Cancellation of registration certificates of motor vehicles without completing the enquiry under Section 55(3) of the MV Act is illegal and contrary to the principles of natural justice.

JUDGMENT

B. Krishna Mohan, J. - This Writ Petition is filed challenging the orders of the 2nd respondent in R.No.AP0020509382020, R.No.AP0020509522020, R.No. AP002050932020, R.No.AP0020509362020 and R.No.AP0020509542020, dated 03.06.2020 in cancelling the Registration Certificates of Motor Vehicles bearing Nos.AP02TH4238, AP02TH3854, AP02TH3857, AP02TH3658 and AP02TH3856.

2. Heard the learned counsel for the petitioners and the learned Government Pleader for Transport appearing for the respondents.

3. It is the case of the petitioners that the 2nd petitioner is the registered owner of five transport lorries bearing Motor vehicle Nos.AP02TH4238, AP02TH3854, AP02TH3857, AP02TH3658 and AP02TH3856 (for short 'Motor vehicles'). The 1st petitioner is the partner of the said firm of the 2nd petitioner and the notices and cancellation orders issued/passed by the 2nd respondent are in the name of the 1st petitioner. It is the further case of the petitioners that the motor vehicles were purchased on 26.09.2018 and 27.09.2018 from M/s Jatadhara Industries Private Limited for a consideration of Rs.1,43,00,000/- by availing certain loans from Tata Motors Finance solutions limited, Thane West, Maharastra and the 2nd petitioner is a bonafide purchaser of the motor vehicles and the same were purchased after making prudent enquiries and verifying the registration documents. Subsequently, the petitioners made applications under the provisions of the Motor Vehicles Act,1988 (for short 'MV Act') read with Andhra Pradesh Motor Vehicle Rules, 1963 (for short 'MV Rules') and the Central Motor Vehicle Rues, 1989 for transfer of the ownership of the said motor vehicles from their vendor i.e., M/s Jatadhara Industries Private Limited. The 3rd respondent issued Certificates of Fitness for each of the Motor Vehicles and the 2nd respondent had also issued Authorization Certificates for National permit. After completion of the due procedure, the said five motor vehicles were registered in the name of the 2nd petitioner by the 2nd respondent on 26.09.2018 and 27.09.2018. The necessary insurance policies on Motor Vehicles were taken with the National Insurance Company Limited and the Motor vehicle tax is being paid on quarterly basis as per the provisions of the Andhra Pradesh Motor Vehicles Taxation Act, 1963.

4. It is further contended by the petitioners that the 2nd respondent issued show cause notices, dated 10.02.2020 bearing R.No.38/A1/2020 to the petitioners, which were received on 22.02.2020, to show cause as to why action should not be taken for cancellation of Registration Certificates under Section 55(3) of the MV Act. The petitioners have submitted their explanations to the said show cause notices on 26.02.2020 and the same are pending. They have further requested the 2nd respondent to fix a date for personal hearing for the purpose of making oral submissions by their counsel. As stated, no enquiry is continued or held. But surprisingly, the 2nd respondent issued the impugned orders in R.No.AP0020509382020, R.No.AP0020509522020,R.No.AP002050932020, R.No.AP0020509362020 and R.No.AP0020509542020, dated 03.06.2020, cancelling the Certificate of Registrations of the Motor Vehicles under Section 55(2) of the Motor Vehicle Act. The relevant extract of one such impugned order is as follows:

"Sri/Smt Adusumilli Chandramohan registered owner of the vehicle No.AP02TH4238 (Articulated Vehicles) in his/her application cited above has intimated that the above said vehicle became AS THE VEHICLE IS REGISTERED WITH FAKE AND FABRICATED DOCUMENTS. TC IS CANCELLED U/55 OF MV AS PER INSTRUCTIONS OF DTC and submitted the registration certificate of the above vehicle under sub-section (1) of Section 55 of MV Act, 1988.

In exercise of the powers conferred under sub-section (2) of Section 55 of the MV Act, 1988, the certificate of the registration of the vehicle number AP02TH4238 Articulated Vehicles is cancelled AS THE VEHICLE IS REGISTERED WITH FAKE AND FABRICATED DOCU