High Court of KeralaSingle JudgeDisposed of with directions consistent with the...

Chandran v. District Executive Officer, Kerala Motor Transport Workers Welfare Fund Board & Others

Case / Petition Number:W.P.(C) No.22898 of 2019

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Raja Vijayaraghavan V
Judgment Date
2023-03-17
Court Decision / Holding
The petition is disposed of. The 1st respondent is directed to consider Ext.P6 in light of the law laid down in Ummar v. Joint RTO (2014) and to take a decision within six weeks from the date of receipt of a copy of this judgment.
Final Disposition
Disposed of with directions consistent with the Ummar decision; the 1st respondent to consider Ext.P6 within six weeks.

Parties to the Case

Appellants / Petitioners

  • Chandran (S/o Amanezhuthachan, Muthalamchirahouse, Kondazhy P.O., Thrissur-679106)

Respondents

  • District Executive Officer, Kerala Motor Transport Workers Welfare Fund Board
  • Pramod
  • Regional Transport Officer (Taxation Officer), Wadakkancherry

Legal Representation & Advocates

Counsels for Petitioners

  • • P. Deepak

Counsels for Respondents

  • • K.S. Manu
  • • Smtresh Mitharchandran (Sr Government Pleader)

Case Synopsis & Summary

Chandran, the petitioner, is the owner of a Stage Carriage bearing Reg. No. KL-46-M-8793, purchased from the 2nd respondent. Registration evidenced by Ext.P1 shows a registration date of 18-01-2016. The petitioner contends the vehicle was transferred to him on 21-12-2017 as per Ext.P2 clearance certificate, and that Ext.P4 regular permit for KL-46-M-8793 was issued effective from 21-12-2017, replacing his previous vehicle KL-08-AF-4880. He has been remitting welfare fund contributions for the older vehicle (KL-08-AF-4880) from 09/2005 to 04/2019, as shown by Ext.P5. The petitioner submitted Ext.P6 seeking permission to remit welfare fund contributions for the new vehicle KL-46-M-8793 from 21-12-2017, but the 1st respondent refused, directing proof of remittance for the period between 18-01-2016 and 21-12-2017 before accepting contributions for the new vehicle. The petitioner relies on Ummar v. Joint RTO, Thalassery and Ors. (2014) which laid down the transfer-date based liability under the Kerala Motor Transport Workers Welfare Fund Act, 1985 and its amendment. The Court noted that, depending on whether transfers occur before or after the amendment, liability may rest with the erstwhile owner or transfer with the vehicle. The petition was disposed of with directions to the 1st respondent to consider Ext.P6 in light of Ummar (supra) and decide within six weeks, with interim tax payments already permitted subject to welfare fund proof.

Provisions of Law Cited

Kerala Motor Transport Workers Welfare Fund Act, 1985Amendment to the Kerala Motor Transport Workers Welfare Fund Act, 1985 (dated 07/06/2005)Kerala Motor Vehicle Taxation Act

Legal Doctrines & Maxims

  • Liability for welfare fund dues under the 1985 Act attaches to the vehicle and passes with the vehicle to the transferee if the transfer occurs after the amendment; pre-amendment transfers keep liability with the erstwhile owner.
  • Where the transferee pays dues pertaining to the erstwhile owner, the transferee may recover amounts from the erstwhile owner.
  • Judicial approach of following prior judgments (Ummar v. Joint RTO, Thalassery) to determine liability in post-transfer scenarios and the validity of precondition requirements for tax remittance

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P6 should be considered to permit remittance for the new vehicle KL-46-M-8793 from 21-12-2017, and that the 1st respondent’s insistence on proof of welfare fund remittance for the period 18-01-2016 to 21-12-2017 as a precondition is improper. He relies on the Ummar decision to argue that liability should be determined based on the transfer date relative to the amendment, and that the authority should permit recovery of dues or exemption for the period prior to transfer as applicable.

