The transferee of a vehicle is liable for unpaid welfare fund contributions of the previous owner under the Kerala Motor Transport Workers' Welfare Fund Act.

JUDGMENT

The petitioner has come up before this Court alleging that the respondents have refused to accept the motor vehicles tax alleging non-payment of contribution towards motor transport workers' welfare Fund.

2. The petitioner purchased MGV Goods Carrier Truck bearing Reg. No.KL-07/BB-1038 (2005 model) from its previous owner, the third respondent. The petitioner alleges that when he approached the first respondent for payment of tax payable from 1.4.2011, the first respondent insisted for evidence showing payment of contribution towards motor transport workers' welfare Fund. The petitioner requested the second respondent to receive the welfare fund contribution payable to him from 1.4.2011. However, the second respondent demanded contribution for the last five years during the time which the welfare fund contribution was made essential before accepting vehicle tax. The petitioner tried to convince the third respondent regarding the non-availability to pay the welfare fund as he was not the owner of the vehicle in question prior to 14.3.2011. The petitioner alleges that as the tax has been paid upto 31.3.2011, it is evident that the contribution towards the motor tax workers welfare fund should have been paid. It is with this background, the petitioner has approached this Court.

3. In the statement filed by the second respondent, they have contended as follows:

The petitioner has purchased medium goods carriage bearing from the third respondent and transferred the registration certificate with effect from 14.3.2011. After effecting the transfer of ownership of the above vehicle, the petitioner approached the second respondent to remit the welfare fund contribution from the month of March, 2011 onwards. The second respondent demanded from the petitioner the evidence for remitting the welfare fund contribution by the third respondent upto 14.3.2011. However, the petitioner did not produce the clearance receipt of welfare fund contribution remitted upto the preceding month as per the Kerala Motor Transport Worker's Welfare Fund Act, 2005.

It was further contended that on verification of the records, the vehicle now in the ownership of the petitioner was not registered with the second respondent. Therefore, the second respondent demanded contribution under the Kerala Motor Workers'

Welfare Fund Act for the periods from 20.2.2006, the date of registration till March, 2011, which is the date on which the petitioner became the owner of the above stage carriage. The petitioner had purchased the vehicle from the third respondent and changed the registration certificate to his name w.e.f 14.3.2011. Before changing the registration certificate into his name, the petitioner had to obtain clearance receipt of remitting the welfare fund contribution due to 14.3.2011 from previous owner. As per Section 10 (2) of the Kerala Motor Transport Workers' Welfare Fund (Amendment) Act, 2005, if the employer transfers his vehicle before paying off any amount due under this Act in respect of the vehicle, the liability wherefore occurred before the date of the transfer, such amount shall be a charge on the vehicle so transferred. Since the former owner did not clear the welfare fund contribution, the petitioner has to remit the same from 20.2.2006 onwards in respect of the above vehicle purchased by the petitioner.

It was further contended that since the welfare fund contribution in respect of the vehicle has not been paid till date by the third respondent, the petitioner ought to have obtained clearance receipt of welfare fund contribution towards motor transport workers' welfare fund upto 14.3.2011 from the third respondent or in the alternative, the petitioner is liable to remit the amount as per the Kerala Motor Transport Workers' Welfare Fund Act . It is stated that as per Section 10 (2) of the Motor Transport Workers' Welfare Fund (Amendment) Act, 2005 where an employer transfer his vehicle before paying welfare fund contribution due under this A