Shri Ram Finance Limited vs The State Of Telangana & Anr.

Heard Sri J.C.Francis, learned counsel appearing on behalf of the petitioner and learned Assistant Government Pleader for Transport appearing on behalf of the respondents.

The petitioner approached the Court seeking prayer as under:

The case of the petitioner in brief as per the averments made in the affidavit filed by the petitioner in support of the present Writ Petition is as under:-

The petitioner company is registered under the provisions of companies act and is engaged in financing the commercial vehicles. Since the purchaser has committed defaults in breach of loan-cum-hypothecation agreement dt.31.08.2026, the petitioner company sent a legal notice dated 19.05.2026 to the 2^nd respondent requesting issuance of a fresh registration certificate under Section 51(5) of the Motor Vehicles Act, 1988. Despite the lapse of more than two months from the date of receipt of the said representation by the 2^nd respondent, the same had not been considered or disposed of till date. Challenging the said action of the 2^nd respondent, the present writ petition is filed.

Learned counsel appearing on behalf of the petitioner, mainly puts-forth the following submissions:-

The petitioner company is registered under the provisions of the companies act, which is engaged in financing the commercial vehicles.

Pursuant to the loan cum hypothecation agreement bearing No.BIBIIN2308230002 dated 31.08.2023, entered by the petitioner with one Mr.Ravula Raghu (borrower) and Mr.Balne Umapthi for a sanctioned loan of Rs.23,00,000/- to purchase a TATA LPT 1616 BS6 FBT, bearing registration No.TS 27 T 88883, the said hypothecation was duly registered in favour of the petitioner company before the 2nd respondent-Regional Transport Authority under Section 51 of the Motor Vehicles Act, 1988.

Upon the borrower committing defaults under the agreement, the petitioner lawfully repossessed the vehicle in exercise of its contractual rights and submitted Form Nos.36 and 37 before the 2^nd respondent, as the registered owner failed to surrender the Original Registration Certificate.

The petitioner sent a legal notice dt.19.05.2026 addressed to the 2^nd respondent seeking immediate issuance of fresh registration certificate under Section 51(5) of the Motor Vehicles Act, 1988 in respect of Vehicle bearing registration No.TS27T8883 in accordance to law, by giving notice to all the concerned.

Though the said notice had been acknowledged by the office of the 2^nd respondent herein, no action had been initiated on the said request of the petitioner as on date.

Based on the aforesaid submissions, learned counsel appearing on behalf of the petitioner is entitled for the relief as prayed for, in the present writ petition.

Learned Assistant Government Pleader for Transport appearing on behalf of the respondents submits that the 2^nd respondent may be directed to consider the grievance of the petitioner as put forth vide legal notice dated 19.05.2026 issued on petitioner's behalf and appropriate orders may be directed to be passed within a reasonable period.

Learned counsel appearing on behalf of the petitioner does not dispute the said submission made by the learned Assistant Government Pleader for Transport appearing on behalf of the respondents.

TAKING INTO CONSIDERATION:

The aforesaid facts and circumstances of the case,

The submissions of the learned counsel appearing on behalf of the petitioner and the learned Assistant Government Pleader for Transport appearing on behalf of the respondents,

the fact that under Section 51(5) of the M.V.Act, when a financier takes physical possession of the vehicle, due to a loan default, the registering authority is empowered to cancel the existing registration certificate and issue a fresh registration certificate in favour of the financier with prescribed formalities and on payment of requisite fee.

The discussion and conclusion as arrived at paragraph Nos. 4 to 6 of this order,

Without going into the merits of the case, upon consent of both the learned counsel on record, the writ petition is disposed of directing the 2nd respondent to consider the grievance of the petitioner as put-forth vide petitioner's legal notice, dated 19.05.2026 addressed to the 2nd respondent seeking immediate issuance of fresh registration certificate under Section 51(5) of the Motor Vehicles Act, 1988 in respect of vehicle No.TS27T8883 in accordance to law, in conformity with principles of natural justice, by issuing prior notice and providing an reasonable opportunity of hearing to all the concerned within a period of three (03) weeks from the date of receipt of copy of the order and duly communicate the decision on petitioner's request made through legal notice, dated 19.05.2026 to the petitioner. However, there shall be no order as to costs.

Miscellaneous petitions, if any, pending in this Writ Petition, shall stand closed.