Hypothecation termination under MV Act Sec.51(3) requires notice to financier before cancellation.

JUDGMENT

The petitioner Company had extended financial assistance to the 5^th respondent for the purchase of a vehicle bearing registration No.KL-02-BL-9601. The 5^th respondent defaulted repayment. According to the petitioner, since the vehicle is being held under hypothecation agreement with an entry to that effect in the certificate of registration, the procedure prescribed under Sec.51(3) of the Motor Vehicles Act, 1988 has to be followed for cancellation of such entry. On an application made by the 5^th respondent, the 3^rd respondent sanctioned termination of the agreement without notice to the petitioner. The petitioner has filed Ext.P5 representation before the 6^th respondent seeking cancellation of the registration of the vehicle and for issuance of fresh Certificate of Registration in the name of the petitioner. The limited prayer of the petitioner in the writ petition is for a direction to the 6^th respondent to consider Ext.P5 representation.

2. Heard the learned counsel for the petitioner and the learned Government Pleader appearing for respondent Nos.1 to 3 and 6 and the learned Senior Central Government Counsel for the 4^th respondent.

3. In the nature of the order proposed to be passed in the writ petition, notice to the 5^th respondent is dispensed with.

4. In the facts and circumstances of the case, there will be a direction to the 6^th respondent to consider Ext.P5 representation submitted by the petitioner, as expeditiously as possible, with notice to the petitioner, the 5^th respondent and any other interested person, at any rate, within a period of two months from the date of receipt of a certified copy of this judgment.

The Writ Petition is accordingly disposed of.