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2022 Supreme(Pat) 67

IN THE HIGH COURT OF JUDICATURE AT PATNA
CHAKRADHARI SHARAN SINGH, MADHURESH PRASAD, JJ.
M/s Kumar Distributors Pvt. Ltd. – Petitioner
Versus
The State of Bihar – Respondent
Civil Writ Jurisdiction Case No. 5060 of 2021
Decided On : 22-02-2022

Advocates:
Advocate Appeared:
For the Petitioners: Mr. Akashdeep, Mr. Shyameshwar Kumar Singh.
For the Respondent: Mr. Rakesh Prabhat.

Headnote:

Motor Vehicles Act, 1988 – Section 39 – Refusal to register vehicle – Ban was imposed by Apex Court on sale and registration of motor-vehicles conforming to Bharat Stage IV (BS-IV) emission standards, with effect from 01.04.2020 – Sale of vehicles inter se dealers had been effected in a large number taking undue advantage of Order dated 27.03.2020 – Two out of these four vehicles which petitioner (dealer) had sold to purchasers, were admittedly registered by authorities – Remaining two which petitioner (dealer) had purchased in his own name, however were disallowed under impugned communication dated 23.11.2020 – Order dated 13.08.2020 clearly mandates no registration of vehicles which were sold inter se dealers during lockdown period – This Court is bound by mandate and observations of Apex Court in these two orders in so far as transactions inter se dealers, as in instant case, which have been held to be "Not Genuine" and registration has been barred – Grievance of petitioner or claim that other two vehicles which have been sold by petitioner (dealer) to himself (dealer) is clearly a transaction inter se dealers which has been stopped under orders of Apex Court – No infirmity in impugned order – Writ Petition dismissed. (Paras 5, 6, 14, 19 to 24)

JUDGMENT :

MADHURESH PRASAD, J.

1. This application has been taken up for online hearing through video conference because of COVID-19 pandemic restrictions.

2. The petitioner has sought quashing of the communication of respondent no. 4 dated 23.11.2020 refusing to register the vehicles of the petitioner-company in the name of the petitioner-company. Petitioner has also prayed for issuance of a writ in the nature of a writ of mandamus commanding the respondents to register the vehicles of petitioner-company in the name of the petitioner-company and for consequential issuance of the certificate of registration.

3. The petitioner is a company carrying on the business of sale and purchase of two-wheeler and four-wheeler vehicles, having an authorised distributionship for Honda Motors (India) Private Limited.

4. The modus of petitioner’s business operation, as stated in the writ petition, is that vehicles are purchased from the manufacturer by paying the entire cost of vehicles. The petitioner-company, therefore, becomes the absolute owner of such motor vehicles. Apart from receiving a commission on every sale effected by the petitioner as a dealer, it also gets exclusive right to repair, service and provide maintenance of the vehicles manufactured by the company through a service centre established with the aid and technological assistance from the manufacturer. Infrastructural support is also provided by the manufacturer.

5. The driving of vehicles, as per Section 39 of the Motor Vehicles Act 1988 (‘Act’ for brevity), is prohibited unless it is registered in accordance with the Act under a valid certificate of registration which is to be displayed on the vehicle, in the manner prescribed.

6. The case of the petitioner is that under order of the Apex Court dated 24.10.2018 in the case of M.C. Mehta vs. Union of India, Writ Petition (Civil) No. 13029/1985, a ban was imposed on sale and registration of motor-vehicles conforming to Bharat Stage IV (BS-IV) emission standards, with effect from 01.04.2020.

7. Since 24.03.2020, national lockdown was imposed due to global Covid-19 pandemic, the Apex Court in its proceedings dated 27.03.2020, allowed registration of vehicles sold up to 30.04.2020. However, for Delhi and NCR sale and registration of BS-IV vehicles was disallowed.

8. On 31.07.2020, the matter was again considered by the Apex Court, when the Apex Court took notice of a large number of sales having been effected during the lockdown period, inter se dealers. The Apex Court was of the opinion that the sale of vehicles inter se dealers had been effected in a large number taking undue advantage of the order dated 27.03.2020, and directed the authorities throughout India not to register vehicles conforming to BS-IV emission standards.

9. The meaning and purport of the orders passed by the Hon’ble Supreme Court, noted above, are not in dispute by the parties.

10. The petitioner had purchased four vehicles conforming to BSIV emission standards from Honda Motors (India) Private Limited. Two out of these four vehicles were sold to customers. The remaining two vehicles are said to have been retained by the petitioner for its own use by effecting a sale in its own favour.

11. It is the specific case of the petitioner that it had deposited the requisite fee and taxes for registration of all these four vehicles, which were duly accepted by the respondent authorities. It is also asserted that the petitioner had uploaded the required documents on the e-Vahan portal, on or before the cut-off date fixed by the Hon’ble Supreme Court (31.03.2020). However, due to national lockdown these four vehicles could not be registered.

12. While the petitioner was awaiting registration of the vehicles, the Transport Department, Government of Bihar issued a communication to all District Transport Officers for ensuring compliance of order dated 13.08.2020 passed by the Hon’ble Supreme Court in the case of M.C. Mehta (supra).

13. Subsequently a communication dated 07.09.20

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