As per case facts, a person suffered severe injuries after being hit by a Reach Stacker within an Inland Container Depot, leading to amputation and significant disability. A compensation claim ...
2026 INSC 763 Page 1 of 16
CIVIL APPEAL NO. 10526 OF 2024
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 10526 OF 2024
CONTAINER CORPORATION OF INDIA L IMITED …APPELLANT(s)
VERSUS
RISHI RANJAN MISHRA & ORS. …RESPONDENT(s)
J U D G M E N T
SANJAY KAROL, J.
1. This appeal is at the instance of the Container Corporation of India Limited,
and lays challenge to judgment dated 5
th
September 2019 in MAC. App. No.
614/2018.
2. The Additional District and Sessions Judge, P.O MACT(SE-01)
1
Saket
Courts answered the question in the negative in a petition for compensation filed
under Section 166 of the Motor Vehicles Act, 1988
2
by respondent no.1 herein.
The High Court set aside this judgment and answered the question in the
affirmative. Now we are called upon to adjudge the correctness of the view so
taken.
1
Tribunal, MACT Petition No. 4791 of 2016
2
MVA
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CIVIL APPEAL NO. 10526 OF 2024
3. Facts are of little relevance and so only a brief background as to how the
question arose may suffice. On 5
th
September, 2013, respondent no.1 visited
Inland Container Depot
3
, Tughlakabad, New Delhi, when the vehicle in question
hit him and ran over his pelvic region, leading to severe injuries. His right leg had
to be amputated, for which he had to undergo several surgeries. Physical disability
is 90%, which he claims to be at 100% as functional disability. Before the
Tribunal, he sought Rs.75 lakhs. Respondent no. 3 (New India Assurance Co.
Ltd.) objected to the claim through an application under Order VII Rule 11 of the
Code of Civil Procedure, 1908
4
.
4. This came to be allowed by the Tribunal on 9
th
January 2018, observing
that Section 2(28) MVA makes it clear that there are two requirements for a
particular machine to be considered a motor vehicle i.e. it has to be mechanically
propelled and capable of being used on the road. At the same time, it also provides
for a special kind of vehicle to be used within enclosed premises, and the same is
excluded from the meaning of that word, as such, even though it is mechanically
propelled, the same would not be a motor vehicle.
Learned Single Judge of the High Court placed reliance on the judgments
of this Court inter alia Western Coalfields Limited v. State of Maharashtra
5
and
held that in light thereof, a Reach Stacker would also qualify as being a motor
vehicle. The restricted area in which it plies would not take away from its identity
and classification as such.
Heard Ms. Pinky Anand, learned senior counsel for the appellant,
Mr. Yadav Narender Singh, learned counsel for the respondent, and Ms. Shatakshi
Singh, learned amicus curiae appointed by this Court. The issue that arises for
consideration is whether a Reach Stacker is a motor vehicle within the context of
the MVA.
3
ICD
4
CPC
5
(2016)11 SCC 613
Page 3 of 16
CIVIL APPEAL NO. 10526 OF 2024
5. The mainstay of the appellant’s case is that the enclosed premises, part of
the definition, would cover ICD, Tughlakabad, where the accident took place.
Further that the part regarding special type of vehicle to be used in a factory would
also cover the present case. That apart, the roads within ICD are specifically
constructed to handle the weight of Reach Stackers and are hence not equitable
to regular roads.
6. The claimant, on the other hand, contends that ICD spans an area of
approximately 10sq.kms. with extensive, interconnecting roads. It would
constitute a public place, and the area is accessible to authorized members of the
public. According to him, Reach Stacker would qualify as a motor vehicle for the
following reasons- (a) high capacity engine; (b) mounted on tyres and chassis; (c)
used for shifting containers across the area of ICD; (d) driven by driver and (e)
no technical barrier to move on roads.
The amicus supports the case of the respondent.
