No entry regarding the transfer of ownership : SC
January05,2021
One Amarnath Yadav purchased the JCB machine and entered into a finance agreement dated 22.10.2016 with the appellant under which agreement the appellant financed an amount of Rs.19,83,360/-. Original owner failed to pay any instalment of loan and dispute referred to arbitrator. Arbitrator gave an award dated 26.03.2018 in favour of the appellant. The vehicle was seized on 27.01.2019 by the police in Sidhauli District Sitapur. A registration certificate dated 27.08.2018 was issued in the name of Ramjan Ali as owner.The Chief Judicial Magistrate observed that there is a dispute over ownership of the vehicle between respondent No.1 and appellant. A JCB machine bearing No. UP 51 AT 5709 and no objection certificate issued by Regional Transport Officer, Basti has been declared null and void. The High Court set aside the order and release of the vehicle. The appellant aggrieved by the said order dated 28.01.2020 has come up in this appeal . Section 51(1), (3) and (4)of The Motor Vehicles Act No entry regarding the transfer of ownership of any motor vehicle which is held under the said agreement shall be made in the certificate of registration except with the written consent of the person whose name has been specified in the certificate of registration as the person with whom the registered owner has entered into the said agreement.An application for making an entry of termination of agreement of hire purchase, lease or hypothecation referred to in sub-section (3) of section 51 shall be made in Form 35 duly signed by the registered owner of the vehicle and the financier. It shall be accompanied by the certificate of registration and the appropriate fee as specified in rule 81. Appeal Allowed.
SREI EQUIPMENT FINACE LTD.
VERSUS
RAMJAN ALI & ORS.