Contentions of Respondents

The respondents contend that liability for welfare fund dues under the 1985 Act is determined by the transfer date relative to the amendment; where post-amendment transfers occur, the transferee is liable, and the authorities may require clearances for dues. They rely on the Ummar decision to justify preconditions for tax remittance and maintaining the existing framework of liability under the Welfare Fund Act and the Motor Vehicles Taxation Act.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Ummar v. Joint RTO, Thalassery and Ors.2014 (4) KLT 358PositiveThe court relied on Ummar for the controlling principle on transfer-date based liability under the Welfare Fund Act and directed the 1st respondent to apply that standard to Ext.P6.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **`IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V FRIDAY, THE 17[TH] DAY OF MARCH 2023 / 26TH PHALGUNA, 1944`** ## **`WP(C) NO. 22898 OF 2019`** ## **`PETITIONER:`** ``` CHANDRAN, S/ORAMANEZHUTHACHAN,MUTHALAMCHIRAHOUSE, KONDAZHYP.O.,THRISSUR-679106. ``` ``` BYADVP.DEEPAK ``` ## **`RESPONDENTS:`** ``` 1THEDISTRICTEXECUTIVEOFFICER KERALAMOTORTRANSPORTWORKER’SWELFAREFUND BOARD,HIGHROAD,THRISSURHEADP.O., THRISSUR-680001. 2PRAMOD, KUTTIYILPARAMELHOUSE,P.O.KOONAMOOCHI, THRISSUR-680504. 3THEREGIONALTRANSPORTOFFICER, (TAXATIONOFFICER)SRTO,WADAKKANCHERRYTC, PO.WADAKKANCHERRY-680582. ``` ``` SRI.MANUK.S, ``` ``` SMTRESHMITHARCHANDRAN,SRGOVERNMENTPLEADER ``` ``` THISWRITPETITION(CIVIL)HAVINGCOMEUPFOR ADMISSIONON17.03.2023,THECOURTONTHESAMEDAY DELIVEREDTHEFOLLOWING: ``` W.P.(C) No.22898 of 2019 2 ## **JUDGMENT** The petitioner is the owner of a Stage Carriage bearing Reg. No. KL-46-M-8793. He states that the aforesaid vehicle was purchased by him from the 2nd respondent. Ext.P1 registration certificate is relied upon to contend that the vehicle was registered on 18.1.2016. He contends that the aforesaid vehicle was transferred to the petitioner with effect from 21.12.2017 on the basis of Ext.P2 clearance certificate. 2. The petitioner states that the petitioner’s existing vehicle bearing Reg. No. KL-08-AF-4880 was covered by a regular permit on the route Thrissur-Chelakkara. The aforesaid vehicle was replaced with KL-46-M-8793 with effect from 21.12.2017, and Ext.P4 is the regular permit, which was consequentially issued. 3. According to the petitioner, he has been remitting contributions to the Kerala Motor Transport Workers Welfare Fund in respect of the vehicle bearing No.KL-08-AF-4880 for the period from 9/2005 to 4/2019 as is evident from Ext. P5 clearance certificate issued by W.P.(C) No.22898 of 2019 3 the District Executive Officer. In the said circumstances, the petitioner submitted Ext.P6 representation before the 1st respondent seeking to permit the petitioner to remit contributions to the fund in respect of his new vehicle bearing No. KL-46-M-8793 with effect from 21.12.2017, the date on which the vehicle was transferred to his name. The grievance of the petitioner is that the 1st respondent is refusing to consider Ext.P6 on the ground that the date of registration of the new vehicle is 18.1.2016 and therefore, the petitioner has been directed to furnish proof of remittance of Welfare Fund for the period from 18.1.2016 to 21.12.2017 as a pre-condition for accepting contributions from the petitioner for the subsequent period. It is in the afore circumstances that this writ petition is filed seeking the following reliefs: i) Issue a writ in the nature of mandamus or such other writ, order or direction commanding the 1st respondent to receive contributions due to the Kerala Motor Transport Workers Welfare Fund in respect of KL-46-M-8793 for the period from 21.12.2017 in the name and account of the petitioner herein. (ii) Issue a writ in the nature of mandamus or such other writ, order or direction commanding the 1st respondent to determine the contributions, if any, payable for the period anterior to 21.12.2017 and the account under which the said contributions are to be remitted and intimate the same to the petitioner and the 2nd respondent. W.P.(C) No.22898 of 2019 4 (iii) Issue a writ in the nature of mandamus or such other writ, order or direction commanding the 3rd respondent to accept motor vehicles tax in respect of stage carriage bearing registration number KL-46-M-8793 without insisting on proof of remittance of any arrears of welfare fund contributions for the period anterior to 21.12.2017. 