The Motor Vehicle Act 1988

THE MOTOR VEHICLES ACT, 1988
(59 OF 1988)
(14 Oct. 1988)

An Act to consolidate and amend the law relating to motor vehicles.
Be it enacted by parliament in the Thirty-ninth Year of the Republic of India
as follows : -
Statement of objects and Reasons.
- The motor vehicles Act, 1939 ( 4 of
1939), consolidates and amends the law relating to motor vehicles. This has
been amended several times to keep it up to date. The need was, however, felt
that this Act should, now
inter alia
, take into account also changes in the road
transport technology, pattern of passenger and freight movements, developments,
of the road network in the country and particularly the improved techniques in
the motor vehicles management.
2. Various Committees, like, National Transport Policy Committee,
National Police Commission, Road Safety Committee, Low Powered Two –
Wheelers Committee, as also the Law Commission have gone into different
aspects of road transport. They have recommended updating, simplification and
rationalization of this law. Several Members of Parliament have also urged for
comprehensive review of the Motor Vehicles Act, 1939, to make it relevant to
the modern – day requirements.
3. A Working Group was, therefore, constituted in January, 1984 to
review all the provisions of the Motor Vehicles Act, 1939 and to submit draft
proposals for a comprehensive legislation to replace the existing Act. This
Working Group took into account the suggestions and recommendations earlier
made by various bodies and institutions like Central Institute of Road Transport
(CIRT), Automotive Research Association of India (ARAI), and other transport
organisations including, the manufacturers and the general public, Besides,
obtaining comments of State Governments on the recommendations of the
Working Group, these were discussed in a specially convened meeting of
Transport Ministers of all States and Union territories. Some of the more
important modifications so suggested related for taking care of -

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(a) the fast increasing number of both commercial vehicles and
personal vehicles in the country ;
(b) the need for encouraging adoption of higher technology in
automotive sector;
(c) the greater flow of passenger and freight with the least
impediments so that islands of isolation are not created leading to regional or
local imbalances;
(d) concern for road safety standards, and pollution-control measures,
standards for transportation of hazardous and explosive materials;
(e) simplification of procedure and policy liberalization’s for private
sector operations in the road transport field ; and
(f) need for effective ways of tracking down traffic offenders.
4. The Supreme Court in
M. K. Kunhimohammed v. P. A. Ahmedkutty
(1987)
4 S.C.C. 284, has made certain suggestions to raise the limit of
compensation payable as a result of motor accidents in respect of death and
permanent disablement in the event of there being no proof of fault on the
part of the person involved in the accident and also in hit and run motor
accidents and to remove certain disparities in the liability of the insurer to pay
compensation depending upon the class or type of vehicles involved in the
accident. The above suggestions made by the Supreme Court have been
incorporated in the Bill.
5. The proposed legislation has been prepared in the light of the
above background. Some of the more important provisions of the Bill provide
for the following matters, namely :-
(a) rationalization of certain definitions with additions of certain new
definitions of new types of vehicles;
(b) stricter procedures relating to grant of driving licences and the
period of validity thereof;
(c) laying down of standards for the components and parts of motor
vehicles;
(d) standards for anti-pollution control devices;

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(e) provision for issuing fitness certificates of vehicles also by the
authorised testing stations;
(f) enabling provision for updating the system of registration marks;
(g) liberalised schemes for grant of stage carriage permits on non-
nationalised routes, all-India Tourist permits and also national permits for goods
carriages;
(h) administration of the Solatium Scheme by the General Insurance
Corporation;
(i) provision for enhanced compensation in cases of “no fault
liability” and in hit and run motor accidents;
(j) provision for payment of compensation by the insurer to the
extent of actual liability to the victims of motor accidents irrespective of the
class of vehicles;
(k) maintenance of State registers for driving licences and vehicle
registration;
(l) constitution of Road Safety Councils.
6. The Bill also seeks to provide for more deterrent punishment in
the cases of certain offences.
7. The Notes on clauses explain the provisions of the Bill.
Amendment Act 54 of 1994 - Statement of Objects and Reasons. -
The
Motor Vehicles Act, 1988 (59 of 1988) consolidated and rationalised various
laws regulating road transport. The Act came into force with effect from 1
st
July, 1989 replacing the Motor Vehicles Act, 1939.
2. After the coming into force of the Motor Vehicles Act, 1988,
Government received a number of representations and suggestions from the state
govt. transport operators and members of public regarding the inconvenience faced
by them because of the operation of some of the provisions of the 1988 Act.
A Review Committee was, therefore, constituted by the Government in March,
1990 to examine and review the 1988 Act.
3. The recommendations of the Review Committee were forwarded to
the State Governments for comments and they generally agree with these

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recommendations. The Government also considered a large number of
representations received, after finalisation of the Report of the Review
Committee, from the transport operators and public for making amendments in
the Act. The draft of the proposals based on the recommendation of the
Review Committee and representations from the public were placed before the
Transport Development Council for seeking their views in the matter. The
important suggestions made by the Transport Development Council relate to, or
are on account of, -
(a) The introduction of newer type of vehicles and fast
increasing number of both commercial and personal vehicles in the country.
(b) Providing adequate compensation to victims of road
accidents without going into longdrawn procedure;
(c) Protecting consumers’ interest in Transport Sector;
(d) Concern for road safety standards, transport of hazardous
chemicals and pollution control;
(e) Delegation of greater powers to State Transport Authorities
and rationalising the role of public authorities in certain matters;
(f) The simplification of procedures and policy liberalisation in
the field of Road Transport;
(g) Enchancing penalties for traffic offenders.
4. Therefore, the proposed legislation has been prepared in the light
of the above background. The Bill
inter alia
provides for –
(a) modification and amplification of certain definitions of new
type of vehicles ;
(b) simplification of procedure for grant of driving licences;
(c) putting restrictions on the alteration of vehicles;
(d) certain exemptions for vehicles running on non-polluting
fuels;
(e) ceilings on individuals or company holdings removed to
curb “benami” holdings;

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(f) states authorised to appoint one or more State Transport
Appellate Tribunals;
(g) punitive checks on the use of such components that do not
conform to the prescribed standards by manufactures, and also stocking / sale
by the traders;
(h) increase in the amount of compensation of the victims of
hit and run cases;
(i) removal of time limit for filling of application by road
accident victims for compensation;
(j) punishment in case of certain offences is made stringent;
(k) a new pre-determined formula for payment of compensation
to road accident victims on the basis of age / income, which is more liberal
and rational.
5. The Law Commission in its 119
Report had recommended that
th
every application for a claim be made to the Claims Tribunal having jurisdiction
over the area in which the accident occurred or to the Claims Tribunal within
the local limits of whose jurisdiction the claimant resides or carries on business
or within the local limits of whose jurisdiction the defendant resides, at the
option of the claimant. The bill also makes necessary provision to give effect
to the said recommendation.
Amendment Act 27 of 2000 – Statement of Objects and Reasons. –
The
Motor Vehicles Act, 1988 consolidated and rationalised various laws regulating
road transport. The said Act was amended in 1994.
2. Further amendments in the aforesaid Act have become necessary
so as to reduce the vehicular pollution and to ensure the safety of the road
users. It is, therefore, proposed to prohibit alteration of vehicles in any manner
including change of tyres of higher capacity. However, the alteration of
vehicles with a view to facilitating the use of eco-friendly fuel including
Liquefied Petroleum Gas (LPG) is being permitted. Further, it is proposed to
confer powers on the Central Government to allow the alteration of vehicles
for certain specified purposes.

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3. At present, the educational institutions are not required to obtain
permits for the operation of buses owned by them. It is proposed to bring
the buses run by these institutions within the purview of the aforesaid Act by
requiring them to obtain permits.
4. It is also proposed to allow renewal of permits, driving licences
and registration certificates granted under the Motor Vehicles Act, 1939 to be
renewed under the Motor Vehicles Act, 1988, by inserting new section 217 – A.
5. The proposed amendments are essential in the overall interest of
securing road safety and maintaining a clean environment.
Amendment Act 39 of 2001 -
Statement of Objects and Reasons. –
The
Motor Vehicles Act, 1988 (59 of 1988) is a Central legislation through which the
road transport is regulated in the country. By the Motor Vehicles (Amendment )
Act, 1994,
inter alia,
amendments were made for make special provisions under
sections 66 & 67 so as to provide that vehicles operating on eco–friendly fuels
shall be exempted from the requirements of permits and also the owners of
such vehicles shall have the discretion to fix fares and freights for carriage of
passengers and goods. The intention in bringing the said amendments was to
encourage the operation of vehicles with such eco-friendly fuels.
2. However, it has been observed that during the last several years,
not only the supply of eco-friendly fuels like CNG has increased tremendously,
a large number of vehicles have come on the road which in terms of sections
66 and 67, as amended by the Motor Vehicles ( Amendment) Act, 1994, are
operating without any requirement of permits and are, therefore, not subject to
any control of the State Governments. The number of such vehicles is likely
to further increase substantially.
3. The aforesaid situation is likely to lead to indiscipline on the road
and consequent increase in the road accidents. It is, therefore, considered essential
to remove exemption provided under sections 66 and 67 of the said Act to
CNG operated vehicles so that vehicles which operate on eco-friendly fuels are
also covered by the terms and conditions applicable to all other vehicles.

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4. The proposed amendments are essential in the overall interest of
securing road safety and maintaining a clean environment.
5. The Bill seeks to achieve the above object.
CHAPTER - I
PRELIMINARY
1.
Short title, extent and commencement. –
(1) This Act may be
called The Motor Vehicles Act, 1988.
(2) It extends to the whole of India.
(3) It shall come into force on such date* as the Central Government
may, by notification in the Official Gazette, appoint, and different dates may be
appointed for different States and any reference in this Act to the
commencement of this Act shall, in relation to a State, be construed as a
reference to the coming into force of this Act in that State.
2. Definitions.
– In this Act, unless the context otherwise requires, -
(1) “area”, in relation to any provision of this Act, means such
area as the State Government may, having regard to the requirements of that
provision, specify by notification in the Official Gazette;
(2) “articulated vehicle” means a motor vehicle to which a
semi-trailer is attached;
Corresponding Law.
–
Section 2(2) corresponds to section 2(1-A) of the
Motor Vehicles Act, 1939.
(3) “axle weight” means in relation to an axle of a vehicle the
total weight transmitted by the several wheels attached to that axle to the
surface on which the vehicle rests;
Corresponding Law.
–
Section 2(3) corresponds to section 2(1-B) of the
Motor Vehicles Act, 1939.
(4) “certificate of registration” means the certificate issued by a
competent authority to the effect that a motor vehicle has been duly registered
in accordance with the provisions of Chapter IV;
Corresponding Law.
–
Section 2(4) corresponds to section 2(2) of the
Motor Vehicles Act, 1939.
* Brought into force on 1
July, 1989.
s t

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(5) “conductor”, in relation to a stage carriage, means a person
engaged in collecting fares from passengers, regulating their entrance into,
or exit from, the stage carriage and performing such other functions as may be
prescribed;
Corresponding Law.
–
Section 2(5) corresponds to section 2(2-B) of the
Motor Vehicles Act, 1939.
(6) “conductor’s licence” means the licence issued by a
competent authority under Chapter III authorising the person specified therein to
act as a conductor;
Corresponding Law.
–
Section 2(6) corresponds to section 2(2-C) of the
Motor Vehicles Act, 1939.
(7) “contract carriage” means a motor vehicle which carries a
passenger or passengers for hire or reward and is engaged under a contract,
whether expressed or implied, for the use of such vehicle as a whole for the
carriage of passengers mentioned therein and entered into by a person with a
holder of a permit in relation to such vehicle or any person authorised by him
in this behalf on a fixed or an agreed rate or sum –
(a) on a time basis, whether or not with reference to any
route or distance; or
(b) from one point to another,
and in either case, without stopping to pick up or set down passengers not
included in the contract anywhere during the journey, and includes –
(i) a maxicab; and
(ii) a motorcab notwithstanding that separate fares
are charged for its passengers;
Corresponding Law.
–
Section 2(7) corresponds to section 2(3) of the
Motor Vehicles Act, 1939.
(8) “dealer” includes a person who is engaged –
(a) 1[ * * * ]
1. Sub.-Cl. (a) omitted by Act 54 of 1994, S. 2 ( w.e.f. 14-11-1994 ). Prior to its omission, sub-
Cl.(a) read as under :-
“(a) in the manufacture of motor vehicles ; or”.

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(b) in building bodies for attachment to chassis;
(c) or in the repair of motor vehicles; or
(d) in the business of hypothecation, leasing or hire-purchase of motor
vehicle;
Corresponding Law.
- Section 2(8) corresponds to section 2(4) of the Motor
Vehicle Act, 1939.
(9) “driver” includes, in relation to a motor vehicle which is drawn
by another motor vehicle, the person who acts as a steersman of the drawn vehicle;
Corresponding Law.
- Section 2(9) corresponds to section 2(5) of the Motor
Vehicles Act, 1939.
(10) “driving licence” means the licence issued by a competent
authority under Chapter II authorising the person specified therein to drive, otherwise
than as a learner, a motor vehicle or a motor vehicle of any specified class or
description;
Corresponding Law.
- Section 2(10) corresponds to section 2(5-A) of the Motor
Vehicles Act, 1939.
(11) “educational institution bus” means an omnibus, which is owned
by a college, school or other educational institution and used solely for the purpose of
transporting students or staff of the educational institution in connection with any of
its activities;
Corresponding Law
.- This is a new provision in the 1998 Act.
(12) “fares” includes sums payable for a season ticket or in respect of
the hire of a contract carriage;
- Section 2 (12) corresponds to section 2 (6) of the Motor
Corresponding Law.
Vehicles Act, 1939.
(13) “goods” includes livestock, and anything ( other than equipment
ordinarily used with the vehicle ) carried by a vehicle except living persons, but does
not include luggage or personal effects carried in a motor car or in a trailer attached to
a motor car or the personal luggage of passengers travelling in the vehicle;

10
Corresponding Law.
- Section 2 (13) corresponds to section 2 (7) of the Motor
Vehicles Act, 1939.
(14) “goods carriage” means any motor vehicle constructed or adapted
for use solely for the carriage of goods, or any motor vehicle not so constructed or
adapted when used for the carriage of goods;
Corresponding Law.
- Section 2 (14) corresponds to secti0n 2 (8) of the Motor
Vehicles Act, 1939.
(15) “gross vehicle weight” means in respect of any vehicle the total
weight of the vehicle and load certified and registered by the registering authority as
permissible for that vehicle;
Corresponding Law.
- This is a new provision in the 1988 Act.
(16) “heavy goods vehicle” means any goods carriage the gross
vehicle weight of which, or a tractor or a road-roller the unladen weight of either of
which, exceeds 12,000 kilograms;
Corresponding Law
.- Section 2 (16) corresponds to section 2 (9) of the Motor
Vehicles Act, 1939.
(17) “heavy passenger motor vehicle” means any public service
vehicle or private service vehicle or educational institution bus or omnibus the gross
vehicle weight of any of which, or a motor car the unladen weight of which, exceeds
12,000 kilograms.
Corresponding Law.
- Section 2 (17) corresponds to section 2 (9-A) of the
Motor Vehicles Act, 1939.
(18) “invalid carriage” means a motor vehicle specially designed and
constructed, and not merely adapted, for the use of a person suffering from some
physical defect or disability, and used solely by or for such a person;
Corresponding Law.
- Section 2 (18) corresponds to section 2 (10) of the Motor
Vehicles Act, 1939.
(19) “learner’s licence’ means the licence issued by a competent
authority under Chapter II authorising the person specified therein to drive as a

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learner, a motor vehicle or a motor vehicle of any specified class or description;
Corresponding Law.
- This is a new provision in the 1988 Act.
(20) “licensing authority” means an authority empowered to issue
licence under Chapter II or, as the case may be, chapter III ;
Corresponding Law.
- Section 2 (20) corresponds to section 2 (12) of the
Motor Vehicles Act, 1939.
(21) “light motor vehicle” means a transport vehicle or omnibus the
gross vehicle weight of either of which or a motor car or tractor or road-roller the
unladen weight of any of which, does not exceed
[7500] kilograms ;
2
Corresponding Law.
- Section 2 (21) corresponds to section 2 (13) of the
Motor Vehicles Act, 1939.
[(21-A) “manufacturer” means a person who is engaged in the
3
manufacture of motor vehicles ;]
Corresponding Law
.- This is a new provision in the 1988 Act.
(22) “maxicab” means any motor vehicle constructed or adapted to
carry more than six passengers, but not more than twelve passengers, excluding the
driver, for hire or reward ;
Corresponding Law.
- This is a new provision in the 1988 Act.
(23) “medium goods vehicle” means any goods carriage other than a
light motor vehicle or a heavy goods vehicle ;
Corresponding Law.
- Section 2 (23) corresponds to section 2 (14) of the
Motor Vehicles Act, 1939.
(24) “medium passenger motor vehicle” means any public service
vehicle or private service vehicle, or educational institution bus other than a motor
cycle, invalid carriage, light motor vehicle or heavy passenger motor vehicle ;
2. Substituted for “6000” by Act 54 of 1994, S.2.(w.e.f. 14-11-1994).
3. Inserted, ibid (w.e.f. 14-11-1994).

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Corresponding Law.
- Section 2 (24) corresponds to section 2 (14-A) of the
Motor Vehicles Act, 1939.
3. “motorcab” means any motor vehicle constructed or adapted to carry
not more than six passengers excluding the driver for hire or reward ;
Corresponding Law.
- Section 2 (25) corresponds to section 2 (15) of the
Motor Vehicles Act, 1939.
(25) “motor car” means any motor vehicle other than a transport
vehicle, omnibus, road-roller, tractor, motor cycle or invalid carriage ;
Corresponding Law.
- Section 2 (26) corresponds to section 2 (16) of the
Motor Vehicles Act, 1939.
(26) “motor cycle” means a two-wheeled motor vehicle, inclusive of
any detachable side-car having an extra wheel, attached to the motor vehicle;
Corresponding Law.
- Section 2 (27) corresponds to section 2 (17) of the
Motor Vehicles Act, 1939.
(28) “motor vehicle” or “vehicle” means any mechanically propelled
vehicle adapted for use upon roads whether the power of propulsion is transmitted
thereto from an external or internal source and includes a chassis to which a body has
not been attached and a trailer ; but does not include a vehicle running upon fixed rails
or a vehicle of a special type adapted for use only in a factory or in any other enclosed
premises or a vehicle having less than four wheels fitted with engine capacity of not
exceeding
4
[twenty-five cubic centimeters] ;
Corresponding Law.
- Section 2 (28) corresponds to section 2 (18) of the
Motor Vehicles Act, 1939.
Tractor-trailer.
- A Division Bench of the Punjab and Haryana High Court in
United India Insurance Company Ltd. v. Pritpal Singh (1996-2) 113 Punj. L.R. 49
held that even though trailer may be drawn by a motor vehicle if by if self is a motor
vehicle and both the Tractor & Trailer taken together would constitute a transport
vehicle.
4. Substituted for “thirty-five cubic centimetres” by Act 54 of 1994,S.2 (w.e.f.14-11-1994)

13
(29) “omnibus” means any motor vehicle constructed or adapted to
carry more than six persons excluding the driver ;
Corresponding Law.
- Section 2 (29) corresponds to section 2 (18-A) of the
Motor Vehicles Act, 1939.
(30) “owner” means a person in whose name a motor vehicle stands
registered and where such person is a minor, the guardian of such minor, and in
relation to a motor vehicle which is the subject of a hire-purchase, agreement, or an
agreement of lease or an agreement of hypothecation, the person in possession of the
vehicle under that agreement ;
Corresponding Law.
- Section 2 (30) corresponds to section 2 (19) of the Motor
Vehicles Act, 1939.
(31) “permit” means a permit issued by a State or Regional Transport
Authority or an authority prescribed in this behalf under this Act authorising the use of
motor vehicle as a transport vehicle ;
Corresponding Law.
- Section 2 (31) corresponds to section 2 (20) of the
Motor Vehicles Act, 1939.
(32) “prescribed” means prescribed by rules made under this Act;
Corresponding Law.
- Section 2 (32) corresponds to section 2 (21) of the
Motor Vehicles Act, 1939.
(33) “private service vehicle” means a motor vehicle constructed or
adapted to carry more than six persons excluding the driver and ordinarily used by or
on behalf of the owner of such vehicle for the purpose of carrying persons for, or in
connection with, his trade or business otherwise than for hire or reward but does not
include a motor vehicle used for public purposes ;
- Section 2 (33) corresponds to section 2 (22) of the
Corresponding Law.
Motor Vehicles Act, 1939.
(34) “public place” means a road, street, way or other place, whether a
thoroughfare or not, to which the public have a right of access, and includes any place
or stand at which passengers are picked up or set down by a stage carriage ;

14
Corresponding Law.
- Section 2 (34) corresponds to section 2 (24) of the
Motor Vehicles Act, 1939.
(35) “public service vehicle” means any motor vehicle used or adapted
to be used for the carriage of passengers for hire or reward, and includes a maxicab, a
motorcab, contract carriage, and stage carriage ;
Corresponding Law.
- Section 2 (35) corresponds to section 2 (25) of the
Motor Vehicles Act, 1939.
(36) “registered axle weight” means in respect of the axle of any
vehicle, the axle weight certified and registered by the registering authority as
permissible for that axle;
Corresponding Law.
- Section 2 (36) corresponds to section 2 (26) of the
Motor Vehicles Act, 1939.
(37) “registering authority” means an authority empowered to register
motor vehicles under Chapter IV ;
Corresponding Law.
- Section 2 (37) corresponds to section 2 (28) of the
Motor Vehicles Act, 1939.
(38) “route” means a line of travel which specifies the highway which
may be traversed by a motor vehicle between one terminus and another ;
Corresponding Law.
- Section 2 (38) corresponds to section 2 (28-A) of the
Motor Vehicles Act, 1939.
[(39) “semi-trailer” means a vehicle not mechanically propelled ( other
5
tan a trailer ), which is intended to be connected to a motor vehicle and which is so
constructed that a portion of it is super-imposed on, and a part of whose weight is
borne by, that motor vehicle ;]
- This is a new provision in the 1988 Act.
Corresponding Law.
5. Cl. (39) substituted by Act 54 of 1994, S.2 (w.e.f. 14-11-1994). Prior to its substitution, Cl.
(39) read as under :-
“(39) ‘semi-trailer’ means a trailer drawn by a motor vehicle and so constructed that a part of
it is super-imposed on, and a part of its weight is borne by, the drawing vehicle;”.

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(40) “stage carriage” means a motor vehicle constructed or adapted to
carry more than six passengers excluding the driver for hire or reward at separate
fares paid by or for individual passengers, either for the whole journey or for stages of
the journey ;
Corresponding Law.
- Section 2 (40) corresponds to section 2 (29) of the Motor
Vehicles Act, 1939.
(41) “State Government” in relation to a Union territory, means the
Administrator thereof appointed under article 239 of the Constitution ;
Corresponding Law.
- This is a new provision in the 1988 Act.
(42) “State transport undertaking” means any undertaking providing
road transport service, where such undertaking is carried on by –
(i) the Central Government or a State Government ;
(ii) any Road Transport Corporation established under section
3 of the Road Transport Corporations Act, 1950 ;
(iii) any municipality or any corporation or company owned or
controlled by the Central Government or one or more State Governments, or by the
Central Government and one or more State Government ;
6
(iv) Zilla Parishad or any other similar local authority.
Explanation.
– For the purposes of this clause, “road transport service” means a
service of motor vehicles carrying passengers or goods or both by road for hire or
reward;
Corresponding Law.
– Section 2(42) corresponds to section 68-A(b) of the
Motor Vehicles Act, 1939.
(43) “tourist vehicle” means a contract carriage constructed or adapted
and equipped and maintained in accordance with such specifications as may be
prescribed in this behalf;
Corresponding Law.
- Section 2 (43) corresponds to section 2 (29-A) of the
Motor Vehicles Act, 1939.
6. Inserted, ibid (w.e.f. 14-11-1994).

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(44) “tractor” means a motor vehicle which is not itself constructed to
carry any load (other than equipment used for the purpose of propulsion); but
excludes a road-roller;
Corresponding Law.
- Section 2 (44) corresponds to section 2 (30) of the Motor
Vehicles Act, 1939.
(45) “traffic signs” includes all signals, warning sign posts, direction
posts, markings on the road or other devices for the information, guidance or direction
of drivers of motor vehicles ;
Corresponding Law.
- Section 2 (45) corresponds to section 2 (31) of the Motor
Vehicles Act, 1939.
(46) “trailer” means any vehicle, other than a semi-trailer and a side-
car, drawn or intended to be drawn by a motor vehicle ;
Corresponding Law.
- Section 2 (46) corresponds to section 2 (32) of the
Motor Vehicles Act, 1939.
(47) “transport vehicle” means a public service vehicle, a goods
carriage, an educational institution bus or a private service vehicle ;
Corresponding Law.
- Section 2 (47) corresponds to section 2 (33) of the
Motor Vehicles Act, 1939.
(48) “unladen weight” means the weight of a vehicle or trailer
including all equipment ordinarily used with the vehicle or trailer when working, but
excluding the weight of a driver or attendant; and where alternative parts or bodies are
used the unladen weight of the vehicle means the weight of the vehicle with the
heaviest such alternative part or body ;
Corresponding Law.
- Section 2 (48) corresponds to section 2 (34) of the
Motor Vehicles Act, 1939.
(49) “weight” means the total weight transmitted for the time being
by the wheels of a vehicle to the surface on which the vehicle rests.
Corresponding Law.
- This is a new provision in the 1988 Act.

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CHAPTER II
LICENSING OF DRIVERS OF MOTOR VEHICLES
3. Necessity for driving licence.
- (1) No person shall drive a motor
vehicle in any public place unless he holds an effective driving licence issued to him
authorising him to drive the vehicle ; and no person shall so drive a transport vehicle
[other than
[ a motorcab or motor cycle] hired for his own use or rented under
7
any scheme made under sub - section (2) of section 75] unless his driving licence
specifically entitles him so to do.
(2) The conditions subject to which sub-section (1) shall not apply to a
person receiving instructions in driving a motor vehicle shall be such as may be
prescribed by the Central Government.
Corresponding Law.
- Section 3 (1) corresponds to section 3 (1) of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 3, sub-clause (1), provides for the need to have a
licence to drive a motor vehicle & a special authorisation to drive a transport vehicle.
Sub-clause (2) empowers the Central Government to prescribe conditions
subject to which a vehicle may be driven by a person receiving instructions in driving.
4. Age limit in connection with driving of motor vehicles.
– (1) No
person under the age of eighteen years shall drive a motor vehicle in any public place:
Provided that
[a motor cycle with engine capacity not exceeding 50 cc] may
8
by driven in a public place by a person after attaining the age of sixteen year.
(2) Subject to the provisions of section 18, no person under the age of
twenty years shall drive a transport vehicle in any public place.
(3) No learner’s licence or driving licence shall be issued to any person to
drive a vehicle of the class to which he has made an application unless he is eligible to
drive that class of vehicle under this section.
7. Substituted for “a motorcab” by Act 54 of 1994, S.3 (w.e.f. 14-11-1994).
8. Substituted for “a motor cycle without gear” by Act 54 of 1994, S. 4 ( w.e.f. 14-11-
1994).

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Corresponding Law.
- Section 4 corresponds to section 4 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 4 provides that a person who has completed
sixteen years of age may drive a motor cycle without gear. To drive a motor vehicle
other than a transport vehicle, the person must have completed eighteen years of age
and to drive a transport vehicle a person must have completed twenty year of age. This
clause seeks to prohibit the issue of a licence to drive a motor cycle or a motor vehicle
to those persons who do not satisfy the above age requirements.
5. Responsibility of owners of motor vehicles for contravention of
sections 3 and 4.
- No owner or person in charge of a motor vehicle shall cause or
permit any person who does not satisfy the provisions of section 3 section 4 to drive
the vehicle.
Corresponding Law.
- Section 5 corresponds to section 5 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 5 prohibits the owner or person in charge of a
motor vehicle permitting any person who does not satisfy the age requirement to drive
the vehicle.
6. Restrictions on the holding of driving licences.
- (1) No person
shall, while he holds any driving licence for the time being in force, hold any other
driving licence except a learner’s licence or a driving licence issued in accordance
with the provisions of section 18 or a document authorising, in accordance with the
rules made under section 139, the person specified therein to drive a motor vehicle.
(2) No holder of a driving licence or a learner’s licence shall permit it to be
used by any other person.
(3) Nothing in this section shall prevent a licensing authority having the
jurisdiction referred to in sub-section (1) of section 9 from adding to the classes of
vehicles which the driving licence authorises the holder to drive.
Corresponding Law.
- Section 6 corresponds to section 6 of the Motor
Vehicles Act, 1939.

19
Objects and Reasons.
- Clause 6 seeks to impose certain restrictions on the
holding of driving licences by certain persons.
7. Restrictions on the granting of learner’s licences for certain
vehicles.
-
9
[(1) No person shall be granted a learner’s licence to drive a transport
vehicle unless he has held a driving licence to drive a light motor vehicle for at least
one year.]
(2) No person under the age of eighteen years shall be granted a learner’s
licence to drive motorcycle without gear except with the consent in writing of the
person having the care of the person desiring the learner’s licences.
Corresponding Law.
- This is a new provision in the 1988 Act.
Objects and Reasons.
-Clause 7 prescribes certain minimum driving experience
in light motor vehicle before a person becomes qualified to drive a medium or heavy
passenger motor vehicle or goods carriages. This clause also prohibits the grant of
licence to drive a motor cycle without gear to any person who has completed sixteen
years of age without production of a consent letter from the guardian.
8. Grant of learner’s licence.
- (1) Any person who is not disqualified
under section 4 for driving a motor vehicle and who is not for the time being
disqualified for holding or obtaining a driving licence may, subject to the provisions
of section 7, apply to the licensing authority having jurisdiction in the area –
(i) in which he ordinarily resides or carries on business, or
(ii) in which the school or establishment referred to in section 12
from where he intends to receive instruction in driving a motor vehicle is situate, for
the issue to him of a learner’s licence.
9. Sub-S. (1) substituted by Act 54 of 1994, S. 5 (w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (1) read as under .-
“(1) No person shall be granted a learner’s licence :-
(a) to drive a heavy goods vehicle unless he has held a driving licence for at least
two years to drive a light motor vehicle or for at least one year to drive a medium goods vehicle;
(b) to drive a heavy passenger motor vehicle unless he has held a driving licence
for at least two years to drive a light motor vehicle or for at least one year to drive a medium
passenger motor vehicle ;
(c)
to drive a medium goods vehicle or a medium passenger motor vehicle unless
he has held a driving licence for at least one year to drive a light motor vehicle.”

