In Brief
The Supreme Court heard contempt petitions alleging that M/s. Utsav Safety Systems Pvt. Ltd. violated Rule 50 of the Motor Vehicles Rules and Court orders by manufacturing High Security Registration Plates (HSRP) at unauthorized units in Assam through outsourcing, rather than at its approved Bilaspur facility. Over 5.7 million plates were manufactured without proper certification or control. Although the Court found a prima facie violation, it declined to initiate contempt proceedings against officials, given M/s. Utsav's undertaking to cease such practices. However, the Court issued detailed binding directions requiring strict compliance: manufacturers must not outsource core manufacturing; all processes must occur in approved facilities under direct control; testing agencies must inspect and certify plates before factory release; and States may independently pursue action for breach of contract.
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