In Brief
SREI Equipment Finance financed a JCB vehicle to Amarnath Yadav, whose name was registered with SREI's hypothecation entry noted. When Yadav failed to repay, SREI obtained an arbitration award. Yadav fraudulently used a forged Form 35 to cancel SREI's hypothecation entry and transfer the vehicle to Ramjan Ali. The Regional Transport Officer later declared these documents void. The High Court ordered release to Ali, but the Supreme Court reversed this. The Court held that a hypothecated vehicle cannot be transferred without the financer's written consent, and any registration based on forged documents is void ab initio. SREI, as the wronged financer, retains rightful claim to the vehicle."
The lawyer headnote and full judgment text are available to registered users.