Allahabad High Court
Upgrid Solutions Pvt.Ltd. Thru. Auth. ... vs State Of U.P. Transport Deptt. Thru. ... on 28 October, 2025
HIGH COURT OF JUDICATURE AT ALLAHABAD, LUCKNOW BENCH
Neutral Citation No. - 2025:AHC-LKO:66839-DB
HIGH COURT OF JUDICATURE AT ALLAHABAD
LUCKNOW
WRIT - C No. - 4912 of 2025
Upgrid Solutions Pvt.Ltd. Thru. Auth. Representative Mr. Devendra Singh (Sr. Manager) And Another
.....Petitioner(s)
Versus
State Of U.P. Transport Deptt. Thru. Transport Commissioner Lko And Another
.....Respondent(s)
Counsel for Petitioner(s)
:
Siddharth Nandwani
Counsel for Respondent(s)
:
C.S.C.
Court No. - 3
HON'BLE SHEKHAR B. SARAF, J.
HON'BLE PRASHANT KUMAR, J.
1. Heard learned counsel for the parties.
2. This is an application under Article 226 of the Constitution of India wherein the writ petitioners are aggrieved by the action of the authorities in impounding the lithium-ion batteries owned by the petitioners and with the subsequent order made on the representation of the petitioners. Such order was passed on 26.05.2025 wherein the application of the petitioners for return of the lithium-ion batteries was rejected by respondent No.2.
3. Mr. Siddharth Nandwani, learned counsel appearing on behalf of the petitioners has relied on the judgment of the petitioners' own case passed by Delhi High Court in M/S Upgrid Solutions Private Limited and anr. vs. Govt. of NCT of Delhi and others : W.P. (C) 12992/2024 wherein the court has dealt with the very same issue that is before us today. The Delhi High Court has relied on the notification dated 12.08.2020 issued by Ministry of Road, Transport and Highways (MoRTH) which reads as follows:-
"No, RT 11036/72/2017-MVL
Government of India
Ministry of Road Transport and Highways
(MVL Section)
Transport Bhawan, 1, Parliament street, New Delhi 110001
Dated: 12th August, 2020
To, I. The Principal Secretaries/Secretaries, Department of Transport of all the States and Union Territories,
II. The Transport Commissioners of nil the States and Union Territories.
Subject: Sale and Registration of Electric Vehicles without batteries-reg
Sir/Madam,
The Government Is striving to create an ecosystem to accelerate the uptake of electric mobility In the country. It Is time to come together to work Jointly to achieve the broader national agenda to reduce vehicular pollution and oil Import bill. This will not only protect the environment and reduce the oil Import bill but also provide opportunities to sun rise Industry 2 promotion of electrical two wheelers and three wheeler vehicles, there are recommendations brought to the notice of the Ministry to delink the cost of battery (which accounts for 30-40% of the total cost) from the vehicle cost. Vehicles could then also be sold. In the market without the battery. This will make the upfront cost of the electrical 2 wheeler (2W) and 3 wheelers (3W) to be lower than ICE 2W and 3W. The battery could be provided separately by the OEM or the energy service provider.
3. Attention Is drawn to the relevant FORMS under Central Motor Vehicles Rules, 1989, viz. FORM 21 (Sale certificate), FORM 22 (Road worthiness certificate Issued by the manufacturer) and FORM-22A (Road worthiness certificate Issued for Motor vehicles where fabrication of the body Is done separately), required for the registration of Motor Vehicles under Rule 47 (Application for registration of Motor Vehicles), clearly specify Engine number/Motor number (In case of battery operated vehicles).
4. The prototype of the electrical vehicle, and the battery (regular battery or the swappable battery) is required to be type approved by the test Agencies specified under Rule 126 of the Central Motor Vehicles Rules, 1989.
5. In view of the above, It Is clarified that vehicles without batteries can be sold and registered based on the type approval certificate Issued by the Test Agency. It is further clarified that there Is no need to specify the Make/Type or any other details of the Battery for the purpose of Registration.
Yours Faithfully Dr. Piyush Jain Director (MVL)"
[Emphasis Added]"
4. Upon due consideration to the aforesaid notification, the Delhi High Court has come to the conclusion that the lithium-ion batteries are not inherently and patently connected with e-rickshaws. It is clear from the government policy that e-rickshaws may be sold without the lithium-ion batteries and the owner of the e-rickshaws are allowed to take on lease lithium-ion batteries for running the said vehicle.
5. From a perusal of the factual matrix, it is clear that the petitioners are involved in leasing out of lithium-ion batteries to the e-rickshaw owners. In the present case, some of the e-rickshaws have been impounded by the authorities due to plying the said vehicle without proper documents and/or registration and in contravention to the rules and regulations. The Delhi High Court in M/S Upgrid Solutions Private Limited (supra) upon examining the entire policy followed by the petitioners has come to the following conclusion:-
"20. In sum, the Court finds that the Petitioner is entitled to reclaim the Lithium-ion batteries leased out by them to the e-rickshaw owners. These batteries, clearly identified as leased property under specific agreements, were never owned by the e-rickshaw operators whose unregistered vehicles have been impounded. The Respondents' decision to segregate these batteries from the impounded vehicles reflects a recognition of this distinct ownership. Consequently, upon the Petitioner furnishing the requisite documents to substantiate their ownership, the batteries must be returned to them."
6. We are at consensus ad idem with the view taken by the Delhi High Court in M/S Upgrid Solutions Private Limited (supra) and accordingly are passing similar directions in this matter. The order dated 26.05.2025 passed by respondent No.2 on the representation of the petitioners is quashed and set aside and the writ petition is allowed with following directions:-
6.1 The Petitioners shall file an undertaking before this Court, unequivocally stating that henceforth they will lease or supply their Lithium-ion batteries only to e-rickshaw owners who can furnish proof of valid registration and fitness certification.
6.2 The Petitioners' representative shall appear before the concerned Sub-Divisional Magistrate, along with the requisite documentation for proving their ownership of the batteries. After verification of the documents, the Petitioners shall be allowed to inspect the batteries recovered by the Respondents, in order to identify those batteries which were leased out by them under the specific leasing agreements/contracts. For this purpose, the counsel for the Respondent shall co-ordinate with the counsel for the Petitioners to intimate a date and time for such inspection.
6.3 The identification of the recovered batteries shall be done by the Petitioners' representative and in presence of the Respondents. After the inspection and the identified batteries shall be released to the Petitioners within a period of two weeks from today.
(Prashant Kumar,J.) (Shekhar B. Saraf,J.)
October 28, 2025
Saurabh Yadav/-
