Case Title: Rajat Kapoor v. Union of India & Anr.
Summary
The Delhi High Court has ruled that electric vehicles are subject to the provisions of the Motor Vehicles Act, 1988 and Central Motor Vehicles Rules, 1989. The court affirmed that e-bikes must have insurance coverage and wear protective gear, and that electric vehicles will be subject to the same registration and penal provisions as other vehicles. Rajat Kapoor’s petition for a public interest litigation (PIL) was denied, as the court found all provisions of the MV Act and the CMV Rules applicable to EVs. The court also instructed the Delhi Government to ensure timely subsidy disbursement for registered electric vehicles. The court cited Section 146 of the Motor Vehicles Act, 1988, which mandates insurance coverage for all motor vehicles, including electric vehicles. The court emphasized the urgent need for appropriate legislation specifically addressing electric vehicles, including both two-wheelers and four-wheelers, to prevent costly repair expenses and ensure the safety of electric vehicles.
About the case
The Delhi High Court has affirmed that electric vehicles are subject to the provisions of the Motor Vehicles Act, 1988 and Central Motor Vehicles Rules, 1989 that are pertinent to their operation. According to a division bench consisting of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad, e-bikes are required to have insurance coverage and wear protective gear. Additionally, electric vehicles will be subject to the same registration and penal provisions as other vehicles.
Advocate Rajat Kapoor’s petition for a public interest litigation (PIL) was denied by the court. The petition sought to mandate insurance coverage for all electric vehicles, with a particular emphasis on two-wheelers and three-wheelers, prior to their delivery to the owner-purchaser and introduction onto the road.
“A review of Section 2(28) of the MV Act in conjunction with Rule 2(u) of the CMV Rules demonstrates that all EVs or battery-operated vehicles are classified as “motor vehicles” under the MV Act and are subject to the provisions of the MV Act, unless they qualify for exemptions under these provisions.”Consequently, the bench declared that all provisions of the MV Act and the CMV Rules, including the requirements for registration, mandatory insurance coverage, the donning of protective headgear, and penal provisions, are applicable to EVs.
The court observed that the Union Government has already established standards for manufacturers to adhere to when using batteries in battery-operated or electric vehicles. Consequently, it instructed the Delhi Government to continue to guarantee that the subsidy it provides for electric vehicles registered in the national capital is disbursed in a timely manner.
The court rejected the plea, stating that the PIL was submitted solely on the basis of two news reports and that the claims, allegations, and issues raised by Kapoor were “largely unsubstantiated.” “Had the Petitioner conducted some research and exercised due diligence, it would have been evident that the issues raised in the instant PIL have already been addressed through pertinent statutes, rules, and notifications.” The court stated that these frivolous PILs, rather than facilitating access to justice, actually impede it by squandering valuable judicial time.
Kapoor was advised by the bench, which expressed its optimism that he will exercise the requisite diligence and restraint before submitting similar PILs in the future.
The plea asserted that the absence of regulations regarding insurance for electric vehicles on public roadways is likely to result in a “state of chaos” in the near future. In this context, Section 146 of the Motor Vehicles Act, 1988 was cited, which mandates insurance coverage for all motor vehicles, including electric vehicles.
According to the plea, the EV vehicles insurance policy would provide financial protection to vehicles against liabilities such as accidental damage, fire, natural calamities, riots, theft of the insured vehicle, and third-party injuries or damages to their property, similar to the motor insurance policy for petrol and diesel vehicles. It was further stated that the influx of high demand and the emergence of numerous new companies that exclusively cater to electric vehicles have resulted in an urgent need for an appropriate legislation that specifically addresses electric vehicles, including both two-wheelers and four-wheelers.
“In addition to the law-mandated Third-Party Liability Cover, the Comprehensive Plan would also necessitate non-compliance penalties with respect to vehicle insurance.” To achieve this objective, it may be necessary to implement certain amendments to the MV Act. That would also prevent costly repair expenses,” Kapoor stated.
