Hero MotoCorp moves SC, seeks deadline extension of BS-IV sale

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-IV stock and the coronavirus outbreak has worsened the situation.

Hero MotoCorp's move comes days after 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-IV 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 Indian Automobile Manufacturers (SIAM) on Monday said that it has approached the Supreme Court seeking directions for ensuring sale and registration of BS-IV vehicles are allowed till the cut-off date of March 31, 2020.

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

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