7. Relevant provisions of MVA read as under:
“2(28) “motor vehicle” or “vehicle” means any mechanically propelled
vehicle adapted for use upon roads whether the power of propulsion is
transmitted thereto from an external or internal source and includes a chassis
to which a body has not been attached and a trailer; but does not include a
vehicle running upon fixed rails or a vehicle of a special type adapted for
use only in a factory or in any other enclosed premises or a vehicle having
less than four wheels fitted with engine capacity of not exceeding twenty-
five cubic centimetres;
(34) “public place” means a road, street, way or other place, whether a
thoroughfare or not, to which the public have a right of access, and includes
any place or stand at which passengers are picked up or set down by a stage
carriage”
8. A bare perusal of the above reveals that for a particular machine to be
counted as a motor vehicle, it must be (a) mechanically propelled, (b) adapted to
be used on roads, irrespective of whether such vehicle which may have an internal
or external power propulsion source; a chassis which may or may not have a body
attached to it and a trailer. What does not constitute a motor vehicle, is (a) a
vehicle running on fixed rails or (b) a vehicle of special type adapted for use only
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CIVIL APPEAL NO. 10526 OF 2024
in a factory or other enclosed premises or (c) a vehicle with less than four wheels
along with engine capacity less than 25 cubic centimeters.
9. Before proceeding further, it is necessary to look at the particulars of the
Reach Stacker. It is a machine, undisputedly on wheels that is used to lift heavy
materials such as shipping blocks and containers, and quite literally place them
on top of one another. The details as supplied by the appellant which have not
been disputed by the respondent or the Amicus, of the vehicle reveal that it is of
71.8 metric tonnes weight without it being laden with the containers and at 102
metric tonnes approximately at full capacity. In this context, reference must be
made to a Gazette Notification
6
issued by the Ministry of Road, Transport and
Highways under Section 58(1) of the MV Act which across a number of
categories shows the maximum permissible weight to be inter-alia 49 tonnes in
rigid vehicle, 55 tonnes semi-articulated vehicle and 54 tonnes in truck trailer
combination. This aspect we will discuss later. We must determine whether ICD
is a public place or not?
10. In Tarachand Logistic Solutions Ltd. v. State of A.P.,
7
the question that
arose before this Court was whether motor vehicles plying within the dispatch
yard of the Rashtriya Ispat Nigam Limited(‘RINL’) would be motor vehicles for
the purposes of payment of motor vehicle tax within the Andhra Pradesh Motor
Vehicle Taxation Act, 1963. In arriving at its conclusion, the Court discussed the
meaning of the word ‘public place’ which is relevant for our purposes. The
discussion as made by Bhuyan J., is as under:
“34…. A motor vehicle which is not adopted for use upon roads to which
the public have no right of access is not a motor vehicle. It was held that
dumpers and rockers would not be taxable as long as those were working
solely within the private premises of the respective owners. Bolani Ores
Ltd. (supra) is directly on the point in issue.
45. … Thus, if a vehicle is actually used in a ‘public place’ or kept in
such a way that it is intended to be used in a ‘public place’ then the tax
liability accrues. We have already noted that this Court in Bolani Ores
Limited (supra) has held that when the members of the public are not
6
S.O. 728(E), dated16
th
July 2018
7
2025 SCC OnLine SC 1851
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CIVIL APPEAL NO. 10526 OF 2024
allowed access inside an area without prior permission and when there is
check on ingress and egress to ensure that no unauthorized person have
access to the premises, the same would be an enclosed premise and not a
‘public place’.”
11. Undisputedly, a road is a public space granted that public has access
thereto. Whether authorized personnel can be termed to be public? The Section
uses the words ‘thoroughfare or not’ which already indicates restricted access but
given the nature of work that is carried out inside these areas, which, as it appears
is movement of heavy machinery or shipping containers that too on specially
designed roads. Keeping in view the weight of the vehicles plied thereon, it
cannot be said that any person walking on the roads outside this area, can, as a
matter of right claim entry to this space. Since the ICD is a custom bonded area
within the meaning of Section 7 of the Indian Customs Act 1962, i.e. the place
for unloading and loading of goods imported and exported, it only stands to
reason that only those persons who are duly authorized by the competent
authority will have access to the same. This fortifies the conclusion that it is not
a place that public has a right to access. As such, the roads within ICD, to our
view do not constitute ‘public place’ as defined under Section 2 (34) of the MVA.
12. Now turning to the question whether Reach Stacker is a motor vehicle or
not?
13. The tests to determine this question, it has been submitted by Ms. Anand
learned senior counsel, have been laid down in the following judgments: Bolani
Ores Ltd. v. State of Orissa,
8
Goodyear India Ltd. v. Union of India
9
, and
Ultratech Cement Ltd. v. State of Gujarat
10
. Learned amicus, on the other hand
referred to inter-alia Central Coal Fields Ltd. v. State of Orissa
11
, Bose Abraham
v. State of Kerala
12
, Govt. of A.P. v. Road Rollers Owners Welfare Assn
13
.
