Allowed

R. Jayachandran v. the Joint Regional Transport Officer

Kerala HC12 Oct 2021WP(C)/19386/2021

Case brief

AI extract

What is this about?

The High Court, in a writ petition, allowed the plea of a successful bidder to register a motor car auctioned by a bank. It held that existing judicial orders validate the sale and that Section 51(5) of the Motor Vehicles Act is inapplicable as the vehicle was under temporary registration.

What did the court decide?

The writ petition was allowed; the first respondent directed to reconsider the application and register the vehicle in the name of the petitioner upon completing necessary formalities.

R. Jayachandran Vs the Joint Regional Transport Officer — Motor Accident Claims | 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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TUESDAY, THE 12^TH DAY OF OCTOBER 2021 / 20TH ASWINA, 1943

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WP(C) NO. 19386 OF 2021

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PETITIONER:

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R. JAYACHANDRAN AGED 56 YEARS TC 41 4/1869/4, PLOT NO.32, NANDANAM, PANDITS COLONY, KOWDIAR, THIRUVANANTHAPURAM-695 003 BY ADV P.DEEPAK

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RESPONDENTS:

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1 THE JOINT REGIONAL TRANSPORT OFFICER KAZHAKUTTOM, SUB REGIONAL TRANSPORT OFFICE, KAZHAKUTTOM, THIRUVANANTHAPURAM-695 582 2 THE FEDERAL BANK LIMITED, SREEKARIYAM BRANCH, SUMAJ COMPLEX, CHAVADIMUKKU, THIRUVANANTHAPURAM-695 017, REPRESENTED BY ITS DEPUTY VICEPRESIDENT & BRANCH HEAD 3 SATHIABHAMA REGHU, W/O. REGHU, FLAT NO.9A, RDS TRANQUIL , ATTINKUZHI JUNCTION, KAZHAKUTTAM P.O., THIRUVANANTHAPURAM-695 582 4 SABEER, S/O. ABDUL VAHID, SHAJI MANZI, PALLICKAL P.O., PALLICKAL VILLAGE, VARKALA TALUK, THIRUVANANTHAPURAM-695 602 BY ADVS. SUNIL SHANKER E.A.BIJUMON M.R.SARIN BY SMT.SHEEJA C.S., SR. GOVT. PLEADER THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12.10.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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SATHISH NINAN, J.

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= = = = = = = = = = = = = = = = = = W. P. (C) No.19386 of 2021 = = = = = = = = = = = = = = = = = = Dated this the 12^th day of October, 2021

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J U D G M E N T

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The petitioner has approached this Court aggrieved

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by the refusal on the part of the first respondent to register the vehicle - motor car purchased by him from the second respondent Bank in auction.

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The third respondent in the writ petition

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purchased the car in question on 29.09.2020, on availing a loan from the second respondent Bank. Ext.P1 is the sale certificate. The tax due was paid and the vehicle was temporarily registered. Alleging that the third respondent had availed the loan by playing fraud upon the Bank, the Bank proceeded to cancel the facility. Upon the complaint of the Bank, a crime was registered

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as Crime No.233 of 2021 of Sreekaryam Police Station. The vehicle was seized by the Police and produced before the jurisdictional Magistrate.

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W. P. (C) No.19386 of 2021

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-: 2 :-

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The Bank filed C.M.P.549/2021 before the

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Magistrate under Section 451 of the Code of Criminal Procedure seeking interim custody of the vehicle. Pending consideration of the application, the 4^th respondent herein, claiming to have purchased the vehicle in question from the third respondent, filed C.M.P. 611/2021 before the Magistrate seeking release of the vehicle to him. The court after considering both the applications, on 29.09.2020, as per Ext.P5 order, granted interim custody to the Bank, on conditions. On obtaining such possession, the Bank brought the vehicle to sale invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as “the SARFAESI Act”). In the meanwhile, the 4^th respondent approached this Court in Crl.M.C. 3203/2021 challenging the order of the Magistrate. In the Crl.M.C though a request was made to interdict the sale of the vehicle by the Bank, it was not granted by the Court.

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W. P. (C) No.19386 of 2021

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-: 3 :-

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The auction was held on 28.07.2021 and the

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petitioner herein was the successful bidder. Ext.P9 sale certificate was issued by the Bank in favour of the petitioner.

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Thereupon the petitioner filed Ext.P10

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application in Form-20 of the Central Motor Vehicles Rules, 1989 seeking permanent registration of the vehicle in the name of the petitioner. However, the

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first respondent issued Ext.P14 communication expressing inability to register the vehicle in the light of the directions issued by the Transport Commissioner as per letter No.C1/155/2021-TC dated 03.09.2021. It is aggrieved thereby that the petitioner has approached this Court.

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Heard learned counsel on either sides.

