31A. 2[ Special provisions regarding motor vehicles subject to hire- purchase agreement.
Where an application for registration of a motor vehicle which is held under a hire- purchase agreement is made, the registering authority shall make an entry in the certificate of registration regarding the existence of the said agreement.
When the ownership of any motor vehicle registered undo this Chapter is transferred and the transferee enters into a hire purchase agreement with any person, the registering authority shall on receipt of an application from the parties to that agreement make an entry as to the existence of such hire- purchase agreement in the certificate of registration.
Any entry made under sub- section (1) or sub- section (2), may be cancelled by the registering authority on proof of the termination of the hire- purchase agreement by the parties concerned.
No entry regarding the transfer of ownership of any motor, vehicle which is held under a hire- purchase, agreement shall be made in the certificate of registration except with the written consent of the person whose name has been specified in the certificate of regis- tration as the person with whom the registered owner has, entered into a hire- purchase agreement.
Where the person whose name has been specified in the cer- tificate of registration as the person with whom the registered owner has entered into a hire- purchase agreement, satisfies the registering authority that he has taken possession of the vehicle owing to the default of the registered owner under the provisions of the agreement and that the registered owner refuses to deliver the certificate of registration or has absconded, such authority may, after giving the registered owner an opportunity to make such representation as he may wish to make (by sending to him a notice by registered post acknowledgment due at his address entered in the certificate of registration) and notwithstanding that the certificate of registration is not produced before it, cancel the certificate 3[ and issue a fresh certificate of registration to the person with whom the registered owner has entered into the hire- purchase agreement: Provided that a fresh certificate of registration issued in respect of a motor vehicle, unless the person pays the prescribed fee: Provided further that a fresh certificate of registration issued in respect of a motor vehicle, other than a transport vehicle shall be valid only for the remaining period for which the certificate cancelled under this sub- section would have been in force"]
2[ The registered owner shall, before applying to the appropriate authority, for the renewal of a permit make an application to the person with whom the registered owner has entered into a hire- purchase agreement (such person being hereafter in this section referred to as the financier) for the issue of a no objection certificate (hereafter in this section referred to as the certificate). Explanation,- In this section," appropriate authority", in relation to any permit, means the authority which is authorised by this Act to renew such permit.
Within seven days of the receipt of an application under sub- section (5A), the financier may issue, or refuse, for reasons which shall be recorded in writing and communicated to the applicant, to issue, the certificate applied for, and where the financier fails to issue the certificate and also fails to communicate the reasons for refusal to issue the certificate to the applicant within the said period of seven days, the certificate applied for shall be deemed to have been issued by the financier.
The registered owner shall, while applying to the appropriate authority for the renewal of any permit, submit with such application the certificate, if any, obtained under sub- section (5B) or, where no such certificate has been obtained, the communication received from the financier under that sub- section,, or, as the case may be, a declaration that he has not received any communication from the financier within the period specified in that sub- section.
On receipt of an application for the renewal of any permit under this section, the appropriate authority may subject to the other provisions of this Act-
in a case where the financier has refused to issue certificate applied for, after giving the applicant an opportunity of being heard, either renew, or refuse to renew, the permit;
in any other case, renew the permit-]
The provisions of sub- sections (1) to[ (5D)] 2 so far as may be, apply to a motor vehicle which is subject to hypothecation they apply to any motor vehicle which is held under a hire- purchase agreement.]