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2024 DIGILAW 1301 (KER)

RDS PROJECT LIMITED v. UNION OF INDIA, REP. BY SECRETARY, NEW DELHI

2024-10-14

D.K.SINGH

body2024
JUDGMENT : D.K. SINGH, J. 1. The present writ petition has been filed by the petitioner, who has purchased the cold recyclers and soil stabilizer machine for executing the road work on NH-66 against the direction for registration of the said equipment as a motor vehicle under the provisions of the Motor Vehicle Act, 1988 and Rules made thereunder (‘the Act’ for short). The petitioner has also challenged the challan in Ext.P6 issued by the 3rd respondent for not registering the said equipment as a motor vehicle by the petitioner. 2. The petitioner company has been awarded the work for the execution of six laning of 30 km between Kadambattukonam-Kazhakkuttam Junction Section of NH-66 in Thiruvananthapuram under the Bharatmala Pariyojana project. The said project is under the control and supervision of the Government of India, Ministry of Road Transport and Highways, New Delhi. The petitioner has entered into an agreement dated 19.05.2022 with the National Highway Authority of India, to execute the said work. 3. In connection with the work, the petitioner has purchased a WRITGEN Cold recycler Model WR 240 along with all its accessories to be used for soil treatment, consolidation in road construction and cold recycling of asphalt roads from its manufacturer for an amount of Rs. 60,596,601/-. According to the petitioner, this is a construction equipment and cannot ply on public roads and has to be transported by other vehicle from one location to another for executing the work. The said equipment was brought to the work site at Thiruvananthapuram in a trailer lorry from Bhandgaon, Pune. Apart from the cold recycler machine, other heavy equipment machines are also being used by the petitioner at the work site. 4. An inspection was conducted by the 3rd respondent on the work site on 27.09.2023, and a challan was raised for Rs. 8000/- on the ground that the WIRTGEN cold recycler and soil stabilizer were being used without a registration mark. The officials of the company informed the 3rd respondent that the said machine was a construction equipment and not a motor vehicle, and, therefore, the said equipment/machine was not required to be registered under the provisions of the Act. It was also said that the equipment would not ply on public roads and would only be used within the work site. The petitioner has challenged the said challan (Ext.P6) in the present writ petition. 5. It was also said that the equipment would not ply on public roads and would only be used within the work site. The petitioner has challenged the said challan (Ext.P6) in the present writ petition. 5. The learned counsel for the petitioner has submitted that the cold recycler for which the challan in Ext.P6 has been issued by the 3rd respondent is not a motor vehicle and, therefore, the same is not required to be registered as a motor vehicle under the provisions of the Act. The said equipment is used only at the project site as a part of the project work and does not ply on the public roads. The Ministry of Road Transport and Highways has issued a circular in Ext.P7 dated 13.07.2020, whereby, it has been directed that the registration/driving licence for road building and Rehabilitation equipment and heavy earth moving machinery would not be required to be registered under the provisions of the Act. The said circular in Ext.P7 would read as under: No. RT-11036/79/2016-MVL Government of India Ministry of Road Transport and Highways Transport Bhawan, Parliament Street, New Delhi Dated the 13th July, 2020 1. The Principal Secretaries/Secretaries, Departments of Transport of all the States/ UTS. 2. The Transport Commissioners of all the States/Union Territories. Subject: Registration/Driving Licence concerns for Road Building, and Rehabilitation equipment's and Heavy Earth Moying Machineries (HEMM) under Central Motor Vehicle Rules (CMVR), 1989. Sir, I am directed to refer to this Ministry's letter of even number dated 09th October 20 and to write that the Ministry has received following representations: (A) Representation regarding Road Building and Rehabilitation Equipment- wherein concern regarding registration of cold recycling machines and soil stabilization machine (road building and rehabilitation equipment) under Central Motor Vehicle Rules (CMVR), 1989 has been raised. Following reasons have been mentioned for the usage of the Equipment: (i) Cold milling machines are used to salvage the crust of the existing bituminous pavement to recover the asphalt material and re-use them to conserve aggregate and bitumen and save the associates costs of mining and crushing. Also the extracted bitumen leads to saving of bituminous thus saving of forex. (ii) The work is awarded to the concessionaire by the employer is within a given range of chainage. Therefore, these equipment work in a defined region. Also the extracted bitumen leads to saving of bituminous thus saving of forex. (ii) The work is awarded to the concessionaire by the employer is within a given range of chainage. Therefore, these equipment work in a defined region. (iii) The operating speed of the above mentioned equipment is 5-10 kmph and these equipment are deployed at the work site through trailers. (B) Representation regarding of Heavy Earth Moving Machineries (HEMM) - wherein concern regarding registration of HEMM equipment and their operation, has been raised. HEMM such as Dumpers, Payloaders, Shovels, Drill Master, Bulldozers, Motor Grader and Rock breakers are also categorised as “OFF THE ROAD” operated and maintained with in mine boundary under sole management, supervision and control of Mines Manager and never used outside mine boundary. 