The question raised by this appeal is whether regulation 47(1) of the Road Traffic Regulations affects the title of a legal owner of a motor-car who has applied to register his name as absolute owner but has not ensured that registration has been effected pursuant to that application. The paragraph reads as follows:

"Where the person entitled to the possession of a motor vehicle or trailer is not the absolute owner thereof, but is registered as the owner thereof, any person claiming to be the absolute owner thereof (hereinafter called 'the claimant') may apply to the licensing officer of the district in which the vehicle or trailer is registered to enter his name in the register as the absolute owner in addition to the name of the registered owner."

The appellant defendant is a finance company ("the financier") which agreed to finance the purchase of a new motor-car from Performance Company Limited ("the dealer") by one Martin Loh Nyuk-loi ("the hire-purchaser"). There was nothing unusual about the hire-purchase agreement, which was dated August 19, 1983. It is common ground that, in accordance with the normal practice in the trade, after a down-payment had been