20
(2) Every application under sub-section (1) shall be in such form and shall
be accompanied by such documents and with such fee as may be prescribed by
the Central Government.
(3) Every application under sub-section (1) shall be accompanied by a
medical certificate in such form as may be prescribed by the Central Government and
signed by such registered medical practitioner, as the State Government or any person
authorised in this behalf by the State Government may, by notification in the Official
Gazette, appoint for this purpose.
[ Provided that no such medical certificate is required for licence to drive a
10
vehicle other than a transport vehicle.]
(4) If, from the application or from the medical certificate referred to in sub-
section (3) it appears that the applicant is suffering from any disease or disability
which is likely to cause the driving by him of a motor vehicle of the class which he
would be authorised by the learner’s licence applied for to drive to be a source of
danger to the public or to the passengers, the licensing authority shall refuse to issue
the learner’s licence;
Provided that a learner’s licence limited to driving an invalid carriage may be
issued to the applicant, if the licensing authority is satisfied that he is fit to drive such
a carriage.
(5) No ,learner’s licence shall be issued to any applicant unless he passes to
the satisfaction of the licensing authority such test as may be prescribed by the Central
Government.
(6) When an application has been duly made to the appropriate licensing
authority and the applicant has satisfied such authority of his physical fitness under
sub-section (3) and has passed to the satisfaction of the licensing authority the test
referred to in sub-section (5) the licensing authority shall, subject to the provisions of
section 7, issue the applicant a learner’s licence unless the applicant is disqualified
under section 4 for driving a motor vehicle or is for the time being disqualified for
holding or obtaining a licence to drive a motor vehicle.
10. Added by Act 54 of 1994, S. 6 ( w.e.f. 14-11-1994 ).

21
Provided that a licensing authority may issue a learner’s licence to drive a
motor cycle or a light motor vehicle notwithstanding that it is not the appropriate
licensing authority, if such authority is satisfied that there is good reason for the
applicant’s inability to apply to the appropriate licensing authority.
(7) Where the Central Government is satisfied that it is necessary or
expedient so to do, it may, by rules made in this behalf, exempt generally, either
absolutely or subject to such conditions as may be specified in the rules, any class of
persons from the provisions of sub-section (3) or sub-section (5), or both.
(8) Any learner’s licence for driving a motor cycle in force immediately
before the commencement of this Act shall, after such commencement, be deemed to
be effective for driving a motor cycle with or without gear.
Corresponding Law.
- This is a new provision in the 1988 Act.
Objects and Reasons.
- Clause 8 lays down the procedure in making an
application for the grant of learner’s licence. A pass in the test on the rules on the road
and a strict medical test are pre-conditions for the issue of the learner’s licence. This
clause, however, seeks to empower the Central Government to exempt any class of
persons from the above tests.
9. Grant of driving licence.
- (1) Any person who is not for the time
being disqualified for holding or obtaining a driving licence may apply to the
licensing authority having jurisdiction in the area –
(i) in which he ordinarily resides or carries on business, or
(ii) in which the school or establishment referred to in section 12
from where he is receiving or has received instruction in driving a motor vehicle is
situated,
for the issue to him of a driving licence.
(2) Every application under sub-section (1) shall be in such form and shall
be accompanied by such fee and such documents as may be prescribed by the Central
Government.

22
11
[(3) If the applicant passes such test as may be prescribed by the Central
Government, he shall be issued the driving licence :
Provided that no such test shall be necessary where the applicant produces
proof to show that –
(a) (i) the applicant has previously held a driving licence to drive such class of
vehicle and that the period between the date of expiry of that licence and the date of
the application does not exceed five years, or
(ii) the applicant holds or has previously held a driving licence to drive such
class of vehicle issued under section 18, or
11. Sub-S. (3) substituted by Act 54 of 1994, S. 7 (w.e.f. 14-11-1994). Prior to its substitution,
sub-S. (3) read as under :-
“(3) No driving licence shall be issued to any applicant unless he passes to the satisfaction of
the licensing authority such test of competence to drive as may be prescribed by the Central
Government :
Provided that, where the application is for a driving licence to drive a motor cycle or a light
motor vehicle, the licensing authority shall exempt the applicant from the test of competence
prescribed under this sub-section, if the licensing authority is satisfied :
(a) (i) that the applicant has previously held a driving licence and that the period between
the date of expiry of that licence and the date of such application does not exceed five years ; or
(ii)that the applicant holds or has previously held a driving licence issued under
section 18 ; or
(ii)that the applicant holds a driving licence issued by a competent authority of any
country outside India ; and
(b) that the applicant is not suffering from any disease or disability which is likely to
cause the driving by him of a motor cycle or, as the case may be, a light motor vehicle to be a source
of danger to the public ; and as the licensing authority may for that purpose require the applicant to
produce a medical certificate in the same form and in the same manner as is referred to in sub-section
(3) of section 8:
Provided further that where the application is for a driving licence to drive a motor vehicle (
not being a transport vehicle), the licensing authority may exempt the applicant from the test of
competence to drive prescribed under this sub-section, if the applicant possesses a driving certificate
issued by an automobile association recognised in this behalf by the State Government.”

23
(iii) the applicant holds a driving licence to drive such class of vehicle
issued by a competent authority of any country outside India, subject to the
condition that the applicant complies with the provisions of sub-section (3) of section
8,
(b) the applicant is not suffering from any disability which is likely to cause
driving by him to be a source of danger to the public ; and the licensing authority may,
for that purpose, require the applicant to produce a medical certificate in the same
form and in the same manner as is referred to in sub-section (3) of section 8 :
Provided further that where the application is for a driving licence to drive a
motor vehicle (not being a transport vehicle), the licensing authority may exempt the
applicant from the test of competence to drive a vehicle prescribed under this sub-
section, if the applicant possesses a driving certificate issued by any institution
recognised in this half by the State Government.]
(4) Where the application is for a licence to drive a transport vehicle, no such
authorisation shall be granted to any applicant unless he possesses such minimum
educational qualification as may be prescribed by the Central Government and a
driving certificate issued by a school or establishment referred to in section 12.
[(5) Where the applicant does not pass the test, he may be permitted to re-
12
appear for the test after a period of seven days :
Provided that where the applicant does not pass the test even after three
appearances, he shall not be qualified to re-appear for such test before the expiry of a
period of sixty days from the date of last such test.]
(6) The test of competence to drive shall be carried out in a vehicle of the
type to which the application refers:
12. Sub-S. (5) substituted by Act 54 of 1994, S. 7 ( w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (5) reads as under :-
“(5) Where the applicant does not pass to the satisfaction of the licensing authority the test of
competence to drive under sub-S. (3), he shall not be qualified to re-appear for such test, -
(a) in the case of first three such tests, before a period of one month from the date of last
such test ; and
(b)
in the case of such test after the first three tests, before a period of one year from the
date of last such test.”

24
Provided that a person who passed a test in driving a motor cycle with gear
shall be deemed also to have passed a test in driving a motor cycle without gear.
(7) When any application has been duly made to the appropriate
licensing authority and the applicant has satisfied such authority of his
Competence to drive, the licensing authority shall issue the applicant a driving
licence unless the applicant is for the time being disqualified for holding or obtaining
a driving licence :
Provided that a licensing authority may issue a driving licence to drive a motor
cycle or a light motor vehicle notwithstanding that it is not the appropriate licensing
authority :
Provided further that the licensing authority shall not issue a new driving
licence to the applicant, if he had previously held a driving licence, unless it is
satisfied that there is good and sufficient reason for his inability to obtain a duplicate
copy of his former licence.
(8) If the licensing authority is satisfied, after giving the applicant an
opportunity of being heard, that he –
(a) is a habitual criminal or a habitual drunkard ; or
(b) is a habitual addict to any narcotic drug or psychotropic substance
within the meaning of the Narcotic Drugs and Psychotropic Substances Act, 1985 ( 61
of 1985 ) ; or
(c) is a person whose licence to drive any motor vehicle has, at any time
earlier, been revoked,
It may for reasons to be recorded in writing, make an order refusing to issue a
driving licence to such person and any person aggrieved by an order made by a
licensing authority under this sub-section may, within thirty days of the receipt of the
order, appeal to the prescribed authority.
(9) Any driving licence for driving a motor cycle in force immediately
before the commencement of this Act shall, after such commencement, be deemed to
be effective for driving a motor cycle with or without gear.

25
Corresponding Law.
- Sub-sections (1),(2),(3),(6) and (7) of section 9
correspond to sub-sections (1),(2),(6), (7) and (8) respectively, of section 7 of the
Motor Vehicles Act, 1939. However, sub-sections (4),(5),(8) and (9) of section9, are
new provisions.
Objects and Reasons.
- Clause 9 sets out the procedures in the grant of driving
licences. A pass in the test of competence to drive a motor vehicle of the type to which
the application refers, is a pre-condition for the grant of driving licence. This clause
also seeks to empower the Central Government to exempt certain class of persons
from the test of competence to drive. This clause also seeks to impose a condition that
applicants for licence to drive a transport vehicle should produce alongwith the
application a driving certificate from a recognised driving institution. It also provides
the circumstances under which a licensing authority may refuse to issue a driving
licence.
10. Form and contents of licences to drive.
- (1) Every learner’s
licence and driving licence, except a driving licence issued under section 18, shall be
in such form and shall contain such information as may be prescribed by the Central
Government.
(2) A learner’s licence or as the case may be, driving licence shall also be
expressed as entitling the holder to drive a motor vehicle of one or more of the
following classes, namely :-
(a) motor cycle without gear;
(b) motor cycle with gear ;
(c) invalid carriage ;
(d) light motor vehicle ;
[(e) transport vehicle ;]
13
13. Substituted for sub-Cls. (e) to (h) by Act 54 of 1994, S. 8 (w.e.f. 14-11-1994). Prior to
their substitution, sub-Cls. (e) to (h) read as under :-
“(e) Medium goods vehicle ;
(f) medium passenger motor vehicle ;
(g) heavy goods vehicle ;
(h)
heavy passenger motor vehicle ;”

26
(i) road-roller ;
(ii) motor vehicle of a specified description.
Corresponding Law.
- Section 10 corresponds to section 8 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 10 empowers the Central Government to
prescribe the form of learner’s licence and the form of driving licence.
11. Additions to driving licence.
- (1) Any person holding a driving
licence to drive any class or description of motor vehicles, who is not for the time
being disqualified for holding or obtaining a driving licence to drive any other class or
description of motor vehicles, may apply to the licensing authority having jurisdiction
in the area in which he resides or carries on his business in such form and
accompanied by such documents and with such fees as may be prescribed by the
Central Government for the addition of such other class or description of motor
vehicles to the licence.
(2) Subject to such rules as may be prescribed by the Central government,
the provisions of section 9 shall apply to an application under this section as if the said
application were for the grant of a licence under that section to drive the class or
description of motor vehicles which the applicant desires to be added to his licence.
Corresponding Law.
- Section 11 corresponds to section 8-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 11 makes provisions for the addition of another
class of motor vehicle to any driving licence on application made by the holder of the
licence, and lays down the procedure in making the application.
12. Licensing and regulation of schools or establishments for
imparting instruction in driving of motor vehicles.
- (1) The Central
Government may make rules for the purpose of licensing and regulating, by the State
Governments, schools or establishments ( by whatever name called ) for imparting
instruction in driving of motor vehicles and matters connected therewith.
(2) In particular, and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely :-

27
(a) licensing of such schools or establishments including grant, renewal
and revocation of such licences;
(b) supervision of such schools or establishments ;
(c) the form of application and the form of licence and the particulars to
be contained therein ;
(d) fee to be paid with the application for such licences ;
(e) conditions subject to which such licences may be granted ;
(f) appeals against the orders of refusal to grant or renew such licences
and appeals against the orders revoking such licences ;
(g) conditions subject to which a person may establish and maintain any
such school or establishment for imparting instruction in driving of motor vehicles;
(h) nature, syllabus and duration of course or courses for efficient
instruction in driving any motor vehicle ;
(i) apparatus and equipments ( including motor vehicles fitted with dual
control ) required for the purpose of imparting such instruction ;
(j) suitability of the premises at which such schools or establishments
may be established or maintained and facilities to be provided therein ;
(k) qualifications, both educational and professional ( including
experience ), which a person imparting instruction in driving a motor vehicle shall
possess ;
(l) inspection of such schools and establishments ( including the
services rendered by them and the apparatus, equipments and motor vehicles
maintained by them for imparting such instruction ) ;
(m) maintenance of records by such schools or establishments ;
(n) financial stability of such schools or establishments ;
(o) the driving certificates, it any, to be issued by such schools or
establishments and the form in which such driving certificates shall be issued and the

28
requirements to be complied with for the purposes of issuing such certificates ;
(p) such other matters as may be necessary to carry out the purposes
of this section.
(3) Where the Central Government is satisfied that it is necessary or
expedient so to do, it may, by rules made in this behalf, exempt generally, either
absolutely or subject to such conditions as may be specified in the rules, any class of
schools or establishments imparting instruction in driving of motor vehicles or matters
connected therewith from the provisions of this section.
(4) A school or establishment imparting instruction in driving of motor
vehicles or matters connected therewith immediately before the commencement of
this Act, whether under a licence or not may continue to impart such instruction
without a licence issued under this Act for a period of one month from such
commencement, and if it has made an application for such licence under this Act
within the said period of one month and such application is in the prescribed form,
contains the prescribed particulars and is accompanied by the prescribed fee, till the
disposal of such application by the licensing authority.
Corresponding Law.
- This is a new provision in the 1988 Act.
Objects and Reasons.
- Clause 12 confers upon the Central Government the
power to make rules for the licensing of driving schools by the State Government for
imparting instruction in driving motor vehicle. The rules provide for the qualifications
of the instructors of the driving schools, conditions subject to which the licences may
be granted, the authorities to grand the licence, appellate authorities, etc., the time
within which the existing establishments, if any, should apply for the licence. It also
empowers the Central Government to exempt any persons or establishments from the
operation of the provision of this clause.
13. Extent of effectiveness of licences to drive motor vehicles.
- A
learner’s licence or a driving licence issued under this Act shall be effective
throughout India.
Corresponding Law.
- Section 13 corresponds to section 9(1) of the Motor
Vehicles Act, 1939.

29
Objects and Reasons.
- Clause 13 specified the extent of validity of a learner’s
licence and a driving licence. The licences are to be valid throughout India.
14. Currency of licences to drive motor vehicles.
- (1) A learner’s
licence issued under this Act shall, subject to the other provisions of this Act, be
effective for a period of six months from the date of issue of the licence.
(2) A driving licence issued or renewed under this Act shall –
(a) in the case of a licence to drive a transport vehicle, be effective
for a period of three years :
[*]
14
[Provided that in the case of licence to drive a transport vehicle carrying
15
goods of dangerous or hazardous nature be effective for a period of one year and
renewal thereof shall be subject to the condition that the driver undergoes one day
refresher course of the prescribed syllabus ; and ]
(b) in the case of any other licence -
(i) if the person obtaining the licence, either originally or on
renewal thereof, has not attained the age of
16
[ fifty years ] on the date of issue or, as
the case may be, renewal thereof –
(A) be effective for a period of twenty years from the
date of such issue or renewal ; or
(B) until the date on which such person attains the age
of
17
[ fifty years ], whichever is earlier ;
[ (ii) if the person referred to in sub-clause (i), has
18
attained the age of fifty years on the date of issue or, as the case may be, renewal
14. The word “and” omitted by Act 54 of 1994, S.9 (w.e.f. 14-11-1994).
15. Inserted, ibid (w.e.f. 14-11-1994).
16. Substituted, ibid, for “forty years” (w.e.f. 14-11-1994).
17. Substituted, ibid, for “forty years” (w.e.f. 14-11-1994).
18. Sub-Cl. (ii) substituted by Act 54 of 1994, S. 9 (w.e.f. 14-11-1994). Prior to its
substitution, sub-Cl. (ii) read as under :-
“(ii) if the person referred to in sub-clause (i) has attained the age of forty years on
the date of issue or , as the case may be, renewal thereof, be effective, for a period of five years from
the date of such issue or renewal.”

30
thereof, be effective, on payment of such fee as may be prescribed, for a period of five
years from the date of such issue or renewal : ]
Provided that every driving licence shall, notwithstanding its expiry under this
sub-section, continue to be effective for a period of thirty days from such expiry.
Corresponding Law.
- Section 14 corresponds to section 10 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 14 lays down that a learner’s licence shall be
valid for six months. It also provides that in respect of persons who have not attained
40 years of age, the issue and renewal of driving licence, to drive non-transport
vehicle, shall be for 20 year or until the date on which the holder attains 40 years of
age, whichever is earlier and in respect of persons who have attained 40 years of age,
for every 5 years. The issue and renewal of driving licence to drive transport vehicle
will be for 3 years and the driving licence shall be deemed to continue to be effective
for 30 days after the date of its expiry.
15. Renewal of driving licences.
- (1) Any licensing authority may, on
application made to it, renew a driving licence issued under the provisions of this Act
with effect from the date of its expiry :
Provided that in any case where the application for the renewal of a licence is
made more than thirty days after the date of its expiry, the driving licence shall be
renewed with effect from the date of its renewal :
Provided further that where the application is for the renewal of a licence to
drive a transport vehicle or where in any other case the applicant has attained the age
of forty years, the same shall be accompanied by a medical certificate in the same
form and in the same manner as is referred to in sub-section (3) of section 8, and the
provisions of sub-section (4) of section 8 shall, so far as may be apply in relation to
every such case as they apply in relation to a learner’s licence.
(2) An application for the renewal of a driving licence shall be made in such
form and accompanied by such documents as may be prescribed by the Central
Government.
(3) Where an application for the renewal of a driving licence is made

31
previous to, or not more than thirty days after the date of its expiry, the fee payable for
such renewal shall be such as may be prescribed by the Central Government in
this behalf.
(4) Where an application for the renewal of a driving licence is made more
than thirty days after the date of its expiry, the fee payable for such renewal shall be
such amount as may be prescribed by the Central government :
Provided that the fee referred to in sub-section (3) may be accepted by the
licensing authority in respect of an application for the renewal of a driving licence
made under this sub-section if it is satisfied that the applicant was prevented by good
and sufficient cause from applying within the time specified in sub-section (3) :
Provided further that if the application is made more than five years after the
driving licence has ceased to be effective, the licensing authority may refuse to renew
the driving licence, unless the applicant undergoes and passess to its satisfaction the
test of competence to drive referred to in sub-section (3) of section 9.
(5) Where the application for renewal has been rejected, the fee paid shall
be refunded to such extent and in such manner as may be prescribed by the Central
Government.
(6) Where the authority renewing the driving licence is not the authority
which issued the driving licence it shall intimate the fact of renewal to the authority
which issued the driving licence.
Corresponding Law.
- Sub-section (1),(2),(3),(4),(5) and (6) of section 15
corresponds to sub-section (1),(2),(3),(3-A)(3-B) and (4), respectively, of section 11
of the Motor Vehicles Act, 1939.
Objects and Reasons.
- clause 15 provides that if the application for renewal
of driving licence is made within 30 days of its expiry, it shall be renewed from the
date of its expiry and application for renewal made after 30 days and before 5 years of
its expiry, it shall be renewed from the date of such renewal. Application for renewal
of driving licence to drive transport vehicle and application for renewal of driving
licence to drive non-transport vehicle from persons who have attained 45 years of age
shall be accompanied by a medical certificate.

32
16. Revocation of driving licence on grounds of disease or
disability
. - Notwithstanding anything contained in the foregoing sections, any
licensing authority may at any time revoke driving licence or may require, as a
condition of continuing to hold such driving licence, the holder thereof to produce a
medical certificate in the same form and in the same manner as is referred to in sub-
section (3) of section 8, if the licensing authority has reasonable grounds to believe
that the holder of the driving licence is, by virtue of any disease or disability, unfit to
drive a motor vehicle and where the authority revoking a driving licence is not the
authority which issued the same, it shall intimate the fact of revocation to the authority
which issued that licence.
Corresponding Law.
- Section 16 corresponds to section 12 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 16 seeks to empower the licensing authorities to
revoke the driving licences if the holder of driving licence is found medically unfit to
drive by virtue of any disease or disability.
17. Orders refusing or revoking driving licences and appeals there
form.
- (1) Where a licensing authority refuses to issue any learner’s licence
or to issue or renew, or revokes, any driving licence, or refuses to add a class or
description of motor vehicle to any driving licence, it shall do so by an order
communicated to the applicant or the holder, as the case may be, giving the reasons in
writing for such refusal or revocation.
(2) Any person aggrieved by an order made under sub-section (1) may,
within thirty days of the service on him of the order, appeal to the prescribed authority
which shall decide the appeal after giving such person and the authority which made
the order an opportunity of being heard and the decision of the appellate authority
shall be binding on the authority which made the order.
Corresponding Law.
- Section 17 corresponds to section 13 of the Motor
Vehicles Act, 1939.

33
Objects and Reasons.
- Clause 17 requires that when the licensing authority
refuses to renew, issue or revokes a licence, it shall give its reasons in writing to
the holder of the licence. This also provides for appeal against the orders of the
licensing authority to the prescribed authority.
18. Driving licences to drive motor vehicles, belonging to the
Central Government .
- (1) Such authority as may be prescribed by the Central
Government may issue driving licence valid throughout India to persons who have
completed their eighteen year to drive motor vehicles which are the property or for the
time being under the exclusive control of the Central Government and are used for
Government purposes relating to the defence of the country and unconnected with any
commercial enterprise.
(2) A driving licence issued under this section shall specify the class or
description of vehicle which the holder is entitled to drive and the period for which he
is so entitled.
(3) A driving licence issued under this section shall not entitle the holder to
drive any motor vehicle except a motor vehicle referred to in sub-section (1).
(4) The authority issuing any driving licence under this section shall, at the
request of any State Government, furnish such information respecting any person to
whom a driving licence is issued as that Government may at any time requir e.
Corresponding Law.
- Section 18 corresponds to section 14 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 18 confers upon the Central Government the
power to prescribe the authority for the grant of driving licences to drive motor
vehicles, which are the property of the Central Government, and are used for
Government purposes relating to the defence of the country.
19. Power of licensing authority to disqualify from holding a
driving licence or revoke such licence .
- (1) If a licensing authority is satisfied,
after giving the holder of a driving licence an opportunity of being heard, that the –
(a) is a habitual criminal or a habitual drunkard ; or

34
(b) is a habitual addict to any narcotic drug or psychotropic
substance within the meaning of the Narcotic Drugs and Psychotropic Substances
Act, 1985 ; or
(c) is using or has used a motor vehicle in the commission of a
cognizable offence ; or
(d) has by his previous conduct as driver of a motor vehicle shown
that his driving is likely to be attended with danger to the public ; or
(e) has obtained any driving licence or a licence to drive a particular
class or description of motor vehicle by fraud or misrepresentation ; or
(f) has committed any such act which is likely to cause nuisance or
danger to the public, as may be prescribed by the Central Government, having regard
to the objects of this Act; or
(g) has failed to submit to, or has not passed, the tests referred to in
the proviso to sub-section (3) of section 22 ; or
(h) being a person under the age of eighteen years who has been
granted a learner’s licence or a driving licence with the consent in writing of the
person having the care of the holder of the licence and has ceased to be in such care,
it may, for reasons to be recorded in writing, make an order –
(i) disqualifying that person for a specified period for holding or
obtaining any driving licence to drive all or any classes or descriptions of vehicles
specified in the licence ; or
(ii) revoke any such licence.
(2) Where an order under sub-section (1) is made, the holder of a driving
licence shall forthwith surrender his driving licence to the licensing authority making
the order, if the driving licence has not already been surrendered, and the licensing
authority shall, -
(a) if the driving licence is a driving licence issued under this Act, keep
it until the disqualification has expired or has been removed ; or

35
(b) if it is not a driving licence issued under this Act, endorse the
disqualification upon it and send it to the licensing authority by which it was
issued ; or
(c) in the case of revocation of any licence, endorse the revocation upon
it and if it is not the authority which issued the same, intimate the fact of revocation to
the authority which issued that licence ;
Provided that where the driving licence of a person authorises him to drive
more than one class or description of motor vehicles and the order, made under sub-
section (1), disqualifies him from driving any specified class or description of motor
vehicles, the licensing authority shall endorse the disqualification upon the driving
licence and return the same to the holder.
(3) Any person aggrieved by an order made by a licensing authority under
sub-section (1) may, within thirty days of the receipt of the order, appeal to the
prescribed authority, and such appellate authority shall give notice to the licensing
authority and hear either party if so required by that party and may pass such order as
it thinks fit and an order passed by any such appellate authority shall be final.
Corresponding Law.
- Section 19 corresponds to section 15 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause19 contains provisions for the disqualification
of the holder of the licence, by the licensing authorities, for holding or obtaining
the licence for a specified period or for revoking the licence for the reasons
enumerated in this clause. It also makes provision for appeal against the orders of the
licensing authorities to the prescribed authorities.
20. Power of Court to disqualify.
- (1) Where a person is convicted of
an offence under this Act or of an offence in the commission of which a motor vehicle
was used, the Court by which such person is convicted may, subject to the provisions
of this Act, in addition to imposing any other punishment authorised by law, declare
the persons so convicted to be disqualified, for such period as the Court may specify,
from holding any driving licence to drive all classes or description of vehicles, or any
particular class or description of such vehicles, as are specified in such licence :

36
Provided that in respect of an offence punishable under section 183 no such
order shall be made for the first or second offence.
(2) Where a person is convicted of an offence under clause (c) of sub-
section (1) of section 132, section 134 or section 185, the Court convicting any person
of any such offence shall order the disqualification under sub section (I) and if the
offence is relatable to clause (c) of sub-section (1) of section 132 or section 134, such
disqualification shall be for a period of not less than one month, and if the offence is
relatable to section 185, such disqualification shall be for a period of not less than six
months.
(3) A Court shall, unless for special reasons to be recorded in writing it
thinks fit to order otherwise, order the disqualification of a person –
(a) who having been convicted of an offence punishable under section
184 is again convicted of an offence punishable under that section,
(b) who is convicted of an offence punishable under section 189, or
(c) who is convicted of an offence punishable under section 192 :
Provided that the period of disqualification shall not exceed, in the case
referred to in clause (a), five years, or, in the case referred to in clause (b), two years
or, in the case referred to in clause (c), one year.
(4) A Court ordering the disqualification of a person convicted of an offence
punishable under section 184 may direct that such person shall, whether he has
previously passed the test of competence to drive as referred to in sub-section (3) of
section 9 or not, remain disqualified until he has subsequent to the making of the order
of disqualification passed that test to the satisfaction of the licensing authority.
(5) The Court to which an appeal would ordinarily lie from any conviction
of an offence of the nature specified in sub-section (1) may set aside or vary any order
of disqualification made under that sub-section notwithstanding that no appeal would
lie against the conviction as a result of which such order of disqualification was made.
Corresponding Law.
- Sub-section (1), (2), (3), (4), and (5) of section 20
corresponds to sub-sections (1), (4), (5), (6) and (7) respectively, of section 17 of the
Motor Vehicles Act, 1939.

37
Objects and Reasons.
-Clause 20 seeks to authorise the Courts to
disqualify the holders of driving licences for a specified period on conviction under
this Act.
21. Suspension of driving licence in certain cases .
- (1) Where, in
relation to a person who had been previously convicted of an offence punishable
under section 184, a case is registered by a police officer on the allegation that such
person has, by such dangerous driving as is referred to in the said section 184, of any
class or description of motor vehicle caused the death of , or grievous hurt to, one or
more persons, the driving licence held by such person shall in relation to such class or
description of motor vehicle become suspended –
(a) for a period of six months from the date on which the case is
registered, or
(b) if such person is discharged or acquitted before the expiry of the
period aforesaid, until such discharge or acquittal, as the case may be.
(2) Where, by virtue of the provisions of sub-section (1), the driving licence
held by a person becomes suspended, the police officer, by whom the case referred to
in sub-section (1) is registered, shall bring such suspension to the notice of he Court
competent to take cognizance of such offence, and thereupon, such Court shall take
possession of the driving licence, endorse the suspension thereon and intimate the fact
of such endorsement to the licensing authority by which the licence was granted or
last renewed.
(3) Where the person referred to in sub-section (1) is acquitted or
discharged, the Court shall cancel the endorsement on such driving licence with
regard to the suspension thereof.
(4) If a driving licence in relation to a particular class or description of
motor vehicles is suspended under sub-section (1), the person holding such licence
shall be debarred from holding or obtaining any licence to drive such particular class
or description of motor vehicles so long as the suspension of the driving licence
remains in force.

