Karnataka High Court
Jai Maruti Travels vs The Principal Secretary on 11 June, 2024
Author: N S Sanjay Gowda
Bench: N S Sanjay Gowda
-1-
NC: 2024:KHC:20513
WP No. 27103 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF JUNE, 2024
BEFORE
THE HON'BLE MR JUSTICE N S SANJAY GOWDA
WRIT PETITION NO. 27103 OF 2023 (MV)
BETWEEN:
1. JAI MARUTI TRAVELS
PROP RANGASWAMY N,
S/O LATE NANJAPPA,
OLD SY NO. 84,
THOTADAGUDDANAHATTY,
DASANAPURA HOBLI,
BANGALORE 560 073.
...PETITIONER
(BY SRI. SADASHIVA D., ADVOCATE)
AND:
1. THE PRINCIPAL SECRETARY
Digitally TRANSPORT DEPARTMENT,
signed by
KIRAN 'D' BLOCK, GROUND FLOOR,
KUMAR R M S BUILDING, DR AMBEDKAR ROAD,
Location: (VIDHANA VEEDHI)
HIGH BANGALORE 560 001.
COURT OF
KARNATAKA
2. THE COMMISSIONER
FOR TRANSPORT AND ROAD SAFETY,
1ST FLOOR, TTMC BUILDING,
K H ROAD, SHANTHI NAGAR,
BENGALURU - 560 027.
3. JOINT COMMISSIONER
FOR TRANSPORT,
BANGALORE RURAL,
PODIUM BLOCK,
-2-
NC: 2024:KHC:20513
WP No. 27103 of 2023
4TH FLOOR, VISHWESHWARAYYA TOWER,
BANGALORE - 560 001.
4. REGIONAL TRANSPORT OFFICER
REGISTERED AUTHORITY,
OFFICE OF THE
REGIONAL TRANSPORT OFFICER,
NELAMANGALA GOWDAHALLI,
DASANAPURA HOBLI,
BANGALORE 562 162.
5. SRI G THIPPASWAMY
SENIOR INSPECTOR OF MOTOR VEHICLES,
OFFICE OF THE
REGIONAL TRANSPORT OFFICER,
NELAMANGALA, GOWDAHALLI,
DASANAPURA HOBLI,
BENGALURU 562 162.
...RESPONDENTS
(BY SRI. V.G.BHANU PRAKASH ALONG WITH
SMT. RADHA RAMASWAMY, AGA FOR R-1 TO R-4;
VIDE ORDER DATED 06.12.2023, PETITION STANDS
DISMISSED AGAINST R-5)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSITUTION OF INDIA, PRAYING TO ORDER
CALLING FOR THE RECORDS IN APPEAL NO. TAX02/2023-24
OF THE RESPONDENT NO. 3 THE JOINT COMMISSIONER FOR
TRANSPORT BENGALURU RURAL DIVISION BANGALORE AND
THEREAFTER QUASH AND SET ASIDE THE IMPUGNED ORDER
DATED 13.10.2023 PRODUCED AS ANNEXURE-C, ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
-3-
NC: 2024:KHC:20513
WP No. 27103 of 2023
ORDER
1. On 12.01.2023, the petitioner--a proprietary concern purchased a new Large Passenger Vehicle ("LPV") made by Tata Motors and was also issued with a sale certificate by the dealer--M/s.Aravinda Motors Private Ltd.
2. On the same day, the vehicle was stopped by the officials of the Regional Transport Department upon finding that the vehicle was carrying passengers without being registered. Thereafter, the Senior Inspector of Motor Vehicles submitted a check report to the Regional Transport Officer and he, in turn, issued a notice to the petitioner stating that a report had been submitted to him to the effect that the vehicle was transporting 14 people from Bengaluru to Dabaspete without the registration, and the purchaser had been using the vehicle without getting it temporarily registered/without a trade certificate. He stated that this was a violation of the provisions of Section 192B(1) and Section 41(1) of the Motor Vehicles Act, 1988 ("the Act") read with the Motor Vehicle Rules, 1989 ("the -4- NC: 2024:KHC:20513 WP No. 27103 of 2023 Rules") and the petitioner was therefore required to pay fine of five times the applicable road tax, which amounted to Rs.6,24,400/-.
3. The petitioner was called upon to appear before the authority and produce the documents for composition of the offence as contemplated under Section 200 of the Act.
4. The petitioner contends that though no record was made about the seizure and detention of the vehicle in the check report, as a matter of fact, the motor vehicle was seized and parked in an open place in the premises of respondent No.4. This assertion, since not denied by the respondents, makes it clear that the petitioner's vehicle had been detained.
5. The petitioner being aggrieved by the demand dated 03.02.2023 proceeded to prefer an appeal before the Joint Commissioner for Transport--the appellate authority.
6. The Appellate Authority proceeded to allow the appeal in part. He held that the vehicle was not registered -5- NC: 2024:KHC:20513 WP No. 27103 of 2023 and the floor area was not measured to assess the tax, and, therefore, the provisions under Section 192B of the Act were required to be invoked.
