Supreme Court upholds the validity of certain provisions of two state laws of Kerala

Supreme Court upholds the validity of certain provisions of two state laws of Kerala

The Supreme Court upheld the constitutional validity of certain provisions of two state laws of Kerala which mandated production od receipt of remittance of welfare fund contribution by transport vehicles owners at the time of paying vehicle tax before the taxation officer.

It was held that the two provisions of the Kerala Motor Vehicles Taxation (Amendment) Act and one section of the Kerala Motor Transport Workers' Welfare Fund Act, 2005, which deals with the collection of money for transport workers welfare were not incompatible with the 1998 Central law, the Motor Vehicle Act, and hence constitutionally valid.

"It is beyond comprehension that the vehicle owner/permit-holder can be heard to argue that he would not pay the dues under the 1985 Act and, yet, would continue with the business of motor transport as usual in the State of Kerala by exploiting the workers on the specious plea that the validity of the permit to operate transport vehicle cannot be interdicted under a State legislation..."

"The liability of the vehicle owner/permit-holder to pay welfare fund contribution as well as to pay vehicle tax arises under the legislation enacted by the State Legislature. As such, there is nothing wrong in State Legislature making it compulsory to pay outstanding welfare fund contribution first before accepting the vehicle tax which had become due and payable," the bench opined.

The present issue arose after a series of appeal to the top court against the order of the High Court upholding the validity of the provisions of the two state laws.