In what is set to have significant ramifications for forklift owners, India’s Kerala High Court has ruled that forklifts and cranes used only within a private premises qualify as “motor vehicles” and must therefore be registered and motor vehicle tax paid on them.

Justice Mohammed Nias C.P delivered his ruling stating Section 2(28) of the Motor Vehicles Act 1988 as he dismissed a case by a company based in Ernakulam which was challenging a directive from the Motor Vehicles Department to register its two forklifts and hydraulic forklift.

The company, Natural Wood & Veneers, claimed that as the equipment was used exclusively for materials handling within its factory premises and was never on public roads, it did not fall under the Motor Vehicles Act.

The Motor Vehicle Department contended that as the vehicles are roadworthy and the factory premises are accessible to workers and visitors, the premises constitute a public place under the Act.

As such, registration, insurance and taxes must be paid to ensure access to adequate compensation in the case of an accident.

Agreeing with the Motor Vehicle Department, the court ruled the term motor vehicle covered any mechanically propelled vehicle adapted for use on roads.

“The legal principles consistently affirmed by the Apex Court and various High Courts further reinforce this position,” the court states.

“Roadworthiness and adaptability, and not the actual use on roads, is the determinative test for whether a machine falls within the definition of a motor vehicle; exclusive use inside factory premises, port areas or enclosed compounds does not take such machinery outside the definition if it is capable of being used on public roads.”

“…any machinery reasonably suitable for use on public roads remains a motor vehicle notwithstanding the claim that it is intended or designed for off-road or factory use.”