2. Your attention is drawn to: (a) Section 2 (28) of the Motor Vehicles Act, 1988 for the definition of a Motor Vehicle: “Motor Vehicle” or Vehicle” means any mechanically propelled vehicle adopted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chasis, to which a body has not been attached and a trailed; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises or a vehicle having less than four wheels fitted with engine capacity of not exceeding twenty-five cubic centimeters. (b) Section 3(1) of the Motor Vehicles Act, 1988 for necessity for driving Licence: “No person shall drive a motor vehicle in any public place unless he holds an effective driving licence issued to him authorising him to drive the vehicle; and no person shall so drive a transport vehicle [other than [a motor cab or motor cycle] hired for his own use or rented under any scheme made under sub-section (2) of section 75] unless his driving licence specifically entitles him so to do.” 3. The issue had been discussed in the 56th meeting of the CMVR-TSC wherein it was opined that cold milling machine, cold recycler and soil stabilizers are not covered under the definition of the Motor Vehicles Act, 1988 and that the type approval of the machine is also not made. 4. The issue had been discussed in the 56th meeting of the CMVR-TSC wherein it was opined that cold milling machine, cold recycler and soil stabilizers are not covered under the definition of the Motor Vehicles Act, 1988 and that the type approval of the machine is also not made. 4. On the similar lines HEMM such as Dumpers, Payloaders, Shovels, Drill Master, Bulldozers, Motor Grader and Rock breakers are not covered under the definition of the Motor Vehicles Act, 1988 and may not be insisted for registration under the Motor Vehicles Act, 1988. 5. It is requested not to seek the registration of Road building and Rehabilitation equipment (wheeled cold milling machine, wheeled soil stabilizers machine, wheeled cold recycler equipment machine etc.) as these special purpose construction equipment and HEMM such as Dumpers, Payloaders, Shovels Drill Master, Bulldozers, Motor Grader and Rock breakers as special purpose mining equipment and further that they are transported from one location to another through carriage on another vehicles, and do not ply on road themselves. 6. Further, equipment used with in the mining premises are operated by the specialists and not to insisted on driving with a Driving Licence fill the time these equipment come to the public place.” 6. From the contents of the aforesaid circular, it is evident that the Government of India, Ministry of Road Transport and Highways has directed the State authorities not to insist upon the registration of road building and rehabilitation equipment (wheeled cold milling machines, wheeled soil stabilizer machine, wheeled cold recycler equipment machine etc) are the special purpose construction equipments and heavy earth moving machineries such as Dumpers, pay-loaders, shovels, Drill Master, Bulldozers, Motor Grader and Rock breakers are the special purpose mining equipments and further they are transported from one location to other through carriage on another vehicles and do not ply on road themselves. 7. The learned counsel for the petitioner has also placed reliance on the judgment in the case of Goodyear India Ltd vs. Union of India and Others, 1997 (5) SCC 752 in support of its contention that, the motor vehicle should be adapted for use upon roads and merely, if some areas on which such heavy movers traverse sometimes which might include roads would not be enough to hold that they were adapted for use upon roads. 8. 8. The learned counsel for the petitioner has also placed reliance on Rule 2 (cab) of Central Motor Vehicle Rules 1989, submit that the equipment name cold recycler and soil stabilizer equipment is a construction equipment vehicle and not a motor vehicle and therefore, it does not require compulsory registration. 9. On the other hand, Mr. V.S. Sreejith, the learned Government Pleader submits that Section 39 of the Motor Vehicle Act mandates that, no motor vehicle and no owner of the motor vehicle shall cause or permit the vehicle to be driven in the public place or any other place unless the vehicle is registered in accordance with the provisions of the Act. He further submits that, there is no exemption from the registration of the motor vehicle used in construction. 