{"id":302343,"date":"2023-09-26T11:00:05","date_gmt":"2023-09-26T05:30:05","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=302343"},"modified":"2023-10-03T12:07:15","modified_gmt":"2023-10-03T06:37:15","slug":"high-security-registration-plate-scheme-stay-motor-vehicles-karnataka-hc-case-brief","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/26\/high-security-registration-plate-scheme-stay-motor-vehicles-karnataka-hc-case-brief\/","title":{"rendered":"Read why Karnataka HC refused to stay State Government\u2019s notification vis-&agrave;-vis implementation of HSRP (High Security Registration Plate) Scheme?"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Karnataka High Court:<\/span> While deciding the instant petition challenging the notification\/circular issued to implement the HSRP (High Security Registration Plate) Scheme which has been on the anvil for over two decades, the Bench of <span style=\"font-weight: bold;\">B.M. Shyam Prasad, J.*<\/span>, rejected the petitioners&#8217; request to stay the impugned notification\/circular stating that the factors of balance of convenience and irreparable injury could be reasonably achieved if the State Government, subject to further orders of the Court and without prejudice to its case, is called upon to notify a detailed process to be followed to the vehicle manufacturers to grant approval across the board to all the license plate manufacturers with the necessary TAC and this exercise must be completed within a timeframe. The Court further stated that the petitioners, without prejudice to their case must be reserved liberty to participate in the process that is so finalized by the State Government pursuant to the instant order.<\/p>\n<p><span style=\"font-weight: bold;\">Background:<\/span> A notification dated 17-08-2023 and the Circular dated 18-08-2023 [<span style=\"font-style: italic;\">impugned Notification\/ Circular<\/span>] issued by the State Government. The petitioners raised grievances against the following stipulations in the impugned notification\/circular-<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Only the High Security Registration Plate Manufacturers [<span style=\"font-style: italic;\">the License Plate Manufacturers<\/span>] authorized by the Original Equipment Manufacturers [<span style=\"font-style: italic;\">vehicle manufacturers]<\/span> shall supply the High Security Registration Plate [HSRP] for the <span style=\"font-style: italic;\">old vehicles<\/span>, and such HSRP shall be affixed by the authorized dealers of the vehicle manufacturers.<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">The old vehicle owners shall have the HSRP affixed within three months from the date of the Notification.<\/p>\n<\/li>\n<\/ul>\n<p style=\"margin-bottom: 3%;\">In December 2018, provisions of Rule 50(1)(v) of the Motor Vehicle Rules, 1989 were amended. The proviso in Rule 50(1)(v) was substituted providing that the HSRP shall be supplied by the vehicle manufacturers along with the vehicles manufactured on or after 01.04.2019 to their dealers and the dealers shall affix the plates on the vehicle. Insofar as the vehicles registered before 01.04.2019 [<span style=\"font-style: italic;\">&#8216;old vehicles&#8217;<\/span>]. The substituted provisions enabled the vehicle manufacturer to supply HSRP to their dealers stipulating that such dealers may affix HSRP. In February 2020 and August 2022, Rule 50(1)(v) was amended once again. Amendment of 2022 substituted the expression <span style=\"font-style: italic;\">&#8216;approved license plate manufacturers or their dealers&#8217;<\/span> by the expression <span style=\"font-style: italic;\">&#8216;license plate manufacturers or their dealers approved by the State Government or the Union Territory administration&#8217;.<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">The Central Government further communicated that HSRP <span style=\"font-style: italic;\">Scheme<\/span> is imperative to the country&#8217;s National Security, in aiding reduction of vehicular borne crime, in identification of all vehicles plying on the roads and in prevention of tampering and counterfeiting, and that if the manufacturers or their dealers are not approved by the vehicle manufacturers or authorized by the State, the affixture of HSRP would be unauthorized.<\/p>\n<p style=\"margin-bottom: 3%;\">The Central Government had also clarified that the HSRP for the <span style=\"font-style: italic;\">&#8216;old vehicles&#8217;<\/span> shall be issued by the registering authority, or the vehicle manufacturers\/their dealers, or the license plate manufacturers\/their dealers <span style=\"font-style: italic;\">approved<\/span> by the State Government\/ Union Territory Administration.<\/p>\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Contentions:<\/span> The petitioners contended that the MV Rules are formed by the Government of India in exercise of the powers under Section 64 of the MV Act. The State Government, which is conferred with the powers to frame Rules under Section 65 of the MV Act, can only frame Rules in respect of such subjects that are not covered under Section 64 of the MV Act.