38
Corresponding Law.
- Section 21 corresponds to section 17-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 21 provides for automatic suspension of the
driving licence of the person who has caused the death of or grievous hurt to one or
more persons, for a period of 6 months or until the person is discharged or acquitted
by the Court, whichever is earlier.
22. Suspension or cancellation of driving licence on conviction.
- (1)
Without prejudice to the provisions of sub-section (3) of section 20 where a person,
referred to in sub-section (1) of section 21 is convicted of an offence of causing, by
such dangerous driving as is referred to in section 184 of any class or description of
motor vehicle the death of or grievous hurt to, one or more persons, the Court by
which such person is convicted may cancel, or suspend for such period as it may think
fit, the driving licence held by such person insofar as it relates to that class or
description of motor vehicle.
(2) Without prejudice to the provisions of sub-section (2) of section 20, if a
person, having been previously convicted of an offence punishable under section 185
is again convicted of an offence punishable under that section, the Court, making such
subsequent conviction, shall, by order, cancel the driving licence held by such person.
(3) If a driving licence is cancelled or suspended under this section, the
Court shall take the driving licence in its custody, endorse the cancellation or, as the
case may be, suspension, thereon and send the driving licence so endorsed to the
authority by which the licence was issued or last renewed and such authority shall, on
receipt of the licence, keep the licence in its safe custody, and in the case of a
suspended licence, return the licene to the holder thereof after the expiry of the period
of suspension on an application made by him for such return.
Provided that no such licence shall be returned unless the holder thereof has,
after the expiry of the period of suspension, undergone and passed, to the satisfaction
of the licensing authority by which the licence was issued or last renewed, a fresh test
of competence to drive referred to in sub-section (3) of section 9 and produced a

39
medical certificate in the same form and in the same manner as is referred to in sub-
section (3) of section 8.
(4) If a licence to drive a particular class or description of motor vehicles is
cancelled or suspended under this section, the person holding such a licence shall be
debarred from holding, or obtaining, any licence to drive such particular class or
description of motor vehicles so long as the cancellation or suspension of the driving
licence remains in force.
Corresponding Law.
- Section 22 corresponds to section 17-B of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 22 confers upon the Court convicting the
holders of licences for certain offences, the powers to suspend or cancel the driving
licences. It also provides for a compulsory test of competence to drive and a strict
medical test for the drivers involved in fatal accidents before the licence is returned to
the holder. Failure in any one of the two tests will entail in cancellation of the licence
under clause 19.
23. Effect of disqualification order.
- (1) A person in respect of whom any
disqualification order is made under section 19 or section 20 shall be debarred to the
extent and for the period specified in such order from holding or obtaining a driving
licence and the driving licence, if any, held by such person at the date of the order
shall cease to be effective to such extent and during such period.
(2) the operation of a disqualification order made under section 20 shall not
be suspended or postponed while an appeal is pending against such order or against
the conviction as a result of which such order is made, unless the appellate Court so
directs.
(3) Any person in respect of whom any disqualification
order has been made may at any time after the expiry of six months from the date of
the order, apply to the Court or other authority by which the order was made, to
remove the disqualification ; and the Court or authority, as the case may be, may
having regard to all the circumstances, either cancel or vary the disqualification order :

40
Provided that where the Court or other authority refuses to cancel or vary any
disqualification order under this section, a second application thereunder shall not
be entertained before the expiry of a period of three months from the date of such
refusal.
Corresponding Law.
- Section 23 corresponds to section 18 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 23 lays down that on the orders of the Courts
disqualifying the holder of the licence, the licence shall cease to be effective.
24. Endorsement.
- (1) The Court or authority making an order of
disqualification shall endorse or cause to be endorsed upon the driving licence, if any,
held by the person disqualified, particulars of the order of disqualification and of any
conviction of an offence in respect of which an order of disqualification is made ; and
particulars of any cancellation or variation of an order of disqualification made under
sub-section (3) of section 23 shall be similarly so endorsed.
(2) A Court by which any person is convicted of an offence under this Act
as may be prescribed by the Central Government, having regard to the objects of this
Act, shall, whether or not a disqualification order is made in respect of such
conviction, endorse or cause to be endorsed particulars of such conviction on any
driving licence held by the person convicted.
(3) Any person accused of an offence prescribed under sub-section (2) shall
when attending the Court bring with him his driving licence if it is in his possession.
(4) Where any person is convicted of any offence under this Act and
sentenced to imprisonment for a period exceeding three nonths, the Court awarding
the sentence shall endorse the fact of such sentence upon the driving licence of the
person concerned and the prosecuting authority shall intimate the fact of such
endorsement to the authority by which the driving licence was granted or last
renewed.
(5) When the driving licence is endorsed or caused to be endorsed by any
Court, such Court shall send the particulars of the endorsement to the licensing
authority by which the driving licence was granted or last renewed.

41
(6) Where on an appeal against any conviction or order of a Court, which
has been endorsed on a driving licence, the appellate Court varies or sets aside the
conviction or order, the appellate court shall inform the licensing authority by which
the driving licence was granted or last renewed and such authority shall amend or
cause to be amended the endorsement.
Corresponding Law.
- Sub-section 1(, (2), and (3) of section 24 corresponds to
sub-sections (1), (2) and (3), respectively, of section 19 of the Motor Vehicles Act,
1939. However, sub-sections (4), (5) and (6) of section 24 are new provisions.
Objects and Reasons.
- Clause 24 requires the Court or the Authorities making
an order of disqualification, to make entries of such disqualifications in the driving
licences held by that person.
25. Transfer of endorsement and issue of driving licence free from
endorsement.
- (1) An endorsement on any driving licence shall be transferred to
any new or duplicate driving licence obtained by the holder thereof until the holder
becomes entitled under the provisions of this section to have a driving licence issued
to him free from endorsement.
(2) Where a driving licence is required to be endorsed and the driving
licence is not in the possession of the Court or authority by which the endorsement is
to be made, then –
(a) if the person in respect of whom the endorsement is to be made is
at the time the holder of a driving licence, he shall produce the driving licence to the
Court or authority within five days, or such longer time as the Court or authority may
fix ; or
(b) if, not being then the holder of a driving licence, he subsequently
obtains a driving licence, he shall within five days after obtaining the driving licence
produce it to the Court or authority ;
and if the driving licence is not produced within the time specified, it shall, on the
expiration of such time, be of no effect until it is produced for the purpose of
endorsement.

42
(3) A person whose driving licence has been endorsed shall, if during a
continuous period of three years after such endorsement no further endorsement
has been made against him, be entitled on surrendering his driving licence and on
payment of a fee of five rupees, to receive a new driving licence free from all
endorsements :
Provided that if the endorsement is only in respect of an offence contravening
the speed limits referred to in section 112, such person shall be entitled to receive a
new driving licence free from such endorsements on the expiration of one year of the
date of the endorsement :
Provided further that in reckoning the said period of three years and one year,
respectively, and period during which the said person was disqualified for holding or
obtaining a driving licence shall be excluded.
Corresponding Law.
- Section 25 corresponds to section 20 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 25 enables the licensing authorities to transfer
the endorsements of disqualification to any new or duplicate licences issued to the
holder of the licence. It also provides for the issue of fresh driving licence free of
endorsements, if during a continuous period of three years from the last endorsement,
there has been no further orders of endorsement.
26. Maintenance of State Registers of Driving Licences.
- (1) Each
State Government shall maintain, in such form as may be prescribed by the Central
Government, a register to be known as the State Register of Driving Licences, in
respect of driving llicences issued and renewed by the licensing authorities of the
State Government, containing the following particulars, namely :-
(a) names and addresses of holders of driving licences ;
(b) licence numbers ;
(c) dates of issue or renewal of licences ;
(d) dates of expiry of licences ;
(e) classes and types of vehicles authorised to be driven ; and

43
(f) such other particulars as the Central government may prescribe.
(2) Each State government shall supply to the Central Government
a
[printed copy or copy in such other form as the Central Government may require],
19
of the State Register of Driving Licences, and shall inform the Central Government
without delay of all additions to and other amendments in such register made from
time to time.
(3) The State Register of Driving Licences shall be maintained in such
manner as may be prescribed by the State Government.
Corresponding Law.
- This is a new provision in the 1988 Act.
Objects and Reasons.
- Clause 26 contains provisions for the maintenance of a
State register of driving licences by the States in such form as may be prescribed by
the Central Government. It also provides that the State Governments shall furnish a
copy of the State register on direction by the Central Government.
27. Power of Central Government to make rules.
- The Central
Government may make rules –
(a) regarding conditions referred to in sub-section (2) of section 3 ;
(b) providing for the form in which the application for learner’s licence
may be made, the information it shall contain and the documents to be submitted with
the application referred to in sub-section (2) of section 8 ;
(c) providing for the form of medical certificate referred to in sub-
section 3 of section 8 ;
(d) providing for the particulars for the test referred to in sub-section (5)
of section 8 ;
(e) providing for the form in which the application for driving licence
may be made, the information it shall contain and the documents to be submitted with
the application referred to in sub-section (2) of section 9. ;
(f) providing for the particulars regarding test of competence to drive,
referred to in sub-section (3) of section 9 ;

44
19. Substituted for “printed copy” by Act 54 of 1994, S. 10 ( w.e.f. 14-11-1994 ).
(g) specifying the minimum educational qualifications of persons to
whom licences to drive transport vehicles may be issued under this Act and the time
within which such qualifications are to be acquired by such persons;
(h) providing for the form and contents of the licences referred to in sub-
section (1) of section 10 ;
(i) providing for the form and contents of the application referred to in
sub-section (1) of section 11 and documents to be submitted with the application and
the fee to be charged ;
(j) providing for the conditions subject to which section 9 shall apply to
an application made under section 11 ;
(k) providing for the form and contents of the application referred to in
sub-section (1) of section 15 and the documents to accompany such application under
sub-section (2) of section 15 ;
(l) providing for the authority to grant licences under sub-section (1) of
section 18 ;
(m) specifying the fees payable under sub-section (2) of section 8,
sub-section (2) of section 9 and sub-section (3) and (4) of section 15 for the grant of
learner’s licences, and for the grant and renewal of driving licences and licences for
the purpose of regulating the schools or establishments for imparting instructions in
driving motor vehicles ;
(n) specifying the acts for the purposes of clause (f) of sub-section (1) of
section 19 ;
(o) specifying the offences under this Act for the purposes of sub-section
(2) of section 24 ;
(p) to provide for all or any of the matters referred to in sub-section (1)
of section 26 ;

45
(q) any other matter which is, or has to be, prescribed by the Central
Government.
Corresponding Law.
- Section 27 corresponds to section 20-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 27 seeks to empower the Central Government
to make rules on certain matters where the Act directs the Central Government to do
so.
28. Power of State Government to make rules.
- (1) A State Government
may make rules for the purpose of carrying into effect the provisions of this Chapter
other than the matters specified in section 27.
(2) Without prejudice to the generality of the foregoing power, such rules
may provide for –
(a) the appointment, jurisdiction, control and functions of licensing
authorities and other prescribed authorities ;
(b) The conduct and hearing of appeals that may be preferred under this
chapter, the fees to be pain in respect of such appeals and the refund of such fees :
Provided that no fee so fixed shall exceed twenty-five rupees ;
(c) the issue of duplicate licences to replace licences lost, destroyed or
mutilated, the replacement of photographs which have become obsolete and the fees
to be charged therefor ;
(d) the badges and uniform to be worn by drivers of transport vehicles
and the fees to be paid in respect of badges ;
(e) the fee payable for the issue of a medical certificate under sub-
section (3) of section 8 ;
(f) the exemption of prescribed persons, or prescribed classes of
persons, from payment of all or any portion of the fees payable under this Chapter;
(g) the communication of particulars of licences granted by one
licensing authority to other licensing authorities ;

46
(h) the duties, functions and conduct of such persons to whom licences
to drive transport vehicles are issued ;
(i) the exemption of drivers of road-rollers from all or any of the
provisions of this Chapter or of the rules made thereunder ;
(j) the manner in which the State Register of Driving Licences shall be
maintained under section 26 ;
(k) any other matter which is to be, or may be, prescribed.
Corresponding Law.
- Section 28 corresponds to section 21 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 28 seeks to empower the State Government to
make rules on certain matters where the Act specifically confer the power on the State
Governments.
CHAPTER III
LICENSING OF CONDUCTORS OF STAGE CARRIAGES
29. Necessity for conductor’s licence.
- (1) No person shall act as a
conductor of a stage carriage unless he holds an effective conductor’s licence issued
to him authorising him to act as such conductor, and no person shall employ or permit
any person who is not so licensed to act as a conductor of a stage carriage.
(2) A State Government may prescribe the conditions subject to which sub-
section (1) shall not apply to a driver of a stage carriage performing the functions of a
conductor or to a person employed to act a conductor for a period not exceeding one
month.
Corresponding Law.
- Section 29 corresponds to section 21-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 29 provides for the need to have a conductor’s
licence and prohibits persons in employing as conductor, a person who is not licensed
as a conductor. It also confers upon the State Government the power to prescribe
conditions subject to which this clause shall not apply to certain persons.

47
30. Grant of conductor’s licence.
- (1) Any person who possesses such
minimum educational qualification as may be prescribed by the State Government
and is not disqualified under sub-section (1) of section 31 and who is not for the time
being disqualified for holding or obtaining a conductor’s licence may apply to the
licensing authority having jurisdiction in the area in which he ordinarily resides or
carries on business for the issue to him of a conductor’s licence.
(2) Every application under sub-section (1) shall be in such form and shall
contain such information as may be prescribed.
(3) Every application for a conductor’s licence shall be accompanied by a
medical certificate in such form as may be prescribed, signed by a registered medical
practitioner and shall also be accompanied by two clear copies of a recent photograph
of the applicant.
(4) A conductor’s licence issued under this Chapter shall be in such form
and contain such aprticulars as may be prescribed and shall be effective throughout
the State in which it is issued.
(5) The fee for a conductor’s licence and for each renewal thereof shall be
one-half of that for a driving licence.
Corresponding Law.
- Section 30 corresponds to section 21-B of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 30 lays down the procedure in making an
application for a conductor’s licence, the form of the licence and the fee.
31. Disqualifications for the grant of conductor’s licence.
- (1) No
person under the age of eighteen years shall hold, or be granted, a conductor’s
licence.
(2) The licensing authority may refuse to issue a conductor’s licence –
(a) if the applicant does not possess the minumum educational
qualification ;
(b) if the medical certificate produced by the applicant discloses that he
is physically unfit to act as a conductor ; and

48
(c) if any previous conductor’s licence held by the applicant was
revoked.
Corresponding Law.
- Section 31 corresponds to section 21-C of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- clause 31 lays down certain norms which will
constitute disqualification for the grant of conductor’s licence.
32. Revocation of a conductor’s licence on grounds of disease or
disability.
- A conductor’s licence may at any time be revoked by any licensing
authority if that authority has reasonable grounds to believe that the hold of the licence
is suffering from any disease or disability which is likely to render him permanently
unfit to hold such a licence and where the authority revoking a conductor’s licence is
not the authority which issued the same, it shall intimate the fact of such revocation to
the authority which issued that licence :
Provided that before revoking any licence, the licensing authority shall give the
person holding such licence a reasonable opportunity of being heard.
Corresponding Law.
- Section 32 corresponds to section 21-D of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 32 corresponds to clause 16.
33. Orders refusing, etc. conductor’s licences and appeals therefrom.
- (1) Where a licensing authority refuses to issue or renew, or revokes any conductor’s
licence, it shall do so by an order communicated to the applicant or the holder, as the
case may be, giving the reasons in writing for such refusal or revocation.
(2) Any person aggrieved by an order made under sub-section
( 1 ) may, within thirty days of the service on him of the order, appeal to the
prescribed authority which shall decide the appeal after giving such person
and the authority which made the order an opportunity of being heard and the
decision of the appellate authority shall be binding on the authority which made the
order.
Corresponding Law.
- Section 33 corresponds to section 21-E of the Motor
Vehicles Act, 1939.

49
Objects and Reasons .
- clause 33 corresponds to clause 17.
34. Power of licensing authority to disqualify .
- (1) If any licensing
authority is of opinion that it is necessary to disqualify the holder of a conductor’s
licence for holding or obtaining such a licence on account of hisprevious conduct as a
conductor, it may, for reasons to be recorded, make an order disqualifying that person
for a specified period, not exceeding one year, for holding or obtaining a conductor’s
licence :
Provided that before disqualifying the holder of a licence, the licensing
authority shall give the person holding such licence a reasonable opportunity of being
heard.
(2) Upon the issue of any such order, the holder of the conductor’s licence
shall forthwith surrender the licence to the authority making the order, if the licence
has not already been surrendered, and the authority shall keep the licence until the
disqualification has expired or has been removed.
(3) Where the authority disqualifying the holder of a conductor’s licence
under this section is not the authority which issued the licence, it shall intimate the
fact of such disqualification to the authority which issued the same.
(4) Any person aggrieved by an order made under sub-section (1) may,
within thirty days of the service on him of the order, appeal to the prescribed authority
which shall decide the appeal after giving such person and the authority which made
the order an opportunity of being heard and the decision of the appellate authority
shall be binding on the authority which made the order.
Corresponding Law.
- Section 34 corresponds to section 21-F of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 34 corresponds to clause 19.
35. Power of Court to disqualify.
- (1) Where any person holding a
conductor’s licence is convicted of an offence under this Act, the Court by which such
person is convicted may, in addition to imposing any other punishment authorised by

50
law, declare the person so convicted to be disqualified for such period as the Court
may specify for holding a conductor’s licence.
(2) The Court to which an appeal lies from any conviction of an offence
under this Act may set aside or vary any order of disqualification made by the Court
below, and the Court to which appeals ordinarily lie from such Court, may set aside or
vary any order of disqualification made by that Court, notwithstanding that no appeal
lies against the conviction in connection with which such order was made.
Corresponding Law.
- Section 35 corresponds to section 21-G of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 35 corresponds to clause 20.
36. Certain provisions of Chapter II to apply to conductor’s licence.
-
The provisions of sub-section (2) of section 6, section 14, 15 and 23, sub-section (1)
of section 24 and section 25 shall, so far as may be, apply in relation to a conductor’s
licence, as they apply in relation to a driving licence.
Corresponding Law.
- Section 36 corresponds to section 21-H of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 36 provides that certain provisions of Chapter II,
shall apply to conductor’s licence.
37. Savings.
- If any licence to act as a conductor of a stage carriage (by
whatever name called ) has been issued in any State and is effective immediately
before the commencement of this Act, it shall continue to be effective,
notwithstanding such commencement, for the period for which it would have been
effective, if this Act had not been passed, and every such licence shall be deemed to
be a licence issued under this Chaper as if this Chapter had been in force on the date
on which that licence was granted.
Corresponding Law.
- Section 37 corresponds to section 21-I of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 37 saves any licence to act as a conductor of a
stage carriage issued prior to the commencement of this Act.

51
38. Power of State Government to make rules.
- (1) A State
Government may make rules for the purpose of carrying into effect the provisions of
this Chapter.
(2) Without prejudice to the generality of the foregoing power, such rules
may provide for –
(a) the appointment, jurisdiction, control and functions of licensing
authorities and other prescribed authorities under this Chapter ;
(b) the conditions subject to which drivers of stage carriages performing
the functions of a conductor and persons temporarily employed to act as conductor’s
may be exempted from the provisions of sub-section (1) of section 29 ;
(c) the minimum educational qualifications of conductor’s ; their duties
and functions and the conduct of person to whom conductor’s licences are issued ;
(d) the form of application for conductor’s licences or for renewal of
such licences and the particulars it may contain ;
(e) the form in which conductor’s licences may be issued or renewed
and the particulars it may contain ;
(f) the issue of duplicate licences to replace licences lost, destroyed or
mutilated, the replacement of photographs which have become obsolete and the fees
to be charged therefor ;
(g) the conduct and hearing of appeals that may be preferred under this
Chapter, the fees to be paid in respect of such appeals and the refund of such fees :
Provided that no fee so fixed shall exceed twenty-five rupees ;
(h) the badges and uniform to be worn by conductor’s of stage carriages
and the fees to be paid in respect of such badges ;
(i) the grant of the certificates referred to in sub-section (3) of section 30
by registered medical practitioners and the form of such certificates ;

52
(j) the conditions subject to which, and the extent to which, a
conductor’s licence issued in another State shall be effective in the State ;
(k) the communication of particulars of conductor’s licences from one
authority to other authorities ; and
(l) any other matter which is to be, or may be, prescribed.
Corresponding Law.
- Section 38 corresponds to section 21-J of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 38 confers upon the State Government the
power to make rules for the purpose of giving effect to the provisions of this Chapter.
CHAPTER IV
REGISTRAION OF MOTOR VEHICLES
39. Necessity for registration .
- No person shall drive any motor vehicle
and no owner of a motor vehicle shall cause or permit the vehicle to be driven in
anypublic place or in any other place unless the vehicle is registered in accordance
with this Chapter and the certificate of registration of the vehicle has not neen
suspended or cancelled and the vehicle carries a registration mark displayed in the
prescribed manner:
Provided that nothing in this section shall apply to a motor vehicle in
possession of a dealer subject to such conditions as may be prescribed by the Central
Government.
Corresponding Law.
- Section 39 corresponds to section 22 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 39 prohibits the driving of a motor vehicle in
any public place or in any other place without registering it under the provisions of
this Chapter. It also empowers the State Government to prescribe conditions subject to
which the provisions of this clause will not apply to the motor vehicles in possession
of dealers.

53
40. Registration, where to be made.
- Subject to the provisions of section
42, section 43 and section 60, every owner of a motor vehicle shall cause
the vehicle to be registered by a registering authority in whose jurisdiction he has the
residence or place of business wherr the vehicle is normally kept.
Corresponding Law.
- Section 40 corresponds to section 23 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 40 lays down that a motor vehicle should be
registered by the registering authority in whose jurisdiction the owner of the motor
vehicle resides or where the motor vehicle is normally kept.
41. Registration, how to be made.
– (1) An application by or on behalf of
the owner of a motor vehicle for registration shall be in such form and shall be
accompanied by such documents, particulars and information and shall be made
within such period as may be prescribed by the Central Government :
Provided that where a motor vehicle is jointly owned by more persons than
one, the application shall be made by one of them on behalf of all the owners and such
applicant shall be deemed to be the owner of the motor vehicle for the purpose of this
Act.
(2) An application referred to in sub-section (1) shall be accompanied by
such fee as may be prescribed by the Central Government.
(3) The registering authority shall issue to the owner of a motor vehicle
registered by it a certificate of registration in such form and containing such
particulars and information and in such manner as may be prescribed by the Central
Government.
(4) In addition to the other particulars required to be included in the
certificate of registration, it shall also specify the type of the motor vehicle, being a
type as the Central Government may, having regard to the design, construction and
use of the motor vehicle, by notification in the Official Gazette, specify.

54
(5) The registering authority shall enter the particulars of the certificate
referred to in sub-section (3) in a register to be maintained in such form and
manner as may be prescribed by the Central Government.
(6) The registering authority shall assign to the vehicle, for display thereon,
a distinguishing mark ( in this Act referred to as the registration mark ) consisting of
one of the groups of such of those letters and followed by such letters and figures as
are allotted to the State by the Central Government from time to time by notification
in the Official Gazette, and displayed and shown on the motor vehicle in such form
and in such manner as may be prescribed by the Central Government.
(7) A certificate of registration issued under sub-section (3), whether before
or after the commencement of this Act, in respect of a motor vehicle, other than a
transport vehicle, shall, subject to the provisions contained in this Act, be valid only
for a period of fifteen years from the date of issue of such certificate and shall be
renewable.
(8) An application by or on behalf of the owner of a motor vehicle, other
than a transport vehicle, for the renewal of a certificate of registration shall be made
within such period and in such form, containing such particulars and information as
may be prescribed by the Central Government.
(9) An application referred to in sub-section (8) shall be accompanied by
such fee as may be prescribed by the Central Government.
(10) Subject to the provisions of section 56, the registering authority may, in
receipt of an application under sub-section (8), renew the certificate of registration for
a period of five years and intimate the fact to the original registering authority, if it is
not the original registering authority.
(11) If the owner fails to make an application under sub-section (1), or, as the
case may be, under sub-section (8) within the period prescribed, the resistering
authority may, having regard to the circumstances of the case, require the owner to
pay, in lieu of any action that may be taken against him under section 177, such

55
amount not exceeding one hundred rupees as may be prescribed under sub-section
(13) ;
Provided that action under section 177 shall be taken against the owner where
the owner fails to pay the said amount.
(12) Where the owner has paid the amount under sub-section (11), no action
shall be taken against him under section 177.
(13) For the purposes of sub-section (11), the State Government may
prescribe different amounts having regard to the period of delay on the part of the
owner in making an application under sub-section (1) or sub-section (8).
(14) An application for the issue of a duplicate certificate of registration shall
be made to the
20
[ last registering authority ] in such form, containing such particulars
and information alongwith such fee as may be prescribed by the Central Government.
Corresponding Law.
- Section 41 corresponds to section 24 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 41 provides the form and fee for application for
registration of motor vehicle, the form in which the certificate of registration shall be
issued by the registering authorities, the form of records in which the particulars of
vehicles registered shall be kept by the registering authorities, the distinguishing
marks and manner in which such marks consisting of letters and figures shall be
exhibited in motor vehicle. It also lays down that the certificate of registration shall be
valid for a period of 15 years and shall be renewable for a period of 5 years and the
registering authority who is competent to issue duplicate certificate of registration is
the original registering authority.
42. Special provision for registration of motor vehicles of diplomatic
officers, etc.
- (1) Where an application for registration of a motor vehicle is
made under sub-section (1) of section 41 by or on behalf of any diplomatic
officer or consular officer, then notwithstanding anything contained in sub-
section (3) or sub-section (6) of that section, the registering authority shall register the
vehicle in such manner and in accordance with such procedure as may be provided by

56
rules made in this behalf by the Central Government under sub-section (3) and shall
assign to the vehicle for display thereon a special registration mark in accordance
with the provisions contained in those rules and shall issue a certificate ( hereafter
in this
20. Substituted for “original registering authority” by Act 54 of 1994, S.14 (w.e.f. 14-11-
1994).
section referred to as the certificate of registration ) that the vehicle has been
registered under this section ; and any vehicle so registered shall not, so long as it
remains the property of any diplomatic officer or consular officer, require to be
registered otherwise under this Act.
(2) If any vehicle registered under this section ceases to be the property of
any diplomatic officer or consular officer, the certificate of registration issued under
this section shall also cease to be effective, and the provisions of sections 39 and 40
shall thereupon apply.
(3) The Central Government may make rules for the registration of motor
vehicles belonging to diplomatic officers and consular officers regarding the
procedure to be followed by the registering authority for registering such vehicles, the
form in which the certificates of registration of such vehicles are to be issued, the
manner in which such certificates of registration are to be sent to the owners of the
vehicles and the special registration to marks to be assigned to such vehicles.
(4) For the purposes of this section, “diplomatic officer” or “consular
officer” means any person who is recognised as such by the Cenrtral Government and
if any question arises as to whether a person is or is not such an officer, the decision of
the Central Government thereon shall be final.
Corresponding Law.
- Section 42 corresponds to section 24-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 42 provides procedure for registration of motor
vehicles belonging to diplomatic and consular officers. The form in which certificate
of registration for such vehicles are to be issued, the manner in which such registration

57
certificate are to be sent to the owners and the special registration marks to be
assigned to such vehicles are to be prescribed by the Central Government.
43. Temporary registration .
- (1) Notwithstanding anything contained in
section 40 the owner of a motor vehicle may apply to any registering authority or
other prescribed authority to have the vehicle temporarily registered in the prescribed
manner and for the issued in the prescribed manner of a temporary certificate of
registration and a temporary registration mark.
(2) A registration made under this section shall be valid only for a period
not exceeding one month, and shall not be renewable :
Provided that where a motor vehicle so registered is a chassis to which a body
has not been attached and the same is detained in a workshop beyond the said period
of one month for being fitted
21
[ with a body or any unforeseen circumstances
beyond the control of the owner ], the period may, on payment of such fees, if any,
as may be prescribed, be extended by such further period or
Periods as the registering authority or other prescribed authority, as the case
may be, may allow.
22
[ (3) In a case where the motor vehicle is held under hire-purchase
agreement, lease or hypothecation, the registering authority or other prescribed
authority shall issue a temporary certificate of registration of such vehicle, which shall
incorporate legibly and prominently the full name and address of the person with
whom such agreement has been entered into by the owner.]
Corresponding Law.
- Section 43 corresponds to section 25 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 43 confers power upon the registering
authorities to register a motor vehicle temporarily and the Central Government is to
prescribe the manner in which the certificate is to be issued and the manner of
exhibition of the registration marks. The registration marks will be valid for a period
not exceeding one month and on certain circumstances for such further period as the
registering authority may allow.

58
44. Production of vehicle at the time of registration.
- the registering
authority shall before proceeding to register a motor vehicle or renew the
certificate of registration in respect of a motor vehicle, other than a transport vehicle,
require the person applying for registration of the vehicle or, as the case may be, for
renewing the certificate of registration to produce the vehicle either before itself or
such authority as
21. Substituted for “with a body” by Act 54 of 1994, S. 12 (w.e.f. 14-11-1994) .
22. Inserted by Act 54 of 1994, S. 12 (w.e.f. 14-11-1994).
the State Government may be order appoint in order that the registering authority may
satisfy itself that the particulars contained in the application are true and that the
vehicle complies with the requirements of this Act and of the rules made thereunder.
Corresponding Law.
- Section 44 corresponds to section 26 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 44 seeks to empower the registering authorities
to require the person applying for registration of a motor vehicle or for the renewal of
registration of a motor vehicle to produce the vehicle for inspection to ensure that the
particulars given in the form of application are correct and the vehicles comply with
the requirements of this Act.
45. Refusal of registration or renewal of the certificate of registration.
- The registering authority may, by order, refuse to register any motor vehicle, or
renew the certificate of registration in respect of a motor vehicle ( other than a
transport vehicle), if in either case, the registering authority has reason to believe that
it is a stolen motor vehicle or the vehicle is mechanically defective or fails to comply
with the requirements of this Act or of the rules made thereunder, or if the applicant
fails to furnish particulars of any previous registration of the vehicle or furnishes
inaccurate particulars in the application for registration of the vehicle or, as the case
may be, for renewal of the certificate of registration thereof and the registering
authority shall furnish the applicant whose vehicle is refused registration, or whose
application for renewal of the certificate of registration is refused, a copy of such
order, together with the reasons for such refusal.

