The transferee of a vehicle is liable to pay the arrears of tax payable by the previous owner or the person who had possession or control of such vehicle and remained unpaid at the time of transfer of the vehicle.

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IN THE HIGH COURT OF ORISSA AT CUTTACK

W.P.(C) NO. 36846 OF 2022

Prasanta Kumar Sahoo

….

Petitioner

Mr. Braja Mohan Sarangi, Advocate

-versus-

R.T.O., Dhenkanal and others

….

Opp. Parties

Mr. Pravakar Behera, Standing Counsel

(For Transport Department)

CORAM:

JUSTICE K.R. MOHAPATRA

ORDER

Order No.

04.01.2023

01.

1.

This matter is taken up through hybrid mode.

2.

The Petitioner in this writ petition prays for a direction

to the Regional Transport Officer, Dhenkanal-Opposite Party

No.1 to accept the M.V. tax amount of Rs.47,500/- for the

vehicle bearing Registration No.OD-16-C-5277 (Hywa) and to

allow transfer of the ownership and issue permit as well as

fitness certificate without insisting upon payment of penalty

imposed for non-payment of M.V. tax in time.

3.

It is submitted by Mr. Sarangi, learned counsel that the

Petitioner is an auction purchaser of the aforesaid vehicle

conducted by the Financer, namely, Branch Manager, Tata

Motor Fin. Ltd., Bhubaneswar-Opposite Party No.2. The

vehicle was seized by the Opposite Party No.2 for non-payment

of the loan dues by the registered owner. It is also submitted

that since the Petitioner is in possession of the aforesaid

vehicle, he is liable to pay the M.V. tax including the arrear

amount, but not the penalty for non-payment of M.V. tax in

time. In support of his case, he relies upon the decision of this

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Court in the case of Sk. Imran Ahmad –v- R.T.O.,

Bhubaneswar in W.P.(C) No.15548 of 2014, which was

disposed of on 10^th April, 2015 with the following observation:

“In Bachan Singh v. The Road Transport Officer,

Rourkela, and others, 2009 (II) OLR 183, a Division

Bench of this Court succinctly dealt with the law on the

subject. It was held that a transferee of the vehicle or the

person who is in possession or control of the vehicle shall

be liable to pay the arrears of tax payable by the previous

owner or the person who had possession or control of

such vehicle and remained unpaid at the time of transfer

of the vehicle.

Thus, the irresistible conclusion is that the

petitioner is only liable to pay tax.

In view of the same, the writ application is disposed

of with a direction to the opposite party no.1 to accept the

tax and thereafter transfer the vehicle in the name of

petitioner.”

4.

In view of the above, he prays for a direction to the

R.T.O., Dhenkanal-Opposite Party No.1 to accept the M.V. tax

including the arrear amount in respect of the vehicle bearing

Registration No.OD-16-C-5277 (Hywa) and to take steps for

issuance of fitness certificate and permit as well as transfer of

ownership.

5.

Mr. Behera, learned Standing Counsel for the Transport

Department submits that since the Petitioner is in possession of

the vehicle, he is liable to pay the tax including the arrear

amount in respect of the aforesaid vehicle. But the ownership

of the vehicle cannot be transferred without complying with the

provision of Section 51(5) of the Motor Vehicles Act, 1988 (for

short ‘the Act’). In many cases, the Financer-Opposite Party

No.2 without following the procedure laid down in Section

51(5) of the Act is conducting auction and is parting with

possession of the vehicle, which is contrary to law. He also

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draws attention of this Court to Section 50 of the Act, relevant

portion of which reads as under:

“50.Transfer of ownership.-

xxx xxx xxx

(2) Where-

(a) the person in whose name a motor vehicle stands

registered dies, or

(b) a motor vehicle has been purchased or acquired at

a public auction conducted by, or on behalf of,

Government,

the person succeeding to the possession of the vehicle or,

as the case may be, who has purchased or acquired the