How to issue RC in the name of the financier

Various circulars have so far been issued by the Transport Commissioner regarding issue of Reg Certificate in the name of the financier as contemplated in Section 51 (5)of the Motor vehicles Act.

If a financier seizes a vehicle naturally the owner lose not only the vehicle but also the title. But as the vehicle is in some X name how can the financier get the Reg.Certificate in his name?

Procedures to be followed.
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In most cases the RC is not available with the financier, then he has to apply to the Reg.Authority concerned in form 36. After receipt of such an application the RTO has to satisfy himself that actually the financier has taken possession of the vehicle.

If the vehicle is a transport vehicle covered by a permit, we have to issue a notice to the owner with a request to show cause as to why the permit should not be cancelled.We have to take action to cancel the permit too.

Once the RTO is satisfied that the financier has actually taken possession of the vehicle he should send a notice to the Reg. owner in form 37. If the acknowledgement is received and the owner has not objected to the issue of RC in the name of the financier, then the RC can be issued. If the party objects then the RTO has to decide the case on merits. If the acknowledgement is returned undelivered, field staff has to serve the form 37 and then issue the RC in the name of the financier.

How to write the RC:
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No previous entries should be incorporated in the RC . The RC should be issued afresh making the financier as the first owner and without repeating the h.p. or t.o. entries.

Ref. circular 26/2001 also Section 51(5) of M.V.Act.