IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN WEDNESDAY, THE 27TH JULY 2011 / 5TH SRAVANA 1933 WP(C).No. 29456 of 2010(F) -------------------------- PETITIONER(S): --------------------- PAUL.A.G,AGED 42 YEARS, S/O.GEORGE,ARAKKAL HOUSE,KAITHARAM KARA, KOTTUVALLY VILLAGE, PARAVUR TALUK. BY ADVS. SRI.P.K.SAJEEV SRI.JACOB GEORGE (PARAVUR) RESPONDENT(S): ----------------------- 1. THE REGIONAL TRANSPORT OFFICER, REGIONAL TRANSPORT OFFICE, NORTH PARAVUR PO 683 513. 2. INDUSIND BANK,GOWRI NARAYAN 40/8400, OPP.JAYALAKSHMI SILKS,M.G.ROAD,KOCHI 682 035, REP.BY ITS MANAGER. 3. VARGHESE.A.P, S/O.PAPPU, AKKUNNATH HOUSE, VARAPPUZHA VILLAGE, PARAVUR TALUK, PO VARAPPUZHA 683517. R1 BY SENIOR GOVERNMENT PLEADER SRI.S.ABDUL SALAM R2 ADV. SRI.K.RAJESH (AROOR) THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 29456 of 2010(F) ------------------------------------- APPENDIX ---------------- PETITINER'S EXHIBITS ---------------------------------- EXT.P1. COPY OF CERTIFICATE OF REGISTRATION OF THE VEHICLE BEARING REGISTRATION NO.KL-7-AG-5761. EXT.P2. COPY OF THE AGREEMENT DATED 12.7.2007. EXT.P3. COPY OF THE AGREEMENT DT. 1.10.2008. EXT.P4. COPY OF THE AGREEMENT DT. 6.7.2009. EXT.P5. COPY OF THE RECEIPT DT. 23.10.2008 ISSUED BY THE 2ND RSPONDENT. EXT.P6. COPY of the LETTER DT. 30.10.2008 GIVEN BY THE 3RD RESPONDENT TO THE 2ND RESPONDENT. EXT.P7. COPY OF THE APPLICATION DT. 29.3.2010 GIVEN BY THE PETITIONER TO THE 1ST RESPONDENT. EXT.P8. COPY OF THE POSTAL REEIPT DT. 1.4.2010 EXT.P9. COPY of the ACK. CARD SIGNED BY THE 1ST RSPONDENT ON 3.4.2010. RESPONDENT'S EXHIBITS : NIL ------------------------------------ / TRUE COPY / P.A. TO JUDGE VK P.N. RAVINDRAN, J. ------------------------------- W.P.(C) No.29456 of 2010 ------------------------------- Dated this the 27th day of July, 2011 J U D G M E N T The petitioner purchased a stage carriage bearing registration No.KL-7-AG-5761 from the third respondent, the registered owner, on 12.7.2007. The third respondent had availed financial assistance from the second respondent bank for the purchase of the aforesaid vehicle and an endorsement was made on the certificate of registration to the effect that the vehicle stands hypothecated to the second respondent bank. Under the terms of the agreement between the petitioner and the third respondent, the petitioner was bound to pay the balance amount payable by the third respondent to the second respondent in respect of the loan transaction relating to the aforesaid stage carriage. The petitioner accordingly paid the entire amount due from the third respondent to the second respondent bank in respect of the aforesaid stage carriage. This writ petition is filed contending that though the third respondent had submitted Ext.P6 letter dated 30.10.2008 to the Branch Manager of the second respondent bank requesting him to issue a No Objection Certificate in the name of the third respondent and to deliver it to the petitioner, the second respondent declined to issue the No Objection W.P.(C) No.29456 of 2011 2 Certificate. It is also stated that though the petitioner had submitted Ext.P7 representation dated 29.3.2010 before the first respondent to transfer the ownership of the stage carriage, no action was taken on it for want of the No Objection Certificate from the financier of the vehicle. In this writ petition, the petitioner inter alia seeks a direction to the second respondent to issue the No Objection Certificate requested for by the first respondent, and an order directing the first respondent to transfer the ownership of the stage carriage bearing registration No.KL-7-AG-5761 to the name of the petitioner. 2. The second respondent has filed a counter affidavit dated 4.7.2011 wherein it is stated that the third respondent had availed two loans from the second respondent bank for the purchase of two stage carriages bearing registration Nos.KL -3 H 5445 and KL 07 AG 5761. It is stated that though in respect of the second stage carriage (KL 07 AG 5761) the entire amount has been paid, in respect of the first stage carriage, the sum of Rs.1,13,000/- with interest and other charges is due from the third respondent and that notwithstanding repeated demands, the third respondent has not cleared the said dues. It is also stated that the third respondent has not taken any effort to obtain a No Objection Certificate from the second respondent as regards the stage carriage bearing registration W.P.(C) No.29456 of 2011 3 No. KL 07 AG 5761, that the third respondent did not inform the second respondent about the sale of the stage carriage to the petitioner and that the sale to the petitioner was in violation of the hypothecation agreement between the parties. 3. I heard Sri.P.K.Sajeev, learned counsel appearing for the petitioner, Sri.S.Abdul Salam, learned Government Pleader appearing for the first respondent and Sri.K.Rajesh, learned counsel appearing for the second respondent. Though third respondent has been served, he has not chosen to enter appearance. From the pleadings and the materials on record, it is evident that no amount is due from the third respondent to the second respondent in respect of the stage carriage bearing registration No. KL 07 AG 5761 and that in respect of another stage carriage, large amounts are due from him to the second respondent. Under the provisions of section 51 of the Motor Vehicles Act, as the hypothecation is different and distinct in respect of the said two stage carriages, the mere fact that the third respondent has defaulted repayment of yet another loan is not a reason to withheld the issuance of a No Objection Certificate to the third respondent in respect of the stage carriage bearing registration No. KL 07 AG 5761. Therefore, even if the third respondent himself were to ask for a No Objection Certificate, the second respondent W.P.(C) No.29456 of 2011 4 cannot deny the same and can only make use of the request to bring pressure on the third respondent to settle the other loans availed by him. The second respondent does not dispute the fact that the loan transaction in respect of the stage carriage over which the petitioner claims ownership has been settled and no amount what so ever is due in respect of that stage carriage. If that be so, the second respondent bank cannot proceed against that stage carriage by re-possessing it and selling it after obtaining a duplicate sale certificate. In such circumstances, I am of the opinion that the petitioner is entitled to have a No Objection Certificate issued in respect of the stage carriage bearing registration No. KL 07 AG 5761. I accordingly dispose of the writ petition with a direction that on the petitioner requesting the second respondent bank to issue a No Objection Certificate in the name of the third respondent in respect of the stage carriage bearing registration No. KL 07 AG 5761, the second respondent shall issue such a No Objection Certificate in the prescribed form in respect of that stage carriage to the petitioner within one week from the date of receipt of the application. Thereupon, it will be open to the petitioner to move the first respondent for transfer of ownership of the stage carriage bearing registration No. KL 07 AG 5761 in his name. It is however clarified W.P.(C) No.29456 of 2011 5 that this direction will not prejudice the right of the second respondent bank to proceed against the third respondent and his assets to recover the loan availed by him to purchase the stage carriage bearing registration No. KL -3 H 5445. P.N. RAVINDRAN, JUDGE. nj.