8
(1974) 2 SCC 777
9
(1997) 5 SCC 752
10
2026 SCC OnLine SC 48
11
1992 Supp (3) SCC 133
12
(2001) 3 SCC 157
13
(2004) 6 SCC 210
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CIVIL APPEAL NO. 10526 OF 2024
Let us discuss these judgments. We would first discuss the proposition involved
then shortly capture the case of the appellant and respondent/amicus respectively
and then provide our reasoning thereon, in successive paragraphs:
13.1 Bolani supra was a case concerned with taxation and the question was
whether dumpers, rockers and tractors are motor vehicles as understood
within the meaning of relevant State Motor Vehicles Taxation Acts, in
order to be taxed as such. The relevant observations of the three judge
Bench discussing the words ‘adapted for use’ as they appear in the
Section, are reproduced below for reference:
“23. The meaning of the word “adapted” in Section 2(18) of the
Act is itself indicated in Entry 57 of List II of the Seventh
Schedule to the Constitution, which confers a power on the State
to tax vehicles whether propelled mechanically or not and uses
the word “suitable” in relation to its use on the roads. The words
“adapted for use” must therefore be construed as “suitable for
use”. At any rate, words “adapted for use” cannot be larger in
their import by including vehicles which are not “suitable for
use” on roads. In this sense, the words “is adapted” for use have
the same connotation as “is suitable” or “is fit” for use on the
roads.
24. The question would then arise, are dumpers, rockers and
tractors suitable or fit for use on roads? It is not denied that these
vehicles are on pneumatic wheels and can be moved about from
place to place with mechanical power. The word “vehicle” itself
connotes that it is a contrivance which moves. A vehicle which
merely moves from one place to another need not necessarily be
a motor vehicle within the meaning of Section 2(18) of the Act.
It may move on iron flats made into a chain such as a caterpillar
vehicle or a military tank. Both move from one place to another
but are not suitable for use on roads. It is not that they cannot
move on the roads but that they are not adapted, made fit or
suitable for use on roads. They would, if used, dig and damage
the roads. It is contended that the dumpers or rockers are very
heavy and though they can move on roads they would damage
the roads and, therefore, they are not suitable for use on roads.
To substantiate this proposition the appellants have produced
before us certain notifications issued by the State of Orissa
under which vehicles beyond a certain laden weight are
prohibited from plying on the roads. It was rightly pointed out
by the learned advocate for the State of Orissa that there are only
some of the roads on which vehicles, heavier than what is
indicated in the notification cannot be permitted. But that is not
to say that all vehicles which exceed a particular weight are not
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CIVIL APPEAL NO. 10526 OF 2024
adapted for use upon roads and are, therefore, not motor
vehicles. …
37. From the very nature of the area operated by these three
companies it is obvious that the machines which are the subject-
matter of these appeals must be working in their respective
mining areas. The mere fact that there is no fence or the barbed
wire around the leasehold premises is not conclusive. There is
evidence to show that the public are not allowed to go inside
without prior permission, there are gates and a check on ingress
and egress is kept by guards who also ensure that no
unauthorised persons have access to the mining area, all of
which indicate that the respective mining areas are enclosed
premises within the meaning of the exceptions under Section
2(c) of the Taxation Act.”
13.1.1 Appellant’s case: The ‘Bolani’ test therefore is regarding
‘suitability of use’. On this test the question is whether a Reach
Stacker when driven on the road shall drive in a normal fashion not
leaving damage and destruction in its wake. Reference has been made
to a notification by the Ministry of Road Transport and Highways
dated 18
th
July 2018 whereby gross vehicle weight for rigid vehicle
has been kept at 49 tonnes and 55 tonnes in case of semi-
articulated/trailers. The Reach Stacker in the present case is
undisputedly higher than said weight. Hence, valid questions arise
about its suitability on roads in light of this fact.
13.1.2 Respondent’s case: The discussion in this judgment creates
a distinction between vehicles moving on chain plates like
caterpillars or military tanks from one place to another that is on
chain plated or specific contraction vis-à-vis wheeled rubber-tired
vehicles. Given that Reach Stacker is mounted on chassis and has
rubber wheels, it is suitable for use on roads.
