The registered vehicle owner's liability for motor vehicle tax ceases upon possession of the vehicle by the financier.

J U D G M E N T

The petitioner was the owner of a bus bearing registration No. KL 03 T 5035. The challenge raised in this writ petition is against Ext.P2 Revenue Recovery notice issued to the petitioner, for realising an amount of Rs.6,60,863/- as the motor vehicle tax in respect of the said vehicle. As against Ext.P2, the petitioner submitted Ext.P3 objection. The writ petition was submitted challenging Ext.P2 revenue recovery notice and also for a direction to the 2^nd respondent to consider and pass orders on Ext.P3 representation submitted by the petitioner.

2. I have heard Sri. S.R.Sreejith, the learned counsel appearing for the petitioner, Sri. Arun Ajay Shankar, the learned Government Pleader appearing for the respondents 1 to 6 and Sri. Binoy Vasudevan, the learned counsel appearing for the 7^th and 8^th respondents.

3. The specific contention raised by the learned counsel for the petitioner is that, the demand of motor vehicle tax in respect of the vehicle owned by the petitioner is not legally sustainable, in view of the fact that, the petitioner has already surrendered the vehicle as early as on 15.03.2023 to the

7^th and 8^th respondents, the it was contended that, as the petitioner is not in possession and control of the said vehicle, no tax liability can be imposed upon him, in respect of the said vehicle.

4. As far as the question raised by the petitioner is concerned, this Court has already decided the said issue in Rubeesh Shamsudheen v. The Joint Regional Transport Officer 2025 KHC Online 886 wherein, it is held that, in cases where, the financier has taken the possession of the vehicle, owing to the non payment of the installments of the vehicle, the liability of the registered vehicle owner would stand extinguished from the date of taking possession. To be precise, in such cases, the liability of the registered owner would be upto the date of taking possession of the vehicle by the financier. The liability to pay the motor vehicle tax after taking possession has to be determined by the Motor vehicle authorities after issuing notice to the financier.

5. In the light of the principles laid down by this Court, I am of the view that, this writ petition can be disposed of. However, it is discernible from the records that, the amount demanded as per Ext.P6 is for the period from 01.07.2021 onwards and since the vehicle was taken possession by the financier only on

15.06.2023, the petitioner would be liable to pay motor vehicle tax upto said period.

Accordingly, this writ petition is disposed of, directing competent among the 3^rd and 4^th respondents to determine the amounts payable by the petitioner, as motor vehicle tax, for the period upto the date of surrender of the vehicle, as referred to above. A notice in this regard shall be issued to the petitioner. Upon issuance of the said notice, the petitioner shall make the said payment. As far as the motor vehicle tax after 15.06.2023, the same can be realised by the 3^rd and 4^th respondent after issuing notice to the 7^th and 8^th respondents.

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