Q1: did the current owner show you the NOC?
if he has already paid all the dues and stil he didn't obtain the NOC from bank then ask him to obtain the letter in the name of you (if you are buying this vehicle from him)
I will tell you my story:
Last year i have bought Alto VXR-03 model from a person, the car was in the name of bank but the dues were 100% paid, i gave him the token money and asked him to obtain the NOC from bank direct in my name so that there will be no need of double transfer. he obtain the letter in my name and then i transfer it directly to my name.