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2024 Supreme(Bom) 1087

IN THE HIGH COURT OF BOMBAY
Devendra Kumar Upadhyaya, CJ, Arif S. Doctor, J.
'K' Savakash Auto Rickshaw Sangha - Petitioner
Versus
Union of India and ors. - Respondents
Public Interest Litigation No.130 of 2022, Writ Petition No.11380 of 2017
Decided On : 02-04-2024

Advocates:
Advocate Appeared:
For the Petitioner: Shri Vaibhav Kulkarni with Shri. Ruturaj Bathe and Ms. Mrunal Surana, Shri Suhas Deokar
For the Respondent:Shri R. V. Govilkar, Senior Advocate with Shri D. P. Singh and Ms. Shaba Khan, Shri R. V. Govilkar, Senior Advocate with Ms. Shaba Khan, Shri P. P. Kakade, Government Pleader with Shri O. A. Chandurkar, Additional Government Pleader and Ms. R. A. Salunkhe, AGP

The Central Government is empowered under Section 211 of the Motor Vehicles Act to levy additional fees for delayed applications related to driving licenses and vehicle registrations, which are not penalties but legitimate fees for services rendered.

Headnote:(A) Motor Vehicles Act, 1988 - Section 211 - Central Motor Vehicles Rules, 1989 - Rules 32 and 81 - Challenge to provisions imposing additional fees for late applications for driving license and vehicle registration - Petitioners argue rules are ultra vires the parent Act and constitute penalties without service - Court finds provisions valid under Section 211, allowing additional fees for delayed applications as they involve rendering of services. (Paras 3, 14, 28)

(B) Delegated Legislation - The rule-making authority can impose fees as long as it is within the scope of the parent Act - The distinction between a fee and a tax has diminished in constitutional jurisprudence. (Paras 21, 22)

Facts of the case:
Petitioners challenge the legality of additional fees imposed for late applications for driving licenses and vehicle registrations under the 1989 Rules, claiming they are penalties without statutory backing.

Findings of Court:
The court upheld the validity of the additional fees under Section 211 of the parent Act, stating they are not penalties but legitimate fees for services rendered.

Issues: Whether the levy of additional fees is beyond the power of the Central Government under Section 211 and whether it constitutes a penalty in disguise.

Ratio Decidendi: The court concluded that Section 211 empowers the Central Government to levy additional fees for processing delayed applications, and such fees are not penalties.

Result: Petitions dismissed.

JUDGMENT :

Devendra Kumar Upadhyaya, CJ.

Heard learned counsel representing the respective parties.

Background Facts:

2. These two Petitions since raise common issues of law and facts, the same are being decided by the common judgment which follows:

3. By invoking our jurisdiction under Article 226 of the Constitution of India, challenge has been laid to the provisions contained in Rule 32 and Rule 81 of the Central Motor Vehicles Rules, 1989 (hereinafter referred to as the "1989 Rules") to the extent these Rules provide for levy of additional fee in respect of renewal of driving license for which application is made after the grace period as also levy of additional fee for renewal of certificate of registration in respect of motor cycles and certain other classes of non-transport vehicles. Challenge is also made to charge of additional fee in case of delay in submission of "No Objection Certificate" for transfer of ownership of motorcycle and other vehicles and also to levy on delay in submitting "No Objection Certificate" for change of residence.

4. Relevant portions of Rule 32 and Rule 81 of the 1989 Rules which have been impeached in these petitions as amended up to date, are as under:

    "32. Fees - The fees which shall be charged under the provisions of this Chapter shall be as specified in the table below:

    Provided that the States may levy fee lower than the amount specified in the table and may also levy additional amounts to cover the cost of automation and technology utilised for conducting the testing or providing value added services.

Sr. No.

Purpose

Amount

Rule

Section

1

2

3

4

5

9.

Renewal of a driving license for which application is made after one year from the date of expiry of driving license

Three hundred rupees

 

 

Note - Additional fee at the rate of one thousand rupees for delay of each year or part thereof shall be levied after one year from the date of expiry of driving license

    "81. Fees - The fees which shall be charged under the provisions of this Chapter shall be as specified in the Table below:

    Provided that the States may levy fee lower than the amount specified in the table and may also levy additional amounts to cover the cost of automation and technology utilised for conducting the testing or providing value added services.

    Provided further that, for the Battery Operated Vehicles as defined in clause (u) of rule 2, the items given at Serial number 4 of the below mentioned Table shall be exempted from the payment of fees for the purpose of issue or renewal of registration certificate and assignment of new registration mark:

    Provided further that, in case the vehicle is registered on submission of "Certificate of Deposit", the fee for issue of certificate of registration shall not be levied.

Sl. No.

Purpose

Amount

Rule

Section

1

2

3

4

5

4(i)

Any other vehicle not mentioned above:

Six thousand rupees

 

 

 

(1) .............

 

 

 

 

(2) Renewal of registration

 

 

 

 

Note 1 - Additional fee of two hundred rupees shall be levied if the certificate of registration is a smart card type issued or renewed in Form 23-A.

 

 

 

 

Note 2 - In case of delay in applying for renewal of certificate of registration, an additional fee of three hundred rupees for delay of every month or part thereof in respect of motor cycles and five hundred rupees for delay of every month or part thereof in respect of other classes of non-transport vehicles shall be levied.

 

 

 

6

Transfer of ownership

Half of the fee mentioned against Serial No.4.

55(2), (iii), 55(3),

 

 

 

Note - In case of delay in submission of "No Objection Certificate", an additional fee of rupees three hundred for delay of each month or part thereof in case of

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