59
Corresponding Law.
- Section 45 corresponds to section 27 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 45 empowers the registering authorities to
refuse to register any motor vehicle or refuse to renew the certificate of registration of
a motor vehicle in certain cases and require the registering authorities to record in
writing the reason for such refusal.
46. Effectiveness is India of registration.
- Subject to the provisions of
section 47, a motor vehicle registered in accordance with this Chapter in any State
shall not require to be registered elsewhere in India and a certificate of registration
issued or in force under this Act in respect of such vehicle shall be effective
throughout India.
Corresponding Law.
- Section 46 corresponds to section 28 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 46 lays down that the certificate of registration
of a motor vehicle shall be effective throughout India.
47. Assignment of new registration mark on removal to another
State.
- (1) When a motor vehicle registered in One State has been kept in another
State, for a period exceeding twelve months, the owner of the vehicle shall, within
such period and in such form containing such particulars as may be prescribed by the
Central Government, apply to the registering authority, within whose jurisdiction the
vehicle then is, for the assignment of a new registration mark and shall present the
certificate of registration to that registering authority :
Provided that an application under this sub-section shall be accompanied –
(i) by the no objection certificate obtained under section 48, or
(ii) in a case where no such certificate has been obtained, by -
(a) the receipt obtained under sub-section (2) of section 48 ; or

60
(b) the postal acknowledgement received by the owner of the vehicle
if he has sent an application in this behalf by registered post acknowledgement
due to the registering authority referred to in section 48,
together with a declaration that he has not received any communication from such
authority refusing to grant such certificate or requiring him to comply with any
direction subject to which such certificate may be granted :
Provided further that, in a case where a motor vehicle is held under a hire-
purchase, lease or hypothecation agreement, an application under this sub-section
shall be accompanied by a no objection certificate from the person with whom such
agreement has been entered into, and the provisions of section 51, so far as may be,
regarding obtaining of such certificate from the person with whom such agreement has
been entered into, shall apply.
(2) The registering authority, to which application is made under
sub-section (1), shall after making such verification, as it thinks fit, of the returns, if
any, received under section 62, assign the vehicle a registration mark as specified in
sub-section (6) of section 41 to be displayed and shown thereafter on the vehicle and
shall enter the mark upon the certificate of registration Before returning it to the
applicant and shall, in communication with registering authority by whom the vehicle
was previously registered, arrange for the transfer of the registration of the vehicle
from the records of that registering authority to its own records.
(3) Where a motor vehicle is held under a hire-purchase or lease or
hypothecation agreement, the registering authority shall, after assigning the vehicle a
registration mark under sub-section (2), inform the person whose name has been
specified in the certificate of registration as the person with whom the registered
owner has entered into the hire-purchase or lease or hypothecation agreement (by
sending to such person a notice by registered post acknowledgement due at the
address of such person entered in the certificate of registration the fact of assignment
of the said registration mark).
(4) A State Government may make rules under section65 requiring the
owner of a motor vehicle not registered within the State, which is brought into or is

61
for the time being in the State, to furnish to the prescribed authority in the State such
information with respect to the motor vehicle and its registration as may be
prescribed.
(5) If the owner fails to make an application under sub-section (1) within
the period prescribed, the registering authority may, having regard to the
circumstances of the case, require the owner to pay, in lieu of any action that may be
taken against him under section 177, such amount not exceeding one hundred rupees
as may be prescribed under sub-section (7) :
Provided that action under section 177 shall be taken against the owner where
the owner fails to pay the said amount.
(6) Where the owner has paid the amount under sub-section (5), no action
shall be taken against him under section 177.
(7) For the purposes of sub-section (5), the State Government may prescribe
different amounts having regard to the period of delay on the part of the owner in
making an application under sub-section (1).
Corresponding Law.
- Section 47 corresponds to section 29 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 47 requires that a motor vehicle registered in
one State and kept in another State for a period exceeding 12 months shall be assigned
a new registration mark in that other State. It lays down the procedure in making the
application for assignment of new registration mark, the documents to be enclosed
with the application and the procedure to be followed by the registering authorities in
assigning the new registration mark. It also empowers the State Government to make
rules to require the owners of motor vehicles, required to be re-registered in this State,
to furnish such information as may be required.
48. No objection certificate.
- (1) The owner of a motor vehicle when
applying for the assignment of a new registration mark under sub-section (1) of
section 47, or where the transfer of a motor vehicle is to be effected in a State other
than the State of its registration, the transferor of such vehicle when reporting the

62
transfer under sub-section (1) of section 50, shall make an application in such form
and in such manner as may be prescribed by the Central Government to the
registering authority by which the vehicle was registered for the issue of a certificate
( hereafter in this section referred to as the no objection certificate), to the effect that
the registering authority has no objection for assigning a new registration mark to the
vehicle or, as the case may be, for entering the particulars of the transfer of ownership
in the certificate of registration.
(2) The registering authority shall, on receipt of an application under sub-
section (1), issue a receipt in such form as may be prescribed by the Central
Government.
(3) On receipt of an application under sub-section (1), the registering
authority may, after making such inquiry and requiring the applicant to comply with
such directions as it deems fit and within thirty days of the receipt thereof, by order in
writing, communicate to the applicant that it has granted or refused to grant the no
objection certificate :
Provided that a registering authority shall not refuse to grant the no objection
certificate unless it has recorded in writing the reasons for doing so and a copy of the
same has been communicated to the applicant.
(4) Where within a period of thirty days referred to in sub-section (3), the
registering authority does not refuse to grant the no objection certificate or does not
communicate the refusal to the applicant, the registering authority shall be deemed to
have granted the no objection certificate.
(5) Before granting or refusing to grant the no objection certificate, the
registering authority shall obtain a report in writing from the police that no case
relating to the theft of the motor vehicle concerned has been reported or is pending,
verify whether all the amounts due to Government including road tax in respect of that
motor vehicle have been paid and take into account such other factors as may be
prescribed by the Central Government.

63
23
[(6) The owner of the vehicle shall also inform at the earliest, in writing, the
registering authority about the theft of his vehicle together with the name of the
police station where the theft report was lodged, and the registering authority shall
take into account such report while disposing of any application for no objection
certification, registration, transfer of ownership or issue of duplicate registration
certificate].
Corresponding Law.
- Section 48 corresponds to section 29-A of the Motor
Vehicles Act, 1939.
.
23. Inserted by Act 54 of 1994, S. 13 (w.e.f. 14-11-1994)
Objects and Reasons.
- Clause 48prescribed that a No Objection Certificate
shall be produced alongwith an application for assignment of new registration mark or
transfer of ownership. It lays down the procedure to make application for NOC to the
registering authority, the procedure to be followed by the registering authority in
issuing the NOC and in case of refusal in granting the NOC reasons to be given in
writing by the registering authority.
49. Change of residence or place of business.
- (1) If the owner of a
motor vehicle ceases to reside or have his place of business at the address recorded in
the certificate of registration of the vehicle, he shall, within thirty days of any
such change of address, intimate in such form accompanied by such
documents as may be prescribed by the Central Government, his new address, to the
registering authority by which the certificate of registration was issued, or, if the new
address is within the jurisdiction of another registering authority, to that other
registering authority or, as the case may be, to the other registering authority in order
that the new address may be entered therein.
(2) If the owner of a motor vehicle fails to intimate his new address to the
concerned registering authority within the period specified in sub-section (1), the
registering authority may, having regard to the circumstances of the case, require the
owner to pay, in lieu of any action that may be taken against him under section 177,
such amount not exceeding one hundred rupees as may be prescribed under sub-
section (4) :

64
Provided that action under section 177 shall be taken against the owner where he
fails to pay the said amount.
(3) Where a person has paid the amount under sub-section (2), no action
shall be taken against him under section 177.
(4) For the purposes of sub-section (2), a State government may prescribe
different amounts having regard to the period of delay in intimating his new address.
(5) On receipt of intimation under sub-section (1), the registering authority
may, after making such verification as it may think fit, cause the new address to be
entered in the certificate of registration.
(6) A registering authority other than the original registering authority
making any such entry shall communicate the altered address to the original
registering authority.
(7) Nothing in sub-section (1) shall apply where the change of the address
recorded in the certificate of registration is due to a temporary absence not intended
to exceed six months in duration or where the motor vehicle is neither used nor
removed from the address recorded in the certificate of registration.
Corresponding Law.
- Section 49 corresponds to section 30 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 49 requires that the owner of a motor vehicle
shall, within 30 days, report the change of his address to the registering authority in
whose jurisdiction he has shifted his residence for recording the change of address in
the certificate of registration. Failure to do so will entail in prosecution. It also
provides that in lieu of prosecution, if the owner of the motor vehicle pays the
prescribed amount, no prosecution will be launched. It also provides that if the
temporary absence does not exceed 6 months, there is no need to report the change.
50. Transfer of ownership.
- (1) Where the ownership of any motor
vehicle registered under this Chapter is transferred. –
(a) the transferor shall, -

65
(i) in the case of a vehicle registered within the same State, within fourteen
days of the transfer, report the fact of transfer, in such form with such documents
and in such manner, as may be prescribed by the Central Government to the
registering authority within whose jurisdiction the transfer is to be effected and shall
simultaneously send a copy of the said report to the transferee ; and
(ii) in the case of a vehicle registered outside the State, within forty-five
days of the transfer, forward to the registering authority referred to in sub-clause (i)-
(A) the no objection certificate obtained under section 48 ; or
(B) in a case where no such certificate has been obtained, -
(I) the receipt obtained under sub-section (2) of section 48 ; or
(II) the postal acknowledgement received by the transferor if he
has sent an application in this behalf by registered post acknowledgement due to the
registering authority referred to in section 48,
together with a declaration that he has not received any communication from such
authority refusing to grant such certificate or requiring him to comply with any
direction subject to which such certificate may be granted ;
(b) the transferee shall, within thirty days of the transfer , report the transfer
to the registering authority within whose jurisdiction he has the residence or place of
business where the vehicle is normally kept, as the case may be, and shall forward the
certificate of registration to that registering authority together with the prescribed fee
and a copy of the report received by him from the transferor in order that particulars of
the transfer of ownership may be entered in the certificate of registration.
(2) Where –
(a) the person in whose name a motor vehicle stands registered dies,
or,
(b) a motor vehicle has been purchased or acquired at a public
auction conducted by, or on behalf of, Government,

66
the person succeeding to the possession of the vehicle or, as the case may be, who has
purchased or acquired the motor vehicle, shall make an application for the
purpose of transferring the ownership of the vehicle in his name, to the registering
authority in whose jurisdiction he has the residence or place of business where the
vehicle is normally kept, as the case may be, in such manner, accompanied with such
fee, and within such period as may be prescribed by the Central Government.
(3) If the transferor or the transferee fails to report to the registering
authority the fact of transfer within the period specified in clause (a) or clause (b) of
sub-section (1), as the case may be, or if the person who is required to make an
application under sub-section (2) ( hereafter in this section referred to as the other
person ) fails to make such application within the period prescribed, the registering
authority may, having regard to the circumstances of the case, require the transferor or
the transferee, or the other person, as the case may be, to pay, in lieu of any action that
may be taken against him under section 177 such amount not exceeding one hundred
rupees as may be prescribed under sub-section (5) :
Provided that action under section 177 shall be taken against the transferor or
the transferee or the other person, as the case may be, where he fails to pay the said
amount.
(4) Where a person has paid the amount under sub-section (3), no action
shall be taken against him under section 177.
(5) For the purposes of sub-section (3), a State Government may prescribe
different amount having regard to the period of delay on the part of the transferor or
the transferee in reporting the fact of transfer of ownership of the motor vehicle or of
the other person in making the application under sub-section (2).
(6) On receipt of a report under sub-section (1), or an application under sub-
section (2), the registering authority may cause the transfer of ownership to be entered
in the certificate of registration.

67
(7) A registering authority making any such entry shall communicate the
transfer of ownership to the transferor and to the original registering authority, if
it is not the original registering authority.
Corresponding Law.
- Section 50 corresponds to section 31 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 50 provides for recording the transfer of owner
ship of a motor vehicle in the certificate of registration by the registering authorities
when the property changes hands due to sale, or inheritance or purchase in public
auction conducted by the Government. It also lays down that if the transfer is not
reported to the registering authorities within prescribed time, the parties are liable for
prosecution and if the party pays the prescribed amount in lieu of prosecution, no
further action is to be taken.
51. Special provisions regarding motor vehicle subject to hire-
purchase agreement, etc.
- (1) Where an application for registration of a motor
vehicle which is held under a hire-purchase, lease or hypothecation agreement (
hereafter in this section referred to as the said agreement ) is made, the registering
authority shall make an entry in the certificate of registration regarding the existence
of the said agreement.
(2) Where the ownership of any motor vehicle registered under this Chapter
is transferred and the transferee enters into the said agreement with any person, the
24
[last registering authority] shall, on receipt of an application in such form as the
Central Government may prescribe from the parties to the said agreement, make an
entry as to the existence of the said agreement in the certificate of registration
25
[and
an intimation in this regard shall be sent to the original registering authority if the last
registering authority is not the original registering authority.]
(3) Any entry made under sub - section (1) or sub - section ( 2), may be
cancelled by the
26
[ last registering authority ] on proof of the termination of the said
agreement by the parties concerned on an application being made in such form as the
Central Government may prescribe
27
[ and an intimation in this behalf shall be sent to

68
the original registering authority if the last registering authority is not the original
registering authority.]
(4) No entry regarding the transfer of ownership of any motor vehicle which
is held under the said agreement shall be made in the certificate of registration except
with the written consent of the person whose name has been specified in the certificate
of registration as the person with whom the registered owner has entered into the said
agreement.
(5) Where the person whose name has been specified in the certificate of
.
24
Substituted for “original registering authority” by Act 54 of 1994, S. 14 (w.e.f. 14-11-
1994).
25. Added, ibid (w.e.f. 14-11-1994).
26. Substituted,
ibid
, for “original registering authority” (w.e.f. 14-11-1994).
27.
Added, ibid (w.e.f. 14-11-1994).
registration as the person with whom the registered owner has entered into the said
agreement, satisfies the registering authority that he has taken possession of the
vehicle
[from the registered owner] owing to the default of the registered owner
28
under the provisions of the said agreement and that the registered owner refuses to
deliver the certificate of registration or has absconded, such authority may, after
giving the registered owner an opportunity to make such representation as he may
wish to make ( by sending to him a notice by registered post acknowledgement due at
his address entered in the certificate of registration ) and notwithstanding that the
certificate of registration is not produced before it, cancel the certificate and issue a
fresh certificate of registration in the name of the person with whom the registered
owner has entered into the said agreement.
Provided that a fresh certificate of registration shall not be issued in respect of a
motor vehicle, unless such person pays the prescribed fee :
Provided further that a fresh certificate of registration issued in respect of a
motor vehicle, other than a transport vehicle, shall be valid only for the remaining
period for which the certificate cancelled under this sub-section would have been in
force.

69
(6) The registered owner shall, before applying to the appropriate authority,
for the renewal of a permit under section 81 or for the issue of duplicate
certificate of registration under sub-section (14) of section 41, or for the assignment of
a new registration mark
[under section 47, or removal of the vehicle to another State,
29
or at the time of conversion of the vehicle from one class to another, or for issue of no
objection certificate under section 48, or for change of residence or place of business
under section 49, or for the alteration of the vehicle under section 52, make an
application ] to the person with whom the registered owner has entered into the said
agreement ( such person being hereafter in this section referred to as the financier ) for
the issue of a no objection certificate ( hereafter in this section referred to as the
certificate. )
28. Inserted, ibid (w.e.f. 14-11-1994).
29.
Substituted for “under section 47, make an application” by Act 54 of 1994, S. 14 (w.e.f.
14-11-1994).
Explanation .
- For the purposes of this sub-section and sub-section (8) and (9),
“appropriate authority” in relation to any permit, means the authority which is
authorised by this Act to renew such permit and, in relation to registration means the
authority which is authorised by this Act to issue, duplicate certificate of registration
or to assign a new registration mark.
(7) Within seven days of the receipt of an application under sub-section (6),
the financier may issue, or refuse, for reasons which shall be recorded in writing and
communicated to the applicant, to issue the certificate applied for, and where the
financier fails to issue the certificate and also fails to communicate the reasons for
refusal to issue the certificate to the applicant within the said period of seven days, the
certificate applied for shall be deemed to have been issued by the financier.
(8) The registered owner shall, while applying to the appropriate authority
for the renewal of any permit under section 81, or for the issue of a duplicate
certificate of registration under sub-section (14) of section 41, or while applying for
assignment of a new registration mark under section 47, submit with such application
the certificate, if any, obtained under sub-section (7) or, where no such certificate has
been obtained, the communication received from the financier under that sub-section,

70
or, as the case may be, a declaration that he has not received any communication from
the financier within the period of seven days specified in that sub-section.
(9) On receipt of an application for the renewal of any permit or for the
issue of duplicate certificate of registration or for assignment of a new registration
mark in respect of a vehicle which is held under the said agreement, the appropriate
authority may, subject to the other provisions of this act, -
(a) in a case where the financier has refused to issue the certificate
applied for, after giving the applicant an opportunity of being heard, either –
(i) renew or refuse to renew the permit, or
(ii) issue or refuse to issue the duplicate certificate of registration, or
(ii)assign or refuse to assign a new registration mark ;
(b) in any other case, -
(j) renew the permit, or
(ii) issue duplicate certificate of registration, or
(iii)assign a new registration mark.
(10) A registering authority making an entry in the certificate of registration
regarding-
(a) hire-purchase, lease or hypothecation agreement of a motor vehicle, or
(b) the cancellation under sub-section (3) of an entry, or
(c) recording transfer of ownership of motor vehicle, or
(d) any alteration in a motor vehicle, or
(e) suspension or cancellation of registration of a motor vehicle, or
(f) change of address,
shall communicate
[ by registered post acknowledgement due] to the financier that
30
such entry has been made.

71
31
[(11) A registering authority registering the new vehicle, or issuing the
duplicate certificate of registration or a no objection certificate or a temporary
certificate of registration, or issuing or renewing, a fitness certificate or substituting
entries relating to another motor vehicle in the permit, shall intimate the financier of
such transaction.
(12) The registering authority where it is not the original registering
authority, when making entry under sub-section (1) or sub-section (2), or cancelling
the said entry under sub-section (3) or issuing the fresh certificate of registration under
sub-section (5) shall communicate the same to the original registering authority.]
30. Inserted by Act 54 of 1994, S. 14 ( w.e.f. 14-11-1994).
31. Sub-s. (11) substituted, ibid (w.e.f. 14-11-1994). Prior to its substitution, sub-S. (11)
read as under –
“(11) A registering authority issuing a duplicate certificate of registration shall intimate the
financier of such issue.”
Corresponding Law.
- Section 51 corresponds to section 31-A of the Motor
Vehicles Act, 1939.
Objects and Reasons.
- Clause 51 contains special provisions regarding motor
vehicles subject to the agreements of hire-purchase, lease and hypothecation.
Sub-clauses (1) to (4) make provision that the registering authorities may make
a note of such agreement and cancellation of such agreement in the certificate
of registration on a joint application by both the parties. It prohibits transfer of
ownership of such vehicle without the written consent of the other party to the
agreement. Sub-clause (5) provides for the issue of fresh certificate of registration to
the financier by the registering authorities whether the financier has taken possession
of the vehicle for default of the hirer and hirer has refused to hand over the certificate
of registration. Sub-clause (6) to (9) lays down the procedure in making an application
by the registered owner of the vehicle to the financier for grant of NOC, the grant of
such certificate by the financier, production of NOC alongwith the application for the
renewal of permit or the duplicate copy of the certificate of registration or for

72
assignment of fresh registration mark to a motor vehicle. The powers of the
appropriate authorities for the grant or refusal of the application for the renewal of
permit, and issue of duplicate certificate of registration and issue of fresh registration
mark. Sub-clause (10) makes provision that the registering authorities making entries
in the certificate of registration regarding certain transactions shall intimate such
transactions to the financier.
[52. Alteration in motor vehicle.
- (1) No owner of a motor vehicle shall so
32
alter the vehicle that the particulars contained in the certificate of registration are at
variance with those originally specified by the manufacturer :
Provided that where the owner of a motor vehicle makes modification of the
engine, or any part thereof of a vehicle for facilitating its operation by different type of
fuel or source of energy including battery, compressed natural gas, solar power, liquid
petroleum gas or any other fuel or source of energy, by fitment of a conversion kit,
such modification shall be carried out subject to such conditions as may be prescribed:
32. S.52 substituted by Act 27 of 2000, S.2 (w.e.f. 11-8-2000). Prior to its substitutin, S. 52 read
as under :-
“52. Alternation in motor vehicle .- (1) No owner of a motor vehicle shall so alter the vehicle that
the particulars contained in the certificate of registration are no longer accurate, unless.-
(a) he has given notice to the registering authority within whose jurisdiction he has the
residence or the place of business where the vehicle is normally kept, as the case may be of the
alteration he proposes to make; and
(b) he has obtained the approval of that registering authority to make such alteration
:
Provided that it shall not be necessary to obtain such approval for making any change in the
unladen weight of the motor vehicle consequent on the addition or removal of fittings or accessories,
if such change does not exceed two per cent. of the weight entered in the certificate of registration :
*[Provided further that modification of the engine, or any part thereof, of a vehicle for
facilitating its operation by a different type of fuel or source of energy including battery, compressed
natural gas, solar power or any other fuel or source of energy other than liquid petroleum gas shall be
treated as an alteration but that shall be subject to such conditions as may be prescribed.]

73
(2)
Where a registering authority receives a notice under sub-section (1), it shall, within
seven days of the receipt thereof, communicate, by post, to the owner of the vehicle its approval
to the proposed alteration or otherwise :
Provided further that the Central Government may prescribe specifications
conditions for approval, retrofitment and other related matters for such conversion
kits;
Provided also that the Central Government may grant exemption for alteration
of vehicles in a manner other than specified above, for any specific purpose.
(2) Notwithstanding anything contained in sub-section (1), a State
Government may, by notification in the Official Gazette, authorise, subject to such
conditions as may be specified in the notifications, and permit any person owing not
less than ten transport vehicles to alter any vehicle owned by him so as to replace the
engine thereof with engine of the same make and type, without the approval of
registering authority.
(3) Where any alteration has been made in motor vehicle without the
approval of registering authority or by reason of replacement of its engine without
such approval under sub-section (2), the owner of the vehicle shall, within fourteen
days of the making of the alteration, report the alteration to the registering authority
within whose jurisdiction he resides and shall for ward the certificate of registration to
that authority together with the prescribed fee in order that particulars of registration
may be entered therein.
(4) A registering authority other than the original registering authority
making any such entry shall communicate the details of the entry to the original
registering authority.
(5) Subject to the provisions made under sub-section (1), (2), (3) and (4), no
person holding a vehicle under a hire-purchase agreement shall make any alteration to
the vehicle except with the written consent of the registered owner.
Explanation.
- For the purpose of this section, “alteration” means a change in
the structure of a vehicle which results in change in its basic feature.]

74
Corresponding Law.
- Section 52 corresponds to section 32 of the Motor
Vehicles Act, 1939.
53. Suspension of registration.
– (1) If any registering authority or
other prescribed authority has reason to believe that any motor vehicle within
its jurisdiction -
(a) is in such a condition that its use in a public place would
constitute a danger to the public, or that it fails to comply with the
requirements of this Act or of the rules made thereunder, or
(b) has been, o r is being, used for hire or reward without a
valid permit for being used as such,
the authority may, after giving the owner an opportunity of making any
representation he may wish to make (by sending to the owner a notice by
registered post acknowledgment due at his address entered in the certificate of
registration), for reasons to be recorded in writing, suspend the certificate of
registration of the vehicle-
(i) in any case falling under clause (a), until the defects are
rectified to its satisfaction; and
(ii) in any case falling under clause (b), for a period not
exceeding four months.
(2) an authority other than a registering authority shall, when making
a suspension order under sub-section (1), intimate in writing the fact of such
suspension and the reasons therefor to the registering authority within whose
jurisdiction the vehicle is at the time of the suspension.
(3) Where the registration of a motor vehicle has been suspended
under sub-section (1) for a continuous period of not less than one month, the
registering authority, within whose jurisdiction the vehicle was when the
registration was suspended, shall, if it is not the original registering authority,
inform that authority of the suspension.

75
(4) The owner of a motor vehicle shall, on the demand of a
registering authority or other prescribed authority which has suspended the
certificate of registration of the vehicle under this section, surrender the
certificate of registration.
(5) A certificate of registration surrendered under sub – section (4)
shall be returned to the owner when the order suspending registration has been
rescinded and not before.
Corresponding Law. –
Section 53 corresponds to section 33 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 54 empowers the registering authorities to
suspend the certificate of registration of a motor vehicle, if the vehicle is used
for hire or reward without a permit. It also empowers the registering authority
to suspend the certificate of registration of a vehicle if the vehicle is
mechanically defective or if its use on public road will endanger public safety
until the defects are rectified and the vehicle is certified to be road worthy.
54. Cancellation of registration suspended under section 53.
–
Where the suspension of registration of a vehicle under section 53 has
continued without interruption for a period of not less than six months, the
registering authority within whose jurisdiction the vehicle was when the
registration was suspended, may, if it is the original registering authority,
cancel the registration, and if it is not the original registering authority, shall
forward the certificate of registration to that authority which may cancel the
registration.
Corresponding Law.
– This is a new provision in the 1988 Act.
55. Cancellation of registration.
–
(1) If a motor vehicle has been
destroyed or has been rendered permanently incapable of use, the owner shall,
within fourteen days or as soon as may be, report the fact to the registering
authority within whose jurisdiction he has the residence or place of business

76
where the vehicle is normally kept, as the case may be, and shall forward to
the authority the certificate of registration of the vehicle.
(2) The registering authority shall, if it is the original registering
authority, cancel the registration and the certificate of registration, or, if it is
not, shall forward the report and the certificate of registration to the original
registering authority and that authority shall cancel the registration.
(3) Any registering authority may order the examination of a motor
vehicle within its jurisdiction by such authority as the State Government may
by order appoint and, if upon such examination and after giving the owner an
opportunity to make any representation he may wish to make (by sending to
the owner a notice by registered post acknowledgement due at his address
entered in the certificate of registration), it is satisfied that the vehicle is in
such a condition that it is incapable of being used or its use in a public place
would constitute a danger to the public and that it is beyond reasonable repair,
may cancel the registration.
(4) If a registering authority is satisfied that a motor vehicle has been
permanently removed out of India, the registering authority shall cancel the
registration.
(5) If a registering authority is satisfied that the registration of a motor
vehicle has been obtained on the basis of documents which were, or by
representation of facts which was, false in any material particular, or the
engine number or the chassis number embossed thereon are different from such
number entered in the certificate of registration, the registering authority shall
after giving the owner an opportunity to make such representation as he may
wish to make (by sending to the owner a notice by registered post
acknowledgement due at his address entered in the certificate of registration),
and for reasons to be recorded in writing, cancel the registration.
(6) A registering authority cancelling the registration of a motor
vehicle under section 54 or under this section shall communicate such fact in

77
writing to the owner of the vehicle, and the owner of the vehicle shall
forthwith surrender to that authority the certificate of registration o f the
vehicle.
(7) A registering authority making an order of cancellation under
section 54 or under this section shall, if it is the original registering authority,
cancel the certificate of registration and the entry relating to the vehicle in its
records, and, if it is not the original registering authority, forward the
certificate of registration to that authority, and that authority shall cancel the
certificate of registration and the entry relating to the motor vehicle in its
records.
(8) The expression “original registering authority” in this section and
in section 41,49,50,51,52,53 and 54 means the registering authority in whose
records the registration of the vehicle is recorded.
(9) In this section “certificate of registration” includes a certificate of
registration renewed under the provisions of this Act.
Corresponding Law.
– Section 55 corresponds to section 34 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 55 contains provisions for the cancellation
of the certificate of registration by the registering authorities where the vehicle
has been destroyed or has been rendered permanently incapable of use or has
been lost and not recovered or is otherwise not traceable or its use will
constitute a danger to public safety. It also provides that the registering
authorities may cancel the certificate of registration if the registering authority
is satisfied that engine number and chassis number noted in the certificate of
registration differs from that found in the vehicle, or that the registration has
been obtained by misrepresentation or fraud.
56. Certificate of fitness of transport vehicles.
– (1) Subject to
the provisions of section 59 and 60, a transport vehicle shall not be deemed to
be validly registered for the purposes of section 39, unless it carries a

78
certificate of fitness in such form containing such particulars and information
as may be prescribed by the Central Government, issued by the prescribed
authority, or by an authorized testing station mentioned in sub-section (2), to
the effect that the vehicle complies for the time being with all the
requirements of this Act and the rules made thereunder.
Provided that where the prescribed authority or the “authorized testing
station” refuses to issue such certificate, it shall supply the owner of the
vehicle with its reasons in writing for such refusal.
(2) The “authorized testing station” referred to in sub-section (1)
means a vehicle service station or public or private garage which the State
Government, having regard to the experience, training and ability of the
operator of such station or garage and the testing equipment and the testing
personnel therein, may specify in accordance with the rules made by the
Central Government for regulation and control of such station or garages.
(3) Subject to the provisions of sub-section (4), a certificate of fitness
shall remain effective for such period as may be prescribed by the Central
Government having regard to the object of this Act.
(4) The prescribed authority may for reasons to be recorded in writing
cancel a certificate of fitness at any time, if satisfied that the vehicle to which
it relates no longer complies with all the requirements of this Act and the rules
made thereunder; and on such cancellation the certificate of registration of the
vehicle and any permit granted in respect of the vehicle under Chapter V shall
be deemed to be suspended until a new certificate of fitness has been obtained:
33
[Provided that no such cancellation shall be made by the prescribed authority
unless such prescribed authority holds such technical qualification as may be
prescribed or where the prescribed authority does not hold such technical
qualification on the basis of the report of an officer having such qualification.]
(5) A certificate of fitness issued under this Act shall, while it
remains effective, be valid throughout India.

79
Corresponding Law.
- Section 56 corresponds to section 38 of the Motor
Vehicles Act, 1939
Objects and Reasons.
– Clause 58 requires that every transport vehicle
should carry an effective certificate of fitness issued by the prescribed
authorities or by any authorised testing stations specified by the State
Governments. It also empowers the issuing authorities to cancel any such
certificate if the vehicle fails to comply with the requirements of this Act. The
certificate of fitness is to be effective throughout India.
57. Appeals.
-
34
[(1) Any person aggrieved by an order of the
registering authority under section 41,42,43,45,47,48,49,50,52,53,55 or 56 may,
within thirty days of the date on which he has received notice of such order,
appeal against the order to the prescribed authority.]
33. Inserted by Act 54 of 1994, S. 16 (w.e.f. 14-11-1994)
34. Sub. – S. (1) substituted by S. 17
ibid
(w.e.f. 14-11-1994). Prior to its substitution, sub-
S. (1) read as under :-
“(1) Any owner of a motor vehicle aggrieved by an order of refusal under section 45 to
register a motor vehicle or to renew the certificate of registration in respect of a motor vehicle (other
than a transport vehicle) or under section 48 to issue a no objection certificate or under section 50
to enter the particulars of the transfer of ownership in the certificate of registration or under
sub-section (1) of section 56 to issue a certificate of fitness or by an order of suspension
under section 53 or cancellation under section 54 or section 55 or by an order of an
cancellation under sub-section (4) of section 56 may, within thirty days of the date on which
he has received notice of such order, appeal against the order to the Prescribed Authority.”
(2) The appellate authority shall give notice of the appeal to the
original authority and after giving an opportunity to the original authority and
the appellant to be heard in the appeal pass such order as it think fit.
Corresponding Law.
– Section 57 corresponds to section 35 of the Motor
Vehicles Act, 1939.

