KOCHI: A Division Bench of the Kerala High Court has stayed the Single Judge order holding that the demo car kept by automobile dealers require registration under the Motor Vehicles Act.
The Bench headed by Chief Justice Hrishikesh Roy issued the order on the appeal filed by John K Paul, Kerala Automobile Dealers’ Association president, and Rajasree Motors, Maradu, seeking to quash the directive.
The Transport Commissioner had directed officers to take necessary steps to ensure registration of the vehicles kept by automobile dealers for test drive, on the grounds that some of the dealers are using these vehicles for test drive for longer periods and thereafter selling them at a lower price, resulting in loss of revenue to the state exchequer.
The Single Judge had made it clear that demo vehicles are required to be registered as per the provisions of Section 40 of the MV Act.