{"id":234862,"date":"2020-08-26T22:55:13","date_gmt":"2020-08-26T17:25:13","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=234862"},"modified":"2020-09-04T12:40:46","modified_gmt":"2020-09-04T07:10:46","slug":"state-governments-are-entitled-to-prescribe-fee-for-assignment-of-distinctive-registration-numbers-to-motor-vehicles","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/26\/state-governments-are-entitled-to-prescribe-fee-for-assignment-of-distinctive-registration-numbers-to-motor-vehicles\/","title":{"rendered":"State Governments are entitled to prescribe fee for assignment of &#8220;distinctive&#8221; registration numbers to motor vehicles"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Supreme Court<\/strong>: In the case where Rule 55A of the M.P. Motor Vehicles Rules, 1994 were challenged for being ultra vires the state\u2019s power under the Motor Vehicles Act, 1988 and the Central Motor Vehicle Rules, 1989, the bench of L. Nageswara Rao and S. Ravindra Bhat, JJ upheld the validity of the said Rule and said that<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201c\u2026 the assignment of \u201cdistinctive marks\u201d i.e. registration numbers to motor vehicles (which includes the power to reserve and allocate them, for a specific fee) is a distinct service for which states or their authorities are entitled to charge a prescribed fee. Rule 55A of the MP Rules is not therefore, in excess of the powers conferred upon the state, by the Act or the Central Rules.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>What is Rule 55A of the M.P. Motor Vehicles Rules, 1994?<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>The said Rule prescribes four different fees \u2013 \u20b915000\/- for the registration marks 1 to 9 in any series prevalent within the jurisdiction of the registering authority; and \u20b9 12000\/- for reservation of marks from 10 to 100 in any series within the jurisdiction of the registering authority.<\/li>\n<li>For reservation of large series of numbers indicated in Rule 55A(c), \u20b9 10000\/- and \u20b9 2000\/- for reservation of any other number or numbers within 1000 from the last number assigned in the serial order. 31.<\/li>\n<li>In addition to charging such fees, the registering authority is enjoined by Rule 55A(2) to follow the principle of first-come-first-serve in reserving particular numbers; and to allot the registration mark reserved upon production of the vehicle along with the application in Form-20 (of the Central Rules), provided the vehicle is compliant with the provisions of the Act and Rules.<\/li>\n<li>By Rule 55A(d), the reservation of the mark would be cancelled if the vehicle is not produced for allotment within three months from the date of allotment. This is meant to avoid abuse of the reservation process by trafficking in numbers, by providing finite time within which such numbers can be used.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Does Rule 55A of the MP Rules violate the Motor Vehicles Act, 1988?<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The existence of specific provisions empowering the State (such as Sections 41(13), 47(7), 49(4) and 50(5)), means that the power of the State to claim or charge amounts is specifically recognized by express provisions. Further, there are certain services and functions for which the State is empowered to levy fees. It is precisely to cover these contingencies, i.e. where the service is rendered or some function performed, that the State is empowered by a residual provision to levy fees.<\/p>\n<p style=\"text-align: justify;\">Further, Section 211 is cast in wide terms and that any rule which the Central Government or the State Government is empowered to make under this Act may, notwithstanding the absence of any express provision to that effect, provide for the levy of such fees in respect of applications, amendment of documents, issue of certificates, licences, permits, tests, endorsements, badges, plates, countersignatures, authorisation, supply of statistics or copies of documents or orders and for any other purpose or matter involving the rendering of any service.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cClearly, therefore, the Parliament intended that contingencies not covered by a specific power to levy fees or amounts, which entailed some activity on the part of the State, including rendering of any service could be legitimately charged or subjected to the levy of fee or amounts.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">The Court further explained that Section 43 enables the owner of a motor vehicle to apply to any registering authority or other authority which may be prescribed by the State Government to have the vehicle temporarily registered. This provision contains a non-obstante clause. Various provisions of the Act deal with orders of higher authorities and appellate authorities.<\/p>\n<p style=\"text-align: justify;\">It also said that the generality of the power under Section 65(1) to frame rules, is sufficient along with Section 211, to conclude that the State Government has the authority to prescribe a fee for reserving certain numbers or distinguishing marks to be assigned as registration numbers.<\/p>\n<p style=\"text-align: justify;\">After an overall reading of the M.P. Rules and the Act, the Court held that besides the express authorization to levy fees or collect amounts, both the Central Government and the State Government are empowered \u2013 in fact duty bound to extend certain services in the performance of such duties<strong>. Both these bodies, i.e. the Central and State Governments would therefore, be acting within their authority to charge or levy fees<\/strong>.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\"><strong>Why Assignment of Registration Numbers is a part of State Policy?<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The assignment of numbers by the registering authority through an official\/agency or department notified by the State Government, cannot be seen as a mere step \u2013 albeit at the fag-end of the registration allotment process. In fact, though it is the culmination of the allotment process, it is nevertheless an important step. The state is entitled to indicate its choice or manner of assigning by prescribing a particular set of procedures for the assignment of numbers. Thus, for instance, the assignment of the concerned \u201ccode\u201d &#8211; to the individual registering authorities followed by the assignment of numerics may follow a predetermined pattern which may be district wise, state government department wise (in the case of publicly owned vehicles), different sequences for buses and heavy vehicles and so on. If such a predetermined choice can be made by prescribing the mode of assignment, it is both regulatory and at the same time indicative of State policy.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><em>&#8220;Per se<\/em>, the Court cannot brush aside the element of service which may be involved \u2013 especially if the general public or a sub-section of it, wishes to choose particular numbers for various considerations. Such \u201cfancy\u201d numbers or \u201causpicious\u201d numbers may well therefore have to be set apart having regard to the peculiar socio-cultural needs of the people of the state. It is in such an event that the availability of such numbers and their reservation as a choice and the power of their assignment assumes importance.