HP cancellation or termination refers to an application for making an entry of termination of agreement of hire purchase, lease or hypothecation agreement in the certificate of hypothecation.
Procedure for the cancellation of HP
- Apply for making an entry of hire-purchase, lease or hypothecation agreement in the certificate of registration of a motor vehicle in Form No. 35, duly signed by the registered owner of the vehicle and the financier.
- Confirm whether it is the case of termination due to failure to make repayment to financier.
- If all dues are cleared then provide certificate of due clearance from financier.
- Pay appropriate fee as specified in rule 81 of the Central Motor Vehicle Rules 1989.
- If the termination is due to failure of repayment the financier then RC should be issued in the name of financier
Issuance of RC in the name of financier
- Apply for the issue of a fresh certificate of registration in Form No. 36.
- Provide allotment letter of the vehicle.
- Provide the insurance certificate.
- Pay appropriate fee for transfer of ownership as specified in rule 81 of the Central Motor Vehicle Rules 1989.
- A notice will be issued to the registered owner of the vehicle if he refuses to deliver the certificate of registration to the financier or absconds.
Requirements for the cancellation of HP
- Application in Form No. 35.
- Certificate of registration.
- Allotment letter of the vehicle.
- Proof of address.
- Valid insurance certificate.
- Pollution under control certificate.
- R.C.Book.
- Copy of PAN card of Form No. 60 and Form No. 61 (as applicable)
- No Objection Certificate from financier.
- Chassis & Engine pencil print.
- Signature Identification of owner.