequently the financier has taken possession of the vehicle from the registered owner. According to the petitioner, both the conditions are satisfied in the present case and hence fresh RC is liable to be granted.

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The cancellation and issuance of fresh

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certificate of registration can be done only with due notice and an opportunity of hearing to the registered owner. When Ext.P2 application has been submitted by the petitioner-financier before the first respondent in terms of Section 51(5) of the Motor Vehicles Act, the authority is bound to consider the same unless there are

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W. P. (C) No.14145 of 2021

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-: 4 :-

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any interdictory orders. As noticed above, Section 51(5) postulates an opportunity of hearing to the registered owner. On such notice being given, it shall necessarily

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be open for the second respondent to place his objections before the first respondent. Needless to say that the first respondent will have to consider the objections and pass appropriate orders.

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In the circumstances, Ext.P2 application is

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liable to be considered by the first respondent, in due compliance with Section 51(5) of the Motor Vehicles Act. Needless to say that the second respondent shall be put on notice and afforded an opportunity of hearing while considering Ext.P2 application.

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As regards the proceedings pending before the

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Debt Recovery Tribunal as SA 163/2021 and the interlocutory relief sought for therein, the Tribunal shall consider the interim relief sought for and pass appropriate orders within a period of two weeks from the date of receipt of a copy of this judgment. It will be

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W. P. (C) No.14145 of 2021 -: 5 :-

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open for the petitioner or the second respondent to

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place a copy of this judgment before the Tribunal, for compliance.

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Writ petition is allowed as above.

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Sd/- SATHISH NINAN JUDGE

kns/-

//True Copy//

P.S. to Judge

APPENDIX OF WP(C) 14145/2021

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PETITIONER EXHIBITS

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Exhibit P1 TRUE COPY ORDER IN CMP 1768/2020 DATED 09.12.2020 OF CJM, THALASSERY. Exhibit P2 TRUE COPY OF THE APPLICATION FRESH RC BOOK FOR KL-59 Q 1959 DTED 23.03.2021.

Icici Bank Limited v. the Joint Regional Transport Officer/ Additional Registering Authority

Case brief

What is this about?

What did the court decide?

Icici Bank Limited v. the Joint Regional Transport Officer/ Additional Registering Authority

Case brief

What is this about?

What did the court decide?

What the court decided

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