&#8221;<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">[State of MP v. Rakesh Sethi, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/lqJo0rew\"><b>2020 SCC OnLine SC 673<\/b><\/a>, decided on 26.08.2020]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court: In the case where Rule 55A of the M.P. Motor Vehicles Rules, 1994 were challenged for being ultra vires the <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[19791,43241,43240],"class_list":["post-234862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-motor-vehicles-act","tag-power-of-state","tag-registration-of-numbers"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>State Governments are entitled to prescribe fee for assignment of &quot;distinctive&quot; registration numbers to motor vehicles | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/26\/state-governments-are-entitled-to-prescribe-fee-for-assignment-of-distinctive-registration-numbers-to-motor-vehicles\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State Governments are entitled to prescribe fee for assignment of &quot;distinctive&quot; registration numbers to motor vehicles\" \/>\n<meta property=\"og:description\" content=\"Supreme Court: In the case where Rule 55A of the M.P. 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Law explained in light of MV Act provisions","author":"Bhumika Indulia","date":"November 24, 2020","format":false,"excerpt":"Allahabad High Court: The Division Bench of Surya Prakash Kesarwani and Dr Yogendra Kumar Srivastava, JJ., while addressing the matter with regard to the assignment of the registration number of a motor vehicle made an observation that: Reservation of registration numbers considered attractive is only as an exception to the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/All-HC-Lko-Bench_4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/All-HC-Lko-Bench_4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/All-HC-Lko-Bench_4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/All-HC-Lko-Bench_4.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/All-HC-Lko-Bench_4.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":252245,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/08\/04\/battery-operated-vehicles-exempted-from-rc-issue-renewal-fees-vide-central-motor-vehicles-sixteenth-amendment-rules-2021\/","url_meta":{"origin":234862,"position":1},"title":"Battery-operated vehicles exempted from RC issue, renewal fees vide Central Motor Vehicles (Sixteenth Amendment) Rules, 2021","author":"Prachi Bhardwaj","date":"August 4, 2021","format":false,"excerpt":"The Ministry of Road Transport and Highways has amended the Central Motor Vehicles Rules, 1989, notifying the Central Motor Vehicles (Sixteenth Amendment) Rules, 2021 on August 2, 2021. The Amendment exempts Battery Operated Vehicles from the payment of fees for the issue or renewal of registration certificate and assignment of\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":319602,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/04\/06\/bombay-hc-dismisses-pil-filed-by-auto-rickshaw-and-bus-unions-against-levy-of-additional-fee-under-mv-rules-1989\/","url_meta":{"origin":234862,"position":2},"title":"Bombay HC dismisses PIL filed by Auto Rickshaw and Bus Unions against levy of additional fee under MV Rules, 1989","author":"Editor","date":"April 6, 2024","format":false,"excerpt":"The petitioners questioned the levy of additional fee for renewal of driving license and renewal of registration certificate in case of motorcycles and other classes of non- transport vehicles under Rules 32 and 81 of Motor Vehicle Rules, 1989 and termed the same to be as a penalty in disguise.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Bombay-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":244910,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/03\/motor-vehicles-act\/","url_meta":{"origin":234862,"position":3},"title":"All HC | Rule making power of Central and State Government under Motor Vehicles Act \u2013 Are the subject matters falling under Ss. 110 and 111 delineated and demarcated or do they overlap? HC explains","author":"Bhumika Indulia","date":"March 3, 2021","format":false,"excerpt":"Allahabad High Court: The Division bench of Surya Parkash Kesarwani and Dr Yogendra Kumar Srivastava, JJ., expressed that: The legislative intendment with regard to the mutual exclusion of the rule making powers of the Central and the State Government being clear, the matters falling under Sections 110 and 111 must\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":279829,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/17\/ministryofroadtransportandhighways-notified-centralmotorvehiclestwenty-thirdamendmentrules2022-to-amend-centralmotorvehiclesrules1989-considering-objections-suggestions-received-from-public-in-res\/","url_meta":{"origin":234862,"position":4},"title":"Govt allows conversion of regular vehicle registrations into Bharat Series vide Central Motor Vehicles (Twenty-third Amendment) Rules, 2022","author":"Editor","date":"December 17, 2022","format":false,"excerpt":"\u00a0 \u00a0 On 14-12-2022, the Ministry of Road Transport and Highways notified Central Motor Vehicles (Twenty-third Amendment) Rules, 2022 to amend Central Motor Vehicles Rules, 1989 (\u201cCMV Rules\u201d) and allow the conversion of regular vehicle registrations into Bharat Series (BH) numbers as part of measures to widen the scope of\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Ministry of Road Transport and Highways","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-505.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":221683,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/11\/02\/in-the-wake-of-vehicular-pollution-in-delhi-lg-of-nct-of-delhi-orders-for-implementation-of-odd-even-rule\/","url_meta":{"origin":234862,"position":5},"title":"In the wake of vehicular pollution in Delhi, LG of NCT of Delhi orders for implementation of &#8220;Odd-Even Rule&#8221;","author":"Bhumika Indulia","date":"November 2, 2019","format":false,"excerpt":"No. F. 23(1549)\/CAP\/TPT\/PCD\/2019\/ 1579\/78617.\u2014Whereas the National Capital Territory in Delhi has more than eleven million registered vehicles and the vehicular pollution has become a major source of air pollution in Delhi; Whereas, Hon'ble Supreme Court of India, Hon'ble High Court of Delhi and Hon'ble National Green Tribunal have passed various\u2026","rel":"","context":"In &quot;Legislation Updates&quot;","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/11\/TRANSPORT.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/234862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=234862"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/234862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/154914"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=234862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=234862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=234862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}