7. The Appellate Authority directed the Registering Authority to register the motor vehicle in accordance with the provisions of Chapter IV of the Act after measuring the floor area and assessment of the tax and cess. He also directed the Registering Authority to recover the penalty as contemplated under Section 192B of the Act in four installments.
8. Being aggrieved by this order, the present writ petition is filed.
9. The learned counsel for the petitioner submits that in order to attract the penal provisions of Section 192B of the Act, it has to be established that the owner of a motor vehicle has failed to make an application for registration under sub-section (1) of Section 41 of the Act and, as a consequence, the owner would be liable for penalty of a -6- NC: 2024:KHC:20513 WP No. 27103 of 2023 fine five times the annual road tax or one-third of the lifetime tax.
10. He submitted that in order to attract Section 192B of the Act, an offence of non-compliance of Section 41(1) of the Act would have to be established. He submitted that Section 41(1) of the Act requires an application to be made by the owner of the motor vehicle in the prescribed form within the prescribed period, but the second proviso to Section 41(1) of the Act carves out an exception in respect of new motor vehicles and, as such, the second proviso mandated that the application for registration was to be made by the dealer and not by the owner, and no consequential proceedings could be initiated against the petitioner--proprietary concern, which was only the purchaser of a new vehicle.
11. It is submitted that since it is an admitted case of the Registering Authority that the petitioner was found to be utilising a new motor vehicle, it is obvious that the obligation of making an application to get the vehicle -7- NC: 2024:KHC:20513 WP No. 27103 of 2023 registered was on the dealer only and, therefore, the entire basis on which the demand was made was illegal, as a consequence of which the detention of the vehicle was also illegal.
12. He also submitted that the definition of "owner" under Section 2(30) of the Act indicates that it is the person in whose name a vehicle stood registered, thereby meaning that Section 41(1) of the Act would be applicable only if a vehicle already stood registered in a person's name, and such person would be required to make an application in the prescribed form within the prescribed period. He submitted that since the petitioner did not come within the definition of an "owner" as defined under Section 2(30) of the Act (as the vehicle was not registered in his name), the question of applying Section 192B of the Act and demanding five times the annual road tax would be wholly illegal.
13. The learned counsel also submits that the authorities had absolutely no jurisdiction to detain a vehicle, even if -8- NC: 2024:KHC:20513 WP No. 27103 of 2023 the vehicle had not been registered, and yet, they had detained the petitioner's vehicle and kept it in their custody right from January, 2022, causing a huge financial loss to the petitioner. He submitted that this act of restraining the petitioner from utilising a new vehicle, though he had purchased it by paying a sum of Rs.20,50,000/-, was necessarily required to be compensated by imposition of adequate costs on the respondents.
14. The learned Additional Advocate General-- Sri.V.G.Bhanu Prakash, on the other hand, contended that since it was found that the vehicle was being plied without being registered, the authorities were obliged to initiate action as contemplated under Section 192B of the Act and make a demand to pay five times the annual road tax. He therefore submitted that there was no illegality in the procedure followed by the authorities. He further submitted that this act of the respondents had been -9- NC: 2024:KHC:20513 WP No. 27103 of 2023 affirmed in an appeal and, therefore, no illegality could be attributed to the action of the respondents.
15. Having regard to the above submissions, it is clear that the new vehicle purchased by the petitioner on 12.01.2023 was stopped by the transport authorities on the very same day and was also detained by them on the ground that it was being plied without registration. It is the admitted case of the authorities that they had conducted an enquiry and submitted an enquiry report on 12.01.2023, and about a month thereafter, they proceeded to issue a notice calling upon the petitioner to appear before them for composition of the offences under Section 200 of the Act. It is therefore clear that the only allegation of the respondents is that the vehicle was being used without getting it registered.
16. Chapter IV of the Act deals with registration of the motor vehicles and Section 41 of the Act stipulates the manner in which the registration is to be made. For the sake of clarity, the same is reproduced as under:
- 10 -
NC: 2024:KHC:20513 WP No. 27103 of 2023 "Section 41. Registration, how to be made.
(1) An application by or on behalf of the owner of a motor vehicle for registration shall be in such form and shall be accompanied by such documents, particulars and information and shall be made within such period as may be prescribed by the Central Government:
Provided that where a motor vehicle is jointly owned by more persons than one, the application shall be made by one of them on behalf of all the owners and such applicant shall be deemed to be the owner of the motor vehicle for the purposes of this Act.
Provided further that in the case of a new motor vehicle, the application for registration in the State shall be made by the dealer of such motor vehicle, if the new motor vehicle is being registered in the same State in which the dealer is situated.
(2) An application referred to in sub-
section (1) shall be accompanied by such fee as may be prescribed by the Central Government.
(3) The registering authority shall issue a certificate of registration in the name of the owner] in such form and containing such particulars and information and in such manner as may be prescribed by the Central Government.
