Number Plate Manufacturers Move High Court Alleging Karnataka Govt Permitting Only 'Influential' Entities To Affix High Security Plates On Vehicles

The Karnataka High Court will on September 19, consider interim relief of stay sought in a petition filed against Karnataka government's notifications mandating fixing of High Security Registration Plates (HSRP) on vehicles registered before April 1, 2019, by OEM's (Original Equipment Manufacturers)/ Authorised dealers who in turn will source the number plates only from HSRP manufacturers authorised by vehicle manufacturers (OEMs).

Senior Advocate Aditya Sondhi appearing for the High Security Registration Plate Manufacturers Association of India argued that the impugned notifications excludes the petitioners, beyond the provision of the Central Motor Vehicles Rules.

Additional Advocate General Vikram Huilgol submitted that there are no such exclusions and petitioners and other licensed manufacturers can still operate if they obtain necessary permission from OEM's (Original Equipment Manufacturers).

A single judge bench of Justice B M Shyam Prasad recorded preliminary submissions made by all sides and said, “The registry is directed to re-list the petition on Tuesday. Office shall list the petition for consideration of interim relief.”

Meanwhile, the State government has been asked to file its preliminary objections to the interim prayer sought in the petition.

As per the plea, the Central Motor Vehicle Rules even after successive amendments permit Registering Authority or Vehicle Manufacturers (OEM) and their dealers or the license plate manufacturers to fix HSR Plates on old vehicles without further approval from State Governments, while the said right is given to the dealers of the license plate manufacturers with approval from the State Governments.

Thus the plea states, “Even though the CMV Rules allow the manufacturers, like the petitioner to supply and fix HSR Plates on old vehicles registered before 1st April 2019 without any further approval from State Government, the authorities acting at the instance of a few powerful HSR Plate manufacturers are blocking the Petitioner and other similarly placed manufacturers and exclusivity is given to the manufacturers.”

It is alleged that on August 17, the State government issued a Notification by which, "on the pretext of allowing OEMS and their dealers to fix HSRP on existing vehicles certain influential HSRP manufacturers are given, the exclusive right to fix, HSRP on existing vehicles in the entire state of Karnataka.”

It is argued that OEMS do not manufacture HSRP and rather give "back door entry" to influential HSRP manufacturers. "Thus a few powerful HSR late manufacturers who have the same approval as that of the petitioner are allowed backdoor entry into the market which has over 2 crore old vehicles registered before April 1, 2019,” the plea avers.

The plea states that the impugned notification is in violation of Rule 50 of the CMV Rules as it gives authority to vehicle manufacturers to authorise any HSRP manufacturers of their choice.

The plea prays that all HSRP manufacturers enlisted in the "Vahan Portal", who have the necessary Type Approval Certificate issued by the competent testing agencies, to supply and fix High Security Registration Plates on old vehicles registered before 1st April 2019 in Karnataka.

By way of interim relief, the plea has sought for staying the operation of the impugned notification.

Case Title: High Security Registration Plate Manufacturers Association of India & others v. State of Karnataka & Others

Case No: WP 19861/2023

Appearance: Senior Advocate Aditya Sondhi for Petitoner.

AAG Vikram Huilgol for respondents.

Senior Advocate Sajan Poovayya for Nishan GK and Skanda Arunkumar, Genesis Law Partners

Senior Advocate Devadatt Kamat for Shravanth Arya Tandra and Pranav Venkat Vishwanath for FTA HSRP Solutions Private Limited