80
Objects and Reasons.
– Clause 56 seeks to provide for appeal against
certain orders passed by the registering authorities. The aggrieved parties in
such cases may approach the prescribed authorities and seek redress.
58. Special provisions in regard to transport vehicles.
–
(1) The
Central Government may, having regard to the number, nature and size of the
tyres attached to the wheels of a transport vehicle (other than a motorcab), and
its make and model and other relevant considerations, by notification in the
Official Gazette, specify, in relation to each make and model of a transport
vehicle, the
35
[maximum gross vehicle weight] of such vehicle and the
maximum safe axle weight of each axle of such vehicle.
(2) A registering authority, when registering a transport vehicle, other
than a motorcab shall enter in the record of registration and shall also enter in
the certificate of registration of the vehicle the following particulars, namely :-
(a) the unladen weight of the vehicle;
35. Substituted,
ibid
, for “maximum safe laden weight” (w.e.f.14-11-1994).
(b) the number, nature and size of the tyres attached to each
wheel;
(c) the gross weight of the vehicle and the registered axle
weights pertaining to the several axles thereof; and
(d) if the vehicle is used or adapted to be used for the carriage
of passengers solely or in addition to goods, the number of passengers for
whom accommodation is provided,
and the owner of the vehicle shall have the same particulars exhibited in the
prescribed manner on the vehicle.
(3) There shall not be entered in the certificate of registration of any
such vehicle any gross vehicle weight or a registered axle weight of any of
the axles different from that specified in the notification under sub-section (1)

81
in relation to the make and model of such vehicle and to the number, nature
and size of the tyres attached to its wheels :
Provided that where it appears to the Central Government that heavier
weights than those specified in the notification under sub-section (1) may be
permitted in a particular locality for vehicle of a particular type, the Central
Government may, by order in the Official Gazette direct that the provisions of this
sub-section shall apply with such modifications as may be specified in the order.
36
[***]
(5) In order that the gross vehicle weight entered in the certificate of
registration of a vehicle may be revised in accordance with the provisions of
36. Sub-S. (4) omitted by Act 27 of 2000, S.3 (w.e.f. 11-8-2000). Prior to its omission,
sub-S. (4) read as under :-
“(4) When by reason of any alteration in such vehicle, including an alteration
in the number, nature or size of its tyres, the gross vehicle weight of the vehicle or the
registered axle weight of any of its axles no longer accords with the provisions of sub-section (3),
the provisions of section 52 shall apply and the registering authority shall enter in the
certificate of registration of the vehicle revised registered weights which accord with the said
sub-section.”
sub-section (3), the registering authority may require the owner of
transport vehicle in accordance with such procedure as may be prescribed to
produce the certificate of registration within such time as may be specified by
the registering authority.
Corresponding Law.
– Section 58 corresponds to section 36 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 57 empowers the Central Government to
specify in relation to each make and model of a transport vehicle the
maximum safe laden weight and the maximum safe axle weight of each such
vehicle. It also provided that the registering authorities while registering a
transport vehicle shall make a note of the unladen weight, and gross vehicle
weight and such other particulars in the registration certificate of the vehicle.

82
59. Power to fix the age limit of motor vehicle.
– (1) The Central
Government may, having regard to the public safety, convenience and
objects of this Act, by notification in the Official Gazette, specify the life of a
motor vehicle reckoned from the date of its manufacture, after the expiry of
which the motor vehicle shall not be deemed to comply with the requirements
of this Act and the Rules made thereunder :
Provided that the Central Government may specify different ages for
different classes or different types of motor vehicles.
(2) Notwithstanding anything contained in sub-section (1), the Central
Government may, having regard to the purpose of a motor vehicle, such as,
display or use for the purposes of a demonstration in any exhibition, use for
the purposes of technical research or taking part in a vintage car rally, by
notification in the Official Gazette, exempt, by a general or special order,
subject to such conditions as may be specified in such notification, any class or
type of motor vehicle from the operation of sub-section (1) for the purpose to
be stated in the notification.
(3) Notwithstanding anything contained in section 56, no prescribed
authority or authorized testing station shall grant a certificate of fitness to a
motor vehicle in contravention of the provisions of any notification issued
under sub-section (1).
Corresponding Law.
– This is a new provision in the 1988 Act.
Objects and Reasons.
– Clause 59 seeks to empower the Central
Government to specify the life of motor vehicle of any class or type beyond
which the vehicle have to be kept-off the roads. It also confers upon the
Central Government the power to exempt from the provisions of this clause
vintage cars.
60. Registration of vehicles belonging to the Central
Government.
– (1) Such authority as the Central Government may, by
notification in the Official Gazette, specify, may register any motor vehicle

83
which is the property or for the time being under the exclusive control of the
Central Government and is used for Government purposes relating to the
defence of the country and unconnected with any commercial enterprises and
any vehicle so registered shall not, so long as it remains the property or under
the exclusive control of the Central Government, require to be registered
otherwise under this Act.
(2) The authority registering a vehicle under sub-section (1) shall sign
a registration mark in accordance with the provisions contained in the rules
made in this behalf by the Central Government and shall issue a certificate in
respect of that vehicle to the effect that such vehicle complies for the time
being with all the requirements of this Act and the rules made thereunder and
that the vehicle has been registered under this section.
(3) A vehicle registered under this section shall carry the certificate
issued under sub-section (2).
(4) If a vehicle registered under this section ceases to be property or
under the exclusive control of the Central Government, the provisions of
section 39 and 40 shall thereupon apply.
(5) The authority registering a vehicle under sub-section (1) shall
furnish to any State Government all such information regarding the general
nature, overall dimensions and axle weights of the vehicle as the State
Government may at any time require.
Corresponding Law.
– Section 60 corresponds to section 39 of Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 60 provides that the Central Government
may specify the authorities who may register certain motor vehicles of the
Central Government to be specified by notification.
61. Application of Chapter to trailers.
– (1) The provisions of this
Chapter shall apply to the registration of trailers as they apply to the
registration of any other motor vehicle.

84
(2) The registration mark assigned to a trailer shall be displayed in
such manner on the side of the drawing vehicle as may be prescribed by
the Central Government.
(3) No person shall drive a motor vehicle to which a trailer is or
trailers are attached unless the registration mark of the motor vehicle so driven
is displayed on the trailer or on the last trailer in the train, as the case may
be, in such manner as may be prescribed by the Central Government.
Corresponding Law.
- Section 61 corresponds to section 40 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 61 lays down that the registration marks
of trailers shall be exhibited in such manner as may be prescribed.
62. Information regarding stolen and recovered motor vehicle to
be furnished by the police to the State Transport Authority.
– The
State Government may, if it thinks necessary or expedient so to do in the
public interest, direct the submission by the Inspector General of Police (by
whatever designation called) and such other police officers as the State
Government may specify in this behalf, of such returns containing the
information regarding vehicles which have been stolen and stolen vehicles
which have been recovered of which the police are aware, to the State
Transport Authority, and may prescribe the form in which and the period
within which such returns shall be made.
Corresponding Law.
- This is new provision in the 1988 Act.
Objects and Reasons.
– Clause 62 empowers the State Government to
direct the Inspector General of Police to furnish to the State Transport
Authority information regarding stolen and recovered motor vehicles.
63. Maintenance of State Registers of Motor Vehicles.
– (1) Each
State Government shall maintain in such form as may be prescribed by the
Central Government a register to be known as the State Register of Motor

85
Vehicles, in respect of the motor vehicles in that State, containing the
following particulars, namely :-
(a) registration numbers;
(b) years of manufacture;
(c) classes and types;
(d) names and address of registered owners; and
(e) such other particulars as may be prescribed by the Central Government.
(2) Each State Government shall supply to the Central Government
37
[if so desired by it] a printed copy of the State Register of Motor Vehicles
and shall also inform the Central Government without delay of all additions to
and other amendments in such register made from time to time.
(3) The State Register of Motor Vehicles shall be maintained in such
37. Inserted by Act 54 of 1994, S. 19 (w.e.f. 14-11-1994).
manner as may be prescribed by the State Government.
Corresponding Law.
– This is a new provision in the 1988 Act.
Objects and Reasons.
– Clause 63 prescribes that the State Government
may maintain a State register of all motor vehicles within its jurisdiction in the
prescribed form and the State Government shall supply to the Central
Government copies of such registers and any further additions or amendments.
64. Power of the Central Government to make rules.
– The
Central Government may make rules to provide for all or any of the following
matters, namely : -
(a) the period within which and the form in which an application
shall be made and the documents, particulars and information it shall
accompany under sub-section (1) of section 41;

86
(b) the form in which the certificate of registration shall be made
and she particulars and information it shall contain and the manner in
which it shall be issued under sub-section (3) of section 41;
(c) the form and manner in which the particulars of the certificate
of registration shall be entered in the records of the registering authority under
sub-section (5) of section 41;
(d) the manner in which and the form in which the registration
mark, the letters and figures and other particulars referred to in sub-section (6)
of section 41 shall be displayed and shown;
(e) the period within which and the form in which the application
shall be made and the particulars and information it shall contain under sub-
section (8) of section 41;
(f) the form in which the application referred to in sub-section
(14) of section 41 shall be made, the particulars and information it shall
contain and the fee to be charged.
(g) the from in which and the period within which the application
referred to in sub-section (1) of section 47 shall be made and the particulars it
shall contain;
(h) the form in which and the manner in which the application for
“No Objection Certificate” shall be made under sub-section (1) of section 48
and the form of receipt to be issued under sub-section (2) of section 48;
(i) the matters that are to be complied with by an applicant before
no objection certificate may be issued under section 48;
(j) the form in which the intimation of change of address shall be
made under sub-section (1) of section 49 and the documents to be submitted
alongwith the application;
(k) the form in which and the manner in which the intimation of
transfer of ownership shall be made under sub-section (1) of section 50 or

87
under sub-section (2) of section 50 and the document to be submitted
alongwith the application.
(l) the form in which the application under sub-section (2) or sub-
section (3) of section 51 shall be made;
(m)the form in which the certificate of fitness shall be issued
under sub-section (1) of section 56 and the particulars and information it shall
contain;
(n) the period for which the certificate of fitness granted or
renewed under section 56 shall be effective;
(o) the fees to be charged for the issue or renewal or alternation
of certificates of registration, for making an entry regarding transfer of
ownership on a certificate of registration, for making or cancelling an
endorsement in respect of agreement of hire-purchase or lease or hypothecation
on a certificate of registration, for certificates of fitness for registration marks,
and for the examination or inspection of motor vehicle, and the refund of such
fees;
(p) any other matter which is to be, or may be, prescribed by the
Central Government.
Corresponding Law.
– This is a new provision in the 1988 Act.
Objects and Reasons.
– Clause 64 provides for the rule-making powers
of the Central Government in order to give effect to the provisions of this
Chapter.
65. Power of the State Government to make rules.
– (1) A State
Government may make rules for the purpose of carrying into effect the
provisions of this Chapter other than the matters specified in section 64.
(2) Without prejudice to the generality of the foregoing power, such
rules may provide for -
(a) the conduct and hearing of appeals that may be preferred under
this Chapter (the fees to be paid in respect of such appeals and the refund of
such fees);

88
(b) the appointment, functions and jurisdiction of registering and
other prescribed authorities;
(c) the exemption of road-rollers, graders and other vehicles
designed and used solely for the construction, repair and cleaning of roads
from all or any of the provisions of this Chapter and the rules made
thereunder and the conditions governing such exemption;
(d) the issue or renewal of certificate of registration and fitness
and duplicates of such certificates to replace the certificates lost, destroyed or
multilated;
(e) the production of certificates of registration before the
registering authority for the revision of entries therein of particulars relating to
the gross vehicle weight;
(f) the temporary registration of motor vehicles, and the issue of
temporary certificate of registration and marks;
(g) the manner in which the particulars referred to in sub-section (2)
of section 58 and other prescribed particulars shall be exhibited;
(h) the exemption of prescribed persons or prescribed classes of
persons from payment of all or any portion of the fees payable under this
Chapter.
(i) the forms, other than those prescribed by the Central
Government to be used for the purposes of this Chapter;
(j) the communication between registering authorities of particulars
of certificates of registration and by owners of vehicles registered outside the
State of particulars of such vehicles and of their registration;
(k) the amount or amounts under sub-section (13) of section 41 or
sub-section (7) of section 47 or sub-section (4) of section 49 or sub-section (5)
of section 50;
(l) the extension of the validity of certificate of fitness pending
consideration of applications for their renewal;

89
(m)the extension from the provisions of this Chapter, and the
conditions and fees for exemption, of motor vehicles in the possession of
dealers;
(n) the form in which and the period within which the return
under section 62 shall be sent;
(o) the manner in which the State Register of Motor Vehicles shall
be maintained under section 63;
(p) any other matter which is to be or may be prescribed.
Corresponding Law.
– Section 65 corresponds to section 41 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 65 empowers the State Government to make
rules for the purpose of carrying into effect the provisions of this Chapter.
*CHAPTER V
CONTROL OF TRANSPORT VEHICLES
66. Necessity for permits. –
(1) No owner of a motor vehicle shall
use or permit the use of the vehicle as a transport vehicle in any public place
whether or not such vehicle is actually carrying any passengers or goods save
in accordance with the conditions of a permit granted or countersigned by a
Regional or State Transport Authority or any prescribed authority authorising
him the use of the vehicle in that place in the manner in which the vehicle is
being used :
Provided that a stage carriage permit shall, subject to any conditions that
may be specified in the permit, authorise the use of the vehicle as a contract
carriage:
Provided further that a stage carriage permit may, subject to any
conditions that may be specified in the permit, authorise the use of the vehicle
as a good carriage either when carrying passengers or not :
Provided also that a goods carriage permit shall, subject to any
conditions that may be specified in the permit, authorise the holder to use the

90
vehicle for the carriage of goods for or in connection with a trade or business
carried on by him.
(2) The holder of a goods carriage permit may use the vehicle, for
drawing of any trailer or semi-trailer not owned by him, subject to such
conditions as may be prescribed:
38
[Provided that the holder of a permit of any articulated vehicle may
use the prime-mover of that articulated vehicle for any other semi-trailer.]
(3) The provisions of sub-section (1) shall not apply -
(a) to any transport vehicle owned by the Central Government or a
State Government and used for Government purposes unconnected with any
commercial enterprise;
to any transport vehicle owned by a local authority or by a person
acting under contract with a local authority and used solely for road cleansing,
road watering or conservancy purposes;
* S.5 of the T. N. Motor Vehicles (Special Provisions) Act, 1992 provides that the
provisions of Ss. 3,4 and 6 of the 1992 T. N. Act shall have effect notwithstanding anything
inconsistent therewith contained in Chaps. V and VI including S.98 of the Motor Vehicles
Act, 1988.
38. Added by Act 54 of 1994, S. 20 (w.e.f. 14-11-1994).
(b) to any transport vehicle used solely for police, fire brigade or
ambulance purposes;
(c) to any transport vehicle used solely for the conveyance of
corpses and the mourners accompanying the corpses;
(d) to any transport vehicle used for towing a disabled vehicle or
for removing goods from a disabled vehicle to a place of safety;
(e) to any transport vehicle used for any other public purposes as
may be prescribed by the State Government in this behalf;
(f) to any transport vehicle used by a person who manufactures or
deals in motor vehicles or builds bodies for attachment to chassis, solely for
such purposes and in accordance with such conditions as the Central Government
may, by notification in the Official Gazette, specify in this behalf;

91
39
[***]
(i) to any goods vehicle, the gross vehicle weight of which
does not exceed 3,000 kilograms;
(j) subject to such conditions as the Central Government may, by
notification in the Official Gazette, specify, to any transport vehicle purchased
in one State and proceeding to a place, situated in that State or in any other
State, without carrying any passenger or goods;
(k) to any transport vehicle which has been temporarily registered
under section 43 while proceeding empty to any place for the purpose of
registration of the vehicle;
40
[***]
39. Cl. (h) omitted by Act 27 of 2000, S. 4 (w.e.f. 11-8-2000). Prior to its omission. Cl. (h)
read as under :-
“(h) to any transport vehicle owned by, and used solely for the purposes of, any
educational institution which is recognised by the Central or State Government or whose
managing committee is a society registered under the Societies Registration Act, 1860 (21 of
1860) or under any law corresponding to that Act in force in any part of India;”
40. Cl. (l) omitted by Act 39 of 2001, S. 2. Prior to its omission, Cl. (l) read as under : -
“(l) to any motor vehicle which is operated by electric battery, compressed natural gas or
solar energy;”
(l) to any transport vehicle which, owing to flood, earthquake or
any other natural calamity, obstruction o n road, or unforeseen circumstances, is
required to be diverted through any other route, whether within or
outside the State, with a view to enabling it to reach its destination;
(m) to any transport vehicle used for such purposes as the
Central or State Government may, by order, specify;
(n) to any transport vehicle which is subject to a hire-purchase,
lease hypothecation agreement and which owning to the default of the owner
has been taken possession of by or on behalf of, the person with whom the
owner has entered into such agreement, to enable such motor vehicle to reach
its destination; or

92
(o) to any transport vehicle while proceeding empty to any place
for purpose of repair;
(4) Subject to the provisions of sub-section (3), sub-section (1) shall,
if the State Government by rule made under section 96 so prescribes, apply to
any motor vehicle adapted to carry more than nine persons excluding the
driver.
Corresponding Law.
– Section 66 corresponds to section 42 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 66 lays down that no motor vehicle shall
be used as a transport vehicle without a permit issued by transport authorities
to use the vehicle as such in a public place. It also provides for exemption of
certain vehicles from the operation of the provisions of this clause on certain
conditions and for usage for certain specific purposes.
67. Powers to State Government to control road transport. –
(1)
A State Government, having regard to -
(a) the advantages offered to the public, trade and industry by the
development of motor transport.
(b) the desirability of co-ordinating road and rail transport,
(c) the desirability of preventing the deterioration of the road
system, and
(d) the desirability of preventing uneconomic competition among
holders of permits,
may, from time to time, by notification in the Official Gazette, issue directions both to
the State Transport Authority and Regional Transport Authority-
(i) Regarding the fixing of fares and freight (including the maximum
and minimum in respect thereof) for stage carriages, contract carriages and goods
carriages :
[ **** ]
41
(ii) regarding the prohibition or restriction, subject to such conditions as
may be specified In the direction, of the conveying of long distance goods traffic
generally, or of specified classes of goods carriages ;

93
(iii) regarding any other matter which may appear to the State
Government necessary or expedient for giving effect to any agreement entered
into with the Central Government or any other country relating to the regulation of
motor transport generally, and in particular to its co-ordination with other means of
transport and the conveying of long distance goods traffic.
Provided that no such notification in respect of the matters referred to in clause
(ii) or clause (iii) shall be issued unless a draft of the proposed direction is publised in
the official gazette specifying there in a date being not less than one month after such
publication, on or after which the draft will be taken into consideration and any
objection or suggestion which may be received has, in consultation with the
State Transport Authority, been considered after giving the representatives of the
interests affected an opportunity of being heard.
(2) Any direction under sub-section (1) regarding the fixing of fares and
freights for stage carriages, contract carriages and goods carriages may provide that
such fares or freights hall be inclusive of the tax payable by the passengers or the
consignors of the goods, as the case may be, to the operators of the stage carriages,
41. Proviso omitted by Act 39 of 2001, S. 2. Prior to its omission, the Proviso read as under :-
“Provided that the fares and freights in respect of such stage carriages, contract carriages and goods
carriages operated by battery, compressed natural gas or solar energy shall fixed by the owner or
operator.”
contract carriages or goods carriages under any law for the time being in force relating
to tax on passengers and goods.
Corresponding Law
:-
Section 67 corresponds to section 43 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 67 authorises the State Government to issue
direction to the Transport Authorities regarding the fixing of fares and freight for
transport vehicles, the prohibition and restriction for the carriage of long distance
goods traffic, the giving effect to any inter –state inter-country agreement in respect
of regulation of motor transport.
68. Transport Authorities
-
(1) The State Government shall, by notification
in the Official Gazette, constitute for the State a State Transport Authority to exercise

94
and discharge the powers and functions specified in sub-section (3), and shall in like
manner constitute Regional Transport Authorities to exercise and discharge
throughout such areas ( in this Chapter referred to as regions) as may be specified in
the notification, in respect of each Regional Transport Authority, the powers and
functions conferred by or under this Chapter on such Authorities :
Provided that in the Union Territories, the Administrator may abstain from
constituting any Regional Transport Authority.
(2) A State Transport Authority or a Regional Transport Authority shall
consist of a Chairman who has had judicial experience or experience as an appellate or
a revisional authority or as an adjudicating authority competent to pass any order or
take any decision under any law and in the case of a State Transport Authority, such
other persons ( whether officials or not), not being more than four and, in the case of a
Regional Transport Authority, such other person ( whether officials or not), not being
more than two, as the State Government may think fit to appoint ; but no person who
has any financial interest whether as proprietor, employee or otherwise in any
transport undertaking shall be appointed, or continue to be, a member of a State or
Regional Transport Authority, and , if any person being a member of any such
Authority acquires a financial interest in any transport undertaking, he shall within
four weeks of so doing, give notice in writing to the State Government of the
acquisition of such interest and shall vacate office.
Provided that nothing in this sub-section shall prevent any of the members of the
State Transport Authority or a Regional Transport Authority, as the case may be, to
preside over a meeting of such Authority during the absence of the Chairman,
notwithstanding that such member does not possess judicial experience or experience
as an appellate or a revisional authority or as an adjudicating authority competent to a
pass any order or take any decision under any law :
Provided further that the State Government may, -
(i) where it considers necessary or expedient so to do, constitute the State
Transport Authority or a Regional Transport Authority for any region so as to consist
of only one member who shall be an official with judicial experience or experience as

95
an appellate or a revisional authority or as an adjudicating authority competent to pass
any order or take any decision under any law ;
(ii) by rules made in this behalf, provide for the transaction of business of
such authority in the absence of the Chairman or any other member and specify the
circumstances under which, and the manner in which, such business could be so
transacted :
Provided also that nothing in this sub-section shall be construed as debarring an
official ( other than an official connected directly with the management or operation
of a transport undertaking ) from being appointed or continuing as a member of any
such authority merely by reason of the fact that the Government employing the
official has, or acquires, any financial interest in a transport undertaking.
(3) The State Transport Authority and every Regional Transport Authority
shall give effect to any directions issued under section 67 and the State Transport
Authority shall, subject to such directions and save as otherwise provided by or under
this Act, exercise and discharge throughout the State the following powers and
functions, namely :-
(a) to co-ordinate and regulate the activities and policies of the Regional
Transport Authorities, if any, of the State ;
(b) to perform the duties of a Regional Transport Authority where there is
no such Authority and, if it thinks fit or if so required by a Regional Transport
Authority, to perform those duties in respect of any route common to two or more
regions;
(c) to settle all disputes and decide all matters on which differences of
opinion arise between Regional Transport Authorities;
[(ca) Government to formulate routes for playing stage carriages; and ]
42
(d) to discharge such other functions as may be prescribed.
(4) For the purpose of exercising and discharging the powers and functions
specified in sub-section (3), a State Transport Authority may, subject to such
conditions as may be prescribed, issue directions to any Regional Transport Authority,
and the Regional Transport Authority shall, in the discharge of its functions under this
Act, give effect to and be guided by such directions.

96
(5) The State Transport Authority and any Regional Transport Authority, if
authorised in this behalf by rules made under section 96, may delegate such of its
powers and functions to such authority or person subject to such restrictions,
limitations and conditions as may be prescribed by the said rules.
Corresponding Law
-
Section 68 corresponds to section 44 of the Motor
Vehicles Act, 1939.
Objects and Reasons
-
Clause 68 confers upon the State Governments, the
power to constitute State Transport Authority and Regional Transport Authorities
consisting of officials and also non-officials. It also provides that if the State
Government so desires, the transport authority may consist of one member who shall
be an official. It also provides for delegation of powers by the transport authorities to
any authorities or persons for convenient despatch of business.
69. General provision as to applications for permits
-
(1) Every
application for a permit shall be made to the Regional Transport Authority of the
region in which it is proposed to use the vehicle or vehicles :
Provided that if it is proposed to use the vehicle or vehicles in two or more
regions lying within the same State, the application shall be made to the Regional
Transport Authority of the region in which the major portion of the proposed route or
area lies, and in case the portion of the proposed route or area in each of the regions is
42. Inserted by Act 54 of 1994, S. 22 ( w.e.f. 14-11-1994).
approximately equal, to the Regional Transport Authority of the region in which it is
proposed to keep the vehicle or vehicles;
Provided further that if it is proposed to use the vehicle or vehicles in two or
more regions lying in different States, the application shall be made to the Regional
Transport Authority of the region in which the applicant resides or has his principal
place of business.
(2) Notwithstanding anything contained in sub-section (1), the State
Government may, by notification in the Official Gazette, direct that in the case
of any vehicle or vehicles proposed to be used in two or more regions lying in
different States, the application under that sub-section shall be made to the State

97
Transport Authority of the region in which the applicant resides or has his principal
place of business.
Corresponding Law
-
Section 69 corresponds to section 45 of the Motor
Vehicles Act, 1939.
Objects and Reasons
-
Clause 69 specifies the transport authorities to whom
applications for permits to operate transport vehicles on intra-district, inter-district,
inter-State and inter-State routes has to be made.
70. Application for stage carriage permit
-
(1) An application for a
permit in respect of a stage carriage ( in this Chapter referred to as a stage carriage
permit ) or as a reserve stage carriage shall, as far as may be, contain the following
particulars, namely :-
(a) the route or routes or the area or areas to which the application relates ;
(b) the type and seating capacity of each such vehicle ;
(c) the minimum and maximum number of daily trips proposed to be provided
and the time-table of the normal trips.
Explanation
-
For the purposes of this section, section 72, section 80 and
section 102, “trip” means a single journey from one point to another, and every return
journey shall be deemed to be a separate trip;
(d) the number of vehicles intended to be kept in reserve to maintain the service
and to provide for special occasions;
(e) the arrangements intended to be made for the housing, maintenance and
repair of the vehicles, for the comfort and convenience of passengers and for the
storage and safe custody of luggage;
(f) such other matters as may be prescribed.
(2) An application referred to in sub-section (1) shall be accompanied by such
documents as may be prescribed.
Corresponding Law
:-
Section 70 corresponds to section 46 of the Motor
Vehicles Act, 1939.
Objects and Reasons
-
Clause 70 prescribes the form of application for the
grant of stage carriage permit and spare bus permit.