13.1.3 Our view: Well, to say that only because a vehicle has rubber
tyres and is on chassis that it is suitable for public roads, would be a
rather simplistic view of the whole situation. The concerned authority
has notified the permissible weights, and it goes without saying that
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CIVIL APPEAL NO. 10526 OF 2024
if a particular vehicle goes against the guidelines mentioned therein,
its suitability is obviously impacted.
13.2 Goodyear supra posed a question regarding imposition of excise
duty for tyres to be used in heavy moving vehicles such as dumpers and earth-
movers, over a particular size, as tyres for ‘motor vehicles’. The Central tariff
uses the word ‘motor vehicles’ to include ‘mechanically propelled vehicles
adapted for use upon roads’. The definition with which we are concerned also
uses these words and therefore the interpretation given by K.T.Thomas J., for
a three judge Bench becomes important. It is as follows:
“10. A close reading of the definition of “motor vehicle” in Item 34
reveals that the striking ingredient thereof is that it should have
been “adapted for use upon roads”. Merely because the areas on
which such heavy-movers traverse might sometimes include roads
also is not enough to hold that they were “adapted for use upon
roads”. Such use of the heavy-mover on the road may only be
ancillary or incidental to the main use of it. Emphasis in the
definition must be on the words “use upon road” as those words
would denote the principal or dominant use and not where it may
move incidentally.”
13.2.1 Appellant’s case: As is obvious from the above, determination of
dominant use hinges on utility. It is not used on roads is the appellant’s pleaded
case. Its transportation is only done after it is dismantled, for doing so without
it is impossible for it contravenes weight limits.
13.2.2 Respondent’s case: Dismantling of a Reach Stacker falls within
operational economics and is not the determinant of suitability since many
other vehicles are transported in this manner. This would not denude its
characteristics of a motor vehicle.
13.2.3 Our view: If the determinant in Goodyear supra is utility, and the
answer given by the amicus is regarding suitability, the distinction that is
attempted by the latter cannot be accepted. It is an undisputed fact that the
surfaces within ICD are specifically designed to bear the weight of these
vehicles. If special care has been taken to design roads in accordance with
Page 9 of 16
CIVIL APPEAL NO. 10526 OF 2024
what will be used on them, it stands to reason that those roads, that have not
taken into account regular use of such heavy vehicles will be unfit. Our own
research reveals that the use of Reach Stackers is in connection with
containers, ports and terminals, steel and aluminum etc., when such heavy
items are to be lifted and transported from one area to another. Because its
application is for a limited set of tasks and to a limited kind of industries, in
our considered view, the utility test also is decided in favour of the appellants.
13.3 Ultratech Cement Ltd. supra raised the question of taxability within the
Gujarat Motor Vehicles Tax Act, 1958 in so far as the following vehicles are
concerned: Heavy Earth Moving Machinery or special services vehicles or any
construction equipment vehicles such as Dumpers, Loaders, Excavators,
Surface Miners, Dozers, Drills, Rock Breakers etc. The question that the co-
ordinate bench was required to decide was whether these vehicles were covered
by the definition under Section 2(28) of the MVA, same as the question
presented in this case, albeit, not for taxation purposes. In the view of the Court
in that case, the deciding factor was whether the abovenamed vehicles would
fall within the exclusionary part of the definition. It was held:
“37. … The second part provides for the exclusion of certain
vehicles from the definition of the motor vehicle. It provides that
motor vehicle does not include a vehicle running upon fixed rails or
a vehicle of a special type adapted for use only in a factory or in
any other enclosed premises. It means that the legislature has
consciously provided for the exclusion of the vehicles of the special
kind which have been adapted for use only in a factory or any other
enclosed premises from the definition of motor vehicle. In other
words, though the term motor vehicle is wide enough but it
expressly excludes some of the motor vehicles which are of special
type and have been adapted for use only in factory or in any other
enclosed premises from its ambit.
38. The vehicles in question used by the appellant are all in the
nature of special vehicles as they are basically construction
equipment vehicles which have been made suitable for use only in
a factory and an enclosed premises rather than for use on roads.
