Kerala High Court
Hdb Financial Services Ltd vs Regional Transport Officer on 6 September, 2024
Author: V.G.Arun
Bench: V.G.Arun
2024:KER:67999
WP(C) NO. 28883 OF 2024
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE V.G.ARUN
FRIDAY, THE 6TH DAY OF SEPTEMBER 2024 / 15TH BHADRA, 1946
WP(C) NO. 28883 OF 2024
CRIME NO.29/2023 OF KANNUR CITY POLICE STATION, KANNUR
PETITIONER:
HDB FINANCIAL SERVICES LTD
HDB FINANCIAL SERVICES LIMITED, 1ST AND 2ND
FLOOR, WILSON HOUSE, OLD NAGARDAS ROAD,
NEAR AMBOLI SUBWAY, ANDHERI(EAST), MUMBAI AND
HAVING ITS BRANCH OFFICE AT 2ND FLOOR DOOR NO.
11/275 D2, KALLUMKAI BUILDING, COLONY STOP,
VAZHAKKALA, THRIKKAKARA P.O , THE PETITIONER
COMPANY IS REPRESENTED BY ITS LEGAL ASSOCIATE
MR. RANJTH.C.R. KAKKANAD, PIN - 682021
BY ADVS.
P.PAULOCHAN ANTONY
SREEJITH K.
RESPONDENT/S:
1 REGIONAL TRANSPORT OFFICER
KARUR RTO COLLECTOR CAMPUS COLLECTOR MASTER
PLAN COMPLEX, ANBU NAGAR, THANTHONI,
TAMIL NADU, PIN - 693007
2 OFFICE OF THE DEPUTY SUPERINTENDENT OF POLICE
OPPOSITE POLICE PARADE GROUND THAVAKKARA
KANNUR, KERALA, PIN - 670012
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WP(C) NO. 28883 OF 2024
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3 MR. ANTONY SUNNY
VELLARA HOUSE VYLATHUR NAHAMAGHAR VADAKKEKAD
THRISSUR, KERALA, PIN - 679563
BY ADVS.
P.Sanjay
A.PARVATHI MENON(K/000268/1991)
BIJU MEENATTOOR(K/620/1992)
PAUL VARGHESE (PALLATH)(K/000171/2017)
KIRAN NARAYANAN(K/000131/2018)
RAHUL RAJ P.(K/547/2020)
MUHAMMED BILAL.V.A(K/1033/2023)
MEERA R. MENON(K/002575/2023)
BASILA BEEGAM(K/2283/2022)
DEVIKA S. PRASAD(K/000975/2024)
SRI. SUNILKUMAR KURIAKOSE, SR. GP.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 06.09.2024, THE COURT ON THE SAME DAY
DELIVERED THE FOLLOWING:
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WP(C) NO. 28883 OF 2024
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JUDGMENT
The 3rd respondent had availed loan from the petitioner
for the purpose of purchasing of a vehicle. Although respondent
No.3 had agreed to repay the loan amount promptly, the promise
was not kept. The default resulted in the petitioner repossessing
the vehicle purchased by the 3rd respondent. The petitioner's
grievance is that, at the instance of the 2 nd respondent, the 1st
respondent has imposed a ban on the transfer of the vehicle by
locking the registration certificates in the official portal. The
reason for imposing the ban is stated to be the series of cases
registered against the 3rd respondent under the Banning of
Unregulated Deposits Schemes Act. Aggrieved, this writ petition
is filed.
2. The learned Counsel for the petitioner
contended that the action of respondents 1 and 2 cannot withstand
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the scrutiny of law, since under the BUDS Act, only the
competent authority can attach the properties of the defaulter.
The learned Counsel further contended that, going by Section 12
of the BUDS Act, the provisions of the SARFAESI Act have
supremacy. It is finally contended that the allegation of the 2 nd
respondent that amounts collected from the depositors by the 3 rd
respondent was utilized for paying the EMIs due to the petitioner
is factually incorrect, no portion of the loan amount has been
repaid by the 3rd respondent.
3. I heard the learned Counsel for the 3 rd
respondent and the learned Government Pleader also.
4. The learned Counsel for the 3rd respondent
submitted that the vehicle was repossessed based on an arbitration
award secured by the petitioner and the 3 rd respondent intends to
challenge the award. In reply to this contention, learned Counsel
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WP(C) NO. 28883 OF 2024
for the petitioner submitted that, further action based on the
repossession will be kept on hold for 20 days, so as to provide an
opportunity for the 3rd respondent to seek appropriate remedies.
5. The learned Government Pleader submitted
that, even if this Court reaches the conclusion that ban on transfer
of the petitioner's vehicle at the instance of the 2nd respondent is
unsustainable, the judgment should not stand in the way of the
District Collector or the Competent Authority under the BUDS
Act acting in accordance with law.
6. I find substantial merit in the contention of the
petitioner that, under the provisions of the BUDS Act, only the
Competent Authority can effect attachment. That being the
position, the 1st respondent could not have imposed a ban on
transfer of the petitioner's vehicle by locking the registration
certificates, since such action tantamounts to attachment or
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WP(C) NO. 28883 OF 2024
freezing, which is beyond the powers of the 1 st and 2nd
respondents.
In the result, this writ petition is allowed and Ext.P5 is
quashed. It is made clear that the judgment does not stand in the
way of the Competent Authority under the BUDS Act or the
District Collector, as the case may be, taking appropriate legal
action. Submission of the learned Counsel for the petitioner that
further recovery measures against the 3 rd respondent will be kept
on hold for a period of 20 days is recorded.
Sd/-
V.G.ARUN
JUDGE
scs
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WP(C) NO. 28883 OF 2024
APPENDIX OF WP(C) 28883/2024
PETITIONER EXHIBITS
Exhibit P1 THE VEHICLE DETAILS TAKEN FROM M
PARIVAHAN .
Exhibit P2 A TRUE COPY OF THE ARBITRAL AWARD
DATED MARCH 20, 2020,
Exhibit P3 TRUE COPY OF THE REQUEST UNDER RTI ACT
DATED 30.05.2024
Exhibit P4 TRUE OF THE REPLY DATED 22.6.2024
Exhibit P5 TRUE OF THE REPLY DATED 28.06.2024 AND
THE ATTACHED NOTICE ALONG WITH REPLY
ISSUED BY THE RESPONDENT NO-2 DATED
22.06.2023
Exhibit P6 A TRUE COPY OF THE FIR DATED
05.01.2023
Exhibit P7 THE STATEMENT OF ACCOUNTS
RESPONDENT EXHIBITS
Exhibit R3(a) True copy of the Registration
certificate of GST of Angel Agencies
dated 22.09.2017
Exhibit R3(b) True copy of the Registration
certificate of GST of Aiswarya Traders
dated 18.08.2023
Exhibit R3(c) True copy of the Registration
certificate of GST of Guruvayoor
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WP(C) NO. 28883 OF 2024
Heritage dated 13.09.2018
Exhibit R3(d) True copy of the Registration
certificate of GST of Vellara
Communication dated 21.09.2017
Exhibit R3(e) True copy of the complaint dated
04.01.2023
Exhibit R3(f) True copy of Memorandum of Association
downloaded from ROC dated nill
