Pending Financial Liabilities, Non-Payment Of E-Challans Won't Prohibit Transfer Of Vehicle's Ownership To Wife After Husband's Death: Kerala HC

The Division Bench comprising Chief Justice A J Desai and Justice V G Arun observed thus:

“We allow the appeal and set aside the orders passed by the authority as well as the learned Single Judge. The authority is hereby directed to transfer the ownership of the vehicles in the name of the present appellant, within a period of two weeks from today. Needless to say that the appellant, after getting the ownership changed, is bound to pay off the dues against the vehicles.”

Three heavy goods carriage vehicles were owned by the appellant's husband who passed away in November 2022. Thereafter, the appellant wife approached the Regional Transport Officer for a transfer of ownership which was rejected because the vehicles were blacklisted due to pending financial liabilities.

The wife then approached the High Court for the transfer of ownership of the vehicles. This was rejected by the Single judge citing pending financial liabilities due under e-challans and amounts were due to the financier. The wife has preferred an appeal against the order in the writ petition.

The counsel for the appellant relying upon Rule 56 of the Central Motor Vehicles Rules, 1989 stated that the ownership of the vehicle is required to be transferred to the nominee of the owner or the person succeeding to the possession of the vehicle on the death of the registered owner.

The Government Pleader opposed the transfer of ownership stating that as per Rule 51(4) of the Motor Vehicles Act, 1988, ownership of vehicle cannot be transferred unless written consent was obtained from the person to whom the vehicle has been hypothecated (financier). It was also argued if challans were pending beyond 90 days, then the transfer of ownership of the vehicle was barred and that it could not be transacted.

On analysing Rule 56 of the Central Motor Vehicles Rules, the Court stated that the successor who was seeking transfer of ownership cannot be insisted to produce a written consent letter from the financier.

It further stated that vehicles cannot be transacted when there is a pendency of amounts due under e – challans but that does not prohibit the transfer of ownership of vehicles. This is because the term transact means 'to undertake negotiation', 'to carry on business', 'to have dealings', 'to carry on or conduct' etc and the Court stated thus:

“As far as the case at hand is concerned, the petitioner is seeking transfer of ownership through succession, she having inherited the vehicles on the death of her husband. The right to get the vehicle transferred to the appellant's name, consequent to the death of her husband, is not a transaction.”

Thus, the Court stated that the pendency of challans beyond 90 days does not restrain authorities from processing the application for change of ownership submitted by the successor.

Accordingly, the appeal was allowed and the State was permitted to take steps for realising the amounts due under the pending challans. It also permitted the financier to take steps for realising the outstanding liabilities as per law.

Counsel for Appellant: Advocates G.Hariharan, Praveen.H., K.S.Smitha, V.R.Sanjeev Kumar

Counsel for Respondents: Senior Government Pleader V Tekchand, Central Government Counsel Suvin R Menon, Advocates Devaprasanth P.J, Smini Jose

Citation: 2024 LiveLaw (Ker) 111

Case title: Meena v Joint Regional Transport Officer

Case number: WA NO. 2241 OF 2023

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