10. The learned Government Pleader has submitted that the Central Motor Vehicle Rules 1989, also do not exempt the registration of the vehicles used for construction activities. He therefore, submits that, the registration of the cold recycler and soil stabilizer is required under the provisions of the Act and the impugned challan is justified, which does not require any inference by this court. 11. The learned Government Pleader has also placed reliance on the judgment in Natwar Parikh & B Co. Ltd vs. State of Karnataka and Others, (2005) 7 SCC 364 and Western Coalfields Limited vs. State of Maharashtra and Another, (2016) 11 SCC 613 in support of his submissions. 12. Before adverting to the respective submissions advanced on behalf of the petitioner and the respondents, it would be apt to take note of the relevant statutory provisions. 13. Section 2(28) of the Motor Vehicle Act defines the motor vehicle as under: “An equipment can be said to be a motor vehicle means any mechanically propelled vehicle adapted for use upon roads and includes a chassis to which a body has not been attached and a trailer. A vehicle running upon fixed rails or a vehicle of a special type adapted for use only in a factory or in any other enclosed premises.” 14. Section 39 of the Motor Vehicle Act mandates the registration of a motor vehicle and prohibits from plying or driving the motor vehicle without registration on any public place or any other place unless the vehicle is registered and registration certificate has been issued. 15. Section 39 of the Motor Vehicle Act mandates the registration of a motor vehicle and prohibits from plying or driving the motor vehicle without registration on any public place or any other place unless the vehicle is registered and registration certificate has been issued. 15. Section 39 of the Motor Vehicle Act reads as under: Necessity for registration: “No person shall drive any motor vehicle and no owner of a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place unless the vehicle is registered in accordance with this Chapter and the certificate of registration of the vehicle has not been suspended or cancelled and the vehicle carries a registration mark displayed in the prescribed manner: Provided that nothing in this section shall apply to a motor vehicle in possession of a dealer subject to such conditions as may be prescribed by the Central Government.” 16. The Central Government has amended the definition of construction equipment vehicle as defined in Rule 2(cab) with effect from 27.10.2020. In the definition of construction equipment under Rule 2(cab) of the Central Motor Vehicle Rules 1989, it is provided that all construction equipment vehicles designed to perform earth moving, excavation, loading, transportation, drilling, spreading, compacting or trenching of earth, rock etc are the construction equipment vehicle. 17. Rule 2(cab) of the Central Motor Vehicle Rules has been amended with effect from 27.10.2020 would read as under: “construction equipment vehicle” means a self-propelled machine with rubber tyred (including pneumatic tyred), rubber padded or rubber or steel drum wheel mounted compactor, wheeled hydraulic excavator, wheel loader, backhoe loader, skid-steer loader, dumper, motor grader, mobile crane, dozer and pavers with rubber track or rubber pads or wheeled pavers, fork lift truck, self-loading concrete mixer or self-propelled boom pumps, self-propelled or concrete pumps or any other construction equipment vehicle or combination thereof primarily designed to perform earth moving, excavation, loading, transportation, drilling, spreading. compacting or trenching of earth rock, other materials, off-highway operations in mining, industrial undertaking, irrigation and general construction but modified and manufactured with “on or off” or “on and off” highway capabilities. compacting or trenching of earth rock, other materials, off-highway operations in mining, industrial undertaking, irrigation and general construction but modified and manufactured with “on or off” or “on and off” highway capabilities. Explanation for the purpose of this clause: a construction equipment vehicle or earth moving vehicle shall be a non-transport vehicle the driving on the road of which is incidental to the main off-highway function and for a short duration at a speed not exceeding fifty kilometers per hour, but such vehicle does not include other purely off-highway construction equipment vehicle designed and adopted for use in any enclosed premises, factory or mine other than road network, not equipped to travel on public roads on their own power for example slip form pavers, concrete pavers, cold milling machines, cold recycler machines and any construction equipment vehicle or earth moving vehicle with crawlers or metal track, for example, tracked excavator or excavator with legs are not considered to be falling under the scope of Central Motor Vehicle Rules, as there not permitted to run on public road.” 18. The question which involves for consideration is that, whether cold recycler and soil stabilizer is construction equipment or it is a motor vehicle as defined under Section 2(28) of the Motor Vehicle Act, which would require registration as mandated under Section 39 of the Motor Vehicles Act. 19. The supreme court, in the Natwar Parikh(supra), held that the definition of the Motor vehicle under Section 2(28) of that Act is a comprehensive one, and therefore, the word “motor vehicle” has to be in the broadest possible sense, keeping in mind, the purpose for which the motor vehicle Act has been enacted. It is said under the definition of the Motor vehicle under Section 2(28) of the Act, the motor vehicle includes any mechanically propelled vehicle apt for use on the road irrespective of source of power, and it would include a trailer. 