Hero MotoCorp moves Supreme Court seeking extension of BS 4 deadline

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Two-wheeler company Hero MotoCorp has approached the Supreme Court seeking extension of the deadline for sale or registration of BS 4 vehicles by three months.

  In an interlocutory application filed at the top court, the company has cited the recent developments due to the coronavirus outbreak and the effective aforce majeure’ clause for the request to extend the March 31 deadline.

  “In view of the completely unforeseen developments that have arisen out of the prevailing force majeure situation on account of Covid-19, we have prayed for an extension of time for a period of three months, as this has hampered all aspects of our industry,” the company said in a regulatory filing on Friday.

  “The Ministry of Finance has also declared that the Covid-19 should be considered as a case of natural calamity and force majeure be invoked,” it added. Force majeure refers to a clause that is included in contracts to remove liability for natural and unavoidable catastrophes that interrupt the expected course of events and restrict participants from

fulfilling obligations.

  Companies and dealers have been facing difficulty in clearing the BS 4 stock and the coronavirus outbreak has worsened the situation. Hero MotoCorp’s move comes days after the Federation of Automobile Dealers Associations (FADA) made a similar plea at the

apex court.

FADA had filed an application in the Supreme Court earlier as well with the request for an extension of registering BS 4 vehicles in the wake of huge unsold inventory and slowing sales. That application was, however, rejected by the court on February 14.

  The Society of Automobile Manufacturers (SIAM) had also on March 16, approached the Supreme Court seeking directions for ensuring sale and registration of BS 4 vehicles are allowed till the cut-off date of March 31, 2020. Rajan Wadhera, president, SIAM, said, “Some state governments have recently issued circulars directing that no application for registration of BS 4 vehicles would be accepted on or after certain dates, which are much ahead of March 31, 2020. These circulars have put customers, dealers and vehicle manufacturers in severe discomfort as each of them are racing against time to exhaust the BS 4 stocks which are with the dealers.”

  According to SIAM, the cut-off dates ranges from February 29, 2020 to March 25, 2020 from state to state, though the BS 6 emission compliance is mandated from April 1, 2020.

  The Supreme Court has directed that no BS 4 vehicle will be sold or registered from April 1, 2020. IANS