D.O.F:04/02/2020

                                                                                                  D.O.O:09/12/2022

IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD

CC.No.25/2020

Dated this, the 9^th day of December 2022

PRESENT:

SRI.KRISHNAN.K                         :PRESIDENT

SRI.RADHAKRISHNAN NAIR.M : MEMBER

SMT.BEENA.K.G                            : MEMBER

Balakrishna.K

S/o Koragan, residing at 10/175,

Udma Grama Panchayath,                                                : Complainant

Ariadukkam House, Bare Post,

Hosdurg Taluk, Kasaragod

(Adv. Jithesh Babu.P.K)

                                                            And

1. TATA Motors Finance Ltd
3.  

Near HAR Used Car Show Room,

Talassery Road, Melechowa,

Kannur 670006

(Adv: Preman Mavila)

2. The Joint Regional Transport Officer,      : Opposite Parties

Kanhangad P.O, Kanhangad

3. The Village Officer

Bara Village, P.O. Bara,

Hosdurg Taluk,

            (Adv: Dist. Govt. Pleader)

ORDER

SRI.KRISHNAN.K    :PRESIDENT

The Case of the Complainant is as follows:

The Complainant is the registered owner of the vehicle KL-60-c.3247.  It was subject to hire purchase. He could not pay loan installments.  Complainant surrendered the vehicle on 07/08/2015, acknowledged by Opposite Party No:1. Finance Company is in possession of vehicle since then.  Hence complainant is not liable to pay vehicle tax.  But complainant received notice demanding vehicle tax for the period from 2015 till 31.12.2018 to the tune of Rs.9,400/- Financier when in possession of vehicle is liable to pay vehicle tax as per law.  Opposite Party No.2 initiated RR proceedings against the Complainant through Opposite Party No.3.  Complainant sent notice on 15.07.2019 to Opposite party, but no positive response.  Complainant sought relief to set aside the notice dated 07.05.2019 holding that he is not liable to pay vehicle tax for the period in demand, and hence compensation for Deficiency in Service and litigation costs.

2.         The complainant filed IA in 26/2020 in for an interim order of injunction against Opposite PartyNo.3 from RR proceedings to collect vehicle tax for the period herein till disposal of complaint.  That IA was allowed.

3.         The Opposite Party No.1 filed written version Opposite Party No.1 submitted that they have re-possessed the vehicle on 07/08/2015 due to loan re-payment default. Complainant paid road tax till 31.12.2014.  The vehicle is sold to one Vilim Giriswamy Natarajan on 06.11.2015.  Subsequent owner of the vehicle is liable to pay road tax since the date of purchase.

4.         The Opposite Party No.2 and 3 filed Joint Version. Road tax is paid till 31.12.2015.  Road tax since then due up to 31.12.2018. R.C is still not changed from the name of Complainant.  The Complainant did not inform re-possession of vehicle to the Finance Company. R.C owner is to pay road tax. Complainant is not entitled to claim any relief from Opposite Party No.2 and 3.

5.         Documents Ext.A1 to A7 are marked on the side of Ext.A1 demand notice issued by Opposite party No.3, Ext.A2 notice by opposite party No.3 under RR Act, Ext.A3 lawyer notice, Ext.A4 to A6 Acknowledgements,  Ext A7 Inventory of items in vehicle.  Complainant Ext.B1 to B6, Ext.B1 contract and re-payment details, Ext.B2 R.C. particulars, Ext.B3 undertaking, Ext.B4 True copy of purchaser, Ext.B5 arbitration, Ext.B6 arbitration award are marked by Opposite Party No.1. No oral evidence from both parties.

            As per case of complainant and objections raised by Opposite Party following points arise for consideration in the case.

1. Whether Complainant is entitled to the relief to set aside the notice of demand dated on 07.05.2019 from recovery of arrears of tax for the period 01.01.2018 to 31.12.2018 due to government
2. Whether Complainant is entitled to any compensation for deficiency in service? If so what reliefs?
6.  
7.  

The issue is settled AIR 2022(SC) 1197 Mahindra and Mahindra Financial Service VS State of UP.

It is held that a financier of a motor vehicle transport vehicle in respect of which a hire purchase or lease or hypothecation against has been entered is liable to pay tax from the date of taking re-possession of the said vehicle under the said agreement.

Under the circumstances in the interest of Justice we deem it appropriate to set aside the demand for road tax by opposite Party No.2 and 3 in proceeding with RR proceedings relating to vehicle tax for vehicle KL-60C3247 for the period from 07.08.2015 till 03.12.2018 against the complainant here by set aside.

But still road tax is due to be paid to the government.The person in possession of the vehicle is liable to pay road tax.Seizure is not informed to RTO nor RC is changed in the name of auction purchaser.Vehicle is not in possession of complainant also.So the financer is liable to pay road tax arrears from 08.08.2015 to till 31.12.2018.Opposite Party No.2 and 3 are at liberty to proceed against financer namely Opposite Party No.1 Tata Motors, Melechovva, Kannur for receiving of the road tax for the period from 08.08.2015 till 31.12.2018.Opposite Party No.2 and 3 are also entitled to proceed against Complainant for receiving of road tax for the period from 01.01.2015 till 07.08.2015 as per laws.

There is no Deficiency in Service rendered by Opposite Party No.2 and 3 in demanding road tax from RC owner as per law.They have acted as per law.Complainant is not entitled to any relief of compensation as claimed because

Complainant and financer did not inform RTO Concerned about the repossession of vehicle by financier or auction or sale or purchase by third party but still RC stands in the name of Complainant.

In the result Complainant is allowed in part.The notice of demand dated 07.05.2019 Ext. A1 and A2 attachment notice issued by Opposite Party No.2 and 3 in proceeding with revenue recovery proceedings relating to vehicle tax for vehicle KL-60 C 3247 for the period from 08.08.2015 till 31.12.2018 against the Complainant is hereby set aside Opposite Party No.2 and 3 are at liberty to proceed against financer namely Opposite Party No.1 Tata Motor, Melechowa, Kannur for paying of the road tax for the period.And Opposite Party No.2 and Opposite party No.3 are liberty to proceed against Complainant for payment of road tax for the period from 01.01.2015 till 07.08.2015 as per law.Prayer for compensation is rejected as above Parties to suffer their respective cost of litigation.

A1: Demand Notice

A2: Notice by Opposite party No.3 under RR Act

A3: Lawyer notice

A4: Acknowledgement card

A5: Acknowledgement card

A6: Acknowledgement card

A7: Inventory of items in vehicle

B1: Contract and repayment details

B2: Buyer undertakings

B3: Registration details

B4: True copy of purchaser

B5. Arbitration award

B6: Arbitration award

Forwarded by Order

                                                                                    Assistant Registrar

Ps/