High Court of KeralaSingle JudgeDisposed of with directions to consider renewal...

Soudabijili v. State of Kerala and Others

Case / Petition Number:WP(C) No. 8698 of 2023

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Raja Vijayaraghavan V. J.
Judgment Date
2023-03-14
Court Decision / Holding
Petition disposed of with directions: The petitioner shall furnish a declaration under Section 51(8) of the Motor Vehicles Act, 1988; the 3rd respondent shall consider the matter and pass orders under Section 51(9)(a) within one month from the date of the declaration, with notice to the petitioner and the financier.
Final Disposition
Disposed of with directions to consider renewal under Section 51(9)(a) upon declaration under Section 51(8); orders to be issued within one month.

Parties to the Case

Appellants / Petitioners

  • Soudabijili

Respondents

  • State of Kerala
  • The Transport Commissioner, Transport Department
  • The Joint Regional Transport Officer
  • The Secretary, Regional Transport Authority
  • Hinduja Leyland Finance Ltd

Legal Representation & Advocates

Counsels for Petitioners

  • • R. Reji
  • • M. V. Thamban
  • • Tharathamban
  • • B. Bipin
  • • Arun Bose

Counsels for Respondents

  • • Sri. T.R. Renjith (Senior Government Pleader)

Case Synopsis & Summary

The petitioner is the registered owner of a goods carriage vehicle KL-34-E-6547, financed by Hinduja Leyland Finance Ltd (5th respondent). The vehicle defaulted on monthly hire charges, and while seeking renewal of the goods carriage permit via the online portal, the respondents demanded a No Objection Certificate (NOC) from the financier. The petitioner contends that renewal can be considered under Section 51(9) of the Motor Vehicles Act, and urges that the court apply principles from Shabu Sukumaran v. RTO, TVM and Ors. (2018 (2) KLT 219). The core issue is whether the registering authority can renew a permit despite a financier’s objection, provided the applicant furnishes the declaration under Section 51(8) and the authority affords an opportunity of hearing. Section 51 deals with special provisions regarding motor vehicles under hire-purchase agreements; Sub-sections (6)–(9) outline the obligation to obtain an NOC, the financier’s seven-day response window, and the authority’s discretion to renew or refuse after hearing. The petitioner seeks a writ of mandamus to permit renewal without the financier’s NOC. After considering the matter, the court holds that the registering authority possesses discretion to renew, notwithstanding financier objections, subject to due process. The petition is disposed of with directions to furnish the declaration under Section 51(8), with orders under Section 51(9)(a) to be issued within one month with notice to the financier.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Section 51(6)Motor Vehicles Act, 1988 - Section 51(7)Motor Vehicles Act, 1988 - Section 51(8)Motor Vehicles Act, 1988 - Section 51(9)Motor Vehicles Act, 1988 - Section 81Motor Vehicles Act, 1988 - Section 41(14)Motor Vehicles Act, 1988 - Section 47Motor Vehicles Act, 1988 - Section 48Motor Vehicles Act, 1988 - Section 49Motor Vehicles Act, 1988 - Section 52

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner challenges the insistence on a No Objection Certificate from the financier for renewal of the goods carriage permit. Relying on Section 51(9), the petitioner argues that the registering authority may renew the permit after hearing the financier’s objections, and that Section 51(8) requires a declaration if no certificate is obtained. The decision in Shabu Sukumaran v. RTO, TVM and Ors. is cited to support the view that the financier’s objection cannot automatically bar renewal where due process is observed. The petitioner proposes to file a declaration under Section 51(8) stating no communication within seven days, enabling the authority to decide under Section 51(9)(a).

Contentions of Respondents

Respondents contend that, under a hire-purchase arrangement, the financier’s NOC is essential for renewal. They rely on the statutory framework of Section 51(6)-(9), which prescribes processes for obtaining a NOC and the consequences of the financier’s refusal. The court is urged to adhere to the statutory obligations and not to bypass the financier’s rights without proper declaration and hearing. The respondents emphasize compliance with the procedural safeguards and the need to give effect to the financier’s decision or communication within the seven-day window.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Shabu Sukumaran v. RTO, TVM and Ors.2018 (2) KLT 219PositiveThe judgment expressly relies on the Shabu Sukumaran decision to support that the registering authority may renew despite financier objections after a hearing, under Section 51(9).

