WP(C) NO. 25619 OF 2017 1 2025:KER:26001 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE MOHAMMED NIAS C.P. WEDNESDAY, THE 26TH DAY OF MARCH 2025 / 5TH CHAITHRA, 1947 WP(C) NO. 25619 OF 2017 PETITIONER: M/S.CHOLAMANDALAM INVESTMENT AND FINANCE CO.LTD., HAVING ITS REGISTERED OFFICE AT DARE HOUSE,NO.2, N.S.C BOSE ROAD,PARRYS, CHENAI - 600 001AND HAVING ITS REGIONAL OFFICE AT SECOND FLOOR,THEKKEKARA COMMERCIAL CENTRE,PADIVATTOM, KOCHI 682 024, REPRESENTED BY ITS AUTHORISED SIGNATORY,T.P.NAVEEN, AREA LEGAL MANAGER, (KERALA) BY ADV BINOY VASUDEVAN RESPONDENTS: 1 THE REGIONAL TRANSPORT OFFICER, REGIONAL TRANSPORT OFFICE,CIVIL STATION, MALAPPURAM- 676505. 2 SHABEER ALI, S/O.MUHAMMED ALI,7/218 A, PALLIKKADAN HOUSE,ANAKKAYAM P.O., MALAPPURAM DISTRICT-676506 3 GAFOOR ALI, PANACHIKULANGARA,NEELESWARAM, CALICUT-670175 BY ADV K.RAKESH SRI.ARUN AJAY SHANKAR, GP THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 26.03.2025, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 25619 OF 2017 2 2025:KER:26001 JUDGMENT The petitioner is a Public Limited Company having its head office in Chennai, engaged in the business of extending financial assistance for the purchase of vehicles. The 2nd respondent approached the Manjeri Branch of the Company for the purchase of a heavy-duty Tata Taurus bearing Registration No.KL-14 J/4911 and was granted a loan for an amount of Rs.6,60,000/- on executing an agreement. The petitioner submits that the 2nd respondent did not repay the amount in terms of the agreement executed and finally, the 2nd respondent surrendered the vehicle on 27.08.2013. Notice dated 15.10.2015 was issued to the 2nd respondent, threatening recovery proceedings under the Kerala Revenue Recovery Act and Rules for recovery of the motor vehicle tax with respect to the vehicle in question. WP(C) NO. 25619 OF 2017 3 2025:KER:26001 2. The 2nd respondent challenged the said notice by filing W.P.(C)No.35369 of 2015 and this Court by judgment dated 27.11.2015, did not accept the contention of the 2nd respondent herein that he had surrendered the vehicle to the petitioner herein on 27.08.2010. However, communication dated 20.11.2015 issued to the registering authority was noticed and the following directions were issued: “(i) If the petitioner discharges the liability indicated in Ext.P4 notice, to the respondents in six equal successive monthly instalments, commencing from 15.12.2015, then further proceedings for recovery against the petitioner shall be kept in abeyance. (ii) It is made clear that if the petitioner commits a default in respect of any of the installments, he will lose the benefit of this judgment and the respondents will be free to continue the recovery proceedings against him from the stage at which they presently stand. (iii) It is made clear that the liability of the petitioner to motor vehicle tax in respect of the vehicle bearing registration No.KL-14J/4911, shall cease with effect from the date in Ext.P7 acknowledgment, issued to the petitioner by the 3rd respondent. The 3rd respondent would have to ensure that future demand of tax in respect of the vehicle would be made only on the person, in whose custody the vehicle currently is. (iv) Nothing in this judgment shall stand in the way of the petitioner proceeding against the 4th respondent, in accordance with law, for recovery of amounts paid by WP(C) NO. 25619 OF 2017 4 2025:KER:26001 the petitioner pursuant to this judgment.” 3. The present writ petition is filed by the Finance Company; aggrieved by the issuance of Ext.P9 pursuant to Ext.P8 judgment, which is in a printed form demanding vehicle tax from 01.10.2015 to 30.06.2017. The learned counsel for the petitioner submits that without any enquiry, Ext.P9 - Memo was issued casting liability on them. The learned counsel for the petitioner relied on the judgment of a Division Bench of this Court in Sebastian C. v. State of Kerala & Others [2010 (1) KHC 950]. 4. Heard the learned counsel for the petitioner and the learned Government Pleader. 5. It is to be noted that This Court, on the earlier occasion did not accept the contention of the petitioner therein, namely the 2nd respondent herein that he is not liable to discharge the liability cast upon as per the notice. This WP(C) NO. 25619 OF 2017 5 2025:KER:26001 Court, however, held that the liability of the 2nd respondent herein would cease with effect from the date in Ext.P7 acknowledgment, namely 20.11.2015 and also that the official respondent would have to ensure that the future demand of tax in respect of the vehicle would be made only on the person, in whose custody the vehicle currently is. In the said circumstances, this writ petition is disposed of directing the 1st respondent to treat Ext.P9 as a memo, to which the petitioner can file objections with proof and the 1st respondent shall after issuing notice to respondents 2 and 3, determine from whom the tax is to be collected. While taking a decision as directed above, the directions in Ext.P8 judgment as referred to above shall also be adverted. The decision as directed above shall be taken within a period of two months from the date of receipt of a copy of this judgment. WP(C) NO. 25619 OF 2017 6 2025:KER:26001 The interim order granted by this Court on 02.08.2017 shall continue in force till the decision is taken as directed above. Sd/- MOHAMMED NIAS C.P. JUDGE MC/25.3 WP(C) NO. 25619 OF 2017 7 2025:KER:26001 APPENDIX OF WP(C) 25619/2017 PETITIONER EXHIBITS EXHIBIT P1 TRUE COPY OF THE SURRENDER LETTER SUBMITTED BY THE 2ND RESPONDENT ON 27/8/2013 EXHIBIT P2 TRUE COPY OF THE SALE ACCEPTANCE LETTER DATED 27/9/2013 GIVEN BY THE 3RD RESPONDENT TO THE PETITIONER EXHIBIT P3 TRUE COPY OF THE LETTER OF INDEMNITY ISSUED BY THE 3RD RESPONDENT UNDERTAKING TO INDEMNIFY THE COMPANY EXHIBIT P4 TRUE COPY OF THE NOTICE UNDER SECTION 7 OF THE ACT DATED 15/10/2015 EXHIBIT P5 TRUE COPY OF THE NOTICE UNDER SECTION 34 OF THE ACT DATED 15/10/2015 EXHIBIT P6 TRUE COPY OF WPC NO.35369/2015 WITHOUT EXHIBITS EXHIBIT P7 TRUE COPY OF I.A NO.17266/15 IN WPC NO.35369/2015 EXHIBIT P8 TRUE COPY OF THE JUDGMENT DATED 27/11/2015 IN WPC NO.35369/2015 EXHIBIT P9 TRUE COPY OF DEMAND NOTICE ISSUED BY THE 1ST RESPONDENT DATED 14/6/2017