2025:JHHC:12236-DB IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No. 3448 of 2024 Zafar Ali, aged about 30 years old, son of Md Yusuf, resident of Village-Balumath, (Galib Colony) Post Office-Balumath and Police Station-Balumath, District-Latehar, as Partner of J K Minerals and Developers having registered office at Near Haj House, Flat Behind D.A.V. Kapil Deo Kadru Road, Post Office-Kadru, Police Station- Argora, District-Ranchi. ... ... ... ... Petitioner Versus 1. The State of Jharkhand 2. The Secretary, Transport Department, Government of Jharkhand, Dhurwa, Post Office and Police Station-Dhurwa, District-Ranchi. 3. The Deputy Commissioner, Latehar, Post Office and Police Station-Latehar, District- Latehar. 4. The District Mining Officer, Latehar, Post Office and Police Station- Dumka, District-Dumka. … … ... Respondents --------- CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE RAJESH SHANKAR --------- For the Petitioner : Mr. Haider Ali, Advocate For the Respondents: Mr. Sahbaj Akhtar, A.C. to A.A.G.III --------- 07/Dated: 24.04.2025 1. Heard the counsel for the petitioner and the counsel for the respondents. 2. A vehicle bearing Registration No. JH-04T-2862 being a Truck was put up for auction by the District Commissioner-District Magistrate, Latehar in Confiscation Case No. 40 of 2023 through an order dt. 17.5.2023. 3. The petitioner’s company participated in the auction held on 13.6.2023 and submitted the requisite fee for auction. Petitioner was declared as highest bidder and the auction sale was confirmed in the petitioner’s name and after the receipt of the sale price, auction certificate was issued delivering the vehicle to the petitioner on the same day. 2025:JHHC:12236-DB 4. Petitioner then applied to the office of District Transport Officer, Dumka for registration of the vehicle in his favour as per the provision contained under section 50(2) of the Motor Vehicles Act, 1988 with an application in prescribed Form No. 32. It was forwarded to the District Mining Officer, Latehar but the District Transport Officer, Dumka sent a letter on 06.03.2024 stating that a notice was sent also to the Financer of the vehicle i.e., Cholamandalam Investment Finance, and a written representation was submitted by the said Financer that the vehicle was under finance and hypothecation to it and, there was amount owed to the Financer. 5. Petitioner contends that once a property is confiscated under Rule 11(v) of Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017, it vests with the State Government free from all encumbrances and once it is State property and has been put to auction by following due procedure, the petitioner being an auction purchaser, no further amounts can be collected from the petitioner. 6. Petitioner has, therefore, filed the writ petition for quashing of the Annexure-5, Memo dt. 6.3.2024 issued by District Transport Officer, Dumka. 7. Counter affidavit was filed by the respondents taking that the said vehicle had been caught illegally transporting major mineral coal along with two other vehicles and under Rule 11(v) of Jharkhand Minerals (Prevention of Illegal Mining, Transportation and Storage) Rules, 2017 and the Deputy Commissioner, Latehar had passed an order directing the District Mining Officer, Latehar to confiscate the vehicle with the help of District Transport Officer, Latehar and deposit the auction amount in the Government head within eight weeks. It is 2025:JHHC:12236-DB stated that the vehicle was then put to auction and the auction amount was deposited in the Government treasury on 24.6.2023. 8. It is admitted that the petitioner company was declared as a highest bidder in the auction and the petitioner applied for transfer of papers relating the auctioned vehicle and then the impugned letter was issued at the instance of M/s Cholamandalam Investment Finance Company. 9. The District Transport Officer, Dumka filed another counter affidavit stating that he had written a letter dt. 17.01.2024 to the Financer and the original owner of the vehicle in question as the original registration certificate along with Form 35 was missing which was a mandate as per section 50 of the Act and as per rules made thereunder. 10. It is stated that the Financer then wrote a letter on 09.02.2024 objecting to the transfer of the vehicle and even the original owner of the vehicle by name Rina Devi objected to the transfer. It is stated that unless a “no objection certificate” is obtained from the Financer and the actual owner, transfer of registration of the vehicle cannot be done. 11. We have perused the advertisement issued for sale of the vehicle which no where uses the word “as is where is basis”. It also does not indicate anywhere that the subject vehicle which is put up for auction by the District Mining Officer was subject to any hypothecation 12. It is the duty of the respondents to disclose any encumbrance on the vehicle when they put it to auction, since they are employees of the State Government and the State Government Officials are expected to act fairly and honestly. On account of failure of the employees of the State Government belonging to Mining Department such as the District Mining Officer, Latehar in disclosing about the encumbrance, 2025:JHHC:12236-DB the petitioner was forced to pay Rs. 28 Lakhs to the respondents which the respondents have appropriated, but are now making objections for transfer of registration of the vehicle to the petitioner on the pretext that the Financer and the original owner of the vehicle are objecting to the transfer of the registration. 13. This conduct on the part of the respondents cannot be countenanced and they cannot be permitted to take advantage of their own wrong and retain the money which the petitioner has paid, and prevent the petitioner from enjoying the use of the vehicle by refusing to register the same. Such conduct is arbitrary, unreasonable and also unconscionable and cannot be countenanced. 14. Therefore, the writ petition is allowed. 15. The respondents are directed to refund the amount of Rs. 28 lakhs paid by the petitioner to them on 24.06.2023 with interest @ 9% per annum from the date of such deposit till the date of refund of the said amount to the petitioner; and the respondents 1 to 4 shall pay costs of Rs. 2,00,000/- to the petitioner within four weeks; on receipt of the amount as directed above, the petitioner shall surrender the vehicle to the 4th respondent. (M.S. Ramachandra Rao, C.J.) (Rajesh Shankar, J.) Sharda/MM/ Cp.02