Legal principle

An Inland Container Depot is a customs bonded area within Section 7 of the Customs Act, 1962 — the place for unloading and loading of goods imported and exported — to which only persons duly authorised by the competent authority have access, and hence it is not a 'public place', and a special-type vehicle used only within such enclosed premises stands excluded from 'motor vehicle' under Section 2(28) MVA.

Court decision

The appeal was allowed; the High Court's judgment dated 5 September 2019 was set aside and the Tribunal's findings restored. The Court held that ICD Tughlakabad is not a 'public place' under Section 2(34) MVA because it is a customs bonded area within Section 7 of the Customs Act, 1962, accessible only to persons duly authorised by the competent authority, and that the Reach Stacker falls within the exclusion for special-type vehicles adapted for use only in enclosed premises, so it is not a 'motor vehicle' and requires no registration under Section 39 MVA. The Court caveated that this should not restrict compensation claims where a 'regular' road vehicle is taken into the ICD; money already paid to respondent no.1 was not to be recovered, with no order as to costs.

Facts

On 5 September 2013, respondent no.1 was hit and run over by a Reach Stacker while at the Inland Container Depot (ICD), Tughlakabad, New Delhi, suffering severe pelvic injuries, amputation of his right leg and 90% physical disability; he claimed Rs.75 lakhs under Section 166 of the Motor Vehicles Act, 1988. The ICD is a customs bonded area used for unloading, loading and shifting of shipping containers. The insurer (New India Assurance) objected under Order VII Rule 11 CPC; the MACT Tribunal allowed the objection on 9 January 2018, holding the Reach Stacker was not a 'motor vehicle'. The Delhi High Court set aside that view on 5 September 2019 (MAC App. No. 614/2018), relying on Western Coalfields, and Container Corporation of India Limited appealed to the Supreme Court.

Key provisions

• Section 7, Customs Act, 1962 — Appointment of customs ports, airports