ASHOK BHUSHAN,J. - (1.) Leave granted.
(2.) This appeal has been filed challenging the judgment dated 28.01.2020 of High Court of Judicature at Allahabad, Lucknow Bench allowing the application under Section 482 Cr.P.C. filed by respondent No.1. By impugned judgment, High Court has directed for release of vehicle JCB No. UP 51 AT 5709 in favour of the respondent No.1. The appellant, who was respondent No.3 before the High court aggrieved by the judgment has come up in this appeal.
(3.) Brief facts of the case and events necessary to be noted for deciding this appeal are:- 3.1 One Amarnath Yadav purchased the JCB machine and entered into a finance agreement dated 22.10.2016 with the appellant under which agreement the appellant financed an amount of Rs.19,83,360/-. Under the agreement, Shri Amarnath Yadav (hereinafter referred to as "original owner") agreed to repay the loan in 46 monthly instalments @ Rs.56,300/- for each month from 15.12.2016 to 15.09.2020. 3.2 The original owner being resident of District Basti, State of Uttar Pradesh applied for registration of the vehicle to the Regional Transport Officer, Basti. The vehicle was registered by Regional Transport Officer, Basti, Shri Amarnath Yadav as owner of JCB machine bearing Registration No. UP 51 AT 5709 and there being agreement of finance with appellant, in the registration certificate the entry was made of the appellant as person in whose favour the vehicle was hypothecated as required by Section 51 of the Motor Vehicles Act, 1988. The original owner failed to pay any instalment of loan. The appellant as per terms of the finance agreement dated 22.10.2016 referred the dispute to an arbitrator. The arbitrator proceeded to decide the reference as per Arbitration and Conciliation Act, 1996. Notices were issued by Arbitrator to original owner. Original owner failed to appear before the arbitrator. The arbitrator gave an award dated 26.03.2018 in favour of the appellant namely M/s. Srei Equipment Finance Private Limited for an amount of Rs.25,97,053/- with interest @ 10% p.a. from the date of notice of termination (07.03.2017). 3.3 The original owner made an application with the Regional Transport Officer, Basti praying for seeking cancellation of entry of the appellant as person with whom the vehicle was hypothecated. Regional Transport Officer, Basti issued an order on 16.08.2018 cancelling the entry of appellant as financer. The Regional Transport Officer, Basti without any information to the appellant cancelled the entry of the appellant from the registration certificate and issued a fresh registration certificate in the name of original owner. On 16.08.2018, the Regional Transport Officer, Basti issued a clearance certificate in favour of original owner noticing the fact that vehicle has been sold to Ramjan Ali, the respondent No.1 in the jurisdiction of other registration authority, i.e., Sitapur. 3.4 On the basis of clearance certificate issued by Regional Transport Officer, Basti, the respondent No.1, Ramjan Ali submitted an application for certificate of registration to Transport Department, Sitapur and a registration certificate dated 27.08.2018 was issued in the name of Ramjan Ali as owner. The registration certificate dated 27.08.2018 also noted the entry of hypothecation in favour of Magma Fincorp Limited. The respondent No.1 after obtaining transfer from original owner has been using the vehicle. 3.5 On 09.01.2019, the vehicle was taken possession by four persons, with regard to which an FIR Case Crime No.08 of 2019 under Sections 364 and 392 was lodged by respondent No.1, Ramjan Ali in Police Station Sidhauli District Sitapur. The vehicle was seized on 27.01.2019 by the police. Ramjan Ali filed an application before the Chief Judicial Magistrate, Sitapur for release of the vehicle No. UP 51 AT 5709. Police submitted a report before the Chief Judicial Magistrate, Sitapur on the application of respondent No.1. The appellant also appeared before Chief Judicial Magistrate, Sitapur and filed an objection claiming to be the financer of the vehicle. The appellant's objection stated that the registration certificate, which was in the name of Amarnath Yadav, the original owner, there was entry in favour of appellant as the person with whom the vehicle was hypothecated. The original owner had not paid any amount and an award dated 26.03.2018 was passed in favour of the appellant against the original owner. Objection further stated that original owner and respondent No.1 had manufactured fraudulent documents and in collusion with officials of Regional Transport Office, Basti had managed to obtain clearance certificate dated 16.08.2018. The Regional Transport officer, Sitapur had transferred the vehicle and registration of the vehicle in the name of respondent No.1 which is illegal. The Chief Judicial Magistrate after noticing the case of the respondent No.1 as well as the appellant, who had filed a detailed objections observed that there is a dispute over ownership of vehicle between respondent No.1 and appellant and hence there is no justifiable ground to release the vehicle in favour of any of the parties. The application filed by respondent No.1 for release as well as the objection of the appellant were rejected by order dated 04.05.2019. Before the aforesaid order dated 04.05.2019 was passed, the appellant filed an application before the Regional Transport Officer, Basti on 30.04.2019 claiming that the appellant was person with whom the vehicle was hypothecated and entry of hypothecation in favour of the appellant in the registration certificate was got cancelled on the basis of forged Form-35 and the clearance certificate was wrongly issued in favour of original owner for transfer of the vehicle. 3.6 The Regional Transport Officer after receipt of the application by the appellant dated 30.04.2019 issued notices to original owner on 30.04.2019, 08.05.2019, 15.05.2019 and 01.06.2019, the original owner did not appear before the Regional Transport Officer nor gave any reply. The Assistant Regional Transport Officer after considering the materials produced by the appellant by application dated 30.04.2019 and other materials passed an order on 29.06.2019 setting aside the order of cancellation of finance agreement as well as the no objection certificate earlier issued by Regional Transport Officer, Basti. The Regional Transport Officer held that registration certificate issued by Regional Transport Officer, Basti in Form-23 in respect of vehicle(JCB Machine) bearing No. UP 51 AT 5709 and no objection certificate shall be treated as null and void. The Assistant Regional Transport Officer also wrote to the Superintendent of Police, Basti to register a case under appropriate section of the Indian Penal Code against the original owner. 3.7 The respondent No.1 filed an application under Section 482 Cr.P.C. before the High Court challenging the order dated 04.05.2019 passed by the Chief Judicial Magistrate rejecting his application for release of the vehicle. The appellant was subsequently impleaded as respondent No.3 in the application under Section 482 Cr.P.C. 3.8 The High Court vide its impugned judgment dated 28.01.2020 allowed the application under Section 482 Cr.P.C, set aside the order of Chief Judicial Magistrate dated 04.05.2019 and directed the release of the vehicle in favour of respondent No.1 Ramjan Ali. The appellant aggrieved by the said order dated 28.01.2020 has come up in this appeal.;