98
71. Procedure of Regional Transport Authority in considering
application for stage carriage permit
-
(1) A Regional Transport Authority
shall, while considering an application for a stage carriage permit, have regard to the
object of this Act :
43
[******]
(2) A Regional Transport Authority shall refuse to grant a stage carriage permit
if it appears from any time-table furnished that the provisions of this Act relating to
the speed at which vehicles may be driven are likely to be contravened :
Provided that before such refusal an opportunity shall be given to the applicant
to amend the time-table so as to conform to the said provisions.
(3) (a) The State Government shall, if so directed by the Central Government
having regard to the number of vehicles, road conditions and other relevant matters,
by notification in the Official Gazette, direct a State Transport Authority and a
Regional Transport Authority to limit the number of stage carriages generally or of
any specified type, as may be fixed and specified in the notification, operating on city
routes in towns with a population of not less than five lakhs.
(b) Where the number of stage carriages are fixed under clause (a), the
43. Proviso omitted by Act 54 of 1994, S. 23 ( w.e.f. 14-11-1994 ). Prior to its omission, the
Proviso read as under :-
“provided that such permit for a route of fifty kilometers or less shall be granted only to an individual
or a State Transport undertaking.”
Government of the State shall reserve in the State certain percentage of stage carriage
permits for the scheduled castes and the scheduled tribes in the same ratio as in the
case of appointments made by direct recruitment to public services in the State.
(c) Where the number of stage carriages are fixed under clause (a), the
Regional Transport Authority shall reserve such number of permits for the scheduled
castes and the scheduled tribes as may be fixed by the State Government under sub-
clause (b).
(d) After reserving such number of permits as is referred to in clause (c), the
Regional Transport Authority shall in considering an application have regard to the
following matters, namely :-

99
(i) financial stability of the applicant ;
(ii) satisfactory performance as a stage carriage operator
including payment of tax if the applicant is or has been an operator of stage carriage
service; and
(iii) such other matters as may be prescribed by the State
Government:
Provided that, other conditions being equal, preference shall be given
applications for permits from –
(i) State transport undertakings ;
(ii) Co-operative societies registered or deemed to have been
registered under any enactment for the time being in force ;
44
[*]
(iii) Ex-servicemen ;
45
[or]
[(iv) any other class or category of persons, as the State Government
46
may, for reasons to be recorded in writing, consider necessary].
[**]
47
[**]
47
Explanation
-
For the purposes of this section “ company ” means any body
corporate, and includes a firm or other association of individuals; and “director”, in
relation to a firm, means a partner in the firm.
44. The word “or” omitted by Act 54 of 1994, S. 23 ( w.e.f. 14-11-1994 ).
45. Inserted, ibid ( w.e.f. 14-11-1994 ).
46. Inserted, ibid ( w.e.f. 14-11-1994 ).
Corresponding Law
:-
Section 71 corresponds to section 47 of the Motor
Vehicles Act, 1939.
Objects and Reasons
-
Clause 71 lays down the procedure in considering
applications for stage carriage permits by the Regional Transport Authorities and also
provides for empowering the State Government to issue direction to the Transport
authorities to limit the number of stage carriage permits in certain towns and cities
with a population of not less than five lakhs.
72. Grant of stage carriage permit
-
(1) Subject to the provisions of section 71, a
Regional Transport Authority may, on an application made to it under section 70,

100
grant a stage carriage permit in accordance with the application or with such
modifications as it deems fit or refuse to grant such a permit :
Provided that no such permit shall be granted in respect of any route or area not
specified in the application.
(2) The Regional Transport Authority, of it decides to grant a stage carriage
permit, may grant the permit for a stage carriage of a specified description and may,
subject to any rules that may be made under this Act, attach to the permit any one or
more of the following conditions, namely :-
(i) that the vehicles shall be used only in a specified area, or on a
specified route or routes;
(ii)that the operation of the stage carriage shall be commenced with
effect from a specified date ;
(iii)the minimum and maximum number of daily trips to be provided in
relation to any route or area generally or on specified days and occasions ;
47. Ss. (40 and (5) omitted by Act 54 of 1994, S. 23 ( w.e.f. 14-11-1994 ). Prior to their
omission, sub-Ss. (4) and (5) read as under :-
“(4) A Regional Transport Authority shall not grant more than five stage carriage permits to
any individual or more than ten stage carriage permits to any company ( not being a State transport
undertaking ).
(5) In computing the number of permits to be granted under sub-section (4), the permits held
by an applicant in the name of any other person and the permits held by any company of which such
applicant is a director shall also betaken into account.”
(iv)that copies of the time-table of the stage carriage approved by the
Regional Transport Authority shall be exhibited on the vehicles and at specified stands
and halts on the route or within the area ;
(v) that the stage carriage shall be operated within such margins of
deviation from the approved time-table as the Regional Transport Authority may from
time to time specify ;
(vi) that within municipal limits and such other areas and places as may
be prescribed, passengers or goods shall not be taken up or set down except at
specified points ;

101
(vii) the maximum number of passengers and the maximum weight of
luggage that may be carried on the stage carriage, either generally or on specified
occasions or at specified times and seasons;
(viii) the weight and nature of passenger’s luggage that shall be carried
free of charge, the total weight of luggage that may be carried in relation to each
passenger, and the arrangements that shall be made for the carriage of luggage without
causing inconvenience to passengers;
(ix) the rate of charge that may be levied for passengers’ luggage in
excess of the free allowance ;
(x) that vehicles of a specified type fitted with body conforming to
approved specifications shall be used :
Provided that the attachment of this condition to a permit shall not prevent the
continued use, for a period of two years from the date of publication of the approved
specifications, of any vehicle operating on that date ;
(xi) that specified standards of comfort and cleanliness shall be
maintained in the vehicles;
(xii) the conditions subject to which goods may be carried in the stage
carriage in addition to or to the exclusion of passengers ;
(xiii) that fares shall be charged in accordance with the approved fare
table ;
(xiv) that a copy of , or extract from, the fare table approved by the
Regional Transport Authority and particulars of any special fares or rates of fares so
approved for particular occasions shall be exhibited on the stage carriage and at
specified stands and halts ;
(xv) that tickets bearing specified particulars shall be issued to
passengers and shall show the fares actually charged and that records of tickets issued
shall be kept in a specified manner ;
(xvi) that mails shall be carried on the vehicle subject to such conditions
( including conditions as to the time in which mails are to be carried and the charges
which may be levied ) as may be specified ;

102
(xvii) the vehicles to be kept as reserve by the holder of the permit to
maintain the operation and to provide for special occasions ;
(xviii) the conditions subject to which the vehicle may be used as a
contract carriage ;
(xix) that specified arrangements shall be made for the housing,
maintenance and repair of vehicle ;
(xx) that any specified bus station or shelter maintained by Government
or a local authority shall be used and that any specified rent or fee shall be paid for
such use ;
(xxi) that the conditions of the permit shall not be departed from, save
with the approval of the Regional Transport Authority ;
(xxii) that the Regional Transport Authority may, after giving notice of
not less than one month , -
(a) vary the conditions of the permit ;
(b) attach to the permit further conditions :
Provided that the conditions specified in pursuance of clause (i) shall not be
varied so as to alter the distance covered by the original route by more than 24
kilometers, and any variation within such limits shall be made only after the regional
transport authority is satisfied that such variation will serve the convenience of the
public and that it is not expedient to grant a separate permit in respect of the original
route as so varied or any part thereof;
(xxiii) that the holder of a permit shall furnish to the Regional Transport
Authority such periodical returns, statistics and other information as the State
Government may from time to time prescribe ;
(xxiv) any other conditions which may be prescribed.
Corresponding Law
:-
Section 72 corresponds to section 48 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 72 empowers the transport authorities to grant
or refuse a stage carriage permit and also to impose certain conditions and attach such
conditions to the permits issued.

103
73. Application for contract carriage permit
-
An application for a
permit in respect of a contract carriage ( in this Chapter referred to as a contract
carriage permit ) shall contain the following particulars, namely :-
(a) the type and seating capacity of the vehicle ;
(b) the area for which the permit is required ;
(c) any other particulars which may be prescribed.
Corresponding Law
:-
Section 73 corresponds to section 49 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 73 prescribes the form of application for
contract carriage permit.
74.
Grant of contract carriage permit
:-
(1) Subject to the provisions of
sub-section (3), a regional transport authority may, on an application made to it under
section 73, grant a contract carriage permit in accordance with the application or with
such modifications as it deems fit or refuse to grant such a permit :
Provided that no such permit shall be granted in respect of any area not
specified in the application.
(2) The Regional Transport Authority, if it decides to grant a contract
carriage permit, may, subject to any rules that may be made under this act, attach to
the permit any one or more of the following conditions, namely:-
(i) that the vehicles shall be used only in a specified area or on a
specified route or routes;
(ii) that except in accordance with specified conditions, no contract of
hiring, other than an extension or modification of a subsisting contract, may be
entered into outside the specified area;
(iii) the maximum number of passengers and the maximum weight of
luggage that may be carried on the vehicle, either generally or on specified occasions
or at specified times and seasons;
(iv) the conditions subject to which goods may be carried in any
contract carriage in addition to, or to the exclusion of, passengers;
(v) that, in the case of motorcabs, specified fares or rates of fares shall
be charged and a copy of the fare table shall be exhibited on the vehicle;

104
(vi) that, in the case of vehicles other than motorcabs, specified rates of
hiring not exceeding specified maximum shall be charged;
(vii) that, in the case of motorcabs, a specified weight of passengers
luggage shall be carried free of charge, and that the charge, if any, for any luggage
in excess thereof shall be at a specified rate;
(viii) that, in the case of motorcabs, a taximeter shall be fitted and
maintained in proper working order, if prescribed;
(ix) that the Regional Transport Authority may, after giving notice of
not less than one month,-
(a) vary the conditions of the permit
(b) attach to the permit further conditions;
(x) that the conditions of permit shall not be departed from save with
the approval of the Regional Transport Authority;
(xi) that specified standards of comfort and cleanliness shall be
maintained in the vehicles;
(xii) that, except in the circumstances of exceptional nature, the plying
of the vehicle or carrying of the passengers shall not be refused;
(xiii) any other conditions which may be prescribed.
(3)(a) The State Government shall, if so directed by the Central Government,
having regard to the number of vehicles, road conditions and other relevant matters,
by notification in the Official Gazette, direct a State Transport Authority and a
Regional Transport Authority to limit the number of contract carriages generally or of
any specified type as may be fixed and specified in the notification, operating on city
routes in towns with a population of not less than five lakhs.
(b) Where the number of contract carriages are fixed under clause (a), the
Regional Transport Authority shall, in considering an application for the grant of
permit in respect of any such contract carriage, have regard to the following matters,
namely :-
(i) financial stability of the applicant
(ii) satisfactory performance as a contract carriage operator including
payment of tax if the applicant is or has been an operator of contract carriages ; and

105
(iii) such other matters as may be prescribed by the State
Government:
Provided that, other conditions being equal, preference shall be given to
applications for permits from –
(i) the India Tourism Development Corporation ;
(ii) State Tourism Development Corporation ;
(iii) State Tourism Departments ;
(iv) State Transport undertakings ;
(v) Co-operative societies registered or deemed to have been
registered under any enactment for the time being in force ;
(vi) Ex-servicemen.
Corresponding Law
:-
Section 74 corresponds to section 51 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 74 seeks to empower the transport authorities
to grant or refuse a contract carriage permit and as also to impose certain conditions
and attach such conditions to the permits issued. It also empowers the Central
Government to issue directions to transport authorities to limit the number of permits
to be issued in cities and towns having a populations of not less than 5 lakhs.
75. Scheme for renting of motorcabs.
-
(1) the central government may by
notification in the official gazatte, make a scheme for the purpose of regulating the
business of renting of
48
[motorcabs or motor cycles to persons desiring to drive either
by themselves or through drivers, motorcabs or motor cycles]for their own use and for
matters connected therewith.
(2) A scheme made under sub-section (1) may provide for all or any of the
following matters, namely;-
(a) licensing of operators under the scheme including grant, renewal
and revocation of such licences;
(b) form of application and form of licences and the particulars to be
contained therein;
(c) fee to be paid with the application for such licences;
(d) the authorities to which the application shall be made;

106
(e) condition subject to which such licences may be granted,
renewed or revoked;
(f) appeals against orders of refusal to grant or renew such licences
and appeals against orders revoking such licences;
(g) conditions subject to which motorcabs may be rented;
(h) maintenance of records and inspection of such records;
(i) such other matters as may be necessary to carry out the purpose
of this section,
Corresponding Law
:-
this is a new provision in the 1988 ACT.
Objects and Reasons
:-
Clause75 provides that the central government may
make a scheme for regulating the renting of motorcabs to hirers enabling the hirers to
drive the vehicles themselves for their own use.
76.
Application for private service vehicle permit
. -
(1) A Regional
Transport Authority may, on an application made to it, grant a private service vehicle
permit in accordance with the application or with such modification as it deems fit or
refuse to grant such permit;
Provided that no such permit shall be granted in respect of any area or route not
specified in the application.
48. Substituted for “motorcabs to persons desiring to drive the cabs” by Act 54 of 1994, S. 24
( w.e.f. 14-11-1994 ).
(2) An application for a permit to use a motor vehicle as a private service
vehicle shall contain the following particulars, namely;-
(a) type and seating capacity of the vehicle ;
(b) the area or the route or routes to which the application relates ;
(c) the manner in which it is claimed that the purpose of carrying
persons otherwise than for hire or reward or in connection with the trade or business
carried on by the applicant will be served by the vehicle ; and
(d) any other particulars which may be prescribed.
(3) The Regional Transport Authority if it decides to grant the permit may,
subject to any rules that may be made under this Act, attach to the permit any one or
more of the following conditions, namely :-

107
(i) that the vehicle be used only in a specified area or on a specified
route or routes ;
(ii) the maximum number of persons and the maximum weight of
luggage that may be carried ;
(iii) that the Regional Transport Authority may, after giving notice of
not less than one month -
(a) vary the conditions of the permit ;
(b) attach to the permit further conditions ;
(iv) that the conditions of permit shall not be departed from, save with
the approval of the Regional Transport Authority;
(v) that specified standards of comforts and cleanliness shall be
maintained in the vehicle ;
(vi) that the holder of the permit shall furnish to the Regional
Transport Authority such periodical returns, statistics and other information as the
State Government may, from time to time, specify ; and
(vii) such other conditions as may be prescribed.
Corresponding Law
:-
Section 76 corresponds to section 52 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 76 deals with permits for private service
vehicles for the transport of employees by the employers otherwise than for hire or
reward, the authorities to grant such permits and the conditions to be attached to such
permit.
77. Application for goods carriage permit
:-
An application for a permit
to use a motor vehicle for the carriage of goods for hire or reward or for the carriage
of goods for or in connection with a trade or business carried on by the applicant ( in
this Chapter referred to as a goods carriage permit ) shall, as far as may be, contain the
following particulars, namely :-
(a) the area or the route or routes to which the application relates ;
(b) the typed and capacity of the vehicle ;
(c) the nature of the goods it is proposed to carry ;

108
(d) the arrangements intended to be made for the housing, maintenance
and repair of the vehicle and for the storage and safe custody of the goods ;
(e) such particulars as the Regional Transport Authority may require
with respect to any business as a carrier of goods for hire or reward carried on by the
applicant at any time before the making of the application, and of the rates charged by
the applicant:
(f) particulars of any agreement, or arrangement, affecting in any
material respect the provision within the region of the Regional Transport Authority of
facilities for the transport of goods for hire or reward, entered into by the applicant
with any other person by whom such facilities are provided, whether within or without
the region ;
(g) any other particulars which may be prescribed.
Corresponding Law
:-
Section 77 corresponds to section 54 of the Motor
Vehicles Act, 1939.
Objects and Reasons
:-
Clause 77 prescribes the form of application for goods
carriage permit.
78. Consideration of application for goods carriage permit
:-
A
Regional Transport Authority shall, in considering an application for a goods carriage
permit, have regard to the following matters, namely;-
(a) the nature of the good to be carried with special reference to their
dangerous or hazardous nature to human life;
(b) the nature of the chemicals or explosives to be carried with special
reference to the safety to human life.
Corresponding law
.-
Section 78 corresponds to section 55 of the motor
vehicles act, 1939.
Objects and reasons
.–
Clause 78 deals with procedure for the grant of goods of
carriage permit
79. Grant of goods carriage permit
. -
(1) A Regional Transport Authority
may, on an application made to it under section 77, grant a goods carriage permit to be
valid throughout the State or in accordance with the application or with such
modifications as it deems fit or refuse to grant such a permit:

109
Provided that no such permit shall be granted in respect of any area or route not
specified in the application.
(2) The Regional Transport Authority, if it decides to grant a goods carriage
permit it, may grant the permit and may, subject to any rules that may be made under
this Act, attach to the permit any one or more of the following conditions, namely:-
(i) that the vehicle shall be used only in a specified area, or on a
specified route or routes;
(ii) that the gross vehicle weight of any vehicle used shall not exceed
a specified maximum;
(iii) that goods of a specified nature shall not be carried;
(iv) that goods shall be carried at specified rates;
(v) that specified arrangement shall be made for the housing,
maintenance and repair of the vehicle and the storage and safe custody of the goods
carried;
(vi) that the holder of the permit shall furnish to the Regional
Transport Authority such periodical returns, statistics and other information as the
State Government may, f rom time to time, prescr ibe;
(vii) that the Regional Transport Authority may, after giving notice of
not less than one month,-
(a) vary the conditions of the permit;
(b) attach to the permit further conditions;
(viii) that the conditions of the permit shall not be departed from, save
with the approval of the Regional Transport Authority ;
(ix) any other conditions which may be prescribed.
(3) The conditions referred to in sub-section (2) may include conditions
relating to the packaging and carriage of goods of dangerous or hazardous nature to
human life.
Corresponding Law.
-
Section 79 corresponds to section 56 of the motor
vehicles act, 1939.

110
Objects and Reasons.
-
Clause 79 provides for the grant of goods carriage
permits, the power of transport authorities to grant or refuse such permits and to
impose conditions and attach such conditions to the permit.
80. Procedure in applying for and granting permits
:-
(1) An
application for a permit of any kind may be made at any time.
(2) A
49
[ Regional Transport Authority, State Transport Authority or any
prescribed authority referred to in sub-section (1) of section 66] shall not ordinarily
refuse to grant an application for permit of any kind made at any time under this Act;
Provided that the
[ Regional Transport Authority, State Transport Authority
50
or any prescribed authority referred to in sub-section (1) of section 66] may
summarily refuse the application if the grant of any permit in accordance with the
application would have the effect of increasing the number of stage carriages as fixed
and specified in a notification in the Official Gazette under clause (a) of sub-section
(3) of section 71 or of contract carriages as fixed and specified in a notification in the
Official Gazette under clause (a) of sub-section (3) of section 74;
Provided further that where a
51
[Regional Transport Authority, State Transport
Authority or any prescribed authority referred to in sub-section (1) of section 66]
refuses an application for the grant of a permit of any kind under this Act, it shall give
to the applicant in writing its reasons for the refusal of the same and an opportunity of
being heard in the matter.
49. Substituted for “Regional Transport Authority” by Act 54 of 1994, S. 25 (w.e.f. 14-11-1994 ).
50. Substituted, ibid, for “Regional Transport Authority” ( w.e.f. 14-11-1994 ).
51. Substituted, ibid, for “Regional Transport Authority” ( w.e.f. 14-11-1994 ).
(3) An application to vary the conditions of any permit, other than a
temporary permit, by the inclusion of a new route or routes or a new area or by
altering the route or routes or area covered by it, or in the case of a stage carriage
permit by increasing the number of trips above the specified maximum or by the
variation, extension or curtailment of the route or routes or the area specified in the
permit shall be treated as an application for the grant of a new permit ;
Provided that it shall not be necessary so to treat an application made by the
holder of stage carriage permit who provides the only service on any route to increase

111
the frequency of the service so provided without any increase in the number of
vehicles ;
Provided further that, -
(i) in the case of variation, the termini shall not be altered and the distance
covered by the variation shall not exceed twenty four kilometers ;
(ii) in the case of extension, the distance covered by extension shall not
exceed twenty four kilometers from the termini, & any such variation or extension
within such limits shall be made only after the transport authority is satisfied that such
variation will serve the convenience of the public and that it is not expedient to grant a
separate permit in respect of the original route as so varied or extended or any part
thereof.
A
52
[Regional Transport Authority, State Transport Authority or any
(3)
prescribed authority referred to in sub-section (1) of section 66] may, before such date
as may be specified by it in this behalf, replace any permit granted by it before the
said date by a fresh permit conforming to the provisions of section 72 or section 74 or
section 76 or section 79, as the case may be, and the fresh permit shall be valid for the
same route or routes or the same area for which the replaced permit was valid.
Provided that no condition other than a condition which was already attached to
the replaced permit or which could have been attached thereto under the law in force
when that permit was granted shall be attached to the fresh permit except with the
consent in writing of the holder of the permit.
52. Substituted for “Regional Transport Authority” by Act 54 of 1994, S. 25 ( w.e.f. 14-11-
1994 ).
(4) Notwithstanding anything contained in section 81, a permit issued under
the provisions of sub-section (4) shall be effective without renewal for the remainder
of the period during which the replaced permit would have been so effective.
Corresponding Law.
-
Section 80 corresponds to section 57 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 80 lays down the procedure in applying for and
granting permits of any kind, variations of permits and replacement of permits by
fresh permits under certain circumstances by the transport authorities.

112
81. Duration and renewal of permits
. -
(1) A permit other than a
temporary permit issued under section 87 or a special permit issued under sub-
section (8) of section 88 shall be effective
53
[ from the date of issuance or renewal
thereof ] for a period of five years.
Provided that where the permit is countersigned under sub-section (1) of
section 88, such countersignature shall remain effective without renewal for such
period so as to synchronise with the validity of the primary permit.
(2) A permit may be renewed on in application made not less than 15 days
before the date of its expiry.
(3) Notwithstanding anything contained in sub-section (2), the Regional
Transport Authority or the State Transport Authority, as the case may be, may
entertain an application for the renewal of a permit after the last date specified in that
sub-section if it is satisfied that the applicant was prevented by good and sufficient
cause from making an application within the time specified.
(4)The Regional Transport Authority or the State Transport Authority, as the
case may be, may reject an application for the renewal of a permit on one or more of
the following grounds, namely :-
(a) the financial condition of the applicant as evidenced by insolvency, or
decrees for payment of debts remaining unsatisfied for a period of thirty days, prior to
the date of consideration of the application ;
(b) the applicant had been punished twice or more for any of the following
offences within twelve months reckoned from fifteen days prior to the date of
53. Substituted, by S. 26,
ibid
, for “without renewal” ( w.e.f. 14-11-1994 ).
(c) consideration of the application committed as a result of the operation of
a stage carriage service by the applicant, namely :-
(i) plying any vehicle -
(1) without payment of tax due on such vehicle ;
(2) without payment of tax during the grace period allowed for
payment of such tax and then stop the plying of such vehicle ;
(3) on any unauthorised route ;
(ii) making unauthorised trips:

113
Provided that in computing the number of punishments for the purpose of
clause (b), any punishment stayed by the order of an appellate authority shall not
be taken into account :
Provided further that no application under this sub-section shall be rejected
unless an opportunity of being heard is given to the applicant.
(5) Where a permit has been renewed under this section after the expiry of
the period thereof, such renewal shall have effect from the date of such expiry
irrespective of whether or not a temporary permit has been granted under clause (d) of
section 87, and where a temporary permit has been granted, the fee paid in respect of
such temporary permit shall be refunded.
Corresponding Law.
-
Section 81 corresponds to section 58 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 81 lays down the validity of a permit of any
kind as 5 years. It also provides for the renewal of the permit for 5 years, the time
within which application for renewal of permit should be submitted to the transport
authorities and the conditions subject to which the permit may be renewed
automatically.
82. Transfer of permit
. -
(1) Save as provided in sub-section (2), a permit
shall not be transferable from one person to another except with the permission of the
transport authority which granted the permit and shall not, without such permission,
operate to confer on any person to whom a vehicle covered by the permit is
transferred any right to use that vehicle in the manner authorised by the permit.
(2) Where the holder of a permit dies, the person succeeding to the
possession of the vehicle covered by the permit may, for a period of three months, use
the permit as if it had been granted to himself :
Provided that such person has, within thirty days of the death of the holder,
informed the transport authority which granted the permit of the death of the holder
and of his own intention to use the permit :
Provided further that no permit shall be so used after the date on which it
would have ceased to be effective without renewal in the hands of the deceased
holder.

114
(3) The transport authority may, on application made to it within three
months of the death of the holder of a permit, transfer the permit to the person
succeeding to the possession of the vehicles covered by the permit :
Provided that the Transport Authority may entertain an application made after
the expiry of the said period of three months if it is satisfied that the applicant was
prevented by good and sufficient cause from making an application within the time
specified.
Corresponding Law.
-
Section 82 (1) corresponds to section 59(1) and section
82 (2) corresponds to section 61 of the motor vehicles act, 1939.
Objects and Reasons.
-
Clause 83 enables the holder of the permit to replace
the vehicles covered by the permit by another vehicle of the same nature with the
permission of the transport authority which granted the permit.
83. Replacement of vehicles
. -
The holder of a permit may, with the
permission of the authority by which the permit was granted, replace any vehicle
covered by the permit by any other vehicle of the same nature.
Corresponding Law.
-
Section 83 corresponds to section 59(2) of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 83 enables the holder of the permit to replace
the vehicles covered by the permit by another vehicle of the same nature with the
permission of the transport authority which granted the permit.
84. General conditions attaching to all permits
. -
The following shall be
conditions of every permit –
(a) that the vehicle to which the permit relates carries valid certificate of
fitness issued under section 56 and is at all times so maintained as to comply with the
requirements of this Act and the rules made thereunder ;
(b) that the vehicle to which the permit relates is not driven at a speed
exceeding the speed permitted under this Act ;
(c) that any prohibition or restriction imposed any fares or freight fixed
by notification made under section 67 are observed in connection with the vehicle to
which the permit relates ;

115
(d) that the vehicle to which the permit relates is not driven in
contravention of the provisions of section 5 or section 113 ;
(e) that the provisions of this Act limiting the hours of work of drivers
are observed in connection with any vehicle or vehicles to which the permit relates;
(f) that the provisions of Chapter X, XI and XII so far as they apply to
the holder of the permit are observed ; and
(g) that the name and address of the operator shall be painted or
otherwise firmly affixed to every vehicle to which the permit relates on the exterior of
the body of that vehicle on both sides thereof in a colour or colours vividly contrasting
to the colour of the vehicle centered as high as practicable below the window line in
bold letters.
Corresponding Law
.-
Section 84 corresponds to section 59(3) of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 84 prescribes general conditions attaching to
all kinds of permit.
85. General form of permits
. -
Every permit issued under this Act shall be
complete in itself and shall contain all the necessary particulars of the permit and the
conditions attached thereto.
Corresponding Law
.-
Section 85 corresponds to section 59-A of the motor
vehicles act, 1939.
Objects and Reasons
.-
Clause 85 lays down the general form of permit.
86. Cancellation and suspension of permits
.-
(1) The Transport
Authority which granted a permit may cancel the permit or may suspend it for such
period as it thinks fit –
(a) on the breach of any condition specified in section 84 or of any
condition contained in the permit, or
(b) if the holder of the permit uses or causes or allows a vehicle to be
used in any manner not authorised by the permit, or
(c) if the holder of the permit ceases to own the vehicle covered by the
permit, or

116
(d) if the holder of the permit has obtained the permit by fraud or
misrepresentation, or
(e) if the holder of the goods carriage permit, fails without reasonable
cause, to use the vehicle for the purposes for which the permit was granted, or
(f) if the holder of the permit acquires the citizenship of any foreign
country :
Provided that no permit shall be suspended or cancelled unless an opportunity
has been given to the holder of the permit to furnish his explanation.
(2) The Transport Authority may exercise the powers conferred on it under
sub-section (1) in relation to a permit granted by any authority or person to
whom power in this behalf has been delegated under sub-section (5) of section 68 as if
the said permit was a permit granted by the Transport Authority.
(3) Where a Transport Authority cancels or suspends a permit, it shall give
to the holder in writing its reasons for the action taken.
(4) The powers exercisable under sub-section (1) ( other than the power to
cancel a permit ) by the Transport Authority which granted the permit may be
exercised by any authority or person to whom such powers have been delegated under
sub-section (5) of section 68.
(5) Where a permit is liable to be cancelled or suspended under clause (a) or
clause (b) or clause (e) of sub-section (1) and the Transport Authority is of opinion
that having regard to the circumstances of the case, it would not be necessary or
expedient so to cancel or suspend the permit if the holder of the permit agrees to pay a
certain sum of money, than notwithstanding anything contained in sub-section (1), the
Transport Authority may, instead of cancelling or suspending the permit, as the case
may be, recover from the holder of the permit the sum of money agreed upon.
(6) The powers exercisable by the Transport Authority under sub-section (5)
may, where an appeal has been preferred under section 89, be exercised also by the
appellate authority.
(7) In relation to a permit referred to in sub-section (9) of section 88, the
powers exercisable under sub-section (1) ( other than the power to cancel a permit ) by
the Transport Authority which granted the permit, may be exercised by any Transport

117
Authority and any authority or persons to whom power in this behalf has been
delegated under sub-section (5) of section 68, as if the said permit was a permit
granted by any such authority or persons.
Corresponding Law.
-
Section 86 corresponds to section 60 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 86 seeks to empower the transport authority
which granted the permit to cancel the permit or suspend it for a specified period for
the breach of the conditions of the permit or for specific offences specified in this
clause. It also confers powers on the transport authority to permit compounding of
offences under this clause by recovering the money agreed upon from the permit
holder in lieu of the suspension or cancellation of the permit.
87. Temporary permits
. -
(1) A Regional Transport Authority and the State
Transport Authority may without following the procedure laid down in section 80,
grant permits, to be effective for a limited period which shall, not in any case exceed
four month, to authorise the use of a transport vehicle temporarily –
(a) for the conveyance of passengers on special occasions such as to and
from fairs and religious gatherings, or
(b) for the purposes of a seasonal business, or
(c) to meet a particular temporary need, or
(d) pending decision on an application for the renewal of a permit, and
may attach to any such permit such condition as it may think fit :
Provided that a Regional Transport Authority or, as the case may be, State
Transport Authority may, in the case of goods carriages, under the circumstances of
an exceptional nature, and for reasons to be recorded in writing, grant a permit for a
period exceeding four months, but not exceeding one year.
(2) Notwithstanding anything contained in sub-section (1), a temporary
permit may be granted thereunder in respect of any route or area where –
(i) no permit could be issued under section 72 or section 74 or section
76 or section 79 in respect of that route or area by reason of an order of a Court or
other competent authority restraining the issue of the same, for a period not exceeding
the period for which the issue of the permit has been so restrained ; or

118
(ii) as a result of the suspension by a Court or other competent authority
of the permit of any vehicle in respect of that route or area, there is no transport
vehicle of the same class with a valid permit in respect of that route or area, or there is
no adequate number of such vehicles in respect of that route or area, for a period not
exceeding the period of such suspension :
Provided that the number of transport vehicles in respect of which temporary
permits are so granted shall not exceed the number of vehicles in respect of which the
issue of the permits have been restrained or, as the case may be, the permit has been
suspended.
Corresponding Law.
-
Section 87 corresponds to section 62 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 87 confers upon the transport authorities the
power to issue temporary permits to transport vehicles for a limited period for the use
of the vehicle temporarily for certain specified purposes.
88. Validation of permits for use outside region in which granted
. -
(1) Except as may be otherwise prescribed, a permit granted by the Regional
Transport Authority of any one region shall not be valid in any other region, unless
the permit has been countersigned by the Regional Transport Authority of that other
region, and a permit granted in any one State shall not be valid in any other State
unless countersigned by the State Transport Authority of that other State or by the
Regional Transport Authority concerned :
Provided that a goods carriage permit, granted by the Regional Transport
Authority of any one region, for any area in any other region or regions within the
same State, shall be valid in that area without the countersignature of the Regional
Transport Authority of the other region or of each of the other regions concerned :
Provided further that where both the starting point and the terminal point of a
route are situate within the same State, but part of such route lies in any other State
and the length of such part does not exceed sixteen kilometres, the permit shall be
valid in the other State in respect of that part of the route which is in that other State
notwithstanding that such permit has not been countersigned by the State Transport
Authority or the Regional Transport Authority of that other State :

119
Provided also that –
(a) where a motor vehicle covered by a permit granted in one State is
to be used for the purposes of defence in any other State, such vehicle shall display a
certificate, in such form, and issued by such Authority, as the Central Government
may, by notification in the Official Gazette, specify, to the effect that the vehicle shall
be used for the period specified therein exclusively for the purposes of defence ; and
(b) any such permit shall be valid in that other State notwithstanding that
such permit has not been countersigned by the State Transport Authority or the
Regional Transport Authority of that other State.
(2) Notwithstanding anything contained in sub-section (1), a permit granted
or countersigned by a State Transport Authority shall be valid in the whole State or in
such regions within the State as may be specified in the permit.
(3) A Regional Transport Authority when countersigning the permit may
attach to the permit any condition which it might have imposed if it had granted the
permit and may likewise vary any condition attached to the permit by the authority by
which the permit was granted.
(4) The provisions of this Chapter relating to the grant, revocation and
suspension of permits shall apply to the grant, revocation and suspension of
countersignatures of permits.
Provided that it shall not be necessary to follow the procedure laid down in
section 80 for the grant of countersignatures of permits, where the permits granted in
any one State are required to be countersigned by the State Transport Authority of
another State or by the Regional Transport Authority concerned as a result of any
agreement arrived at between the States after complying with the requirements of sub-
section (5).
(5) Every proposal to enter into an agreement between the States to fix the
number of permits which is proposed to be granted or countersigned in respect of each
route or area, shall be published by each of the State Governments concerned in the
Official Gazette and in any one or more of the newspapers in regional language
circulating in the area or route proposed to be covered by the agreement together with
a notice of the date before which representations in connection therewith may be

120
submitted, and the date not being less than thirty days from the date of publication in
the Official Gazette, on which, and the authority by which, and the time and
place at which, the proposal and any representation received in connection therewith
will be considered.
(6) Every agreement arrived at between the States shall, insofar as it relates
to the grant of countersignature of permits, be published by each of the State
Governments concerned in the Official Gazette and in any one or more of the
newspaper in the regional language circulating in the area or route covered by the
agreement and the State Transport Authority of the State and the Regional Transport
Authority concerned shall give effect to it.
(7) Notwithstanding anything contained in sub-section (1), a Regional
Transport Authority of one region may issue a temporary permit under section 87 to
be valid in another region or State with the concurrence, given generally or for the
particular occasion, of the Regional Transport Authority of that other region or of the
State Transport Authority of that other State, as the case may be.
(8) Notwithstanding anything contained in sub-section (1), but subject to
any rules that may be made under this Act by the Central Government, the Regional
Transport Authority of any one region or, as the case may be, the State Transport
Authority, may, for the convenience of the public,
54
[grant a special permit to any
54. Substituted for “grant a special permit in relation to a vehicle covered” by Act 54 of 1994,
S. 27 ( w.e.f. 14-11-1994 ).
public service vehicle including any vehicle covered ] by a permit issued under
section 72 ( including a reserve stage carriage ) or under section 74 or under sub-
section (9) of this section for carrying a passenger or passengers for hire or reward
under a contract, express or implied, for the use of the vehicle as a whole without
stopping to pick up or set down along the line of route passengers not included in the
contract, and in every case where such special permit is granted, the Regional
Transport Authority shall assign to the vehicle, for display thereon, a special
distinguishing mark in the form and manner specified by the Central Government and
such special permit shall be valid in any other region or State without the

121
countersignature of the Regional Transport Authority of the other region or of the
State Transport Authority of the other State, as the case may be.
(9) Notwithstanding anything contained in sub-section (10 but subject to
any rules that may be made by the Central Government under sub-section (14), any
State Transport Authority may, for the purpose of promoting tourism, grant permits in
respect of tourist vehicles valid for the whole of India, or in such contiguous States not
being less than three in number including the State in which the permit is issued as
may be specified in such permit in accordance with the choice indicated in the
application and the provisions of sections 73, 74, 80, 81, 82, 83, 84, 85, 86,
55
[clause
(d) of sub-section (1) of section 87 and section 89 ] shall, as far as may be, apply in
relation to such permits.
56
[***]
(11) The following shall be conditions of every permit granted under sub-
section (9), namely :-
(i) every motor vehicle in respect of which such permit is granted
shall conform to such description, requirement regarding the seating capacity,
standards of comforts, amenities and other matters, as the Central Government may
specify in this behalf ;
(ii) every such motor vehicle shall be driven by person having such
qualifications and satisfying such conditions as may be specified by the Central
Government ; and
55. Substituted, ibid, for “and 89” ( w.e.f. 14-11-1994 ).
(iii) such other conditions as may be prescribed by the Central
Government.
(12) Notwithstanding anything contained in sub-section (1), but, subject to
the rules that may be made by the Central Government under sub - section ( 14), the
appropriate authority may, for the purpose of encouraging long distance inter-State
road transport, grant in a State, national permits in respect of goods carriages and the
provisions of section 69, 77, 79, 80, 81, 82, 83, 84, 85, 86,
57
[clause (d) of sub-section
(1) of section 87 and section 89] shall, as far as may be apply to or in relation to the
grant of national permits.