<\/p>\n<p style=\"margin-bottom: 3%;\">The State Government, which does not have power even to frame Rules in respect of subjects that are covered under Section 64 of the MV Act, has <span style=\"font-weight: bold;\">issued an<\/span> <span style=\"font-weight: bold;\">executive order in the impugned Notification\/Circular excluding the license plate manufacturers and stipulating<\/span> <span style=\"font-weight: bold;\">that only those who are approved by the vehicle<\/span> <span style=\"font-weight: bold;\">manufacturers can supply the HSRP to the old vehicles<\/span>. The subject in this regard is within the exclusive domain of the Central Government, and as such, the impugned notification\/circular not just falls foul of the MV Rules and the statutory order, they are also without jurisdiction.<\/p>\n<p style=\"margin-bottom: 3%;\">Per contra, the respondents argued that the license plate manufacturers cannot claim an absolute right to supply the HSRP and this falls from the ratio in <span style=\"font-style: italic;\">Association of Registration Plates<\/span> v. <span style=\"font-style: italic;\">Union of India<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/5J38VRzZ\" target=\"_blank\" rel=\"noopener\">(2005) 1 SCC 679<\/a>.<\/p>\n<p style=\"margin-bottom: 3%;\">The license plate manufacturers, especially with the amendment of Rule 50(1)(v) in the month of August 2022, cannot contend that because they hold TAC [<span style=\"font-style: italic;\">Type Approval Certificate<\/span>] they would be eligible to supply the HSRP without the approval of the State. The State Government is justified insisting upon approval for license plate manufacturers to supply HSRP and this is in consonance, and not in derogation of the provisions of Rule 50(1)(v) of the MV Rules.<\/p>\n<p><span style=\"font-weight: bold;\">Court&#8217;s Assessment:<\/span> Perusing the contentions and facts of the case, the Court framed the following questions-<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Whether the petitioners\/license plate manufacturers can justifiably contend that the State Government cannot insist upon approval for supply of HSRP for old vehicles as such requirement would only be for their dealers.<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Whether the State Government could have notified that the approval to license plate manufacturers for supply of HSRP for old vehicles under Rule 50[1][v] of the MV Rules, if justified, will be by the vehicle manufacturers, and whether there could be any arbitrariness in the matter of grant of such approval by the vehicle manufacturers.<\/p>\n<\/li>\n<\/ul>\n<p style=\"margin-bottom: 3%;\">The Court was of prima facie view that amendment of Rule 50(1)(v) of the MV Rules in August 2022, which will have to be read in conjunction with the terms of the statutory order dated 06-12-2018, that the insistence on approval for license plate manufacturers to supply HSRP for old vehicles may not be extraneous or beyond the requirements in law.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court stated that it is not persuaded at this stage that the petitioners have made out a case against approval by the State Government for supply HSRP to the old vehicles.<\/p>\n<p style=\"margin-bottom: 3%;\">Vis-&agrave;-vis the petitioners&#8217; grievance about the denial of a fair opportunity to participate in the HSRP implementation, the Court noted that it was repeatedly stated on behalf of the State Government that it would be open to the petitioners &#8212; license plate manufacturers to avail the approval from the vehicle manufacturers for supply of HSRP to the old vehicles. The Court stated that the question of arbitrariness in the implementation of the HSRP Scheme could have been mostly eliminated if the State Government had formulated a time bound process to be followed by the vehicle manufacturers to grant approval, especially with the stipulation that the owners of the <span style=\"font-style: italic;\">old vehicles<\/span> must have HSRP affixed on their vehicles within a period of ninety days from the date of the impugned Notification\/Circular.<\/p>\n<p style=\"margin-bottom: 3%;\">With the afore-stated assessment, the Court rejected the petitioners&#8217; prayer to stay the impugned notification\/circular, however, the State Government was ordered to finalize and publish the process that is to be followed by the vehicle manufactures to accord approval for every license plate manufacturer with <span style=\"font-style: italic;\">Type Approval Certificate<\/span>, within 15 days from this order.