Skip to main content

A registering authority has to stay within the statue prescribed for it

In Tata Motors Finance Ltd. Vs. State Transport Authority, the issue before the Orissa High Court was that the Transport Authority was refusing endorsement and termination of the hypothecation in the certificate of registration as according to the authority the company's trade license has expired.

The Court held that, as the power has been vested with the registering authority by the statute prescribing the manner of endorsement and termination of the hypothecation in the certificate of registration, the registering authority has to discharge its duty, without taking into consideration any ancillary or corollary reasons, in consonance with the provisions contained under Section 51 of the Act, 1988 read with Rules, 60 and 61 of the Rules, 1989. As such, the registering authority cannot refuse endorsement of hypothecation and cancellation thereof in the certificate of registration on the grounds not permissible in law.

It is apt to refer here the legal maxim “Expressio Unius est exclusion alterius” i.e. if a statute provides for a thing to be done in a particular manner, then it has to be done in that manner and any other manner are barred. Similar question had come up for consideration before this Court in Subash Chandra Nayak (supra) and this Court in paragraph-8 observed as follows:

In view of the above settled position of law, there is no doubt that if an action is required to be undertaken in a particular manner, then that has to be done in that manner or not at all. Therefore, applying the same to the present context, if the statute specifically provides the manner in which the hypothecation endorsement is to be entered into the certificate of registration and the termination thereof, when an application is made, as has been provided under the statute in Rules 60 and 61 of the Rules, 1989 in the prescribed forms, i.e., Forms-34 and 35 along with the fees, then the registering authority cannot have any option than to follow the law as prescribed under the Act, 1988 read with Rules, 1989. As such, the registering authority cannot and could not have refused to make endorsement or terminate the hypothecation in the certificate of registration, because the financer has not renewed the trade certificate for doing its business in the State. The grant of trade certificate to a financer is only confined to Rule 41(h) of the Rules, 1989. Therefore, the financer cannot use trade certificate for any purpose other than specified under the Rule 41(h) of the Rules, 1989. Thus, the action of the registering authority in refusing to make endorsement of hypothecation and cancellation thereof in the certificate of registration, in the name of renewal of trade certificate, amounts to, not only arbitrary and unreasonable exercise of power, but also contrary to the provisions of law.

Comments

Most viewed this month

Michigan House Approves 'Right-to-Work' Bill

Amid raucous protests, the Republican-led Michigan House approved a contentious right-to-work bill on  Dec 11 limiting unions' strength in the state where the (Union for American Auto Workers)  UAW was born. The chamber passed a measure dealing with public-sector workers 58-51 as protesters shouted "shame on you" from the gallery and huge crowds of union backers massed in the state Capitol halls and on the grounds. Backers said a right-to-work law would bring more jobs to Michigan and give workers freedom. Critics said it would drive down wages and benefits. The right-to-work movement has been growing in the country since Wisconsin fought a similar battle with unions over two years ago. Michigan would become the 24th state to enact right-to-work provisions, and passage of the legislation would deal a stunning blow to the power of organized labor in the United States. Wisconsin Republicans in 2011 passed laws severely restricting the power of public s...

Power to re-assess by AO and disclosure of material facts

In AVTEC Limited v. DCIT, the division of the Delhi High Court held that AO is bound to look at the litigation history of the assessee and cannot expect the assessee to inform him.  In the instant case, the Petitioner, engaged in the business of manufacturing and selling of automobiles, power trains and power shift transmissions along with their components, approached the High Court challenging the re-assessment order passed against them. For the year 2006-07, the Petitioner entered into a Business Transfer Agreement with Hindustan Motors Ltd, as per which, the Petitioner took over the business from HML.  While filing income tax return for the said year, the petitioner claimed the expenses incurred in respect of professional and legal charges for the purpose of taking over of the business from HML as capital expenses and claimed depreciation. Article referred: http://www.taxscan.in/assessing-officer-bound-look-litigation-history-assessee-delhi-hc-read-order/8087/

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...