Association Of Registration Plates vs Union Of India

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2004 Supreme(SC) 1489

SUPREME COURT OF INDIA
Y.K.Sabharwal : D.M.Dharmadhikari
Association Of Registration Plates
Versus
Union Of India
Case No. : writ petition (c) no. 41 of 2003, (with w.p. (c) n
Date of Decision : 11/30/04
Advocates Appeared: Mohan Parasaran : Gopal Subramanium : R.F.Nariman : Harish N.Salve : T.L.V.Iyer : S.Balakrishnan : Vivek K.Tankha : Hiren Uppal : Abhishek Agrawal : Sarika Varma : Liz Mathew : Indu Malhotra : Vikram Mehta : Rakesh K.Sharma : K.V.Vijay Kumar : Navin Prakash : Sandhya Goswami : B.K.Prasad : S.W.A.Qadri : Anil Katiyar : Saket Singh : Anil Aggarwalla : Prashant Kumar : Joseph Pookkatt : Rein Karanjawala : Ruby Singh Ahuja : Arunabh Choudhary : Niharika : Sarvesh Singh : Manik Karanjawala : B.B.Singh : V.G.Pragasam : S.Prasad : Abhay Kumar : U.Hazarika : Sumita Hazarika : Avatar Singh Rawat : Baldev Atreya : Jatinder Kumar Bhatia : Arun K.Sinha : Rakesh Singh : Ashok Bhan : D.S.Mahra : Sunita Sharma : Bijan K.Ghosh : Rana Mukherjee : Siddharth Gautam : Suchit Mohanty : Pawan Kumar : Sanjay K.Verma : Goodwill Indeevar : Ranjan Mukherjee : P.N.Ramalingam : Praveen Swarup : Ashok K.Mahajan : Sarla Chandra : Vishwajit Singh : B.S.Banthia : A Vijit Bhattacharje : Rachna Gupta : Anis Suhrawardy : Vijay Kumar

Headnote:Motor Vehicles Act, 1988-Sections 64, 109(3)-Constitution of India-Article 19(1)(g) and Central Motor Vehicle Rules, 1989-Rule 50-Supply of High Security Registration Plates to Motor Vehicles-Terms and conditions-Capacity and capability are two most relevant crietria for framing suitable conditions of any Notices Inviting Tenders-Essential conditions that tenderer individually or as a member of joint venture must have an experience in the field of registration plate in at least three countries, a common minimum net worth of Rs. 40 crores and either joint-venture partner having a minimum annual turnover of at least Rs. 50 crores and a minimum of 15% turnover of registration plates business incorporated to ensure that the manufacturer selected would be technically and financially competent to fulfil the contractual obligations- The scheme contemplated under Rule 50 of registration plates is a new experiment for India-In the initial stages of its implementation, tender conditions encouraging such manufacturers who are in foreign collaborations cannot be held discriminatory to indigenous manufacturers-It does not violate Article 14 or 19 of the constitution-Selecting one manufacturer through open competition is not violative of Article 19(1)(g) read with CI. (b) of that Article-Clauses in the tender conditions are not arbitrary or discriminatory (Paras 35, 37, 38, 40, 41, 42 and 44)
Motor Vehicles Act, 1988-Sections 64, 10(3) r/w Central Motor Vehicles Rules, 1989-Rule 50 and Motor Vehicles (New High Security Registration Plates) Order, 2001-Para 4(x)-In the context of sec. 109(3), an article to be affixed to the motor vehicle like a high security registration plates is covered by the use of expression "any article or process used by a manufacturer"-The statutory order of 2001 viz. New High Security Registration Plates Order (2001) is not beyond purview of Sec.109-Manufacturer of registration plates can be subjected to certain standards by a statutory order in accordance with Sec.109(3) and any restrictive interpretation of Sec. 109(3) is not called for-The statutory order including 4(x) can be supported as having been issued in exercise of executive power of the Central Government which is co-extensive with its legislative power-The legal obligation on the registering authority under rule 50(1)(v) to issue specified kinds of registration plates implies issuance of such registration plates through a selected approved plates manufacturer-Paragraph 2, clause (v) of Rule SO(1), if reasonably construed, does not indicate any prohibition of selection of an approved manufacturer for assisting the registering authority to implement the scheme of affixation of high security registration plates to existing and new vehicles. (Paras 48 & 53)
1993(1) SCC 445, 2001(8) SCC 491, 1997(5) SCC 495, 2001(3) SCC 635, 1998(8) SCC 227, 2000(2) SCC 617, 1997(1) SCC 738, 2004(5) SCC 364-Referred to.