These vehicles may be capable of being used on road but
essentially, they are meant to be used as a special vehicle inside the
enclosed premises or in the factory premises alone and not outside
on the road. Even for reaching the factory premises, or the so-called
Page 10 of 16
CIVIL APPEAL NO. 10526 OF 2024
enclosed premises they do not ply on road and are taken on tractors
and trailers from the place of their manufacturing to the place of
their deployment. The various certificates of the manufacturers and
suppliers as well as those issued by the Automotive Research
Association of India amply demonstrate that the aforesaid vehicles
used by the appellant are special type of vehicles meant for use only
within the factory premises or the enclosed premise. They are all
off-road vehicles that do not ordinarily ply on roads. Since, they do
not run on the roads, the manufacturers and suppliers do not even
issue any certificate of road worthiness in respect of these vehicles.
In short, the vehicles used by the appellants are special type of
vehicles meant to be used as construction equipment vehicle within
the enclosed premises and as such ex-facie stands excluded from
the definition of the motor vehicle as contained in Section 2(28) of
the Act, more particularly by virtue of the second part of the
definition.
39. In view of the above, we can safely conclude that though the
vehicles used by the appellant are “motor vehicles” within the first
part of the definition under Section 2(28) of the Act but they stand
excluded from the definition of “motor vehicles” on account of
their very nature of use and the place of the use by virtue of the
second part of the definition.”
13.3.1 Appellant’s case:The deciding factor in Ultratech Cement
Ltd. supra was the purpose for which the vehicles in question were
used. It was categorically observed that they were vehicles for
restricted, limited use within an area and each served a specific
purpose. They would, as such, fall within the exclusionary part of the
definition. The vehicle which is the point of dispute in the present case
meets all the criteria.
13.3.2 Respondent’s case: The decision in Ultratech Cement Ltd.
supra is sought to be distinguished on the basis of it being premised on
a different factual matrix. Since they were transported to the site in
question in dismantled form and were restricted to the industrial areas
only whereas in the present case, the reach stacker was being driven at
speed in a paved internal road of the ICD when it ran over the
respondent. An additional distinguishing factor is that the issue therein
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CIVIL APPEAL NO. 10526 OF 2024
was with regard to taxability in connection with Article 265 of the
Constitution read with Entry 57 List II thereof.
13.3.3 Our view: We are of the considered view that the distinction
attempted to be drawn is at best artificial. A perusal of the judgment
reveals that in order to determine the question of taxability, the Court
undertook a detailed analysis of what constitutes a motor vehicle with
reference to various earlier decisions of the Court, and then concluded
that even though the vehicles at issue therein were covered by the first
part of the definition, they were excluded from the scope of the
definition by the second part. To drive home the point, an analogy was
drawn with airplanes and tanks, observing that even though they are
suitable to land/use on roads, to accept this as the deciding factor would
lead to an anomaly. It is stated that the area where the Reach Stacker
was driven was a ‘paved internal road’ of the ICD. We may only ask
ourselves as to how this road would be any different from the roads on
which the vehicles discussed in this judgment, i.e., roads within
enclosed industrial areas?
13.4 We now deal with the judgments cited by the amicus to support the
case of respondent no.1 and how they are sought to be distinguished by the
learned senior counsel for the appellant:
13.4.1 Central Coal Fields Ltd. v. State of Orissa
14
, was relied
on to contend that plying Dumpers etc on roads would cause
damage to the roads, would not on its own make them unsuitable
for use on roads. In the present facts, it was argued by the other side
that reach stackers cannot ply on roads whatsoever, irrespective of
the fact that they are with rubber wheels.
14
1992 Supp (3) SCC 133
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CIVIL APPEAL NO. 10526 OF 2024
13.4.2 Bose Abraham v. State of Kerala
15
, a co-ordinate
Bench held that merely because there is a specific use of a vehicle
within enclosed premises, it does not render the same to be ‘a
different kind of vehicle’. The distinction that is sought to be drawn
is that road rollers and reach stackers are different when considered
from the point of view of use by nature. The latter, by its very
nature, is intended to be used within enclosed premises, therefore,
would not be a motor vehicle within this Act. We agree with the
distinction so drawn.
13.4.3 Govt. of A.P. v. Road Rollers Owners Welfare Assn
16
,
holds that a road-roller, since specifically built for use on the road,
necessarily has to be a motor vehicle. The distinction according to
the appellant in this case, is rather simple that the vehicle in this
case cannot ply on roads and, therefore, they are fundamentally
different.
