No charges for High Security Registration Plates to be collected from customers except manufacturers, dealers: Gauhati High Court to Assam government

The Gauhati High Court directed the State respondents to ensure that no agency or 3rd party collects the charges for High Security Registration Plates (HSRP) from the customers except the manufacturers/dealers in accordance with the provisions of the Motor Vehicles (High Security Registration Plates) Order, 2018.
The Kohima Division Bench of Justice Songkhupchung Serto and Justice Kakheto Sema disposed of a Public Interest Litigation (PIL)  filed by a public spirited person with an effort to espose public interest in connection with order 4(c) of the Motor Vehicles(High Security Registration Plate) Order, 2018 notified vide Notification No.S.O.6052(E) dated 6th December, 2018 by the Ministry of Road Transport and Highways.

S. Dutta, Senior Counsel for the Petitioner by drawing attention of the High Court  to the provisions of the order mentioned above submitted that as per the provision of this order, beginning from 1st of April 2019 Motor Vehicles buyers are no longer required to pay for the High Security Registration Plates (HSRP) and for its fixing on their vehicles after placing of the registration mark to any other individual or agency except to the dealers. However, in the State of Nagaland, there has been dual payment for the price of HSRP, one to the Motor Vehicles dealers and the other to the respondent No.6 (Private Limited)  which is in violation of the provisions of the order, therefore the same requires to be stopped in public interest. 

In support of his submission the Senior Counsel referred to some copies of the invoice issued by the respondent No.6 to some of the customers wherein the amount received from the customers are shown.  Dutta also submitted that, there has been no denial from the respondents’ side specially, the respondent No.6 that, they have been charging the price of HSRP from the customers, therefore the respondent No.5 who issues the licence for manufacturing such plates may be directed not to issue such   licence anymore to the respondent No.6 in future.

V. Suokhrie, Additional  A.G. submitted on behalf of the State Government that, it is true that a contract was signed between the State Government and the respondent No.6 for production of HSRP and fixing of the same on the vehicles purchased in the State. But after coming into effect of the Motor Vehicles (High Security Registration Plates) Order 2018 w.e.f. 1st April 2019 the contract between the State Government and the respondent No.6 has ended.  

Sentiyanger, Counsel appearing for the respondent No.6 submitted that as per the contract signed between the respondent No.6 and the Government of Nagaland, the respondent No.6 used to supply the HSRP to the dealers only so the respondent did not charge the price of the same from the customers.  

Limawapang, Counsel appearing for respondent no.5 (The Central Road Research Institute)  submitted that respondent No.5 is the authority to issue the licence for manufacturing HSRP and respondent No.6 was one of the agencies to whom manufacturing licence was issued. However, as per the Motor Vehicles (High Security Registration Plates) Order, 2018, it is not the agency who should be charging the price for HSRP but the Motor Vehicles dealers only. He also submitted that the respondent No.6 was authorized to produce the HSRP only till 9.10.2019 but if any extension order was issued he is not aware of the same.  

The relevant portions of the Motor Vehicles (High Security Registration Plates) Order 2018:- 
“4. A vehicle manufacturer shall comply with the following   procedure in regard to High Security Registration Plates(HSRP) for a new vehicle to be sold on or after 1 st April 2019 namely:- 
(a) The type approved High Security registration Plates including the third registration mark, shall be supplied by the vehicle manufacturers to their dealers, who shall place a mark of registration on such plates and affix them on the automobiles. 
(b) A manufacturer of the motor vehicles shall ensure that the requisite infrastructure required for placing the mark of registration on the security licence plates and printing the third registration plate are available with their dealers. 
(c) The cost of high security registration plate and its affixture on the vehicle after placing the mark of registration shall be included in the price of the new vehicle and no additional or itemised cost shall be charged from the vehicle purchaser by the dealer for the same.”

On careful perusal of the above provision of the Motor Vehicles (High Security Registration Plates) Order, 2018, the Court noted that the responsibility for supplying and fixing the HSRP on every vehicle is that of the manufacturer/dealer and price for the same should be included in the price of the vehicle, and no extra charge should be levied from the customers. Therefore, the practice of charging the price of HSRP from the customers by a 3rd party is not as per the provision of the order. 
“As such, the respondent No.6 should no longer charge the price of the HSRP from the customers. The Motor Vehicle dealers in the State of Nagaland should make sure that the HSRP are supplied and affixed by them as per the provision of the order of Order, 2018 and not by any person or 3rd party”, observed the Bench.

Therefore the High Court directed the respondent No.5 shall enquire if any illegality or violation of the provision of the order of 2018 has been committed by the respondent No.6 and, if committed, take appropriate action so that such act is not repeated in future.

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