Kerala High Court paves way for implementation of High Security Number Plates for vehicles

The Kerala High Court recently set aside a State notification that had delayed the implementation of High Security Registration Plates (HSRPs) on vehicles manufactured prior to April 1, 2019 in Kerala [Motorsigns India v State of Kerala and connected cases]..Justice DK Singh termed the State's notification a device to not to implement the HSRP scheme in Kerala and criticised the apparent reluctance to fix HSRPs to vehicles in the State. The Court, therefore, quashed the State government notification that hindered the process of fixing HSRPs and permitted Original Equipment Manufacturer (OEM) dealers to fix HSRPs temporarily until a transparent tender process selects authorized manufacturers."This Court fails to understand the underlying intent of the State Government for such a notification. This notification is nothing but a devise not to implement the HSRP Scheme in the State of Kerala. Therefore, the said notification, which is in the teeth of the Supreme Court direction, is hereby set aside and quashed," the Court said..The HSRP scheme was introduced to enhance the security and identification of motor vehicles through standardised registration plates. In various judgments, the Supreme Court and several High Courts have held that the scheme is mandatory and critical to promote road safety and monitor vehicle-related offences..However, several vehicle manufacturers and manufacturer associations (petitioners) approached the Kerala High Court complaining that although they possessed Type Approval Certificates (TAC) required to participate in the selection process for manufacturing HSRPs, the Kerala government refused to allow them to affix HSRPs on vehicles manufactured before April 2019.The State, instead, issued a notification dated July 30, 2024, proposing to set up its own plant for HSRP production. The petitioners pointed out that this was unnecessary and contrary to established practices across other States.They added that the refusal to recognise their TACs violated constitutional guarantees under Articles 14, 19, and 21. They also questioned certain central government advisories that required State-level authorisation to manufacture HSRPs, beyond only possessing TACs.The State defended its approach by arguing that a State-controlled mechanism ensured greater oversight..To decide on the matter, the Court referred to Section 41(6) of the Motor Vehicles Act, 1988 and Rule 50 of the Central Motor Vehicles Rules, 1989 (Rules).These provisions required the display of vehicle registration marks in a prescribed manner, including the mandatory affixation of HSRP as per the amendments made in 2018.The Court also referred to Rule 126 of the Rules, which granted authority to the Central Government to issue Type Approval Certificates to manufacturers..The Court eventually rejected the State's stance, and held that its notification violated Supreme Court orders and the Motor Vehicles Act, 1988. The Court also noted that most States had implemented the HSRP scheme by selecting qualified vendors through a transparent tender process. .The Court held that the State government of Kerala must also adhere to a fair process to select one or more license plate manufacturers for implementing the HSRP scheme.It added that OEMs could fill the gap until such a manufacturer is selected through a transparent tender process, as seen in States like West Bengal, Karnataka, and Gujarat."As the State Government has not invited tenders to select one or more license plate manufacturers having the requisite qualification for affixing the HSRP on the vehicles manufactured prior to 01.04.2019, this Court is of the considered view that till the Government undertakes an open, fair, and transparent tender process .... OEM should be allowed to affix the number plates on the old vehicles by their dealers as is done in several other States," the Court said..The Court, therefore, quashed the government's notification dated July 30, 2024. It proceeded to uphold the advisories issued by the Central Government on June 9, 2023, and January 8, 2024, that required State approvals to manufacture license plates. .Counsel for the various petitioners included senior advocates R Ramkumar, Dr Aditya Sondhi, Naveen R Nath, and advocates SM Prasanth, Binoy Vincent and Chelson Chambarathy.Deputy Solicitor General of India TC Krishna represented the Union Government.Special Government Pleader P Santhosh Kumar appeared for the State.Advocates P A Muhammed Shah, Harikumar G, Mangal Pandai, Aman Preeth Singh, Millu Dandapani, Vishnu J, N N Girija and V S Abhishek appeared for the various respondents..[Read Judgement]