THIS CRL.P IS FILED UNDER SECTION 482 OF THE CODE OF CRIMINAL PROCEDURE, 1973 PRAYING TO QUASH THE CRIMINAL PROCEEDINGS IN C.C.NO.2575/2018 PENDING ON THE FILE OF J.M.F.C.-II COURT, MANGALURU FOR THE OFFENCE PUNISHABLE UNDER SECTIONS 12(1)(a) AND (b) OF THE KARNATAKA MOTOR VEHICLES TAXATION ACT.

THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE R. NATARAJ

ORAL ORDER

The petitioner has challenged the proceedings initiated against it in C.C. No.2575/2018 pending on the file of JMFC - II, Mangaluru for the offences punishable under Sections 12(1)(a) and (b) of the Karnataka Motor Vehicles Taxation Act, 1957.

It is the case of the petitioner that it had financed the purchase of a commercial vehicle bearing registration No.KA-20-B-122 and that an appropriate hypothecation entry was made in the records maintained by the respondent. It is contended that the hirer of the vehicle committed default in payment of the equal monthly installments and consequently, the petitioner being the financier repossessed the vehicle on 25.02.2011 and thereafter sold the same in a public auction on 31.01.2013. The petitioner claims that it subsequently received a notice from the office of the respondent demanding road tax of the aforesaid vehicle for the period from 01.10.2017 to 31.03.2018 amounting to Rs.2,33,100/- along with penalty. The petitioner replied to the notice and informed the respondent about the repossession of the vehicle and its subsequent sale by way of public auction, and the adjustment of the sale proceeds towards the liability of the registered owner. It also disputed its liability and contended that it was only a financier having a hypothecation over the vehicle and was not the owner of the vehicle for all practical purposes. None the less, the petitioner received summons pursuant to a charge sheet filed against it for the offences punishable under Sections 3 and 4 read with Section 12(1)(a) and (b) of the Karnataka Motor Vehicles Taxation Act, 1957, which was registered as C.C. No.2575/2018.

The petitioner being aggrieved by the issuance of process has filed this petition.

When this petition is listed for admission, the learned counsel for the petitioner fairly submitted that the question raised in this criminal petition is no longer res integra, in view of the judgment passed by this Court in Crl.No.9475/ 2018, 9957/2017 and 2174/2019, where Co-ordinate benches of this Court had held that a reading of Sections 4 and 9 of the Karnataka Motor Vehicles Taxation Act, 1957 makes it clear that not only the registered owner of the vehicle but also the person who is in possession of the vehicle is liable to pay the tax. Therefore, it was held that the contention of the financier that it is only the registered owner who is liable to pay the tax is not tenable.

In that view of the matter, no interference is warranted. It is needless to mention that any liability of the petitioner will be only for the term commencing from the date the vehicle was repossessed and till the date the vehicle was sold in the public auction i.e. from 25.02.2011 to 31.01.2013. However, it is seen from the charge sheet that the tax demanded from the petitioner was for the period 01.10.2017 to 31.03.2018 at which point of time, the petitioner was not in possession of the vehicle.

Consequently this petition is allowed. The prosecution of the petitioner in C.C. No.2575/2018, pending on the file of JMFC - II, Mangaluru for the offences punishable under Sections 12(1)(a) and (b) of the Karnataka Motor Vehicles Taxation Act, 1957 is quashed. However, this will not come in the way of initiating necessary proceedings against the petitioner for recovery of arrears of road tax for the period from 25.02.2011 to 31.01.2013.