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Pending the writ petition, the Senior Deputy

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Transport Commissioner has issued a communication to the first respondent herein granting permission for registration of the vehicle. The relevant portion of the

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W. P. (C) No.19386 of 2021 -: 4 :-

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communication reads thus:-

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“Since the auction executed by the Bank is as per the conditions given by the JFMC-I Court, the ownership of the vehicle is passed in favour of the auction purchaser. Though the vehicle has only temporary registration, since the transfer of ownership is in favour of the auction purchaser is a statutory transfer rather than involuntary transfer, there is no legal hurdle in mutating the auction purchasers name in the registration certificate. Therefore, the vehicle can be registered in the name of the Auction Purchaser.”

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Therefore, the authorities have expressed their willingness to register the vehicle.

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However, at this stage, the third respondent comes forward and opposes the prayer contending that the sale conducted by the Bank was in violation of the provisions of the SARFAESI Act and hence illegal and liable to be set aside. It is also contended that without following the procedure under Section 51(5) of the Motor Vehicles Act, the vehicle cannot be registered

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W. P. (C) No.19386 of 2021 -: 5 :-

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in the name of the petitioner.

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As regards the first contention, it is not in dispute that as of now the sale in question stands and there are no proceedings challenging the sale. At any rate, there are no interdictory orders from any competent forum restraining registration of the vehicle in the name of the auction purchaser. Necessarily the title of the petitioner will depend upon any adjudication of title by a competent forum, if any, initiated by the aggrieved.

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As regards the contention of noncompliance with the procedure under Section 51(5) of the Motor Vehicles Act, the vehicle in question was only under a temporary registration. The period of validity of the temporary registration having expired, Section 51(5) cannot have any application. The necessity to obtain a fresh certificate of registration in the name of the financier does not arise.

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W. P. (C) No.19386 of 2021 -: 6 :-

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In the light of the aforesaid discussions, it

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can only be concluded that the vehicle in question is liable to be registered in the name of the petitioner. The first respondent shall reconsider Ext.P10 application and take appropriate steps to have the vehicle in question registered in the name of the petitioner, on the petitioner complying with the necessary formalities.

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The writ petition is allowed as above.

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Sd/- SATHISH NINAN JUDGE

kns/-

//True Copy//

P.S. to Judge

PETITIO	NER EXHIB	ITS
Exhibit	P1	A TRUE COPY OF THE SALE CERTIFICATE 21 DATED 29.09.2020 ISSUED BY THE AUT DEALER	IN FORM HORIZED
Exhibit	P2	A TRUE COPY OF THE TEMPORARY REGIS DATED 30.09.2020	TRATION
Exhibit	P3	A TRUE COPY OF THE TAX LICENSE IS 29.09.2020	SUED ON
Exhibit	P4	A TRUE COPY OF THE FIRST INFORMATION IN CRIME NO.0233 OF 2021 OF SREE POLICE STATION	REPORT KARIYAM
Exhibit	P5	A TRUE COPY OF THE ORDER OF THE THIRUVANANTHAPURAM DATED 30.03.2021 NO.549/21 AND 611/21	JFCM-1, IN CMP
Exhibit	P6	A TRUE COPY OF THE NOTICE FOR SALE OF PROPERTY DATED 18.06.2021	MOVABLE
Exhibit	P7	A TRUE COPY OF STATUS REPORT IN RELA CRL.MC 3203.2021	TION TO
Exhibit	P8	TRUE COPY OF THE LIST OF PARTICIPANTS SARFAESI SALE CONDUCTED ON 28.07.2021	IN THE
Exhibit	P9	A TRUE COPY OF SALE CERTIFICATE 04.08.2021 ISSUED BY THE SECOND RES BANK	DATED PONDENT
Exhibit	P10	TRUE COPY OF THE APPLICATION FOR PE REGISTRATION INFORM 20 DAY DATED 05.08	RMANENT .2021
Exhibit	P11	TRUE COPY OF THE PRESENTATION 31.08.2021 FILED BY THE SECOND RES BANK	DATED PONDENT
Exhibit	P12	TRUE COPY OF THE REPRESENTATION	DATED
		02.09.2021 ADDRESSED TO THE THIRUVANANTHAPURAM	DTC,

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-2-

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Exhibit P13 TRUE COPY OF THE REPRESENTATION DATED 13.09.2021 Exhibit P14 TRUE COPY OF THE PROCEEDINGS OF THE FIRST RESPONDENT DATED 13.09.2021 Exhibit P15 A TRUE COPY OF THE JUDGMENT DATED 12.07.2021 IN WPC NO.4554 OF 2011 Exhibit P16 A TRUE COPY OF THE JUDGMENT DATED 15.03.2018 IN WPC NO.6720 OF 2018 Exhibit P17 A TRUE COPY OF THE COMMUNICATION DATED 6.10.2021 OF THE TRANSPORT COMMISSIONER ADDRESSED TO THE FIRST RESPONDENT

R. Jayachandran v. the Joint Regional Transport Officer

Case brief

What is this about?

What did the court decide?

R. Jayachandran v. the Joint Regional Transport Officer

Case brief

What is this about?

What did the court decide?

What the court decided

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