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">HSRP Manufacturers Association of India v. State of Karnataka, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/fnkXSCBU\" target=\"_blank\" rel=\"noopener\">2023 SCC OnLine Kar 62<\/a>, decided on 20-09-2023<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Order by Justice B.M. Shyam Prasad<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case :<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For petitioners-<\/span> Dr. Aditya Sondhi and K N Phanindra, Senior Counsels<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For respondent-<\/span> Vikram Huilgol, Additional Advocate General for the State Government and Sajan Poovayya, Senior Counsel; Shravanth Arya Tandra and Vaibhav Malimath, Standing Counsel for the Central Government<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">As per communication issued by the Central Government, HSRP Scheme is imperative to the country&#8217;s National Security and in aiding reduction of vehicular borne crime.<\/p>\n","protected":false},"author":3,"featured_media":292820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[61336,61337,28334,8231],"class_list":["post-302343","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-high-security-registration-plate-scheme","tag-hsrp","tag-karnataka-high-court","tag-motor-vehicles"],"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>Karnataka HC refuses to stay State Government&#039;s notification vis-\u00e0-vis implementation of HSRP Scheme<\/title>\n<meta name=\"description\" content=\"High Security Registration Plate Scheme is imperative to the country&#039;s National Security and in aiding reduction of 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for implementation of Scheme of High Security Registration Plates, issued","author":"Sucheta","date":"July 17, 2016","format":false,"excerpt":"Supreme Court: Acting upon the contempt petition dealing with the issue of implementation of Scheme of High Security Registration Plates (HSRP) in disobedience of this Court\u2019s order in Maninderjit Singh Bitta vs. Union of India, (2012) 1 SCC 707, the 3-judge bench of T.S. 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Agrawal and R.\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\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":170294,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/11\/27\/high-security-registration-plates-cci-rules-specific-case-bid-rigging-however-cbi-investigation\/","url_meta":{"origin":302343,"position":1},"title":"High Security Registration Plates: CCI rules out specific case of bid-rigging however, CBI investigation on","author":"Saba","date":"November 27, 2017","format":false,"excerpt":"Competition Commission of India: The Commission recently dealt with an application that was filed by the Association of Registration Plates Manufacturers of India, under Section 19(1)(a) of the Competition Act, seeking information against the respondents collectively, alleging them of having contravened the provisions of the Act. The informants sought investigation\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\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":215011,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/24\/raj-hc-initiation-of-fresh-proceedings-on-ground-of-latest-development-taken-place-requires-raising-of-specific-pleadings\/","url_meta":{"origin":302343,"position":2},"title":"Raj HC | Initiation of fresh proceedings on ground of latest development taken place requires raising of specific pleadings","author":"Bhumika Indulia","date":"May 24, 2019","format":false,"excerpt":"Rajasthan High Court: A Division Bench of S. Ravindra Bhat, C.J. and Dinesh Mehta, J.,\u00a0 disposed of a petition with the direction to raise specific pleadings on the aspect of initiating fresh proceeding on the ground of latest developments taken place. The facts of the case were that the State\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":280313,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/12\/23\/karnataka-high-court-exclusion-private-sector-employees-new-bh-series-vehicle-registration-cannot-be-upheld-having-regard-to-the-mandate-of-law-legal-news-legal-updates\/","url_meta":{"origin":302343,"position":3},"title":"Karnataka HC | Private sector employees cannot be specifically excluded from registration of their vehicles under new BH- Series","author":"Editor","date":"December 23, 2022","format":false,"excerpt":"Karnataka High Court was deliberating over petitions filed by two private sector employees, who were denied BH-Series vehicle registration in pursuance of a communication issued by the State Government dt. 20-12-2021, which excluded private sector employees in the first phase","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/12\/MicrosoftTeams-image-424.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":258636,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/12\/17\/compassionate-appointment-applicability-of-scheme-in-force-on-date-of-employees-death-or-date-of-consideration-of-the-application-sc-resolves-the-conflict\/","url_meta":{"origin":302343,"position":4},"title":"Compassionate Appointment| Applicability of Scheme in force on date of employee&#8217;s death OR date of consideration of the application? 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