CA issues interim injunction against CGMT and RMV

Thursday, 11 November 2010 21:50 - - {{hitsCtrl.values.hits}}

By S.S. Selvanayagam

The Court of Appeal on 27 October issued an injunction restraining the Commissioner General of Motor Traffic (CGMT) and the Registrar of Motor Vehicles (RMV) from deleting the name of the Standard Credit Lanka Ltd. (formerly known as the Ceylinco Investment and Realty Ltd) as the absolute owner of a motor lorry bearing No. 48-9953.

Justices Sathya Hettige (President) and D. S. C. Lecamwasam issued this injunction valid till 26 November.

Petitioner Company in its petition stated that Third Respondent M. G. D. L. Jayantha of Wattala borrowed Rs. 800,000 from it as a vehicle loan through its Head Office and settled the loan on 19 May 2008.

Thereafter the said Jayantha on 19 October 2008 borrowed Rs. 1,000,000 as a vehicle loan from the Petitioner and as security of the said loan, he again transferred the absolute ownership of the said vehicle to the Petitioner. In terms of the said agreement, the said Jayantha was to pay back the capital amount and the interest thereon by 48 monthly installments, it stated. It further stated that in September 2010, it became aware that by an oversight, not noticing that the said Jayantha had borrowed a further sum of Rs. 1,000,000 from the Ja-Ela Branch, an executive officer of the Petitioner Company serving at its Head Office had issued a letter to the said Jayantha stating that the said vehicle loan facility has been settled in full.

Thereafter upon inquiry, it became aware that the said Jayantha had subsequently made an application to the Commissioner General of Motor Traffic to have the registration of the Petitioner as the absolute owner of the said vehicle deleted and register himself as the absolute owner while having sums due and owing to the Petitioner.

Petitioner stated that in the aforesaid circumstances, he is to institute action in the District Court against the Commissioner General of Motor Traffic and the Registrar of Motor Vehicles.

Farman Cassim with Shantha Jayawardena instructed by Integrated Associates appeared for the Petitioner Company.

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