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Registration of heavy vehicals inside factory area

(Querist) 09 July 2008 This query is : Resolved 
kindly tell me . is the registration of heavy vehicles from(Like cranes, dumper etc) which are moving only inside factory area and never go out of factory, is mandatory or is exempted from registration from RTO.

KamalNayanSaxena (Expert) 09 July 2008
Section 39 of the MV Act 1988 makes a very important provision for the purpose of registration of motor vehicles. Section 39 statutorily prohibits driving of a motor vehicle in any public place or any other place without registering it.

Vehicle having a chassis, engine, drivers cabin and wheels and has a mobility and is obviously capable for using on public roads. It may be that it is not as convenient or advantageous as any other public carrier or goods vehicle which is commonly used for transport of goods when it is used for a similar purpose outside a factory or an enclosed premises. This circumstance in itself is not sufficient to bring the vehicle within the scope of the exemption mentioned in the definition of the 'motor vehicle'. The test in all these cases would be that if the vehicle is reasonably suitable for being used along with the public roads, the fact that manufacturers have made or intended a particular vehicle for one purpose or the other or the dealer has sold it for a particular purpose or that a particular vehicle is described by a particular name or description, is no criterion to decide whether the vehicle is adapted for use upon the roads within the meaning of the definition given in S.2(28) of the Motor Vehicles Act. If the vehicle is fit and suitable for being used on the road, it is immaterial whether it runs on a private road or on a public road unless it is shown that it is of a special type adopted for use only in factories or enclosed premises and incapable of running on any type of roads or public roads.

If the motor vehicle is not used on public roads then the owner of the vehicle is required to follow the procedure prescribed by the rules in order to claim exemption from payment of tax. Otherwise, there is a presumption that the vehicle is used on the road.

Chandan Garg (Querist) 11 July 2008
thanks for the same.
but our plant(factory ) is a steel manufacturing industry hence cranes , and other dozer like big vehicles are used in side the same.we never took it to the public road so does it require the registration.
KamalNayanSaxena (Expert) 11 July 2008
By the Supreme Court in M/s. Central Coal Fields Ltd. v. State of Orissa reported in AIR 1992 SC 1371, where the Court after tracing the legislative history and the decisions commencing from M/s. Bolani Ores Ltd.. v. State of Orissa reported in (1974)2 SCC 777 : (AIR 1975 SC 17) repelled argument of the mine owners who used dumpers within their mining premises to the effect that the dumpers are vehicles not adapted for use upon roads and, therefore, are outside the Taxation Act and held that these dumpers run on tyres in marked contrast to chain plates like caterpillars or military tanks. It was also held that by the use of tyres, it is evident that they have been adapted for being used on roads, which means that they are suitable for being used on public roads and on the mere fact that they are required at places to run at a particular speed is not to detract from the position otherwise clear that they are adapted for use on roads. The very nature of these vehicles makes it clear that they are not manufactured or adapted for use only in factories or enclosed premises. The mere fact that the dumpers or rockers are heavy and cannot move on the roads without damaging them does not mean that they are not suitable for use on roads.

in M/s. Ishardas and Co. v. State of Maharashtra and another specifically the argument that the motor crane is a vehicle of special type adapted for use only in factory or in any other enclosed premises. The court observed that .... Motor Cranes are of various types having varying and different capacities of hooks, heights, chassis, travel speeds and hoists speeds. The crane in question has mobility and is also suitable for use in public road so far as the movement is concerned. It has a tendant wire of 1' long, book wire of 3' in length, with working load of 16 tonnes and 3.5 tonnes respectively. The crane has a driver's cab with two seats one to drive the motor vehicle itself and another for operating the crane, the derrick unit and the hoist unit. The key word in the amended definition is "only" and the question to ask is : Is the mobile crane meant only for use in the enclosed place? ............. As the mobile crane can be used at any place accessible by road, it cannot be said that the vehicle is for a special type adapted for use only in a factory or in any other enclosed premises.

Section 39 reads as under:
"No person shall drive any motor vehicle and no owner of a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place unless the vehicle is registered in accordance with this Chapter and the certificate of registration of the vehicle has not been suspended or cancelled and the vehicle carries a registration mark displayed in the prescribed manner :
Provided that nothing in this Section shall apply to a motor vehicle in possession of a dealer subject to such conditions as may be prescribed by the Central Government."

So, with the help of above discussion it can be comfortably drawn that if the vehicle as described by you is not chain mounted, registration is required.
Chandan Garg (Querist) 21 August 2008
thanks everybody
Chandan Garg (Querist) 21 August 2008

if some body have some more suggestion are welcom

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