SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2017 Supreme(Mad) 505

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. NAGAMUTHU & ANITA SUMANTH, JJ.
Chennai City Auto Ootunargal Sangam, Represented by its Secretary J. Manohar & Ors. - Petitioners
Vs.
The Secretary, Ministry of Road Transport and Highways, Union Government of India, New Delhi & Ors. - Respondents
W.P.Nos.1598, 1067, 2117, 3519, 4939 of 2017 and W.M.P.Nos.1561, 1023, 2083, 3534 and 5170 of 2017
Decided On : 03-04-2017

Advocates Appeared:
For the Petitioner: Mr. S. Govindraman (in all WPs).
For the Respondents: Mr. G. Rajagopalan ASGI Assisted by Mr. J. Madanagopala Rao, Mr. A.N. Thambidurai, Spl. Govt. Pleader.

Headnote:

Motor vehicles Act 1988 - Central Motor Vehicle Rules 1989 - Rule 32 and Rule 81 - Finance Act, 2015 - Sections 200A, 246A and 272A - Fees for certain category of services - Computation and appeal - Petitioner Associations represent owners and drivers of Autos and Lorries as well as driving schools covered under the provisions of the Motor Vehicles Act 1988 - Act stipulates various conditions that are to be complied with by the members of the Associations such as the holding of valid licenses for plying of the vehicle, affixation of valid registration mark on vehicle, norms to be followed in conduct of driving classes etc. Section 110 of the Act authorizes the Central Government to make Rules in regard to the construction, equipment and maintenance of motor vehicles and trailors as well as various matters connected therewith – Held, whether in the garb of regulations a legislation, which is in pith and substance, as we look upon the instant legislation, a fee or levy which has no connection with the cost or expenses administering the regulation, can be imposed purely as a regulatory measure, Judged by the pith and substance of the impugned legislation, we are definitely of the opinion that these levies cannot be treated as part of regulatory measures.” - Reference is also been made by the writ petitioners to a draft notification proposed to be issued by State Government to the effect that the fee structure set out in the impugned notification is intended to be reduced shortly. This is only a draft and we see no reason to comment thereupon - Writ petitions is Allowed

ORDER :

Anita Sumanth, J.

This batch of Writ Petitions has been filed by various Associations namely Chennai City Auto Ootunargal Sangam, Tamilnadu Driving Schools Owners Federation, Madras Metro Auto Drivers Association, Vada Chennai Maavatta Auto Ottunargal Padugappu Nalasangam and Tamilnadu Lorry Owners Federation, challenging notification issued in G.S.R.1183(E) dated 29.12.2016 amending Rule 32 and Rule 81 of the Central Motor Vehicle Rules 1989 (“Rules’) fixing a new fee structure under the Motor vehicles Act 1988 (“Act”) and levying additional fees for certain category of services rendered by the authorities under the Act. Though the prayer addresses the notification in entirety, challenging the same on the ground of unconstitutionality and invalidity, the petitioners, have, in the course of the hearing restricted the prayer to the levy of additional fees alone.

2. The main contention of the petitioners as canvassed by Mr. S. Govindraman, Learned Counsel appearing for all writ petitioners is as follows:

The Petitioner Associations represent owners and drivers of Autos and Lorries as well as driving schools covered under the provisions of the Motor Vehicles Act 1988. The Act stipulates various conditions that are to be complied with by the members of the Associations such as the holding of valid licenses for plying of the vehicle, affixation of valid registration mark on the vehicle, norms to be followed in the conduct of driving classes etc. Section 110 of the Act authorizes the Central Government to make Rules in regard to the construction, equipment and maintenance of motor vehicles and trailors as well as various matters connected therewith. The power to levy fee is set out in terms of Section 211 of the Act in the following terms:

“211. Power to levy fee.- Any rule which the Central Government or the State Government is empowered to make under this Act may, notwithstanding the absence of any express provision to that effect, provide for the levy of such fees in respect of applications, amendment of documents, issue of certificates, licenses, permits, tests, endorsements, badges, plates, countersignatures, authorization, supply of statistics or copies of documents or orders and for any other purpose or matter involving the rendering of any service by the officers or authorities under this Act or any rule made thereunder as may be considered necessary:

Provided that the Government may, if it considers necessary so to do, in the public interest, by general or special order, exempt any class of persons from the payment of any such fee either in part or in full.”

3. The main contention of the petitioners is to the effect that the power under section 211of the Act is restricted to the levy of a fee alone and does not extend to the levy of additional fee as proposed in the impugned notification. The instances where additional fee is proposed to be levied are as follows (emphasized in italicized bold);

“32. Fees. - The fees which shall be charges under the provisions of this Chapter shall be as specified in the Table below:

Provided that the States may levy additional amounts to cover the cost of automation and technology utilized for conducting the testing or providing value added services…..

Sl.No.

Purpose

Amount

Rule

Section

9.

Renewal of a driving licence for which application is made after the grace period.

Three Hundred rupees

 

Note: Additional fee at the rate of one thousand rupees for delay of each year or part thereof reckoned from the date of expiry of the grace period shall be levied.

 

15

……..

“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 additional amounts to cover the cost of automation and technology utilized for conducti





































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top