M/S Khanija Recycling India Pvt Ltd v. The Regional Transport Office

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 21956 OF 2026 (MV) BETWEEN:

M/S KHANIJA RECYCLING INDIA PVT. LTD., (COMPANY REGISTERED UNDER THE COMPANIES ACT) REGISTERED OFFICE NO. 664/6, 2ND FLOOR, 11TH A MAIN ROAD, MARENHALLI, 5TH BLOCK, JAYANAGAR, BENGALURU - 560 041, REPRESENTED BY ITS AUTHORIZED OFFICER JAVEED AKHTER BAIGANPALLI (MANAGER) …PETITIONER (BY SRI. VISHRUTH C., ADVOCATE)

AND:

¶1THE REGIONAL TRANSPORT OFFICE 1ST MAIN RD, AGARA VILLAGE, HSR LAYOUT, SECTOR I BENGALURU -560 102

¶2THE COMMISSIONER FOR TRANSPORT AND ROAD SAFETY, TRANSPORT DEPARTMENT, GOVERNMENT OF KARNATAKA, 1ST FLOOR, A BLOCK, TTMC BUILDING, K.H. ROAD, SHANTHINAGAR,

Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA

BENGALURU-560 027

¶3THE STATE OF KARNATAKA BY ITS SECRETARY TO GOVERNMENT TRANSPORT DEPARTMENT, M.S BUILDING, DR. AMBEDKAR VEEDHI, BENGALURU-560 001 …RESPONDENTS (BY SRI.MANJUNATHA B., AGA)

THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECTING RESPONDENT NO. 1 TO FORTHWITH REMOVE THE NTBT RESTRICTION AND BLACKLISTING FLAG ON VEHICLE REGISTRATION NO. KA01-MJ-9339 FROM THE VAHAN DATABASE AND ALL OTHER CONNECTED RECORDS.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

ORAL ORDER

The present writ petition is filed seeking the following prayer: i. Issue a Writ of Mandamus or any other appropriate writ, order, or direction directing Respondent No. 1 to forthwith remove the NTBT restriction and blacklisting flag on Vehicle Registration No. KA01-MJ-9339 from the Vahan database and all other connected records; ii. Issue a Writ of Mandamus or any other appropriate writ, order, or direction directing Respondents No. and to forthwith release the original Registration Certificate (RC) of Vehicle No. KA01-MJ-9339 to the Petitioner and enable unimpeded transfer, use, and enjoyment of the vehicle.

iii. Issue a Writ of Mandamus or any other appropriate writ, order, or direction directing Respondents No. and 2 to forthwith issue a No-Objection Certificate (NOC) to then Petitioner permitting transfer and sale of vehicle No.KA01-MJ-9339 iv. Award costs of the petition and v. Grant any other order/order(s) as deemed just and expedient.

¶2The Petitioner is a company incorporated under the Companies Act. The subject vehicle was originally registered on 08.10.2012 in the name of one Ashwatha Narayana Reddy K.N. Petitioners has purchased the said vehicle in August, 2016 from M/s.Jubiliant Motor Works Pvt. Ltd., Bangalore. At the time of transfer, the respondent No.1 conducted due diligence, cleared existing dues, and issued a fresh Registration Certificate (RC) in the petitioner's name. On 04.06.2022, respondent No.1 issued a Demand Notice to the petitioner under Sections 8-A and 9 of the Karnataka Motor Vehicles Taxation Act, 1957. The vehicle was simultaneously blacklisted, and an NTBT flag was imposed in the Vahan Database, rendering the vehicle incapable of transfer, use, or enjoyment. This demand notice was not served on the petitioner. Subsequently, respondent No.1 issued a second demand notice on 18.04.2023 and a further notice on 12.12.2023. These

notices proceeded on the erroneous premise that the petitioner, as a subsequent purchaser, is liable to pay the taxes due from the original owner. Thereafter, the petitioner filed WP.No.16423/2024 whereby the court, treating it as a demand notice, directed respondent No.1 to consider the case of the petitioner within a period of four (4) weeks. Thereafter, the respondents have passed an order dated 31.05.2025 that the original owner, Ashwathanarayana Reddy, has to pay the dues.

¶3Learned counsel for the petitioner submits that once the dues are to be recovered from the original owner and the petitioner has no liability, the respondents must forthwith remove the NTBT restriction and the blacklisting flag on the vehicle bearing registration No. KA01-MJ-9339 from the Vahan database and all connected records. It is submitted that although the order was passed more than a year ago, they have not taken any steps so far, which is causing considerable inconvenience to the petitioner.

¶4Learned AGA submits that they will consider the representation of the petitioner in accordance with law.

¶5Having heard the learned counsel for the petitioner and learned AGA for the respondent, perused the entire material on record. The petitioner purchased the vehicle in the year 2016, and the proceedings were initiated in the year 2022. The notices were issued to the petitioner in the year 2022 with regard to the outstanding tax to be paid prior to his purchase from the earlier owner and finally an order was passed, whereby it is held that the petitioner is not liable to pay the taxes, and is further the earlier owner is liable to pay. In that case by this time, the respondents should have taken consequential proceedings to remove the NTBT restrictions and the blacklisting flag on the petitioner's vehicle, but they failed to do so.

¶6In that view of the matter, this court is passing the following: ORDER i. In the light of the order dated 31.05.2025, the respondents are directed forthwith to remove NTBT restrictions and also the black listing flag

on the vehicle Reg.No.KA01-MJ-9339 from the Vahan database. ii. Accordingly, the writ petition is disposed of. iii. Pending I.As., in this petition shall stand closed.

SD/- (LALITHA KANNEGANTI) JUDGE

TS List No.: 1 Sl No.: 49 *AK