JUDGMENT

D.M.Dharmadhikari, J.

The present writ petition along with the cases transferred from various High Courts have been placed before this Bench on a difference of opinion between Honble Judges constituting the Division Bench.

2. The dispute concerns the terms and conditions of Notices Inviting Tenders [NITs] for supply of High Security Registration Plates to motor vehicles. The tenders have been issued by various State Governments on the guidelines circulated by the Central Government for implementing the provisions of Motor Vehicles Act, 1988 (hereinafter referred to as `the Act) and the newly amended Central Motor Vehicles Rules, 1989 (hereinafter referred to as `the Rules).

3. The main grievance of the petitioner is that all Notices Inviting Tenders (NITs) which have been issued by various State Governments contain conditions which seem to have been tailored to favour companies having foreign collaboration. The tender conditions are described to be discriminatory under Article 14 of the Constitution of India being aimed at excluding indigenous manufacturers from the tender process. In all the cases the grievance is that the work of supply of High Security Registration Plates for all existing vehicles and new vehicles is being entrusted to a single license plates manufacturer in a State or a region and for a long period of 15 years thus creating monopoly in favour of selected bidders to the complete exclusion of all others in the field. The contention advanced is that creation of monopoly in favour of few parties having connection with foreign concerns is violative of fundamental right of trade under Articles 19 (1) (g) and discriminatory under Article 14 of Constitution of India.

4. A survey of the relevant provisions of the Act and Rules continuing the Scheme of High Security Registration Plates is necessary for considering the merit of the petitioners grievances.

5. The object of the new scheme is to curb the increasing menace of vehicle thefts and their usage in commission of crimes like murder, dacoity, kidnapping etc. It is felt urgent to check usage of motor vehicles in terrorists activities. The Central Government on the recommendation of its Technical Committee has devised a system of High Security Registration Plates which will ensure public safety and security. With the above purpose, Rule 50 of the Motor Vehicles Rules has been amended. Rule 50 was first amended on 28.03.2001, then on 24.09.2001 and lastly on 21.01.2003 w.e.f. 01.01.2004. The relevant part of the rule in its amended form reads as under:

"Rule 50- Form and manner of display of registration marks on the motor vehicles - (1) On or after commencement of this rule, the registration mark referred to in sub-section (6) of Section 41 shall be displayed both at the front and at the rear of all motor vehicles clearly and legibly in the form of security license plate of the following specifications, namely:-

(i) the plate shall be a solid unit made of 1.0 mm aluminium conforming to DIN 1745/DIN 1783 or ISO 7591. Border edges and corners of the plate shall be rounded to avoid injuries to the extent of approx. 10 mm and the plates must have an embossed border. The plate shall be suitable for hot stamping and reflective sheet has to be guaranteed for imperishable nature for minimum five years. The fast colouring of legend and border to be done by hot stamping;

(ii) the plate should bear the letters "IND" in blue colour on the extreme left center of the plate. The letter should be one fourth of the size of letters mentioned in rule 51 and should be buried into the foil or applied by hot stamping and should be integral part of the plate;

(iii) each plate shall be protected against counterfeiting by applying chromium-based hologram, applied by hot stamping. Stickers and adhesive labels are not permitted. The plate shall bear a permanent consecutive identification number of minimum seven digits, to be laser branded into a reflective sheeting and hot stamping film sha

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