The Motor Vehicles Act, 1988
51. Special
provisions regarding motor vehicle subject to hire- purchase agreement, etc.
- Where an
application for registration of a motor vehicle which is
held under a hire-purchase, lease or hypothecation
agreement (hereafter in this section referred to as the said agreement) is
made, the registering authority shall make an entry in the certificate of
registration regarding the existence of the said agreement.
- Where
the ownership of any motor vehicle registered under this
Chapter is transferred and the transferee enters into the said
agreement with any person, the original registering authority shall,
on receipt of an application in such form as the Central
Government may prescribe from the parties to the said agreement, make an entry
as to the existence of the said agreement
in the certificate of registration.
- Any
entry made under sub-section (1) or sub-section (2), may be cancelled by
the original registering authority on proof of the termination
of the said agreement by the parties concerned on
an application being made in such form as the Central
Government may prescribe.
- No entry
regarding the transfer of ownership of any motor vehicle which
is held under the said agreement shall be made in the certificate of
registration except with the written consent of the person
whose name has been specified in
the certificate of registration as the person with whom the
registered owner has entered into the said agreement.
- Where
the person whose name has been specified in
the certificate of registration as the person with whom
the registered owner has entered into the said agreement, satisfies
the registering authority that he has taken possession of the
vehicle owing to the default of the registered owner under the
provisions of the said agreement and that the
registered owner refuses to deliver the
certificate of registration or has absconded, such
authority may, after giving the registered owner
an opportunity to make such representation as he
may wish to make (by sending to him a notice by registered post
acknowledgement due at his address entered in the
certificate of registration) and notwithstanding that the certificate of
registration is not produced before it, cancel the certificate and issue a
fresh certificate of registration in the name of the
person with whom the registered owner has entered into the said agreement:
Provided that
a fresh certificate of registration shall not be issued in respect of a motor
vehicle, unless such person pays the prescribed fee:
Provided
further that a fresh certificate of registration issued in respect of a motor
vehicle, other than a transport vehicle, shall be valid only for the remaining
period for which the certificate cancelled under this sub-section would have
been in force.
- The
registered owner shall, before applying
to the appropriate authority, for the renewal of a permit under section 81
or for the issue of duplicate certificate of registration
under sub- section (14) of section 41, or
for the assignment of a new registration mark
under section 47 make an application to the person with whom the
registered owner has entered into the said agreement (such
person being hereafter in this section referred to
as the financier) for the issue of a no objection certificate
(hereafter in this section referred to as the certificate).
Explanation.--For the purposes of this sub-section and sub- sections (8)
and (9), "appropriate authority" in relation to any permit means the
authority which is authorized by this Act to renew such permit and, in
relation to registration, means the authority which is authorized by this
Act to issue duplicate certificate of registration or to assign a new
registration mark.
- Within seven
days of the receipt of an application under sub- section (6), the
financier may issue, or refuse for reasons which shall
be recorded in writing and communicated to the
applicant, to issue, the certificate applied for and where the
financier fails to issue the certificate and also fails to
communicate the reasons for refusal to issue the certificate to
the applicant within the said period of seven days, the
certificate applied for shall be deemed to have been issued by the financier.
- The registered
owner shall, while applying to the appropriate authority for the renewal of any
permit under section 81 or for the issue of a duplicate certificate of
registration under sub-section (14) of section 41, or while
applying for assignment of a new registration mark
under section 47, submit with such application the certificate if
any obtained under sub-section (7) or, where no such certificate has
been obtained, the communication received from the financier
under that sub-section, or, as the case may be a declaration that he has
not received any communication from the financier within the period of
seven days specified in that sub-section.
- On receipt of
an application for the renewal of any permit or for the issue
of duplicate certificate of registration or
for assignment of a new registration mark in respect of a vehicle which is held
under the said agreement the appropriate authority may, subject to
the other provisions of this Act,--
- In a case
where the financier has refused to issue the certificate applied
for, after giving the applicant an
opportunity of being heard, either--
- Renew or
refuse to renew the permit, or
- Issue or
refuse to issue the duplicate certificate of registration, or
- Assign or
refuse to assign a new registration mark;
- In any other
case,--
- Renew the
permit, or
- Issue
duplicate certificate of registration, or
- Assign a new
registration mark.
- A registering
authority making an entry in the certificate of registration regarding--
- hire-purchase,
lease or hypothecation agreement of a motor vehicle, or
- The
cancellation under sub-section (3) of an entry, or
- Recording
transfer of ownership of motor vehicle, or
- Any alteration
in a motor vehicle, or
- Suspension or
cancellation of registration of a motor vehicle, or
- Change of
address, shall communicate to the financier that such entry has been made.
- A registering
authority issuing a duplicate certificate of registration shall intimate the
financier of such issue.
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