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High Court of Gujarat

KANAKADURGA FINANCE LIMITEDversusCOMMISSIONER OF TRANSPORT, GUJARAT

Disposal
PARTLY ALLOWED @ ADMISSION STAGE

Holding

The petition is allowed in part and the respondent authority is directed to decide the petitioner’s representation within three months.

Summary

Kanakadurga Finance Ltd filed a special civil application under Article 226 of the Constitution and the Motor Vehicle Act seeking the cancellation of the entry of certain respondents as original owner and financier of a vehicle (GJ-02-DJ-8233) and to have the petitioner recorded as financier. The petitioner also requested the transport authority to decide a pending representation dated 25‑03‑2025 regarding hypothecation cancellation. The respondent authorities opposed the petition as meritless. The Court observed that the representation had been pending for a long time and, in the interest of justice, directed the authority to decide the application within three months after hearing. Accordingly, the petition was allowed in part with a direction to the respondent authority to dispose of the representation within the stipulated period.

Issues considered

  • Whether the High Court can, under Article 226 and the Motor Vehicle Act, direct the transport authority to cancel the hypothecation and alter the registration entries.
  • Whether the pending representation for cancellation of hypothecation must be decided within a reasonable time.
  • Whether the petition is maintainable and merits relief.

Subjects

Article 226Motor Vehicle Acthypothecationvehicle registrationwrit petitionHigh Courtfinancecancellation

Judgment

       C/SCA/9042/2025                              ORDER DATED: 04/05/2026




          IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

           R/SPECIAL CIVIL APPLICATION NO. 9042 of 2025

==========================================
                KANAKADURGA FINANCE LIMITED
                               Versus
         COMMISSIONER OF TRANSPORT, GUJARAT & ORS.
==========================================
Appearance:
MR PM DAVE(263) for the Petitioner(s) No. 1
MR NIKUN KANARA AGP for the Respondent(s) No. 1,2
MR. SANDIP C BHATT(6324) for the Respondent(s) No. 5
NOTICE SERVED for the Respondent(s) No. 3,4
==========================================

     CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

                            Date : 04/05/2026

                               ORAL ORDER


1.      Present petition is filed by the petitioner under Article 226 of
the Constitution of India and under the provisions of the Motor Vehicle
Act seeking the following reliefs:-

          “(A) YOUR LORDSHIPS be pleased to allow this petition by issue a
          writ or any other appropriate writ, order or direction, directing
          respondent No.2 to cancel the entry of respondent No.4 as original
          owner and respondent No.5 as financier for the vehicle bearing
          registration No.GJ-02-DJ-8233 and further be pleased to show /
          mention the name petitioner as financier and respondent No.3 as
          original owner as prayer in application dtd. 25.03.2025 in
          accordance with law in the interest of justice and equity.

          (B) YOUR LORDSHIPS may be pleased to call for action taken
          report from respondent No.2 and after perusing the same, further
          be pleased to direct respondent No.2 and after perusing the same,
          further be pleased to direct respondent No.2 to take a decision on
          the representation dtd. 25.03.2025 in accordance with law and
          within stipulated time, in the interest of justice and equity.


                                   Page 1 of 3
     C/SCA/9042/2025                               ORDER DATED: 04/05/2026




        (C) YOUR LORDSHIP may be pleased to pass any other direction /
        order as deemed fit and proper in the facts of the present case, in
        the interest of justice.”


2.    Heard Mr.Dave, learned counsel for the petitioner and
Mr.Kanara, learned Assistant Government Pleader for the respondent
– authorities at length.


3.    Learned counsel for the petitioner has submitted the same facts
narrated in the memo of petition and has also submitted that the
authority has cancelled the hypothecation issued in favour of the
petitioner, which caused huge loss to the petitioner. Learned counsel
for the petitioner has submitted that the respondent authority be
directed to cancel the hypothecation in favour of respondent No.4 and
take decision on the pending representation made by the petitioner
after giving an opportunity of hearing and in accordance with law.
Learned counsel for the petitioner has submitted that the application
for cancellation is pending since long and the same is yet not decided
and, therefore, the present petition be allowed and the respondent –
authority be directed to take decision on the representation made by
the petitioner within stipulated time.


4.    Learned Assistant Government Pleader for the respondent –
authorities has opposed the petition and has submitted that the
petition being meritless deserves to be dismissed.


5.    Considering the facts and circumstances of the case and the
submissions made on behalf of both the sides and averments made in
the petition and the fact that the application / representation for
cancellation is pending since long, which is yet not decided, this Court


                                 Page 2 of 3
          C/SCA/9042/2025                                                                ORDER DATED: 04/05/2026




  is of the opinion that the petition deserves to be disposed of with a
  direction to the respondent – authority to decide the representation
  made by the petitioner within stipulated time.


  6.         In view of the above, the petition is allowed in part. The
  concerned respondent – authority is directed to decide the application
  / representation made by the petitioner as early as possible preferably
  within a period of three months in accordance with law and after
  giving an opportunity of hearing to the petitioner and the petitioner
  may agitate such grievance which is available under the law. Direct
  service is permitted.

                                                                       (HEMANT M. PRACHCHHAK,J)
  V.R. PANCHAL


Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: VIJAYKUMAR RAMESHBHAI PANCHAL(HC00171), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 04/05/2026 17:35:16




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