New Delhi: The Supreme Court held that the State Governments can issue a special registration number or distinctive marks for vehicles registered in their territory with a certain amount of fees.
The bench comprised of Justices S. Ravindra Bhat and L. Nageswara Rao who quashed Rule 55A of the Motor Vehicles Rules, 1994 and overruled Madhya Pradesh HC’s judgement which mentioned that specific amount which will be charged from the owners of vehicles who wished for fancy registration numbers of their vehicles.
The case was brought by Rakesh Sethi, who was unable to the registration number of his choice for his motorcycle and hence aggrieved from the decision of High Court, he appealed before Supreme Court.
The Supreme Court pointed out the assumption on which the High Court relied to give its judgement i.e. State is incompetent to make such legislation
But the Supreme Court held that Rule 55A of the Motor Vehicles Rules, 1994 is not in excess of the powers exercised by the States as this power is conferred by the Act itself. The assigning of registration numbers to motor vehicles (that is to reserve and allocate them, for a certain fee) is a separate service for which states (in this case, the registering authorities) are entitled to charge the specific fee.