IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM FRIDAY, THE 12TH NOVEMBER 2010 / 21ST KARTHIKA 1932 WP(C).No. 30855 of 2010(F) --------------------------------- PETITIONER(S): ------------------- K.A.RASHEED, S/O.ABDUL RAHIMANKUTTY, KANNOTH HOUSE, CHANGAMPUZHA NAGAR P.O., PIN-682 033, UNICHIRA, ERNAKULAM DISTRICT. BY ADVS. SRI.G.HARIHARAN SRI.PRAVEEN.H. RESPONDENT(S): ------------------- 1. REGIONAL TRANSPORT OFFICER, ERNAKULAM-682030. 2. THE RECOVERY OFFICER, DEBTS RECOVERY TRIBUNAL, 8TH FLOOR, K.S.H.B. BUILDING, PANAMPILLY NAGAR, COCHIN-682 036. * ADDL. R3 IS IMPLEADED 3. JOHN, S/O. PAPPU, PUTHIYAKULANGARA HOUSE, KOONAMMAVU P.O., ERNAKULAM DISTRICT. * ADDL. R3 IS IMPLEADED AS PER ORDER DATED 21/10/2010 IN I.A. 14772/2010. R1 & R2 BY GOVT.PLEADER SRI.MATHEW GEORGE VADEKKEL R3 BY ADV. SMT.B.R.SINDU THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/11/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: svs/ C.K.ABDUL REHIM, J --------------------------------------- W.P(C) No.30855 of 2010-F ---------------------------------------- Dated this the 12th day of November, 2010. J U D G M E N T The petitioner had purchased a goods vehicle bearing No.KL-07-AZ/7696 in an auction sale conducted by the 2nd respondent, the Recovery Officer attached to the Debt Recovery Tribunal, Ernakulam. Consequent to the sale, ownership of the vehicle was got transferred into the name of the petitioner and he had remitted motor vehicle tax due for the period from 19.1.2010 to 30.6.2010. Subsequently a demand was issued by the 1st respondent for arrears of tax amounting to Rs.89,760/-, due for the period from 1.1.2008 to 31.12.2009. Disputing liability for payment of the arrears, the petitioner had approached this Court in W.P(C) No.21773 of 2010. The said writ petition was referred for decision of a Division Bench, and through an interim order the application for permit was directed to be considered, on the petitioner furnishing Bank Guarantee for the entire arrears. The petitioner had furnished Bank Guarantee for W.P(C) No.30855 of 2010-F 2 the arrears in compliance with the directions. 2. At present, the petitioner is intending to sell the vehicle to additional 3rd respondent. But the 1st respondent refused to issue 'No Objection Certificate' for effecting transfer of ownership, on the ground that the dispute regarding liability for payment of arrears of tax is pending decision of this Court. Under the above circumstances, the petitioner seeks direction to the 1st respondent to consider and pass orders on the application submitted by the petitioner for granting no-objection for effecting transfer of ownership. 3. It is evident that the ownership of the vehicle has already been transferred into the name of the petitioner and he had remitted tax due from 19.1.2010 onwards. The dispute is only with respect to arrears of tax for the period from 1.1.2008 to 31.12.2009. The amount due for the said period now stands secured through the Bank Guarantee furnished by the petitioner. Realization of the said amount will be subject to disposal of the matter pending before the W.P(C) No.30855 of 2010-F 3 Division Bench (W.P(C) No.21773 of 2010). It is evident that, if ultimately the result goes against the petitioner, the 1st respondent will be entitled to realize the amount by encashing the Bank Guarantee. On the other hand if ultimately it is found that the petitioner is not liable for payment of the amount, the arrears can be recovered from the person who will be held liable, despite transfer of the vehicle. Learned counsel for the additional 3rd respondent, who is the proposed buyer submits that the 3rd respondent is aware about the liability, which will ultimately be a charge on the vehicle in question. 4. Under such circumstances, I am of the opinion that subject to finalization of the matter regarding liability for arrears and subject to continuance of the Bank Guarantee alive, transfer of the vehicle in favour of the additional 3rd respondent can be permitted, if it is otherwise in order. 5. Therefore, the writ petition is disposed of directing the 1st respondent to consider the application for W.P(C) No.30855 of 2010-F 4 'No Objection Certificate' for transferring ownership of the vehicle in favour of the additional 3rd respondent, subject to condition that the petitioner will keep the Bank Guarantee furnished on the basis of the interim order issued in W.P.(C) No.21773 of 2010, alive, and further subject to condition of the additional 3rd respondent furnishing an undertaking before the 1st respondent to the effect that, if for any reason the arrears could not be realized, he will be responsible for payment of such amount and that he will not alienate or part with possession of the vehicle till the matter is finally settled. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab W.P(C) No.30855 of 2010-F 5