20. In Chairman Rajasthan State Road Transport Corporation and Others vs. Santosh and Others, (2013) 7 SCC 94 , the Supreme Court considered the question of whether the motorized cart “Jugaad” is a motor vehicle. 20. In Chairman Rajasthan State Road Transport Corporation and Others vs. Santosh and Others, (2013) 7 SCC 94 , the Supreme Court considered the question of whether the motorized cart “Jugaad” is a motor vehicle. The Supreme court held that the said vehicle “Jugaad” would be covered in the definition of the motor vehicle under Section 2(28) of the Act and therefore, the statutory authorities were directed to ensure that the said motorized cart “Jugaad” should be plied only after complying the requirements of the Act 21. Paragraph 30 of the said judgment, which is relevant is extracted hereunder: “30. As to whether a particular vehicle can be defined as motor vehicle in terms of Section 2(28) of the Act, is to be determined on the facts of each case taking into consideration the use of the vehicle and its suitability for being used upon the road. Once it is found to be suitable for being used on the road, it is immaterial whether it runs on the public road or private road, for the reason, that actual user for a particular purpose, is no criteria to decide the name. Definition of motor vehicle takes within its ambit, a dumper and tractor. Tractor which is used basically for agricultural purpose and a dumper is used in the factory premises, can suitable be adapted for being used on the road, therefore, they will meet the requirement of definition of motor vehicle under Section 2(28) of the Act. The word ‘only’ used in Section 2(28) of the Act clearly shows that the exemption is confined only to those kinds of vehicles which are exclusively being used in a factory or in any closed premises. Thus, a vehicle which is not adapted for use upon the road, is only to be excluded.” 22. The Supreme court in its judgment in Goodyear India Ltd vs. Union of India, (1997) 5 SCC 752 which was delivered in the context of provisions of Central Excise Tariff under item 16 thereof for determining the classifiability of tyres for a particular size for payment of Central Excise duty held that the tyres of 1800 size would not be classifiable under the entry “tyres for motor vehicle” and instead would be appropriate for classification under the residuary sub item (3) “all other tyres.” 23. Perceiving a conflict of views between the decision of a three judge bench in Good Year (supra) and two decisions of two-judge bench in Natwar Parikh (supra) and Rajasthan SRTC (supra) referred the question for decision by a large bench that whether the excavators of the description available on the record of the case belonging to the Western Coalfields (supra) would be called motor vehicle within the meaning of Section 2(28) of the Motor Vehicle Act. A three-judge bench in Western Coalfields (supra) had held that the two-judge bench decision in Natwar Parikh (supra) and Rajasthan SRTC (supra) dealt with the issue and the conclusion therein that, the vehicles involved in the said case would come within the meaning of the definition in Section 2(28) of the Act was on a consideration of the provisions of the Motor Vehicle Act. 24. The decision in the case of Goodyear India Ltd (supra) have no application for determination of the question that, whether the vehicle is a motor vehicle which would require registration or not. The three-judge bench was also in agreement with the conclusions reached in the aforesaid two decisions. 25. From the definition of ‘construction equipment vehicle’ as prescribed under 2 (cab) of the Central Motor Vehicles Rules, 1989 ‘cold recyclers and soil stabilizers’ is a construction equipment vehicle and not a ‘motor vehicle’ as defined under Section 2(28) of the Motor Vehicles Act, 1988. Thus, a separate class of vehicles are defined as ‘construction equipment vehicles’ under Rule 2(cab) of the Central Motor Vehicles Rules. 26. The facts are not much in dispute. The Central Government itself has clarified in the circular dated 13.07.2020 that, the construction equipment of the description, such as cold recyclers and soil stabilizer machines, are not a motor vehicle, which would require registration under Section 39 of the Act. When the Central Government itself has clarified the position, I am of the view that the State authorities have little scope to take a contrary view, and thus, the present writ petition is allowed. It is held that the equipment ‘cold recyclers and soil stabilizer’ machines do not require any registration, and the impugned challan is without jurisdiction. 27. With the aforesaid direction, the present writ petition is allowed.