Manufactures cannot sell the existing stock of vehicles not meeting the Bharat Stage-IV Emission Standards after 31.03.2017

Supreme Court: Stating that the sale and registration and therefore the commercial interests of manufacturers and dealers of such vehicles that do not meet the Bharat Stage-IV (BS-IV) emission standards as on 1st April, 2017 does not take primacy over the health hazard due to increased air pollution of millions of our country men and women, the Court directed that  on and from 1st April, 2017 such vehicles that are not BS-IV compliant shall not be sold or registered in India by any manufacturer or dealer, that is to say that such vehicles whether two wheeler, three wheeler, four wheeler or commercial vehicles will not be sold in India by any manufacturer or dealer on and from 1st April, 2017.

With regard to the sale and registration of the existing stock of such vehicles that comply with BS-III emission standards, the manufacturers contended that they are entitled to manufacture such vehicles till 31st March, 2017 and in so doing, they have not violated any prohibition or any law. Hence, the sale and registration of such vehicles on and from 1st April, 2017 ought not to be prohibited and that they may be given reasonable time to dispose of the existing stock of such vehicles. On the other hand, the learned Amicus contended that permitting such vehicles to be sold or registered on or after 1st April, 2017 would constitute a health hazard to millions of our country men and women by adding to the air pollution levels in the country, which are already quite alarming.

Accepting the contention of the Amicus, the bench of Madan B. Lokur and Deepak Gupta, JJ said that the number of such vehicles may be small compared to the overall number of vehicles in the country but the health of the people is far, far more important than the commercial interests of the manufacturers or the loss that they are likely to suffer in respect of the so-called small number of such vehicles. The Court also said that the manufacturers of such vehicles were fully aware that eventually from 1st April, 2017 they would be required to manufacture only BS-IV compliant vehicles but for reasons that are not clear, they chose to sit back and declined to take sufficient pro-active steps. [M.C. Mehta v. Union of India, 2017 SCC OnLine SC 291, order dated 29.03.2017]

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