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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 TUESDAY, THE 14[TH] DAY OF MARCH 2023 / 23RD PHALGUNA, 1944 WP(C) NO. 8698 OF 2023`** ## **`PETITIONER/S:`** ``` SOUDABIJILI AGED57YEARS W/OV.M.BIJILI,VALIYAKUNNATHUHOUSE, THOTTUMUGHAM,KANJIRAPPALLYP.O., - KOTTAYAM,PIN686507 BYADVS. R.REJI M.V.THAMBAN THARATHAMBAN B.BIPIN ARUNBOSE ``` ## **`RESPONDENT/S:`** ``` 1STATEOFKERALA REPRESENTEDBYTHESECRETARYTOGOVERNMENT, DEPARTMENTOFMOTORVEHICLES, GOVERNMENTSECRETARIAT, - THIRUVANANTHAPURAM,PIN695001 2THETRANSPORTCOMMISSIONER TRANSPORTDEPARTMENT, - THIRUVANANTHAPURAM,PIN695012 3THEJOINTREGIONALTRANSPORTOFFICER(JOINTRTO) OFFICEOFTHEJOINTREGIONALTRANSPORTOFFICER (SUBREGIONALTRANSPORTOFFICE), KANJIRAPPALY,KOTTAYAMDISTRICT,PIN-686507. 4THESECRETARY REGIONALTRANSPORTAUTHORITY, ``` W.P.(C) No.8698 of 2023 2 ``` OFFICEOFTHEREGIONALTRANSPORTAUTHORITY, - KANJIRAPPALY,KOTTAYAMDISTRICT,PIN686507 ``` ``` 5HINDUJALEYLANDFINANCELTD IINDFLOOR,AMBILIBUILDING, - WARRIAMROAD,ERNAKULAM,PIN683016 ``` ``` SRIT.R.RENJITH,SR.GP ``` ``` THISWRITPETITION(CIVIL)HAVINGCOMEUPFOR ADMISSIONON14.03.2023,THECOURTONTHESAMEDAY DELIVEREDTHEFOLLOWING: ``` W.P.(C) No.8698 of 2023 3 ## **JUDGMENT** The petitioner herein is the registered owner of a Tipper Lorry bearing Registration No.KL-34-E-6547. She states that the vehicle was purchased by availing finance from the 5th respondent financier. Default was committed in paying monthly hire charges. The grievance of the petitioner is that while applying for renewal of goods carriage permit through the online portal, the respondents are insisting on the production of a No Objection Certificate from the financier. It is contended that the official respondents are bound to consider the request under Section 51(9) of the Motor Vehicles Act and the principles of law laid down in **Shabu Sukumaran v. RTO, TVM and Ors.** [2018 (2) KLT 219]. It is on these assertions that this writ petition is filed seeking the following reliefs: (i) To issue a writ of mandamus or other writ or order directing the respondents 3 and 4 permitting the petitioner to renew the goods carriage permit of the petitioner’s vehicle bearing registration No.KL-34E-6547 without insisting for no objection certificate from the 5h respondent. 2. I have heard Sri. R. Reji, the learned counsel appearing for the W.P.(C) No.8698 of 2023 4 petitioner and Sri. T.R. Renjith, the learned senior Government Pleader. 3. In view of the nature of the order that I propose to pass, notice to the 5th respondent is dispensed with. 4. The issue raised in this writ petition is squarely covered by the law laid down in **Shabu Sukumaran v. RTO, TVM and Ors.** [2018 (2) KLT 219], wherein this Court, after considering Section 51 of the Act observed as under: 4. S.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 S.51 provides that the registered owner shall, before applying to the appropriate authority, for the renewal of a permit under S.81 or for the issue of duplicate certificate of registration under sub- section (14) of S.41, or for the assignment of a new registration mark under S.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 S.48 or for change of residence or place of business under S.49, or for the alteration of the vehicle under S.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 S.51 provides that W.P.(C) No.8698 of 2023 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 S.51 provides that the registered owner shall, while applying to the appropriate authority for the renewal of any permit under S. 81, or for the issue of a duplicate certificate of registration, under sub- section (14) of S.41, or while applying for assignment of a new registration mark under S.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 S.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 W.P.(C) No.8698 of 2023 6 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 registration or assign or refuse to assign a new registration mark. 6. The provisions under sub-section (9) of S.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 S.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 sub-section (9) of S.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. 5. In the instant case, the petitioner is seeking a direction to respondents 3 and 4 to renew the goods carriage permit of the petitioner’s vehicle bearing registration No.KL-34E-6547 without insisting for a No Objection Certificate from the financier. The petitioner is required to furnish a declaration under Section 51(8) of the Act that she has not W.P.(C) No.8698 of 2023 7 received any communication within the period of seven days stipulated under Section 51(7) of the Act, and if such a declaration is furnished, the appropriate authority can take a decision in Section 51(9)(a) of the Act. 6. In that view of the matter, this writ petition is disposed of by issuing the following directions. - a) The petitioner shall furnish a declaration in terms of Section 51(8) of the Act before the 3rd respondent who shall consider the same and take a decision in terms of Section 51(9)(a) of the Motor Vehicles Act, 1988. - b) Orders shall be passed within one month from the date of production of the declaration as ordered above with notice to the petitioner and the financier concerned. Sd/- **RAJA VIJAYARAGHAVAN V, JUDGE** ``` NS ``` W.P.(C) No.8698 of 2023 8 ## **`APPENDIX OF WP(C) 8698/2023`** ``` PETITIONER(S)EXHIBITS ``` ``` ExhibitP1 ``` ``` TRUECOPYOFTHERCPARTICULARSOFTHE PETITIONER'SVEHICLEBEARINGREGISTRATIONNO. KL-34-E-6547 ``` ``` ExhibitP2TRUECOPYOFTHEGOODSCARRIAGEPERMITOF VEHICLEBEARINGREGISTRATIONNO.NO. KL-34-E-6547ISSUEDBYTHE4THRESPONDENT DATED30.11.2017 ``` ``` ExhibitP3 ``` ``` TRUECOPYOFTHEDISCHARGESUMMARYISSUED FROMDEPARTMENTOFNEUROSCIENCE,CARTITAS HOSPITAL,KOTTAYAM. ``` ``` RESPONDENT(S)EXHIBITS:NIL ```