122
58
[****]
(14) (a) The Central Government may make rules for carrying out the
provisions of this section.
(b) In particular, and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely :-
56. Sub-S. (100 omitted, ibid ( w.e.f. 14-11-1994 ). Prior to its omission, sub-S. (10) read as
under :-
“(10) Without prejudice to the provisions of section 74, the State Transport Authority shall, in
considering an application for a permit under sub-section (9) in respect of tourist vehicles other than
motorcabs have regard to the following matters, namely :-
(a) no such permit shall be issued –
(i) to an individual owner so as to exceed ten such valid permits in his own name,
(ii) to a company so as to exceed twenty such valid permits in its own name ;
(b) the restriction under clause (a) regarding the number of permits to be granted shall not
apply to the India Tourism Development Corporation, State Tourism Development Corporations,
State Tourism Departments or State Transport undertakings ;
(c) in computing the number of permits for the purposes of clause (a), the number of
permits held by an applicant in the name of any other person and the permits held by any company of
which such applicant is a director shall also be taken into account.
Explanation .- For the purposes of this sub-section and sub-section (13), “company” means a
body corporate, and includes a firm or other association of individuals, and “director”, in relation to a
firm, means a partner in the firm”.
57. Substituted for “and 89” by Act 54 of 1994, S. 27 ( w.e.f. 14-11-1994 ).
(i) the authorisation fee payable for the issue of a permit referred
to in sub-section (9) and (12) ;
(ii) the fixation of the laden weight of the motor vehicle ;
(i) the distinguishing particulars or marks to be carried or
exhibited in or on the motor vehicle ;
(ii) the colour or colours in which the motor vehicle is to be
painted ;
(iii) such other matters as the appropriate authority shall consider in
granting a national permit.

123
Explanation.
-
In this section, -
(a) “appropriate authority” , in relation to a national permit, means the
authority which is authorised under this Act to grant a goods carriage permit ;
(b) “authorisation fee” means the annual fee, not exceeding one thousand
rupees, which may be charged by the appropriate authority of a State of enable a
motor vehicle, covered by the permit referred to in sub-section (9) and (12) to be
used in other States subject to the payment of taxes or fees, if any, levied by the States
concerned ;
(c) “national permit” means a permit granted by the appropriate authority to
goods carriages to operate throughout the territory of India or in such contiguous
States not being less than four in number, including the State in which the permit is
58. Sub-S. (13) omitted, ibid ( w.e.f. 14-11-1994 ). Prior to its omission, sub-S. (13) read as
under :-
“(13) The appropriate authority shall, in considering an application for a national permit, have
regard to the following matters, namely :-
(a) no national permit shall be issued –
(i) to an individual owner so as to exceed five national permits in its own name ;
(ii) to a company so as to exceed ten valid national permits in its own name ;
(b) the restriction under clause (a) regarding the number of permits to be issued shall not
apply to the State transport undertakings ;
(c) in computing the number of permits for the purposes of clause (a), the number of
permits held by an applicant in the name of any other person and the permits held by any company of
which such applicant is a director shall also be taken into account.”
issued as may be specified in such permit in accordance with the choice indicated in
the application.
Corresponding Law.
-
Section 88 corresponds to section 63 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 88 lays down the procedure for validation for
use outside the region in which the permit is granted, for entering into an agreement
between the States regarding the number of permits to be granted or counter-signed in
each State on inter-State routes, for the issue of temporary permits to be valid in
another State without the process of counter-signature in the other State, it also
provides that national permit for goods carriages issued in one state and permits for

124
tourist vehicle issued in one state shall without counter signature in other state be
valid throughout India, without a limit in the number of vehicles for which such
permits may be granted but with certain limit on the holding of such permits by both
individuals and companies.
89. Appeals.
–
(1) Any person –
(a) aggrieved by the refusal of the State or a Regional Transport
Authority to grant a permit, or by any condition attached to a permit granted to him, or
(b) aggrieved by the revocation or suspension of the permit or by any
variation of the conditions thereof, or
(c) aggrieved by the refusal to transfer the permit under section 82,
or
(d) aggrieved by the refusal of the State or a Regional Transport
Authority to countersign a permit, or by any condition attached to such
countersignature, or
(e) aggrieved by the refusal of renewal of a permit, or
(f) aggrieved by the refusal to grant permission under section 83, or
(g) aggrieved by any other order which may be prescribed, may,
within the prescribed time and in the prescribed manner, appeal to the State transport
Appellate Tribunal constituted under sub-section (2), who shall, after giving such
person and the original authority an opportunity of being heard, give a decision
thereon which shall be final.
59
[(2) The State Government shall constitute such number of Transport
Appellate Tribunals as it thinks fit and each such Tribunal shall consist of a judicial
officer who is not below the rank of a District Judge or who is qualified to be a judge
of the High Court and it shall exercise jurisdiction within such area as may be notified
by that Government.]
(3) Notwithstanding anything contained in sub-section (1) or sub-section
(2), every appeal pending at the commencement of this Act, shall continue to be
proceeded with and disposed of as if this Act had not been passed.
Explanation .-
For the removal of doubts, it is hereby declared that when any
order is made by the State Transport Authority or the Regional Transport Authority in

125
pursuance of a direction issued by the Inter-State Transport commission under clause
(c) of sub-section (2) of section 63-A of the Motor Vehicles Act, 1939, as it stood
immediately before the commencement of this Act, and any person feels aggrieved by
such order on the ground that it is not in consonance with such direction, he may
appeal under sub - section (1) to the State Transport Appellate Tribunal against such
Corresponding Law.
-
Section 89 corresponds to section 64 of the motor
vehicles act, 1939.
Objects and Reasons.
-
Clause 89 contains provisions for constitution by the
State Governments, State Transport Appellate Tribunals for hearing of appeals filed
by aggrieved persons, against the orders passed by the Transport authorities and lays
down the nature of orders that can be taken on appeal.
90. Revision
. -
The State Transport Appellate Tribunal may, on an
application made to it, call for the record of any case in which an order has been made
by a State Transport Authority or Regional Transport Authority against which no
order by not against the direction so issued.
59. Sub-S. (2) substituted by Act 54 of 1994, S. 28 ( w.e.f. 14-11-1994 ). Prior to its substitution,
sub-S. (2) read as under :-
“(2) The State Government shall constitute for the State, a State Transport Appellate Tribunal
which shall consist of a judicial officer who is not below the rank of a District Judge, or who is
qualified to be a judge of a High Court :
Provided that in relation to a Union territory, the Tribunal may consist of the Administrator of
that territory or any officer who has judicial experience”.
appeal lies, and if it appears to the State Transport Appellate Tribunal that the order
made by the State Transport Authority or Regional Transport Authority is improper or
illegal, the State Transport Appellate Tribunal may pass such order in relation to the
case as it deems fit and every such order shall be final :
Provided that the State Transport Appellate Tribunal shall not entertain any
application from a person aggrieved by an order of a State Transport Authority or
Regional Transport Authority, unless the application is made within thirty days from
the date of the order :
Provided further that the State Transport Appellate Tribunal may entertain the
application after the expiry of the said period of thirty days, if it is satisfied that the

126
applicant was prevented by good and sufficient cause from making the application in
time :
Provided also that the State Transport Appellate Tribunal shall not pass an
order under this section prejudicial to any person without giving him a reasonable
opportunity of being heard.
Corresponding Law.
-
Section 90 corresponds to section 64 – A of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 90 provides for filling of revision petition before
State Transport Appellate Tribunal by the aggrieved persons on matters where no
appeal is provided in clause 89.
91. Restriction hours of work of drivers
. -
60
[(1) The hours of work of any
person engaged for operating a transport vehicle shall be such as provided in the
Motor Transport Workers Act, 1961 ( 27 of 1961 )].
(2) A State Government may, by notification in the Official Gazette, grant
such exemptions from the provisions of sub-section (1) as it thinks fit, to meet cases of
60. Sub-S. (1) substituted by Act 54 of 1994, S. 29 ( w.e.f. 14-11-1994 ). Prior to its substitution,
sub-S. (1) read as under .-
“(1) No person shall cause or allow any person who is employed by him for the purpose of
driving a transport vehicle or who is subject to his control for such purpose to work –
(a) for more than five hours before he has had an interval of rest of at least half an hour ; or
(b) for more than eight hours in one day ; or
(c) for more than forty-eight hours in any week.”
emergency of delays by reason of circumstances which could not be foreseen.
(3) A State Government or, if authorised in this behalf by the State
Government by rules made under section 96, the State or a Regional Transport
Authority may require persons employing any person whose work is subject to any of
the provision of sub-section (1) to fix beforehand the hours of work of such persons so
as to conform to those provisions, and may provide for the recording of the hours so
fixed.
(4) No person shall work or shall cause or allow any other person to work
outside the hours fixed or recorded for the work of such persons under sub-section (3),

127
(5) A State Government may prescribe the circumstances under which and
the period during which the driver of a vehicle although not engaged in work is
required to remain on or near the vehicle may be deemed to be an interval for rest
within the meaning of sub-section (1).
Corresponding Law.
-
Section 91 corresponds to section 65 of the motor
vehicles Act, 1939.
Object and Reasons
. -
Clause 91 prohibits the driving of motor vehicles by a
person for more than certain hours in a day and the hours of rest the driver should take
after certain hours of continuous driving.
92. Voidance of contracts restrictive of liability
. -
Any contract for the
conveyance of a passenger in a stage carriage or contract carriage, in respect of which
a permit has been issued under this Chapter, shall, so far as it purports to negative or
restrict the liability of any person in respect of any claim made against that person in
respect of the death of, or bodily injury to, the passenger while being carried in,
entering or alighting from the vehicle, or purports to impose any conditions with
respect to the enforcement of any such liability, be void.
Corresponding Law.
-
Section 92 corresponds to section 66 of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 92 lays down any contract purporting to negative
or restrict the liability in respect of claim against third party risk, shall be void.
93. Agent or canvasser to obtain licence
. -
(1) No person shall engage
himself –
(i) as an agent or a canvasser, in the sale of tickets for travel by public
service vehicle or in otherwise soliciting customers for such vehicles, or
(ii) as an agent in the business of collecting, forwarding or distributing
goods carried by goods carriages,
unless he has obtained a licence from such authority and subject to such
conditions as may be prescribed by the State Government.
(2) The conditions referred to in sub-section (1), may include all or any of
the following matters, namely :-
(a) the period for which a licence may be granted or renewed ;

128
(b) the fee payable for the issue or renewal of the licence ;
(c) the deposit of security –
(i) of a sum not exceeding rupees fifty thousand in the case of an
agent in the business of collecting, forwarding or distributing goods carried by goods
carriages ;
(ii) of a sum not exceeding rupees five thousand in the case of any
other agent or canvasser,
and the circumstances under which the security may be forfeited ;
(d) the provision by the agent of insurance of goods in transit ;
(e) the authority by which and the circumstances under which the licence
may be suspended or revoked ;
(f) such other conditions as may be prescribed by the State Government.
(3) It shall be a condition of every licence that no agent or canvasser to
whom the licence is granted shall advertise in any newspaper, book, list, classified
directory or other publication unless there is contained in such advertisement
appearing in such newspaper, book, list, classified directory or other publication the
licence number, the date of expiry of licence and the particulars of the authority which
granted the licence.
Corresponding Law.
-
Section 93 corresponds to section 66 – A of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 93 provides for licensing of goods booking
agents and travel agents, security deposit and fees for the application, authorities who
may issue such licences, suspension and cancellation of such licences and provision
for appeal. It also provides that any advertisement by the agents or canvassers should
contain the licence number and the authority who issued the licence.
94. Bar on jurisdiction of Civil Courts.
-
No Civil Court shall have
jurisdiction to entertain any question relating to the grant of a permit under this Act,
and no injunction in respect of any action taken or to be taken by the duly constituted
authorities under this Act with regard to the grant of a permit, shall be entertained by
any Civil Court.
Corresponding Law.
-
This is a new provision in the 1988 Act.

129
Object and Reasons.
-
Clause 94 bars the jurisdiction of Civil Court in matter
relating to grant of permit under this Act.
95. Power of State Government to make rules as to stage carriages
and contract carriages
-
(1) A State Government may make rules to regulate, in
respect of stage carriages and contract carriages and the conduct of passengers in such
vehicles.
(2) Without prejudice to the generality of the foregoing provision, such
rules may –
(a) authorise the removal from such vehicle of any person contravening the
rules by the driver or conductor of the vehicle, or, on the request of the driver or
conductor, or any passenger, by any police officer ;
(b) require a passenger who is reasonably suspected by the driver or
conductor of contravening the rules to give his name and address to a police officer or
to the driver or conductor on demand.
(c) Require a passenger to declare, if so demanded by the driver or
conductor, the journey he intends to take or has taken in the vehicle and to pay the fare
for the whole of such journey and to accept any ticket issued therefor ;
(d) Require, on demand being made for the purpose by the driver or
conductor or other person authorised by the owners of the vehicle, production during
the journey and surrender at the end of the journey by the holder thereof of any ticket
issued to him ;
(e) Require a passenger, if so requested by the driver or conductor, to leave
the vehicle on the completion of the journey the fare for which he has paid ;
(f) Require the surrender by the holder thereof on the expiry of the period
for which it is issued of a ticket issued to him ;
(g) Require a passenger to abstain from doing anything which is likely to
obstruct or interfere with the working of the vehicle or to cause damage to any part of
the vehicle or its equipment or to cause injury or discomfort to any other passenger ;
(h) Require a passenger not to smoke in any vehicle on which a notice
prohibiting smoking is exhibited.

130
(i) Require the maintenance of complaint books in stage carriages and
prescribe the conditions under which passengers can record any complaints in the
same.
Corresponding Law.
-
Section 95 corresponds to section 67 of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 95 empowers the State Government to make
rules to regulate, in respect of stage carriage and contract carriages.
96. Power of State Government to make rules for the purposes of this
Chapter .
-
(1) A State Government may make rules for the purpose of carrying into
effect the provisions of this Chapter.
(2) Without prejudice to the generality of the foregoing power, rules under
this section may be made with respect to all or any of the following matters, namely :-
(i) the period of appointment and the terms of appointment of and
the conduct of business by Regional and State Transport Authorities and the reports to
be furnished by them ;
(ii) the conduct of business by any such authority in the absence of
any member ( including the Chairman ) thereof and the nature of business which, the
circumstances under which and the manner in which, business could so conducted ;
(iii) the conduct and hearing of appeals that may be preferred under
this Chapter, the fees to be paid in respect of such appeals and the refund of such fee ;
(iv) the forms to be used for the purpose of this Chapter, including the
forms of permits ;
(v) the issue of copies of permits in place of permits lost, destroyed
or mutilated ;
(vi) the documents, plates and marks to be carried by transport
vehicles, the manner in which they are to be carried and the languages in which any
such documents are to be expressed ;
(vii) the fees to be paid in respect of applications for permits, duplicate
permits and plates ;

131
(viii) the exemption of prescribed persons or prescribed classes of
persons from payment of all or any or any portion of the fees payable under this
Chapter.
(ix) The custody, production and cancellation on revocation or
expiration of permits, and the return of permits which have been cancelled ;
(x) The conditions subject to which, and the extent to which, a permit
granted in another State shall be valid in the State without countersignature ;
(xi) The conditions subject to which, and the extent to which, a permit
granted in one region shall be valid in another region within the State without
countersignature ;
(xii) The conditions to be attached to permits for the purpose of giving
effect to any agreement such as is referred to in clause (iii) of sub-section (1) of
section 67.
(xiii) The authorities to whom, the time within which and the manner
in which appeals may be made ;
(xiv) the construction and fittings of, and the equipment to be carried
by, stage and contract carriages, whether generally or in specified areas ;
(xv) the determination of the number of passengers a stage or contract
carriage is adapted to carry and the number which may be carried ;
(xvi) the conditions subjects to which goods may be carried on stage
and contract carriages partly or wholly in lieu of passengers ;
(xvii) the safe custody and disposal of property left in a stage or
contract carriage ;
(xviii) regulating the painting or marking of transport vehicles and the
display of advertising matter thereon, and in particular prohibiting the painting or
marking of transport vehicles in such colour or manner as to induce any person to
believe that the vehicle is used for the transport of mails ;
(xix) the conveyance in stage or contract carriages of corpses or
persons suffering from any infectious or contagious disease or goods likely to cause
discomfort or injury to passengers and the inspection and disinfection of such
carriages, if used for such purpose ;

132
(xx) the provision of taxi meters on motorcabs requiring approval or
standard types of taxi meters to be used and examining testing and sealing taxi
meter s ;
(xxi) prohibiting the picking up or setting down of passengers by stage
or contract carriages at specified places or in specified areas or at places other than
duly notified stands or halting places and requiring the driver of a stage carriage to
stop and remain stationary for a reasonable time when so required by a passenger
desiring to board or alight from the vehicle at a notified halting place ;
(xxii) the requirements which shall be complied with in the construction
or use of any duly notified stand or halting place, including the provision of adequate
equipment and facilities for the convenience of all users thereof ; the fees, if any,
which may be charged for the use of such facilities, the records which shall be
maintained at such stands or places, the staff to be employed thereat, and the duties
and conduct of such staff, and generally for maintaining such stands and places in a
serviceable and clean condition ;
(xxiii) the regulation of motorcab ranks ;
(xxiv) requiring the owners of transport vehicles to notify any change of
address or to report the failure of or damage to any vehicle used for the conveyance of
passengers for hire or reward ;
(xxv) authorising specified persons to enter at all reasonable times and
inspect all premises used by permit holders for the purposes of their business ;
(xxvi) requiring the person in charge of a stage carriage to carry any
person tendering the legal or customary fare ;
(xxvii)
the conditions under which and the types of containers or
vehicles in which animals or birds may be carried and the seasons during which
animals or birds may or may not be carried ;
(xxviii) the licensing of and the regulation of the conduct of agents or
canvassers who engage in the sale of tickets for travel by public service vehicles or
otherwise solicit customers for such vehicles ;
(xxix) the licensing of agents engaged in the business of collecting for
forwarding and distributing goods carried by goods carriages ;

133
(xxx) the inspection of transport vehicles and their contents and of the
permits relating to them ;
(xxxi) the carriage of persons other than the driver in goods carriages;
(xxxii)
the records to be maintained and the returns to be furnished by
the owners of transport vehicles ; and
(xxxiii) any other matter which is to be or may be prescribed.
Corresponding Law
;-
Section 96 corresponds to section 68 of the motor
vehicles Act, 1939.
Object and Reasons
;-
Clause 96 provides that the State Government may
make rules for the purpose of carrying into effect the provisions of this Chapter.
CHAPTER – VI
Special Provisions Relating To State Transport Undertakings
97. Definition
. -
In this Chapter, unless the context otherwise requires, “road
transport service” means a service of motor vehicles carrying passengers or goods or
both by road for hire or reward.
Corresponding Law.
-
Section 97 corresponds to section 68 – A (a) of the
motor vehicles Act, 1939.
Objects and Reasons.
-
Clause 97 seeks to define certain expression used in
this Chapter.
*98. Chapter to override Chapter V and other laws
.-
The provisions
of this Chapter and the rules and orders made thereunder shall have effect
notwithstanding anything inconsistent therewith contained in Chapter V or in any
other law for the time being in force or in any instrument having effect by virtue of
any such law.
Corresponding Law.
-
Section 98 corresponds to section 68 – B of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 98 lays down that the provisions of this Chapter
override the provisions of Chapter V and other laws.

134
99. Preparation and publication of proposal regarding road transport
service of a State transport undertaking.
-
61
[(1) Where any State
Government is of opinion that for the purpose of providing an efficient, adequate,
economical and properly co-ordinated road transport service, it is necessary in the
public interest that road transport services in general or any particular class of such
service in relation to any area or route or portion thereof should be run and operated
by the State transport undertaking, whether to the exclusion, complete or partial, of
other persons or otherwise, the State Government may formulate a proposal regarding
a scheme giving particulars of the nature of the services proposed to be rendered, the
area or route proposed to be covered and other relevant particulars respecting thereto
and shall publish such proposal in the Official Gazette of the State formulating such
proposal and in not less than one newspaper in the regional language circulating in the
area or route proposed to be covered by such scheme and also in such other manner as
the State Government formulating such proposal deem fit.
62
[(2) Notwithstanding anything contained in sub-section (1), when a proposal
is published under that sub-section , then from the date of publication of such
proposal, no permit shall be granted to any person, except a temporary permit during
*S. 5 of the T.N. Motor Vehicles ( Special Provisions ) Act, 1992 provides that the provisions of
Ss. 3, 4 and 6 of the 1992 Act shall have effect notwithstanding anything inconsistent therewith
contained in Chaps. V and VI including S. 98 of the Motor Vehicles Act, 1998.
61. S. 99 re-numbered as sub-S. (1) thereof by Act 54 of 1994, S. 30 ( w.e.f. 14-11-1994 ).
62. Inserted by Act 54 of 1994, S. 30 ( w.e.f. 14-11-1994 ).
the tendency of the proposal and such temporary permit shall be valid only for a
period on one year from the date of its issue or till the date of final publication of the
scheme under section 100, whichever is earlier. ]
Corresponding Law.
-
Section 99 corresponds to section 68 – C of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 99 deals with the preparation of the proposal by
the State Government to nationalise road transport services to be operated by State
Transport Undertakings and publication of such proposals in the official gazettes and
newspapers in regional languages inviting objections.

135
100. Objection to the proposal
. -
(1) On the publication of any proposal
regarding a scheme in the Official Gazette and in not less than one newspaper in
the regional language circulating in the area or route which is to be covered by such
proposal any person may, within thirty days from the date of its publication in the
Official Gazette, file objections to it before the State Government.
(2) The State Government may, after considering the objections and after
giving an opportunity to the objector or his representatives and the representatives of
the State transport undertaking to be heard in the matter, if they so desire, approve or
modify such proposal.
(3) The scheme relating to the proposal as approved or modified under sub-
section (2) shall then be published in the Official Gazette by the State Government
making such scheme and in not less than one newspaper in the regional language
circulating in the area or route covered by such scheme and the same shall thereupon
become final on the date of its publication in the Official Gazette and shall be called
the approved scheme and the area or route to which it relates shall be called the
notified area or notified route ;
Provided that no such scheme which relates to any inter-State route shall be
deemed to be an approved scheme unless it has the previous approval of the Central
Government.
(4) Notwithstanding anything contained in this section, where a scheme is
not published as an approved scheme under sub-section (3) in the Official Gazette
within a period of one year from the date of publication of the proposal regarding the
scheme in the Official Gazette under sub-section (1), the proposal shall be deemed to
have lapsed.
Explanation.
-
In computing the period of one year referred to in this sub-
section, any period or periods during which the publication of the approved scheme
under sub-section (3) was held up on account of any stay or injunction by the order of
any Court shall be excluded.
Corresponding Law.
-
Section 100 corresponds to section 68 – D of the motor
vehicles Act, 1939.

136
Object and Reasons.
-
Clause 100 lays down that the State Government may
approve or modify the proposal after hearing the objections and publish the
approved scheme in the official gazette and newspapers within one year from the date
of first publication failling which the proposal to nationalise is deemed to have lapsed.
101. Operation of additional services by a State transport
undertaking in certain circumstances
. -
Notwithstanding anything contained in
section 87, a State transport undertaking may, in the public interest operate additional
services for the conveyance of the passengers on special occasions such as to and from
fairs and religious gatherings.
Provided that the State transport undertaking shall inform about the operation
of such additional services to the concerned Transport Authority without delay.
Corresponding Law.
-
This is a new provision in the 1988 Act.
Object and Reasons.
-
Clause 101 seeks to empower the State Transport
Undertakings to operate additional services for the conveyance of passengers during
fairs and religious gathering and intimate the transport authorities.
102. Cancellation or modification of scheme.
-
(1) The State Government
may, at any time, if it considers necessary, in the public interest so to do, modify any
approved scheme after giving –
(j) the State transport undertaking ; and
(ii) any other person who, in the opinion of the State Government , is
likely to be affected by the proposed modification,
an opportunity of being heard in respect of the proposed modification.
(2) The State Government shall publish any modification proposed under
sub-section (1) in the Official Gazette and in one of the newspapers in the regional
languages circulating in the area in which it is proposed to be covered by such
modification, together with the date, not being less than thirty days from such
publication in the Official Gazette, and the time and place at which any representation
received in this behalf will be heard by the State Government.
Corresponding Law.
-
Section 102 corresponds to section 68 – E of the motor
vehicles Act, 1939.

137
Object and Reasons.
-
Clause 102 provides for modifications and cancellation
of the approved scheme by the State Government and the procedure to be
followed.
103.
Issue of permits to State transport undertakings.
-
(1) Where, in
pursuance of an approved scheme, any State Transport undertaking applies in such
manner as may be prescribed by the State Government in this behalf for a stage
carriage permit or a goods carriage permit or a contract carriage permit in respect of
a notified area or notified route, the State Transport Authority in any case where the
said area or route lies in more than one region and the Regional Transport Authority in
any other case shall issue such permit to the State Transport undertaking,
notwithstanding anything to the contrary contained in Chapter V.
(2) For the purpose of giving effect to the approved scheme in respect of a
notified area or notified route, the State Transport Authority or, as the case may be,
the Regional Transport Authority concerned may, by order,-
(a) refuse to entertain any application for the grant or renewal of any other
permit or reject any such application as may be pending ;
(b) cancel any existing permit ;
(c) modify the terms of any existing permit so as to –
(i) render the permit ineffective beyond a specified date ;
(ii) reduce the number of vehicles authorised to be used under the
permit;
(iii) curtail the are or route covered by the permit in so far as such
permit relates to the notified area or notified route.
(3) For the removal of doubts, it is hereby declared that no appeal shall lie
against any action taken, or order passed, by the State Transport Authority or any
Regional Transport Authority under sub-section (1) or sub-section (2).
Corresponding Law.
-
Section 103 corresponds to section 68 – F of the motor
vehicles Act, 1939.
Objects and Reasons .-
Clause 103 lays down the procedure in the matter of
giving effect to the approved scheme and grant of permit to the State Transport
Undertaking in pursuance of the approved scheme.