13.4.4 Rajasthan SRTC v. Santosh
17
, concerned the question
whether ‘motorised cart’ generally called jugaad is a motor vehicle
within the meaning of Section 2 (28) MVA. It was held that the only
factor that needs to be considered is whether the vehicle in question
is adapted for the road or not. According to the learned judges in
this case, the use of the words ‘only’ in the second part dictates that
the exception applies only to those vehicles that can exclusively be
used within factory or closed premises, that is to say, a vehicle that
has not been adapted is to be excluded. The appellant uses the same
logic as they contend in Roadroller supra.
15
(2001) 3 SCC 157
16
(2004) 6 SCC 210
17
(2013) 7 SCC 94
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CIVIL APPEAL NO. 10526 OF 2024
13.4.5 Natwar Parikh & Co. Ltd. v. State of Karnataka
18
, a
three-judge Bench of this Court was considering the taxability of a
tractor-trailer. It was held throughout that it would be taxable. It
was relied by the learned amicus because it was observed that the
word motor vehicle has to be interpreted broadly. On the other
hand, the appellant contends that this decision stands distinguished
by Ultratech supra. Section 2(28) clearly includes the word trailer
to be included within the definition. That in itself distinguishes the
present case from this.
13.4.6 Western Coalfields Ltd. v. State of Maharashtra
19
,
need not be dealt with separately since it places whole sole reliance
on Natwar Parekh supra.
13.5 Most of these judgments were taken note of by the Bench in
Ultratech Cement Ltd. supra and distinguished. The relevant para is as under:
“51. The decisions to the contrary cited at the Bar starting
from Travancore Tea Estates Co. Ltd. v. State of Kerala
10
, Union of
India v. Chowgule and Co. Pvt. Ltd.
11
, Central Coal Fields Ltd. v. State
of Orissa
12
, Chief General Manager, Jagannath Area (supra), Bose
Abraham v. State of Kerala
13
, State of Gujarat (supra) are all decisions
of the different Division Benches of this Court. No doubt, they hold that
vehicles used or kept for use on the public roads of the State are exigible
to tax, and if they are not so used they can claim exemption but all these
decisions fail to take into account the specific exclusion as contained in
the second part of Section 2(28) of the Act which defines “motor
vehicles”. As stated earlier, the vehicles or the construction equipment
vehicles used by the appellants are “motor vehicles” within the first part
of the definition as contained in Section 2(28) but they stand excluded
by virtue of the second part of the said definition. This aspect of the
matter has not been specifically considered by any of the above
decisions. Moreover, all these decisions simply brushes aside Bolani
Ores Ltd. (supra) without actually ruling it out on the ground that it
relates to “motor vehicles” as defined under the old Act without
realising that there was no material change between the definition of
“motor vehicles” in the old or present Act.
(emphasis supplied)
18
(2005) 7 SCC 364
19
(2016) 11 SCC 613
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CIVIL APPEAL NO. 10526 OF 2024
13.5.1 All these judgments that have been cited deal with road rollers,
tractor trailers or motorised carts. Regarding road rollers, to our mind, there
is an additional point to be made. The understanding of enclosed premises in
the context of road rollers vis-à-vis reach stacker is different. In the former,
while it does apply to enclosed premises, which may be a part of otherwise
public road, for example, where repairs or construction is being undertaken
but in the former, there is a designated area within which it can be used. Put
it differently, the latter can be used only within the four walls of a confined
space that is not accessible to public. Further, none of these vehicles come
with the stipulation that for them to ply, the roads are generally specially
reinforced to bear the weight. These vehicles cannot ply on roads; the Reach
Stacker exceeds the permitted weight; is dismantled to be transported and
lacks general safety features that are present in a motor vehicle otherwise
permitted on roads. Since it is vehicle dedicated to a particular kind of work
which takes place within duly notified areas, it would fall into the second half
of the definition of ‘motor vehicles’, i.e. the exclusion. The way the exclusion
functions does not require the characteristic of the motor vehicle to be absent
but instead it recognises that despite having the characteristics of a motor
vehicle, certain types of vehicles cannot be equated to those vehicles that are
generally understood to be ‘motor vehicles’.
