The main legal point established in the judgment is the joint and several liability of the registered owner and the person in possession and control of the vehicle for payment of arrears of motor vehicle tax, as well as the recovery of tax from the transferee or person taking over possession and control of the vehicle after repossession.

Ramachandran Nair, J.

The appeal is filed against judgment of the learned single Judge holding that appellant is liable to pay arrears of motor vehicle tax in respect of a Tempo Traveller bearing registration No.KL-01/C-1497 for the period from 1.7.1996 to 2.2.1999. We have heard counsel appearing for the appellant, Standing Counsel appearing for the financier-4th respondent and the Government Pleader for the other respondents.

2. The vehicle was purchased by the appellant under hire-purchase arrangement with the additional-4th respondent herein. When appellant defaulted payment of hire charges, vehicle was admittedly re-possessed by the 4th respondent on 17.12.1997. As on the date of re-possession by the financier, the vehicle was already in arrears of tax for the period commencing from 1.7.1996 onwards. Admittedly the financier did not care to clear the arrears of tax or even file G From for the period the vehicle was retained by them. Even though vehicle was stated to be sold by the financier to another person, it is not known whether the vehicle was put on road or whether the RC was changed from the appellant to the financier and in turn from the financier to the purchaser. All what stands proved is that the vehicle stands dismantled on 2.2.1999 which means that vehicle subject to exemption if any granted based on Form G furnished, would have been liable for payment of tax up to 31st January, 1999. The learned single Judge held that since the appellant being registered owner has not filed Form G for exemption prescribed under Rule 5 of the Motor Vehicles Taxation Rules, is liable to pay the tax.

3. During hearing counsel for the appellant contended that appellant was disabled from filing Form G because he could not have furnished the particulars required to be given in Form G such as place of garage, probable date of reuse etc., because vehicle was under the control of the 4th respondent. Counsel for the 4th respondent contended that the vehicle was retained until sold by them only because appellant kept on offering payment which he never did. He further contended that 4th respondent has suffered loss on account of failure of the appellant to remit the hire charges and over and above if they are held to be liable for payment of arrears of tax, the same will cause heavy hardship to the 4th respondent.

4. Procedure for levy, collection and recovery of motor vehicle tax are contained in the Kerala Motor Vehicles Taxation Act. Section 3 (2) makes it clear that liability for payment of tax is on the registered owner or the person in possession and control of the vehicle, who by the fiction introduced in the said Section is deemed to be keeping the vehicle for use in the State. Therefore, liability under Section 3(3) is joint and several and both the appellant and 4th respondent are liable for payment of tax that was due after 17.12.1997 when the vehicle was repossessed by the financier-4th respondent. In other words, appellant being the registered owner as well as the person in possession and control of the vehicle, was solely liable for payment of arrears of tax from 1.7.1996 to 17.12.1997. So much so, the judgment of the learned single Judge upholding liability of the appellant up to 17.12.1997 calls for no interference. Since liability is till end of the month of the quarter, arrears could be recovered from the appellant from 1.7.1996 to 31.12.1997.

5. Next question to be considered is the liability for tax after date of repossession by the 4th respondent. We have already referred to Section 3(3) which along with registered owner casts joint liability on the person who is in possession and control of the vehicle. In fact, it is worth while to refer to Section 9 of the Motor Vehicles Taxation Act which is as follows:

“S.9. Liability to payment of tax by persons succeeding to the ownership, possession or control of motor vehicles:- (1) If the tax leviable in respect of any motor vehicle remains unpaid by any person