STATE OF KERALA Vs. SAHADEVAN

JUDGEMENT

(1.) This second appeal is before us on a reference. The liability to pay tax arrears of the bus bearing registration No. KLG-5247 is the dispute involved.

(2.) The plaintiff, who is the registered owner of the bus, entered into an agreement for sale of the bus to the 5th defendant on 10/3/1995. As per the terms in the agreement, the plaintiff has to clear all arrears of taxes and liabilities up to the date of the agreement and thereafter, the 5th defendant is liable for the same. After the sale agreement, the 5th defendant was in possession of the bus and in connection with the balance sale consideration, the plaintiff filed a suit, O.S. No. 226 of 1996, against the 5th defendant and the said suit was decreed. While so, the plaintiff received revenue recovery notice relating to arrears of tax on the vehicle for the period from 1/7/1995 to 30/9/1995. Hence, the plaintiff filed the suit for a declaration that the notice is null and void and that the 5th defendant is liable to pay the tax arrears claimed in the notice.

(3.) Defendants 1 to 4 filed written statement contending that the suit is not maintainable and the plaintiff, who is the registered owner of the vehicle, is liable to remit the arrears of tax. The 5th defendant filed written statement contending that there was no concluded sale and that the possession of the vehicle was returned to the plaintiff due to the intervention of the Circle Inspector of Police, Koyilandy. It is also contended that the plaintiff has not issued the necessary documents for transferring the registration and since the plaintiff repossessed the vehicle, the 5th defendant is not liable to pay the arrears of tax and sought for dismissal of the suit.