4. I have heard Sri. P. Deepak, the learned counsel appearing for the petitioner, Sri. K.S.Manu, the learned standing counsel appearing for the 1st respondent and the learned Government Pleader. 5. Both sides submit that the issue raised in this writ petition is covered by a judgment rendered by this Court in **Ummar v. Joint RTO, Thalassery and Ors.** [2014 (4) KLT 358]. 6. This Court in **Ummar** (supra) had held that the enquiry would have to be as to whether the transfer of the vehicle took place before the date of the amendment to the Kerala Motor Transport Workers Welfare Fund Act, 1985 or after that date. The following directions were issued in paragraph No. 3 of the judgment: ‘ 1. In those cases where the transfers of the vehicles have been effected prior to 07/06/2005, the liability to discharge the welfare fund dues under the 1985 Act would W.P.(C) No.22898 of 2019 5 continue to be with the erstwhile owner of the vehicle and accordingly, the authorities under the 1985 Act would have to proceed against such owners for realisation of the dues. As a consequence, the insistence by the Motor Vehicles Taxation Authorities, for discharge of liabilities of the erstwhile owner, as a precondition for accepting tax from the subsequent owner, would have to be declared as illegal and I do so. 2. In cases where the transfer of the vehicle has been occasioned after 07/06/2005, the liability of the erstwhile owner of the vehicle, in respect of the dues under 1985 Act, would be a charge on the vehicle and go along with the vehicle to the transferee of the vehicle. Accordingly, the transferee of the vehicle would be liable to discharge the dues of the erstwhile owner under the 1985 Act. In such cases the action of the authorities under the Kerala Motor Vehicle Taxation Act insisting on a clearance of the erstwhile owner's dues, by the subsequent owner, as a condition for accepting tax from him, is held to be legal and valid and the notices, if any issued in that regard, are sustained. 3. In cases covered by (2) above, wherever the transferee has effected payment of dues pertaining to the erstwhile W.P.(C) No.22898 of 2019 6 owner, it shall be open to the said transferee to proceed against the erstwhile owner, for realisation of the amounts paid on behalf of the erstwhile owner and in discharge of the latter's liability under the 1985 Act. 4. The demands that have been made against the petitioners, which have been held to be legal and valid in this judgment, shall be satisfied by the petitioners within a period of one month from the date of receipt of a copy of this judgment. As it is noticed that, during the pendency of the writ petition, the petitioners have all been permitted to effect payment of Motor Vehicle tax by way of interim orders of this Court and, therefore, no further directions are required in that regard. ‘ 7. I find that when the writ petition had come up for consideration, this Court had passed an interim order directing the 3rd respondent to receive the motor vehicle tax in respect of a stage carriage bearing Reg. No. KL-46-M-8793 subject to petitioner showing proof of payment of welfare fund for the period from 21.12.2017 to date. 8. As the issue is covered by the law laid down in **Ummar** (supra), this writ petition is disposed of directing the 1st respondent to W.P.(C) No.22898 of 2019 7 consider Ext.P6 in the light of the law laid down in **Ummar** (supra) and take a decision with six weeks from the date of receipt of a copy of this judgment. Sd/- ## **RAJA VIJAYARAGHAVAN V,** **JUDGE** ``` IAP ``` W.P.(C) No.22898 of 2019 8 ## **`APPENDIX OF WP(C) 22898/2019`** ``` PETITIONER’SEXHIBITS: ``` ``` EXHIBITP1 ``` ``` ATRUECOPYOFTHEREGISTRATION PARTICULARSOFREGISTRATIONOF KL-46-M-8793ISSUEDINTHENAMEOFTHE 2NDRESPONDENT ``` ``` EXHIBITP2ATRUECOPYOFTHECLEARANCECERTIFICATE DATED4.12.2017 ``` ``` EXHIBITP3 ``` ``` ATRUECOPYOFTHECERTIFICATEOF REGISTRATIONOFKL-46-M-8793ISSUEDIN THENAMEOFTHEPETITIONER ``` ``` EXHIBITP4ATRUECOPYOFTHEREGULARPERMITVALID TILL20.8.2019 ``` ``` EXHIBITP5ATRUECOPYOFTHECLEARANCECERTIFICATE DATED28.2.2019ISSUEDBYTHE1ST RESPONDENT ``` ``` EXHIBITP6ATRUECOPYOFTHEREPRESENTATIONDATED 25.1.2019WITHITSENGLISHTRANSLATION. ```