Page 53 - The Motor Vehicles Act, 1988

SECTION 51 THE MOTOR VEHICLES ACT, 1988 39

(3) Any entry made under sub-section (1) or sub-section (2), may be cancelled by
1
the [last 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
2
may prescribe [and an intimation in this regard shall be sent to the original registering
authority if the last registering authority is not the original registering authority].
(4) 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.
(5) 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,
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satisfies the registering authority that he has taken possession of the vehicle [from the
registered owner] 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.
(6) 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
3
registration mark [under section 47, or removal of the vehicle to another State, or at the
time of conversion of the vehicle from one class to another, or for issue of no objection
certificate under section 48, or for change of residence or place of business under section
49, or for the alteration of the vehicle under section 52, make an application] to the
person with whom the registered owner has registered 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
authorised by this Act to renew such permit and, in relation to registration means the
authority which is authorised by this Act to issue, duplicate certificate of registration or
to assign a new registration mark.

1 Substituted for “original registering authority” by Act 54 of 1994, w.e.f. 14-11-1994.
2 Inserted, ibid.
3 Substituted for “under section 47, make an application” by Act 54 of 1994, w.e.f. 14-11-1994.