(4) In addition to the other particulars required to be included in the certificate of registration, it shall also specify the
- 11 -
NC: 2024:KHC:20513 WP No. 27103 of 2023 type of the motor vehicle, being a type as the Central Government may, having regard to the design, construction and use of the motor vehicle, by notification in the Official Gazette, specify.
(5) The registering authority shall enter the particulars of the certificate referred to in sub-section (3) in a register to be maintained in such form and manner as may be prescribed by the Central Government.
(6) The registering authority shall assign to the vehicle, for display thereon, a distinguishing mark (in this Act referred to as the registration mark) consisting of one of the groups of such of those letters and followed by such letters and figures as are allotted to the State by the Central Government from time to time by notification in the Official Gazette, and displayed and shown on the motor vehicle in such form and in such manner as may be prescribed by the Central Government.
Provided that in case of a new motor vehicle, the application for the registration of which is made under the second proviso to sub-section (1), such motor vehicle shall not be delivered to the owner until such registration mark is displayed on the motor vehicle in such form and manner as may prescribed by the Central Government.
(7) A certificate of registration issued under sub-section (3), whether before or after the commencement of this Act, in respect of a motor vehicle, 4***, shall, subject to the provisions contained in this
- 12 -
NC: 2024:KHC:20513 WP No. 27103 of 2023 Act, be valid only for a period of fifteen years from the date of issue of such certificate or for such period as may be prescribed by the Central Government and shall be renewable.
(8) An application by or on behalf of the owner of a motor vehicle, for the renewal of a certificate of registration shall be made within such period and in such form, containing such particulars and information as may be prescribed by the Central Government.
(9) An application referred to in sub- section (8) shall be accompanied by such fee as may be prescribed by the Central Government.
(10) Subject to the provisions of section 56, the registering authority may, on receipt of an application under sub- section (8), renew the certificate of registration for such period, as may be prescribed by the Central Government and intimate the fact to the original registering authority, if it is not the original registering authority.
Provided that the Central Government may prescribe different period of renewal for different types of motor vehicles.
***** (14) An application for the issue of a duplicate certificate of registration shall be made to the last registering authority in such form, containing such particulars and information along with such fee as may be prescribed by the Central Government."
- 13 -
NC: 2024:KHC:20513 WP No. 27103 of 2023
17. As could be seen from Section 41(1) of the Act, an application is required to be made by or on behalf of the owner of the motor vehicle for registering it in the prescribed manner, along with the documents, within the period prescribed by the Central Government.
18. The word "owner" has been defined under Section 2(30) of the Act to mean a person in whose name a motor vehicle stands registered. Since, admittedly, the motor vehicle was not registered in the name of the petitioner, the question of him becoming the owner of such vehicle and having an obligation to make an application under Section 41(1) of the Act would not arise.
19. The second proviso to Section 41(1) of the Act categorically states that in respect of a new motor vehicle, the application for registration in the State should be made by the dealer of such motor vehicle. This would thus indicate that the legal obligation under Section 41 of the Act to get a new vehicle registered is exclusively on the dealer of the vehicle and there is no obligation cast on the
- 14 -
NC: 2024:KHC:20513 WP No. 27103 of 2023 person who has purchased the vehicle to make an application for registration.
20. It is, therefore, clear that the entire proceedings initiated against the petitioner on the premise that the purchased vehicle had not been registered, but was yet being used, cannot be sustained.
21. The Appellate Authority, without noticing these facts, has proceeded to come to the conclusion that the vehicle was required to be registered and as it was not registered, the action was just and proper.
22. In light of the fact that there was no legal obligation on the part of the petitioner (who had purchased a new vehicle) to make an application, the action initiated against him for the alleged offence under Section 41(1) of the Act and under Section 192B of the Act cannot be sustained at all.
23. Consequently, the notice and order at Annexures-B and C respectively, are quashed.
- 15 -
NC: 2024:KHC:20513 WP No. 27103 of 2023
24. The Appellate Authority has also recorded a finding that the vehicle in question is said to have been seized and detained at the premises of Nelamangala Regional Transport Office.
25. Since the entire proceedings initiated against the petitioner was illegal, respondent No.4 is directed to release the vehicle forthwith.
26. It is noticed that the petitioner had availed a loan of Rs.20,50,000/- from Equitas Small Finance Bank Limited for purchasing the new vehicle and the bank statement produced by him indicates that he had the liability to pay interest on the said sum.
27. In light of this fact, as the petitioner was deprived of the use of vehicle from January, 2023, it would be appropriate to award a sum of Rs.50,000/- as costs. This amount shall be paid by the respondents to the petitioner within four weeks from the date of receipt of a copy of this order.
- 16 -
NC: 2024:KHC:20513 WP No. 27103 of 2023
28. The petition is accordingly allowed.
29. In view of the disposal of the petition, all pending interlocutory applications, if any, stand disposed of.
Sd/-
JUDGE RK Ct:SN List No.: 1 Sl No.: 92