Section 51(5) of MV Act – Requirement of Financer approaching RTA can be dispensed with

The petitioner is the auction purchaser of the vehicle covered earlier by the hire purchase agreement between the Bank and erstwhile registered owner. The vehicle was sold in auction for recovery of loan in pursuance of the direction of Arbitrator.  After purchase the petitioner approached the respondent no.3 for registration.   This was rejected for non-compliance of sub-section (5) of Section 51 of the MV Act by the Bank.

Section 51(5) requires the Bank, whose name has been specified in the registration certificate as the person with whom the registered owner has hire purchase agreement, to satisfy the registering authority that it has taken possession of the vehicle was taken and registered owner refuses to deliver certificate.

However, this requirement is directory and can be dispensed with.  Moreover, in this case, section 51(5) is not attracted since the financer had taken possession of hired vehicle, there was no complaint of non-receipt of registration certificate from earlier owner, the vehicle was already sold & delivered to the auction purchaser on the order of Arbitrator.

Judgment dated 24.7.2024  of the Calcutta High Court WPA No.3466 of 2024 of Nandalal Verma  Vs. The State of West Bengal and others