Glori John v. Sub Regional Transport Officer, Neyyattinkara and Shriram Transport Finance Company Ltd

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** **WEDNESDAY,THE 27TH DAY OF MARCH 2019 / 6TH CHAITHRA, 1941** ## **WP(C).No. 4678 of 2019** ## **PETITIONER/S:** **GLORI JOHN, AGED 59 YEARS S/O JOHN, L.S. VILASOM, KATTAKKOD P.O, KATTAKKADA, THIRUVANANTHAPURAM.** **BY ADVS. SRI.R.SUNIL KUMAR SMT.A.SALINI LAL** ## **RESPONDENT/S:** **1 SUB REGIONAL TRANSPORT OFFICER, MINI CIVIL STATION, NEYYATTINKARA MINI CIVIL STATION, NEYYATTINKARA - KATTAKKADA ROAD, NEYYATTINKARA, THIRUVANANTHAPURAM - 695 121. 2 SHRIRAM TRANSPORT FINANCE COMPANY LTD, REP BY ITS BRANCH MANAGER, 1ST FLOOR, S.N COMPLEX, NH ROAD, NEYYATTINKARA, THIRUVANANTHAPURAM - 695 121.** ## **SRI K.P.HARISH, SENIOR GOVERNMENT PLEADER** **THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27.03.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** WP(C).No. 4678 of 2019 2 ## **JUDGMENT** The petitioner, who purchased a tipper lorry bearing registration No.KL-20/B-849, covered by Ext.P1 Certificate of Registration, has filed this writ petition under Article 226 of the Constitution of India seeking a writ of mandamus commanding the first respondent to renew the goods carriage permit of the said vehicle without insisting for 'No Objection Certificate' from the second respondent Financier. 2. Heard the learned counsel for the petitioner and also the learned Senior Government Pleader appearing for the first respondent. Considering the nature of relief proposed to be granted, service of notice on the second respondent Financier is dispensed with. 3. It is for renewal of the goods carriage permit in respect of tipper lorry bearing registration No.KL-20/B-849 covered by Ext.P1 registration certificate, the petitioner has moved Ext.P4 application. Since the vehicle is covered by hypothecation agreement with the second respondent Financier, the petitioner has submitted Ext.P2 request dated 20.06.2018, before the said respondent for grant of 'No Objection Certificate'. The document marked as Ext.P3 is the acknowledgment card of Ext.P2 request. WP(C).No. 4678 of 2019 3 4. The learned Government Pleader would submit that if the petitioner is not in receipt of the 'No Objection Certificate' from the second respondent, he has to submit a declaration under sub-section (8) of Section 51 of the Motor Vehicles Act, 1988 before the first respondent and thereafter, the said respondent shall consider the application made by the petitioner for renewal of goods carriage permit, with notice to the petitioner and also to the second respondent. 5. In **Shabu Sukumaran v. Regional Transport Officer, Thiruvananthauram and others [2018 (2) KHC 470]** , after referring to the provisions under Section 51 of the Motor Vehicles Act, 1988, this Court has held that, as per subsection (8) of Section 51, while applying for renewal of permit or for issuance of duplicate certificate of registration or for assignment of a new registration mark, the registered owner shall submit the certificate, if any, obtained from the financier under sub-section (7) or, where no such certificate has been obtained, the communication received from the financier under that sub-section, or, as the case may be, a declaration that he has not received any communication from the financier within the period of seven days specified in that subsection. In the said decision, this Court held further that, even WP(C).No. 4678 of 2019 4 in the case, in which financier has objected renewal of permit, registering authority has discretion to renew the permit, after affording the applicant an opportunity of being heard. In the said decision, this Court has also held that registering authority has to apply its mind to the objections, if any, raised by the financier and take an appropriate decision as to whether despite such objections of the financier, applicant is entitled for renewal of permit. Paragraphs 4 to 6 of the said decision reads thus: “4. Section 51 of the Motor Vehicles Act (hereinafter referred to as 'the Act' for short) deals with special provisions regarding motor vehicle subject to hire purchase agreement. Sub-section (6) of Section 51 provides that the registered owner shall, before applying to the appropriate authority, for the renewal of a permit under section 81 or for the issue of duplicate certificate of registration under sub-section (14) of Section 41, or for the assignment of a new registration mark under Section 47, or removal of the vehicle to another State, or at the time of conversion of the vehicle from one class to