Sumer Singh v. State Of Haryana And Others

106 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP No. 2548-2026(O&M) Date of Decision: 08.05.2026 Sumer Singh ....Petitioner vs.

State of Haryana and others ....Respondents

CORAM:

HON'BLE MR. JUSTICE JAGMOHAN BANSAL

Present:

Mr.Lajpat Rai Sharma, Advocate for the petitioner Mr. Deepak Vashisht, D.A.G, Haryana *** JAGMOHAN BANSAL, J. (ORAL) 1.

The petitioner through instant petition under Articles 226/227 of the Constitution of India is seeking direction to respondent No.3 to transfer ownership of vehicle bearing registration No.HR-69E-3581.

2. As per pleadings, the respondent No.5-Mahender purchased a new light goods vehicle in 2021 and it was financed by respondent No.4. The owner of the vehicle failed to pay installments of loan, thus, respondent No.4-Financer took possession of the vehicle and sold it in auction to the petitioner who deposited a sum of Rs.7,21,000/- in the account of respondent No.4-Financer. The respondent No.3 has refused to register vehicle in the name of petitioner.

3. As per reply, in case of hypothecation, vehicle can be registered in the name of person in whose favour there is hypothecation. In other words, the financer may apply for registration. The authority registers PARAMJIT KAUR SAINI 2026.05.08 05:01 I attest to the accuracy and integrity of this document

CWP No. 2548-2026(O&M) -2vehicle in the name of financer if he satisfies that he has taken possession from the registered owner owing to default of the registered owner. In the present case, the respondent No.4 applied for registration as person in whose favour there was hypothecation. It has withdrawn its application. The dispute with respect to loan is pending before arbitrator.

4. From the perusal of record and arguments of both sides, it is evident that bank without complying with legal formalities put the vehicle on auction. The petitioner is a bona fide buyer for consideration. He is unable to get vehicle registered in his name. The authorities cannot register the vehicle in petitioner's name unless and until dispute between owner and bank is finally settled. The matter between owner and bank is pending before Arbitral Tribunal. In such circumstances, this Court cannot direct authorities to register vehicle in the name of petitioner.

5. The petition stands disposed of with liberty to petitioner to approach authorities after settlement of dispute between owner and the bank.

6. Pending Misc. application(s), if any, shall stand disposed of. (JAGMOHAN BANSAL) JUDGE 08.05.2026 paramjit Whether speaking/reasoned: Yes Whether reportable:

No PARAMJIT KAUR SAINI 2026.05.08 05:01 I attest to the accuracy and integrity of this document