Karnataka High Court Restrains State From Implementing Order Against Issuance Of Smart Card Registration Certificates For New Vehicles

A division bench of Chief Justice Ritu Raj Awasthi and Justice Sachin Shankar Magadum said that, "The contention raised by counsel for the petitioner appears to be correct as such requires consideration. Let the statement of objections be filed by the State government within three weeks. In the meantime, the registration of non-transport vehicles and fully built transport vehicles, on first sale shall be registered as per the existing system prior to issuance of the impugned notification dated 31/10/2021."

The petitioners Rosmerta Technologies Limited which has entered into a contract with the state government for issuance of smart card based registration certificate has approached the court challenging the notification. Senior Advocate Ashok Haranhalli appearing for the company submitted that, "The agreement between the government and the petitioner company is valid till the year 2024. By this rule now my contract virtually affects the contract which I have entered into."

The government counsel raised a preliminary objection to the petition stating that, "If there is any violation of contract rules then there is dispute resolution clause in the agreement and the petitioner was not maintainable.

The petitioners also pointed out that the draft notification for amending rule 33 of the Karnataka Motor Vehicles Rules was issued on October 26 and five days were given to submit objections and suggestions. However, the final notification was issued on October 31, which amended the Rule 33, allowing dealers to be registering authorities.

The court observed that, "How is five days sufficient?" It further added that, "You can make these dealers abide by the contract entered between petitioner and state government". Following which the court issued notice to the Union and state government and directed them to file their statement of objections and posted the matter for further hearing on January 31, 2022.

Mr. Nishan G.K, Genesis Law Partners, was the counsel on record for the petitioner.

Case Title: Rosmerta Technologies Limited v. Union Of India.

Case No: WP 20736/2021