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2025 Supreme(Ker) 3162

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MOHAMMED NIAS C.P., J.
Natural Wood & Veneers Pvt. Ltd. – Appellant
Versus
State of Kerala – Respondent
W.P. (C) No. 19075 of 2025
Decided On : 20-11-2025

Advocates Appeared:
For the Appellants : V. Krishna Menon, E.K. Madhavan, P. Vijayamma, J. Surya, A.B. Beenu
For the Respondent: Mohammed Rafiq

Machines structurally adaptable for road use are motor vehicles, requiring registration and tax under relevant acts, regardless of exclusive use within private premises.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 2(28), 39 - Definition of motor vehicle - Whether forklifts and crane operated solely in private factory premises constituted motor vehicles requiring registration - The petitioner contended that the equipment, designated for use within the factory, does not fall under the definition requiring registration. The respondents asserted that since the machines are roadworthy, they are classified as motor vehicles. The court analyzed the definition and concluded that capability for road movement, irrespective of actual use, dictates classification for registration and taxation purposes. (Paras 1-22)

(B) The Kerala Motor Vehicles Taxation Act, 1976 - Tax liability for vehicles used in any place within the state - The court noted that unlike other taxation acts, the Kerala Act broadens the scope for taxation of motor vehicles beyond just public use, applying to all vehicles kept for use in the state. (Paras 19-21)

Facts of the case:
The petitioner argued that their forklifts and crane do not require registration as they are used solely within the factory premises, while the respondents found them capable of public-road use.

Findings of Court:
The court ruled that the vehicles fall under the definition of a motor vehicle, necessitating registration and tax due to their adaptability for road use.

Issues: The primary question was whether machinery used exclusively in a factory is exempt from vehicle classification.

Ratio Decidendi: The court clarified that equipment structurally capable of road movement falls within the definition of a motor vehicle under the Motor Vehicles Act, irrespective of its actual exclusive use.

Result: No relief granted to the petitioner.

Table of Content
1. operational scope and use of machinery (Para 1 , 2 , 3)
2. jurisdiction on vehicle registration (Para 4 , 5)
3. legality and procedure of appeal (Para 6 , 7)
4. definition of motor vehicle and application (Para 8 , 9 , 10)
5. regulatory amendments and implications (Para 11 , 12 , 13)
6. construction equipment vehicles definitions (Para 14 , 15 , 16)
7. cumulative interpretation of regulations (Para 17 , 18)

JUDGMENT :

MOHAMMED NIAS C.P., J.

1. The petitioner, a company engaged in the manufacture and sale of plywood and veneer at its factory in Vettickal, Mulanthuruthy, Ernakulam, uses two forklifts, purchased in 2005 and 2017, and a crane, purchased in 2002, exclusively for lifting and moving timber logs within its 6-acre factory premises. It is the petitioner’s case that these machines function solely as material- handling equipment inside the enclosed factory compound and are never used on public roads, and therefore, they do not fall within the definition of “motor vehicle” under Section 2 (28) of the Motor Vehicles Act, 1988 and do not require registration.

2. It is contended that, based on a complaint allegedly lodged by certain disgruntled workers, the 2nd respondent conducted an inspection and issued Exhibit P4 dated 09.05.2025, directing the stoppage of the equipment’s use, citing lack of maintenance, registration, and insurance. According to the petitioner, these allegations are baseless, as the forklifts and crane are treated as machinery under Section 29 of the Factories Act, 1948, and undergo periodic safety examinations, evidenced by Exhibits P5, P5(a), and P5(b). The crane is also covered under the factory’s fire insurance policy applicable to all machinery.

3. The petitioner further contends that Section 39 of the Motor Vehicles Act, 1988 , mandates registration only for vehicles intended to be used “in a public place,” and since the equipment in question is operated exclusively within a private enclosed factory, the impugned direction is without jurisdiction. The petitioner, therefore, seeks the quashing of Ext. P4 and a declaration that the forklifts and cranes used solely within the petitioner’s factory for material-handling purposes do not come within the definition of “motor vehicle” under Section 2 (28) of the Motor Vehicles Act and consequently do not require registration under the Act. The petitioners relied on RDS Project Limited v. Union of India, 2024 KHC Online 1000, Bolani Ores Ltd. v. State of Orissa, (1974) 2 SCC 777, Travancore Tea Estates Co. Ltd. and Others v. State of Kerala and Others, (1980) 3 SCC 619, Tarachand Logistic Solutions Limited v. State of Andhra Pradesh and Others, 2025 SCC OnLine SC 1851.

4. The respondents in the statement filed contend that based on a complaint dated 28.03.2025 from the Secretary of the CPI(M) Mulamthuruthy Local Committee alleging that the petitioner was operating two forklifts and a crane without valid registration or insurance, an inspection was conducted which confirmed that all three vehicles were unregistered, uninsured, and had not undergone fitness testing since their purchase in 2002, 2005, and 2017. Though the petitioner admitted that the machines were used within the factory premises, they declined to register on the ground that they were not operated on public roads. The respondents contend that the forklifts and cranes are roadworthy and capable of being used on public roads at any time and hence fall within Section 2 (28) of the Motor Vehicles Act. They further argue that the petitioner’s factory premises are accessible to workers, visitors, and other vehicles, and therefore constitute a “public place” under Section 2 (34), which includes any place where the public has a right of access—whether permissive, limited, regulated, or through passes—as held by the Full Bench of the Bombay High Court in Pandurang Chimaji Agale and Another v. New India Life Insurance Co. Ltd. AIR 1988 Bom 248.

5. It is therefore contended that the forklifts and cr

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