Vehicle registration: High Court restores system followed prior to October 31

The High Court of Karnataka on Tuesday passed an interim order directing the transport authorities to restore the first sale registration process of non-transport and fully built transport vehicles as per the system that existed prior to October 31, 2021.

The state government had allowed registration of vehicles by the manufacturers and dealers of motor vehicles by a notification dated October 31, 2021.

A division bench comprising Chief Justice Ritu Raj Awasthi and Justice Sachin Shankar Magadum passed this order on the petition filed by Rosemerta Technologies Limited, a company claiming to have entered into an agreement with the state government for issuing smart card-based registrations.

The company has contended that the state government’s decision to do away with the issuance of smart card-based registration certificates and bringing in electronic registration
or online mode of registration in its place is arbitrary and illegal. The company had entered into an agreement with the state government in 2009 which is valid till 2024. As per the agreement, the company issues smart card-based registration certificates for the new vehicles.

However, with the October 31, 2021 notification, the registration certificate would now be issued through electronic or online mode and the petitioner company would no longer be required to issue the smartcard-based registration certificate.

“Prima facie, the contention raised by the counsel for the petitioner appears to be correct and as such requires consideration. Let the statement of objections be filed by the additional government advocate within three weeks. List on January 31, 2022. In the meantime, the registration of non-transport vehicles and fully built transport vehicles on the first sale shall be registered as per the existing system prior to issuance of the impugned notification dated 31 October 2021.,” the court said.

The petitioner alleged that while the draft notification was issued on October 26, 2021, proposing to amend rule 33 of the Karnataka Motor Vehicles Rules, 1989, within five days
on October 31, 2021, the notification was issued authorising the dealers to register the vehicles. It could be recalled that in another PIL, filed by retired transport department official Mohammed Dastagir, the court had passed an interim order that registrations pursuant to the notification dated October 31, 2021, will be subject to further orders.

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