13.5.2 These judgments do not, therefore, warrant any further discussion.
14. A further point that has been canvassed by the Appellants is the non-
registration of the vehicle in question under Section 39 of the MVA. Reference is
made to a Notification issued by the Joint Transport Commissioner and Secretary,
Regional Transport Authority, Hyderabad, stating that the Reach Stacker is not a
motor vehicle and, therefore, does not require registration under Section 39 of the
MV Act, 1988. The same is reproduced below:
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CIVIL APPEAL NO. 10526 OF 2024
“OFFICE OF THE JOINT TRANSPORT COMMISSIONER
AND SECRETARY
RTA(HYDERABAD)
...(illegible)...
TO WHOMSOVER IT MAY CONCERN
One piece of Model REACH STACKER LOAD CONTAINER
HANDLER bearing serial no…(illegible)... having ...(illegible)...kgs
with front axle 4 tyres 4x(15x25) tubeless. The gross vehicle weight
is ...(illegible)... the tyre size...(illegible)... is not prescribed in the
Motor Vehicle Act 1988 under Rules there under.
Similarly, the loads specified to the first axle and rear axles are not
prescribed under the MV Rules, 1989. As such the vehicle cannot be
operated on public road. This vehicle is of a
special...(illegible)...manufactured and adopted to be used only in
enclosed premises not as such...(illegible)...does not come under the
definition of Motor vehicle as prescribed under rule 2(28) of Motor
Vehicle Act of 1988.
Since this reach stacker is not a motor vehicle. It does not require
registration under sec 39 of MV Act, 1988.
(Sign)
JOINT TRANSPORT COMMISSIONER
&
SECRETARY RTA HYDERABAD ”
15. The Amicus Curiae’ answer to this is that mere non-registration is not a
reason to escape liability and the consequence that is posited of such argument
being accepted is that every unregistered vehicle would be removed from the
scope of this Act. It is difficult to accept this contention and consequence, as
submitted by the amicus, for there is a distinction. It is not that every vehicle that
is not registered would be taken out of the scope of this Act. If a vehicle plies on
the road without registration, that would be in violation of the provisions of the
MVA. But in the present case, a motor vehicle is what is required to be registered.
Page 16 of 16
CIVIL APPEAL NO. 10526 OF 2024
If the concerned authority states that the reach stacker is not a motor vehicle, then
there cannot be registration for such a vehicle within the meaning of Section 39.
16. Before parting with the matter, however, we must place an important
caveat. We have held that ICD is not a ‘public place’ within the meaning of Section
2 (34) of MVA. This should, however, not restrict a claimant's right to seek
compensation under the MVA should such an untoward incident ever take place
within the four walls of the ICD with a ‘regular’ vehicle that ordinarily plies on
roads that may have been taken into the restricted area by officials of the
department or some other person connected with the ICD or its processes.
17. Consequent to the discussion as aforesaid, the judgment of the learned
Single Judge of the High Court of Delhi, dated 5
th
September 2019 in MAC. App.
No.614/2018 is set aside, and the findings of the Tribunal are restored. It is
clarified that if any money stands paid to respondent No.1, the same shall not be
subject to any recovery.
18. The appeal is allowed, however, in the circumstances, there will be no order
as to costs. Pending application (s), if any, shall stand disposed of.
……………… ……………………. ………….J
(SANJAY KAROL)
……………………………….. ……………….J
(NONGMEIKAPAM KOTISWAR SINGH)
New Delhi;
July 29, 2026
In a significant ruling, the Supreme Court of India has provided crucial clarity on Motor Vehicles Act Interpretation, specifically addressing Reach Stacker Liability. This judgment, 2026 INSC 763, is now prominently featured on CaseOn, offering essential insights for legal professionals and students navigating the complexities of motor vehicle classifications.
This appeal, Civil Appeal No. 10526 of 2024, originated from a challenge to a High Court judgment that had overturned a Motor Accident Claims Tribunal (MACT) decision. The core dispute revolved around whether a 'Reach Stacker' operating within an Inland Container Depot (ICD) qualifies as a 'motor vehicle' under the Motor Vehicles Act, 1988 (MVA), thereby attracting compensation liability under Section 166 of the Act. The MACT had ruled in the negative, but the High Court reversed this, leading to the present appeal by Container Corporation of India Limited.
