In Brief
A finance company lent money to purchase a transport vehicle and repossessed it when the borrower defaulted. The question was whether the financier must pay vehicle tax under Uttar Pradesh's Motor Vehicles Taxation Act. The Court held that a financier in possession of a vehicle under a hire-purchase agreement qualifies as the 'owner' and must pay tax in advance before the vehicle can be used. Tax must be paid first, then the vehicle may be operated. The only exception is if documents are surrendered to tax authorities before the due date with proof of non-use. The financier can claim partial refund later if the vehicle remains unused, but only after paying tax upfront and meeting strict procedural requirements.
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