another, or for issue of no objection certificate under Section 48 or for change of residence or place of business under Section 49, or for the alteration of the vehicle under Section 52, make an application to the person with whom the registered owner has entered into the said agreement of hire purchase (such person being referred to as the financier) for the issue of a no objection certificate. Sub-section (7) of Section 51 provides that WP(C).No. 4678 of 2019 5 within seven days of the receipt of an application under sub-section (6), the financier may issue, or refuse, for reason which shall be recorded in writing and communicated to the applicant, to issue, the certificate applied for, and where the financier failed to issue the certificate and also fails to communicate the reasons for refusal to issue the certificate to the applicant within the said period of seven days, the certificate applied for shall be deemed to have been issued by the financier. 5. Sub-section (8) of Section 51 provides that the registered owner shall, while applying to the appropriate authority for the renewal of any permit under Section 81, or for the issue of a duplicate certificate of registration, under sub-section (14) of Section 41, or while applying for assignment of a new registration mark under Section 47, submit with such application the certificate, if any, obtained under sub-section (7) or, where no such certificate has been obtained, the communication received from the financier under that sub-section, or, as the case may be, a declaration that he has not received any communication from the financier within the period of seven days specified in that sub-section. As per Clause (a) of sub-section (9) of Section 51, on receipt of an application for the renewal of any permit or for the issue of duplicate certificate of registration or for assignment of a new registration mark in respect of a vehicle which is held under the said agreement, the appropriate authority may, subject to the other provisions of this Act, in a case where the financier has refused to issue the certificate applied for, after giving the applicant an opportunity of being heard, either renew or refuse to renew the permit or issue or refuse to issue the duplicate certificate of WP(C).No. 4678 of 2019 6 registration or assign or refuse to assign a new registration mark. 6. The provisions under sub-section (9) of Section 51 of the Act would make it explicitly clear that even in a case in which the financier has objected the renewal of permit, the registering authority has the discretion to renew the permit, after affording the applicant an opportunity of being heard. Therefore, merely for the reason that the financier has refused to issue the certificate applied for under sub-section (7) of Section 51, the registering authority cannot reject an application made for renewal of contract carriage permit, in a mechanical exercise of power. Since certain discretion has been vested with the registering authority, in view of the provisions under subsection (9) of Section 51 of the Act, the registering authority has to apply its mind to the objections, if any, raised by the financier and take an appropriate decision as to whether despite such objections of the financier, the applicant is entitled for renewal of permit.” 6. Having considered the submissions made by the learned counsel on both sides, this writ petition is disposed of with the following directions:- - i) Within one week from the date of receipt of a certified copy of this judgment, the petitioner shall submit a declaration as per the mandate of subsection (8) of Section 51 of the Motor Vehicles Act, 1988 before the first respondent. - ii) Thereafter, the first respondent shall consider Ext.P4 application made by the petitioner for renewal of the goods carriage permit with respect of the tipper lorry WP(C).No. 4678 of 2019 7 bearing registration No.KL-20/B-849, with notice to the petitioner and also to the second respondent Financier, strictly in accordance with law, taking note of the law laid down by this Court in **Shabu Sukumaran's case (supra)** and a decision shall be taken, as expeditiously as possible, at any rate, within six weeks from the date of receipt of the declaration, under sub-section (8) of Section 51 of the Act. **Sd/-** ## **ANIL K.NARENDRAN** **JUDGE** DCS WP(C).No. 4678 of 2019 8 ## **APPENDIX** ## **PETITIONER'S/S EXHIBITS:** **EXHIBIT P1 COPY OF THE RC BOOK. EXHIBIT P2 COPY OF THE REPRESENTATION DTD 20/6/2018. EXHIBIT P3 COPY OF THE ACKNOWLEDGEMENT CARD. EXHIBIT P4 COPY OF THE APPLICATION FOR RENEWAL OF PERMIT**