The central question before the Supreme Court was whether a Reach Stacker, a heavy-duty machine used for lifting and stacking containers, should be classified as a 'motor vehicle' as defined under Section 2(28) of the MVA, especially when it operates within the confines of an Inland Container Depot (ICD).
The Court's analysis hinged on the interpretation of two key provisions of the MVA:
The incident occurred on September 5, 2013, when Rishi Ranjan Mishra, respondent no.1, was hit by a Reach Stacker at an Inland Container Depot (ICD) in Tughlakabad, New Delhi, resulting in severe injuries and amputation of his right leg. He sought Rs. 75 lakhs in compensation.
The appellant contended that the ICD is an 'enclosed premises' and not a 'public place.' They highlighted that the roads within the ICD are specially constructed to handle the immense weight of Reach Stackers (71.8 metric tonnes unladen, 102 metric tonnes at full capacity), making them unsuitable for regular roads. This weight significantly exceeds the maximum permissible weights notified by the Ministry of Road Transport and Highways (e.g., 49 tonnes for rigid vehicles, 55 tonnes for semi-articulated). Therefore, the Reach Stacker falls under the exclusionary clause of Section 2(28).
The respondent argued that the ICD, spanning approximately 10 sq. km with interconnecting roads accessible to authorized personnel, constitutes a 'public place.' They asserted that the Reach Stacker, being mechanically propelled, mounted on tires and chassis, and capable of movement, should qualify as a motor vehicle, irrespective of its specialized use.
The Court meticulously examined the definition of 'public place' under Section 2(34) MVA. Citing Tarachand Logistic Solutions Ltd. v. State of A.P., the Court emphasized that access to the public is paramount. Given that ICDs are custom-bonded areas with restricted entry for authorized personnel only, they cannot be considered places where the public has a 'right of access.' Thus, the roads within the ICD were deemed not to constitute a 'public place.'
Referring to Bolani Ores Ltd. v. State of Orissa, the Court reiterated that 'adapted for use' means 'suitable for use' or 'fit for use' on roads. While a Reach Stacker is mechanically propelled and on wheels, its excessive weight (far exceeding permitted road limits) makes it inherently unsuitable for plying on regular public roads. The argument that it would damage such roads was given weight, indicating it's not 'adapted' for general road use.
Drawing from Goodyear India Ltd. v. Union of India, the Court stressed that the definition's emphasis is on the 'principal or dominant use' upon roads, not merely incidental movement. A Reach Stacker's primary function is within specialized, enclosed premises, and its design reflects this. Its transportation often requires dismantling, further underscoring its unsuitability for general road use.
The Court found strong parallels with Ultratech Cement Ltd. v. State of Gujarat. This judgment highlighted that Section 2(28) explicitly excludes vehicles of a 'special type adapted for use only in a factory or in any other enclosed premises.' The Court concluded that despite potentially meeting some initial criteria of a 'motor vehicle,' the Reach Stacker, by its very nature, specialized design, and restricted use within the ICD, falls squarely within this exclusionary part of the definition. It noted that prior judgments which did not specifically consider this exclusion were therefore distinguishable.
For legal professionals seeking swift understanding of such intricate rulings, CaseOn.in's 2-minute audio briefs offer an invaluable resource, distilling complex legal analyses into concise, digestible formats, perfect for busy schedules.
The appellant also pointed to a notification from the Joint Transport Commissioner and Secretary, RTA Hyderabad, stating that Reach Stackers are not motor vehicles and thus do not require registration under Section 39 of the MVA. The Court upheld this, stating that if a vehicle is not a motor vehicle, the requirement for registration does not apply.
After a thorough analysis, the Supreme Court allowed the appeal. It set aside the judgment of the High Court of Delhi and restored the findings of the Motor Accident Claims Tribunal. This means the Reach Stacker, in this specific context, is not classified as a 'motor vehicle' under the MVA, and therefore, the compensation claim under Section 166 of the MVA cannot be sustained. The Court clarified that any compensation already paid to the respondent would not be subject to recovery.
This Supreme Court judgment offers critical guidance for lawyers, judges, and law students on:
Understanding these nuances is vital for accurate legal advice, litigation strategy, and academic study in motor vehicle law and industrial safety regulations.
All information provided in this article is for informational purposes only and does not constitute legal advice. Readers should consult with a qualified legal professional for advice regarding any specific legal issue or case.
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