Mumbai: While upholding the Rules under the Central Motor Vehicles Act, the Bombay High Court has observed that levying of additional fees to renew driving licence and to issue registration certificate beyond the prescribed time limit was not a penalty or deterrent. The high court dismissed two petitions filed by two trusts – K Savakash Auto Rickshaw Sangha and Mumbai Bus Malak Sangathana – challenging validity of the rules.
The Rules under the Central Motor Vehicles Act provide for levy of additional fees for renewal of driving licence for which application is made after the grace period, renewal of registration certificate for motorcycles and for delay in submission of No Objection Certificate for transfer of ownership of vehicles.
“We have no hesitation to hold that the levy of additional fee in this case, is in no manner a penalty, either directly or in disguise,” a bench of Chief Justice DK Upadhyaya and Justice Arif Doctor said on Tuesday.
The petitioners had challenged the rules contending that the provisions levying additional fees are a penalty in the guise of fee and that no additional service is being provided.
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However, the judges noted that as per provision of the Act, the government was empowered to levy additional fees. “The Central and State governments have been empowered to levy fees for certain acts such as processing of applications, amendment of documents, issue of certificates, licences, permits, tests and so on,” the bench added.
Further, the bench said that renewal of driving licence on a delayed application or renewal of registration certificate will also have to be construed as service. The additional fee charged is to process delayed applications and such acts are regulatory in nature, HC opined.
“It is well known that the penalty is a deterrent. In this case, levy of additional fee as prescribed under the Rules cannot be said to be any kind of deterrence,” the bench said.
It added that the provision in fact grants a chance to the vehicle owners to seek renewal of registration of their vehicles and driving licence beyond the prescribed time limit. “Charge of additional fee, thus, not being a deterrent on any count, in our opinion, cannot be said to be a penalty,” the bench concluded.
