Supreme Court: No need to pay to re-register an out-of-state vehicle

Recently, the Jammu and Kashmir High Court clarified that people do not need to re-register vehicles that are transferred from one state or Union Territory to another, particularly to Jammu and Kashmir (J&K). 

Registration of vehicles and the extent of the jurisdiction of such registration is mandated by the Motor Vehicles Act, 1988 (“Act”). In this Weekly, we discuss what the law says about registration when  you transfer your vehicle to another state. 

What does the law say about registration of Vehicles?

According to section 39 of the Act, vehicles must be registered in the state or UT where they are primarily used. However, it allows for vehicles to be used in other states or UTs for a limited period without re-registration. Further, section 47 of the Act specifies that if a vehicle is kept in a different state for more than 12 months, it must be re-registered in that state. This section addresses the continuity of registration when vehicles move across states.

It must be remembered that processes regarding registration of vehicles differ from one state to another. However, it must be consistent with the Act’s overarching principles to avoid conflicts and ensure uniformity, specifically regarding registration fee. 

Details regarding the process for re-registration of vehicles when they are transferred to a different state including provisions for the issuance of a new registration certificate upon application and fulfillment of certain conditions, such as payment of road tax are enlisted in the Central Motor Vehicles Rules, 1989.

What was the issue in the current case? 

In the current case of Ishfaq Ahmad Tramboo v/s Union Territory of Jammu and Kashmir and Others, the petitioner approached the High Court because he wanted to re-register his vehicle, registered in Haryana in adherence to section 47 of the Act. But, the Regional Transport Office (RTO), Jammu and Kashmir demanded the payment of 9% token tax to complete the process of registration. 

What did the Court say?

While looking into whether local laws regarding registration of a vehicle applied to a vehicle already registered in another state or union territory, the Court held that a vehicle registered once anywhere in India need not re-register in another state and the original registration will be valid throughout the country. 

The court observed, “the Motor Vehicles Act, 1988 nowhere provides for re-registration of a vehicle and payment of fee upon such re-registration”. 

It further clarified that according to section 47, after using a vehicle for more than 12 months in a state other than the original state of registration, the current state must issue a registration mark specific to the current region but it should not charge additional payment. This is because a registration is issued only once the payment of all relevant charges, including the token tax is completed. So, re-payment for re-registration is not in line with the law.