138
104. Restriction on grant of permits in respect of a notified area or
notified route
. -
Where a scheme has been published under sub-section (3) of
section 100 in respect of any notified area or notified route, the State Transport
Authority or the Regional Transport Authority, as the case may be, shall not grant any
permit except in accordance with the provisions of the scheme ;
Provided that where no application for a permit has been made by the State
Transport undertaking in respect of any notified area or notified route in pursuance of
an approved scheme, the State Transport Authority or the Regional Transport
Authority, as the case may be, may grant temporary permits to any person in respect
of such notified area or notified route subject to the condition that such permit shall
cease to be effective on the issue of a permit to the State Transport undertaking in
respect of that area or route.
Corresponding Law
. -
Section 104 corresponds to section 68 – FF of the motor
vehicles Act, 1939.
Object and Reasons.
-
Clause 104 provides that the Transport authorities shall
not grant any permit to private sector on notified routes or notified areas except in
accordance with the provisions of the scheme. It also provides that where STU has not
come forward to operate services on such routes or areas private sector may be given
temporary permit untill such time STU comes forward to operate services.
105. Principles and method of determining compensation and
payment thereof
. -
(1) Where, in exercise of the powers conferred by clause (b) or
clause (c) of sub-section (2) of section 103, any existing permit is cancelled or the
terms there of are modified, there shall be paid by the state transport under taking to
the holder of the permit, compensation, the amount of which shall be determined in
accordance with the provisions of sub-section(4) or sub-section(5), as the case may be.
(2) Notwithstanding anything contained in sub-section (1), no compensation
shall be payable on account of the cancellation of any existing permit or any
modification of the terms thereof, when a permit for an alternative route or area in lieu
thereof has been offered by the State Transport Authority or the Regional Transport
Authority, as the case may be and accepted by the holder of the permit.

139
(3) For the removal of doubts, it is hereby declared that no compensation
shall be payable on account of the refusal to renew a permit under clause (a) of
sub-section (2) of section 103.
(4) Where, in exercise of the powers conferred by clause (b) or sub-clause
(i) or sub-clause (ii) of clause (c) of sub-section (2) of section 103, any existing permit
is cancelled or the terms thereof are modified so as to prevent the holder of the permit
from using any vehicle authorised to be used thereunder for the full period from which
the permit, would otherwise have been effective, the compensation payable to the
holder of the permit for each vehicle affected by such cancellation or modification
shall be computed as follows :-
(a) for every complete month or part of a month Two hundred
exceeding fifteen days of the unexpired period rupees ;
of the permit
(b) for part of a month not exceeding fifteen days One hundred
of the unexpired period of the permit. rupees.
Provided that the amount of compensation shall, in no case, be less than four
hundred rupees.
(5) Where, in exercise of the powers conferred by sub-clause (iii) of clause
(c) of sub-section (2) of section 103, the terms of an existing permit re modified so as
to curtail the area or route of any vehicle authorised to be used thereunder, the
compensation payable to the holder of the permit on account of such curtailment shall
be an amount computed in accordance with the following formula, namely :-
Y x A
R
Explanation.
-
In this formula –
(i) “Y” means the length or area by which the route or area covered by
the permit is curtailed ;
(ii) “A” means the amount computed in accordance with subsection
(4);
(iii) “R” means the total length of the route or the total area
covered by the permit.

140
(6) The amount of compensation payable under this section shall be
paid by the State Transport undertaking to the person or persons entitled
thereto within one month from the date on which the cancellation or
modification of the permit becomes effective :
Provided that where the State transport undertaking fails to make the
payment within the s aid period of one month, it shall pay interest at the rate
of seven percent. Per annum from the date on which it fails due.
Corresponding Law.
–
Sub-section (1) to (5) of section 105 correspond to
section 68-G, whereas sub-section (6) of section 105 corresponds of section 68-
H of the Motor Vehicles Act, 1939.
Objects and Reasons
. –
Clause 105 sets out the principles and methods
for determining compensation and payment thereof where a private operator is
affected in pursuance of the giving effect to an approved scheme.
106, Disposal of article found in vehicles.
– Where any article found
in any transport vehicle operated by the State transport undertaking is not
claimed by its owner within the prescribed period, the State transport
undertaking may sell the article in the prescribed manner and the sale proceeds
thereof, after deducting the costs incidental to sale, shall be paid to the owner
on demand.
Corresponding Law.
–
Section 106 corresponds to section 68-HH of the
Motor Vehicles Act, 1939.
Objects and Reasons
. –
Clause 106 speaks of the procedure in the
disposal of articles found unclaimed in the vehicle owned by State Transport
Undertaking.
107. Power of State Government to make rules.
–
(1) The State
Government may make rules for the purpose of carrying into effect the
provisions of this Chapter.
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for all or any of the following
matters, namely :-

141
(a) the form in which any proposal regarding a scheme may be
published under section 99;
(b) the manner in which objections may be filed under sub-
section (1) of section 100;
(c) the manner in which objections may be considered and
disposed of under sub-section (2) of section 100;
(d) the form in which any approved scheme may be published
under sub-section (3) of section 100;
(e) the manner in which application under sub-section (1) of
section 103 may be made ;
(f) the period within which the owner may claim any article
found left in any transport vehicle under section 106 and the manner of sale
of such article.
(g) The manner of service of orders under this Chapter ;
(h) Any other matter which has to be, or may be, prescribed.
Corresponding Law.
–
Section 107 corresponds to section 68 – 1 of the
Motor Vehicles Act, 1939.
Objects and Reasons
. –
Clause 107 enables the State Government to
make rules for the purpose of carrying into effect the provisions of this
Chapter.
108. Certain powers of State Government exercisable by the
Central Government.
– The powers conferred on the State Government under
this Chapter shall, in relation to a corporation or company owned or controlled
by the Central Government or by the Central Government and one or more
State Governments, be exercisable only by the Central Government in relation
to an inter-State route or area.
Corresponding Law.
–
Section 108 corresponds to section 68 – J of the
Motor Vehicles Act, 1939.
Objects and Reasons
. –
Clause 108 makes provisions for the Central
Government to exercise certain powers of the State Government in relation to
an inter – State route or area, relating to certain cases.

142
CHAPTER VII
CONSTRUCTION, EQUIPMENT AND MAINTENANCE
OF MOTOR VEHICLES
109-
General provision regarding construction and maintenance of
vehicles.
– (1) Every motor vehicle shall be so constructed and so maintained
as to be at all times under the effective control of the person driving the
vehicle.
(2) Every motor vehicle shall be so constructed as to have right hand
steering control unless it is equipped with a mechanical or electrical signalling
device of a prescribed nature.
63
[(3) If the Central Government is of the opinion that it is necessary or
expedient so to do, in public interest, it may, by order published in the
Official Gazette, notify that any article or process used by a manufacturer shall
conform to such standard as may be specified in that order.]
Corresponding Law.
– Sub-sections (1) and (2) of section 109 correspond
to sections 69 and 69-A of the Motor Vehicles Act, 1939, respectively.
However, sub-section (3) of section 109, is a new provision.
Objects and Reasons
. –
Clause 109 sets out general provisions regarding
constructions and maintenance of motor vehicles.
110. Power of Central Government to make rules.
– (1) The
Central Government may make rules regulating the construction, equipment and
maintenance of motor vehicles and trailers with respect to all or any of the
Inserted by Act 54 of 1994, S. 31 (w.e.f. 14-11-1994).
63.
following matters, namely :-
(a) the width, height, length and overhand of vehicles and of the
loads carried;
64
[( b) the Size, natur e, maximum retail price and condition of tyres,
including embossing thereon of date and year of manufacture, and the
maximum load carrying capacity; ]
(c) brakes and steering gear;

143
(d) the use of safety glasses including prohibition of the use of tinted
safety glasses;
(e) signalling appliances, lamps and reflectors;
(f) speed governors;
(g) the emission of smoke, visible vapour, sparks, ashes, grit or oil;
(h) the reduction of noise emitted by or caused by vehicles;
(i) the embossment of chassis number and engine number and the
date of manufacture;
(j) safety belts, handle bars or motor cycles, auto-dippers and other
equipment’s essential for safety of drivers, passengers and other road users.
(k) Standards of the components used in the vehicle as inbuilt safety
devices;
(l) Provision for transportation of goods of dangerous or hazardous
nature to human life;
(m) Standards for emission of air pollution’s;
[(n) installation of catalytic convertors in the class of vehicles to be
65
prescribed;
(o) the placement of audio-visual or radio or tape recorder type of
devices in public vehicles;
(p) warranty after sale of vehicle and norms therefore:]
64. Cl. (b) substituted by Act 54 of 1994, S.32 (w.e.f. 14-11-1994). Prior to its omission
Cl. (b) read as under :-
“(b) the size, nature and condition of tyres;”
65. Inserted, ibid (w.e.f. 14-11-1994).
Provided that any rules relating to the matters dealing with the protection of
environment, so far as may be, shall be made after consultation with the
Ministry of the Government of India dealing with environment.
(2) Rules may be made under sub-section (1) governing the matters
mentioned therein, including the manner of ensuring the compliance with such
matters and the maintenance of motor vehicles in respect of such matters, either

144
generally in respect of motor vehicles or trailers or in respect of motor
vehicles or trailers of a particular class or in particular circumstances.
(3) Notwithstanding anything contained in this section, -
(a) the Central Government may exempt any class of motor
vehicles from the provisions of this Chapter;
(b) a State Government may exempt any motor vehicle or any
class or description of motor vehicles from the rules made under sub-section
(1) subject to such conditions as may be prescribed by the Central
Government.
Corresponding Law.
– Section 110 corresponds to section 69- B of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 110 empowers the Central Government to
make rules regarding equipment and in built safety measures to be provided in
motor vehicle at the manufacturing point such as safety belt, standards of
component, controlling air and noise pollution, etc. and also regarding
exemption to be granted in certain cases.
109. Power of State Government to make rules. –
(1) A State
Government may make rules regulating the construction, equipment and
maintenance of motor vehicles and trailers with respect to all matters other than
the matters specified in sub-section (1) of section 110.
(2) Without prejudice to the generality of the foregoing power, rules
may be made under this section governing all or any of the following matters
either generally in respect of motor vehicles or trailers or in respect of motor
vehicles or trailers of a particular class or description or in particular
circumstances, namely : -
(a) seating arrangements in public service vehicles and the protection
of passengers against the weather :
(b) prohibiting or restricting the use of audible signals at certain times
or in certain places :
(c) prohibiting the carrying of appliances likely to cause annoyance or
danger :

145
(d) the periodical testing and inspection of vehicles by prescribed
authorities
[ and fees to be charged for such test ;]
66
(e) the particulars other than registration marks to be exhibited by
vehicles and the manner in which they shall be exhibited; and
(f) the use of trailers with motor vehicles ;
67
[***]
Corresponding Law
- Section 111 corresponds to section 70 of the
Motor Vehicles Act , 1939.
Objects and Reasons.
- Clause 111 empowers the State Government to
make rules in respect of matters other than those conferred on the Central
Government regulating the construction, equipment and maintenance of motor
vehicles.
CHAPTER VIII
CONTROL OF TRAFFIC
112. Limits of speed
- (1) No person shall drive a motor vehicle of
cause or allow a motor vehicle to be driven in any public place at a speed
exceeding the maximum speed or below the minimum speed fixed for the
vehicle under this Act or by or under any other law for the time being in
force :
Provided that such maximum speed shall in no case exceed the maximum
66. Inserted by Act 54 of 1994, S. 33 (w.e.f. 14-11-1994).
67. Cl.(g) omitted,
lbid
(w.e.f. 14-11-1994). Prior to its omission, Cl. (g) read as under :-
“(g) the placement of audio-visual or radio or tape-recorder type of devices in the vehicle.”
fixed for any motor vehicle or class or description of motor vehicles by the
Central Government by notification in the Official Gazette.
(2) The State Government of any authority authorised in this behalf
by the state Government may , if satisfied that it is necessary to restrict the
speed of motor vehicles in the interest of public safety or convenience or
because of the nature of any road or bridge, by notification in the Official
Gazette, & by causing appropriate traffic signs to be placed or erected under section
116 at suitable places, fix such maximum speed limits or minimum speed

146
limits as it thinks fit for motor vehicles or any specified class or description of
motor vehicles or for motor vehicles to which a trailer is attached, either
generally or in a particular area or on a particular road or roads :
Provided that no such notification is necessary if any restriction under
this section is to remain in force for not more than one month.
(3) Nothing in this section shall apply to any vehicle registered under
section 60 while it is being used in the execution of military manoeuvres within the
area and during the period specified in the notification under sub-section (1) of
section 2 of the Manoeuvres, Field Firing and Artillery practice Act, 1938 (5
of 1938).
Corresponding Law
. –
Section 112 corresponds to section 71 of the
Motor Vehicles Act, 1939.
Objects and Reasons
.
– Clause 112 prescribes the maximum speed at which
each class or type of motor vehicle can be driven. It also empowers the State
Government to restrict the speed of any class of motor vehicle in certain
circumstances.
113. Limits of weight and limitations on use.
– (1) The State
Government may prescribe the conditions for the issue of permits for
[transport vehicles] by the State or Regional Transport Authorities and may
68
prohibit or restrict the use of such vehicles in any area or route.
68. Substituted for “heavy goods vehicles or heavy passenger motor vehicles” by Act 54 of 1994, S.
34 (w.e.f. 14-11-1994).
(2) Except as may be otherwise prescribed, no person shall drive or
cause or allow to be driven in any public place any motor vehicle which is
not fitted with pneumatic types.
(3) No person shall drive or cause or allow to be driven in any
public place any motor vehicle or trailer –
(a) The unladen weight of which exceeds the unladen weight
specified in the certificate of registration of the vehicle or

147
(b) the laden weight of which exceeds the gross vehicle weight
specified in the certificate or registration.
(4) Where the driver or person in charge of a motor vehicle or trailer
driven in contravention of sub-section (2) or clause (a) of sub-section (3) is not
the owner, a Court may presume that the offence was committed with the
knowledge of or under the orders of the owner of the motor vehicle or trailer.
Corresponding Law.
–
Section 113 corresponds to section 72 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
–
Clause 113 seeks to empower the State
Government to impose restrictions on the laden weight of vehicles to be driven
on public roads.
114. Power to have vehicle weighed.
– (1)
69
[Any officer of the
Motor Vehicles Department authorised in this behalf by the State Government
shall, if he has reason to believe that a goods vehicle or trailer is being used
in contravention of section 113.] require the driver to convey the vehicle to a
weighting device, if any, within a distance of ten kilometers from any point on
the forward route or within a distance of twenty kilometers from the
destination of the vehicle for weighment; and if on such weighment the vehicle
is found to contravene is any respect the provisions of section 113 regarding
weight, he may, by order in writing, direct the driver to off-load the excess
weight at his own risk and not to remove the vehicle or trailer from that place
69. Substituted for “Any person authorised in this behalf by the State Government may,
if he has reason to believe that a goods vehicle or trailer is being used in contravention of section 113,
“by Act 54 of 1994, S. 35 (w.e.f. 14-11-1994).
until the laden weight has been reduced or the vehicle or trailer has otherwise
been dealt with so that it complies with section 113 and on receipt of such
notice, the driver shall comply with such directions.
(2) Where the person authorised under sub-section (1) makes the said
order in writing, he shall also endorse the relevant details of the overloading
on the goods carriage permit and also intimate the fact of such endorsement to
the authority which issued that permit.

148
Corresponding Law.
– Section 114 corresponds to section 73 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
–
Clause 114 seeks to authorise the State
Government to empower officers to weight goods carriages & wherever it is found
that the vehicle is carrying excess load, to direct the driver to unload the excess
goods at his risk and not to proceed unless such excess load is unloaded.
115. Power to restrict the use of vehicles.
– The State Government
or any authority authorised in this behalf by the State Government, if satisfied
that it is necessary in the interest of public safety or convenience, or because
of the nature of any road or bridge, may, by notification in the Official
Gazette, prohibit or restrict, subject to such exceptions and conditions as may
be specified in the notification, the
driving of motor vehicles or of any
specified class or description of motor vehicles or the use of trailers either
generally in a specified are or on a specified road and when any such
prohibition or restriction is imposed, shall cause appropriate traffic signs to be
placed or erected under section 116 at suitable places :
Provided that where any prohibition or restriction under this section is to
remain in force for not more than one month, notification thereof in the
Official Gazette shall not be necessary but such local publicity is the circumstances
may permit shall be given of such prohibition or restriction.
Corresponding Law
.
– Section 115 corresponds to section 74 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 115 empowers the State Government and
prescribed authorities to restrict the driving of any specified class of motor
vehicle and also to restrict the driving of any class of motor vehicle below a
minimum speed fixed for that class of vehicle on any public road.
116. Power to erect traffic signs.
– (1) (a) The State Government or
any authority authorised in this behalf by the State Government may cause or
permit traffic sings to be placed or erected in any public place for the purpose
of bringing to public notice any speed limits fixed under sub-section (2) of

149
section 112 or any prohibitions or restrictions imposed under section 115 or
generally for the purpose of regulating motor vehicle traffic.
(a) A State Government or any authority authorised in this
behalf by the State Government may, by notification in the Official Gazette or
by the erection at suitable places of the appropriate traffic sign referred to in
Part A of the Schedule, designate certain roads as main roads for the purposes
of the driving regulations made by the Central Government.
(2) Traffic signs placed or erected under sub-section (1) for any
purpose for which provision is made in the Schedule shall be of the size,
colour and type and shall have the meanings set forth in the Schedule, but the
State Government or any authority empowered in this behalf by the State
Government may make or authorise the addition to any sign set forth in the said
Schedule, of transcriptions of the words, letters or figures thereon in such script
as the State Government may think fit provided that the transcriptions shall be
similar size and colour to the words, letters or figures set forth in the Schedule.
(3) Except as provided by sub-section (1),, no traffic sign shall, after
the commencement of this Act, be placed or erected on or near any road; but
all traffic signs placed or erected prior to the commencement of this Act by
any competent authority shall for the purpose of this Act be deemed to be
traffic signs placed or erected under the provisions of sub-section (1).
(4) A State Government may, by notification in the Official Gazette,
empower any police officer not below the rank of a Superintendent of Police to
remove or cause to be removed any sign or advertisement which is so placed in his
opinion as to obscure any traffic sign from view or any sign or advertisement which
in his opinion is so similar in appearance to a traffic sign as to be misleading or which
in his opinion is likely to district the attention or concentration of the driver.
(5) No person shall wilfully remove, alter, deface, or in any way
tamper with, any traffic signs placed or erected under this section.
(6) If any person accidentally causes such damage to a traffic sign an
renders it useless for the purpose for which it is placed or erected under this
section, he shall report the circumstances of the occurrence to a police officer

150
or at a police station as soon as possible, and in any case within twenty – four
hours of the occurrence.
(7) For the purpose of bringing the sign set forth in
[the First
70
Schedule] in conformity with any International Convention relating to motor
traffic to which the Central Government is for the time being a party, the
Central Government may, by notification in the Official Gazette, make any
addition or alteration to any such sign and on the issue of any such
notification,
71
[the First Schedule] shall be deemed to be amended accordingly.
Corresponding Law
.
– Section 116 corresponds to section 75 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 116 confers power on the State
Government and any authority authorised by the State Government to erect
traffic signs on public road for the information of road users. It also empowers
certain officers to remove from the public road any s ign which is likely to
distract the attention of a driver.
117. Parking places and halting stations.
– The State Government
or any authority authorised in this behalf by the State Government may, in
consultation with the local authority having jurisdiction in the area concerned,
determine places at which motor vehicles may stand either indefinitely or for a
specified period of time, and may determine the places at which public service
vehicles may stop for a longer time than is necessary for the taking up and
setting down of passengers.
70. Substituted for “the Schedule” by Act 54 of 1994, S. 36 (w.e.f. 14-11-1994)
71. Substituted for “the Schedule” by Act 54 of 1994, s. 36 (w.e.f. 14-11-1994).
Corresponding Law
.
– Section 117 corresponds to section 76 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 117 permits determing the parking places
and halting stations for motor vehicles for the purpose of picking up and
setting down passengers.
118. Driving regulations.
– The Central Government may, by notification
in the Official Gazette, make regulations* for the driving of motor vehicles.

151
Corresponding Law
.
– This is a new provision in the 1988 Act.
119. Duty to obey traffic signs.
– (1) Every driver of a motor
vehicle shall drive the vehicle in conformity with any indication given by
mandatory traffic sign and in conformity with the driving regulations made by
the Central Government, and shall comply with all directions given to him by
any police officer for the time being engaged in the regulation of traffic in
any public place.
(2) In this section “mandatory traffic sign” means a traffic sign
included in Part A of
[the First Schedule], or any traffic sign of similar form
72
(that is to say, consisting of or including a circular disc displaying a device,
word or figure and having a red ground or border) placed or erected for the
purpose of regulating motor vehicle traffic under sub-section (1) of section 116.
Corresponding Law
.
– Section 119 corresponds to section 78 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
–
Clause 119 lays down that it is the duty of
every driver of a motor vehicle to drive the motor vehicle in conformity with
the indication given in mandatory traffic signs.
120. Vehicles with left hand control. –
No person shall drive or
cause or allow to be driven in any public place any motor vehicle with a left
– hand steering control unless it is equipped with a mechanical or electrical
signalling device of a prescribed nature and in working order.
In exercise of power conferred by S. 118, the Central Government made the Rules
*
of the Road Regulations, 1989, w.e.f. 1-7-1989.
72. Substituted for “the Schedule” by Act 54 of 1994, S. 36 (w.e.f. 14-11-1994).
Corresponding Law
.
– Section 120 corresponds to section 80 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 120 prohibits driving of motor vehicle
fitted with left hand control unless it is fitted with mechanical or electrical
signalling device.

152
121. Signals and signalling devices.
– The driver of a motor vehicle
shall make such signals and on such occasions as may be prescribed by
the Central Government :
Provided that the signal of an intention to turn to the right or left or
to stop –
(a) in the case of a motor vehicle with a right – hand steering control,
may be given by a mechanical or electrical device of a prescribed nature
affixed to the vehicle; and
(b) in the case of a motor vehicle with a left – hand steering control,
shall be given by a mechanical or electrical device or a prescribed nature
affixed to the vehicle :
Provided further that the State Government may, having regard to the
width and condition of the roads in any area or route, by notification in the
Official Gazette, exempt subject to such conditions as may be specified therein
any motor vehicle or class or description of motor vehicles from the operation
of this section for the purpose of plying in that are or route.
Corresponding Law
.
– Section 121 corresponds to section 79 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 121 specifies that the drivers of motor
vehicles including the vehicles fitted with left hand steering should give
appropriate signals including mechanical and electrical signals of their intention
to turn right or left.
122. Leaving vehicle in dangerous position
– No person in charge of
a motor vehicle shall cause or allow the vehicle or any trailer to be abandoned
or to remain at rest on any public place in such a position or in such a
condition or in such circumstances as to cause or likely to cause danger,
obstruction or undue inconvenience to other users of the public place or to the
passengers.
Corresponding Law
.
– Section 122 corresponds to section 81 of the Motor
Vehicles Act, 1939.

153
Objects and Reasons
. –
Clause 122 lays down that no motor vehicle
should be left on the public road in a dangerous position or in such a
manner so as to cause inconvenience to other road users or abandoned.
123. Riding on running board, etc. -
(1) No person driving or in
charge of a motor vehicle shall carry any person or permit any person to be
carried on the running board or otherwise than within the body of the vehicle.
(2) No person shall travel on the running board or on the top or on
the bonnet of a motor vehicle.
Corresponding Law
.
– Section 123(1) corresponds to section 82 of the
Motor Vehicles Act, 1939. However, sub-section (2) of section 123, is a new
provision in the 1988 Act.
Objects and Reasons
. –
Clause 123 prohibits travelling in running board
or on top or on the bonnet of any motor vehicle.
124. Prohibition against travelling without pass or ticket. –
No
person shall enter or remain in any stage carriage for the purposes of
travelling therein unless he has with him a proper pass or ticket;
Provided that where arrangements for the supply of tickets are made in
the stage carriage by which a person has to travel, a person may enter such
stage carriage but as soon as may be after his entry therein, he shall make the
payment of his fare to the conductor or the driver who performs the functions
of a conductor and obtain from such conductor or driver, as the case may be,
a ticket for his journey.
Explanation
. – In this section, -
(a) “pass” means a duty privilege or courtesy pass entitling the person
to whom it is given to travel in a stage carriage gratuitously and includes a
pass issued on payment for travel in a stage carriage for the period specified
therein;
(b) “ticket” includes a single ticket, a return ticket or a season ticket.
Corresponding Law
.
– Section 124 corresponds to section 82 – A of the
Motor Vehicles Act, 1939.

154
Objects and Reasons
. –
Clause 124 prohibits travelling in buses without
ticket or pass.
125. Obstruction of driver.
– No person driving a motor vehicle shall
allow any person to stand or sit or to place anything in such a manner or
position as to hamper the driver in his control of the vehicle.
Corresponding Law
.
– Section 125 corresponds to section 83 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 125 no driver of a motor vehicle shall
allow any person to be seated in such a position so as to hamper his driving.
126. Stationary Vehicles. -
No person driving or in charge of a motor
vehicle shall cause or allow the vehicle to remain stationary in any public
place, unless there is in the driver’s seat a person duly licensed to drive the
vehicle or unless the mechanism has been stopped and a brake or brakes
applied or such other measures taken as to ensure that the vehicle cannot
accidentally be put in motion in the absence of the driver.
Corresponding Law
.
– Section 126 corresponds to section 84 of the Motor
Vehicles Act, 1939.
Objects and Reasons
. –
Clause 126 lays down that no motor vehicle
should remain stationary in a public place unless there is a licensed driver in
the vehicle or where the engine has stopped running, proper precautionary
methods have been taken to ensure that the vehicle will not move accidentally
in the absence of the driver.
127. Removal of motor vehicles abandoned or left unattended
on a public place. –
73
[(1) where any motor vehicle is abandoned or left
73. Sub-S.(1) substituted by Act 54 of 1994, S.37(w.e.f.14-11-1994). Prior to its substitution,
sub-S.(1) read as under :-
“(1) Where any motor vehicle is abandoned, or left unattended, on a public place for ten hours or
more, its removal by a towing service may be authorised by a police officer having jurisdiction.”
unattended on a public place for ten hours or more or is parked in a place
where parking is legally prohibited, its removal by a towing service or its

155
immobilisation by any means including wheel clamping may be authorised by a
police officer in uniform having jurisdiction.]
(2) Where an abandoned, unattended, wrecked, burnt or partially
dismantled vehicle is creating a traffic hazard, because of its position in
relation to the
[public place], or its physical appearance is causing the
74
impediment to the traffic, its immediate removal from the
75
[public place] by a
towing service may be authorised by a police officer having jurisdiction.
(3) Where a vehicle is authorised to be removed under sub-section (1)
or sub-section (2) by a police officer, the owner of the vehicle shall be
responsible for all towing costs, besides any other penalty.
Corresponding Law
.
– This is a new provision in the 1988 Act.
Objects and Reasons
. –
Clause 127 makes provision empowering Police
Officers to tow away the motor vehicles which are abandoned or left
unattended on any public road and recover the cost of removal from the
owners of such vehicles.
128. Safety measures for drivers and pillion riders. –
(1) No
driver of a two – wheeled motor cycle shall carry more than one person in
addition to himself on the motor cycle and no such person shall be carried
otherwise than sitting on a proper seat securely fixed to the motor cycle
behind the driver’s seat with appropriate safety measures.
(2) In addition to the safety measures mentioned in sub-section (1), the
Central Government may, prescribe other safety measures for the drivers of
two-wheeled motor cycles and pillion riders thereon.
Corresponding Law
.
– Sub – section (1) of section 128 corresponds to
section 85 of the Motor Vehicles Act, 1939. However, sub-section (2) of section
128, is a new provision in the 1988 Act.
Objects and Reasons
. –
Clause 128 prescribes certain safety measures for
74. Substituted for “highway” by Act 54 of 1994, S.37 (w.e.f. 14-11-1994).
75. Substituted,
ibid
, for “highway” (w.e.f. 14-11-1994).
drivers and pillion riders of motor vehicles. It also empowers the Central
Government to prescribe other safety measures in this regard.

156
129. Wearing of protective headgear.
- Every person driving or
riding (otherwise than in a side car, on a motor cycle of any class or
description) shall, while in a public place, wear
76
[protective headgear
conforming to the standards of Bureau of Indian Standards:]
provided that the provisions of this section shall not apply to a person
who is a Sikh, if he is, while driving or riding on the motor cycle, in a public
place, wearing a turban :
provided further that the State Government may, by such rules, provide
for such exceptions as it may think fit.
Explanation.
– “Protective headgear” means a helmet which, -
(a) by virtue of its shape, material and construction, could reasonably
be expected to afford to the person driving or riding on a motor cycle a
degree of protection from injury in the event of an accident; and
(b) is securely fastened to the head of the wearer by means of straps
or other fastenings provided on the headgear.
Corresponding Law.
–
Section 129 corresponds to section 85 – A of the
Motor Vehicles Act, 1939.
Objects
and Reasons.
– Clause 129 empowers the State Government to
prescribe protective headgear to be worn by the drivers or pillion riders of
motor cycle other than a person who is a Sikh wearing a turban and to make
such exemption as the State Government thinks fit.
130. Duty to produce licence and certificate of registration.
– (1)
The driver of a motor vehicle in any public place shall, on demand by any
police officer in uniform, produce his licence for examination.
Provided that the driver may, of his licence has been submitted to, or has been
76. Substituted by S. 38, ibid, for " a protective headgear of such descriptions as may be
specified by the State Government by rules made by it in this behalf, and different descriptions of
headgears may be specified in such rules in relation to different circumstances or different class or
description of motor cycles" (w.e.f. 14-11-1994)
sized by, any officer or authority under this or any other Act, produce in lieu of the
licence a receipt or other acknowledgement issued by such officer or authority in

157
respect thereof an thereafter produce the licence within such period, in such manner
as the Central Government may prescribe to the police officer making the
demand.
[(2) The conductor, if any, of a motor vehicle on any public place
77
shall, on demand by any officer of the Motor Vehicles Department authorised
in this behalf, produce the licence for examination.]
78
[(3) The owner of a motor vehicle (other than a vehicle registered under
section 60), or in his absence the driver or other person in charge of the
vehicle, shall, on demand by a registering authority or any other officer of the
Motor Vehicles Department duly authorised in this behalf, produce the certificate
of insurance of the vehicle and, where the vehicle is a transport vehicle, also the
certificate of fitness referred to in section 56 and the permit; and if any or all of
the certificates or the permit are not in his possession, he shall, within fifteen
days from the date of demand, submit photo copies of the same, duly attested
in person or send the same by registered post the officer who demanded it.
Explanation. –
For the purposes of this sub-section, “certificate of
insurance” means the certificate issued under sub-section (3) of section 147.]
(4) If the licence referred to in sub-section (2) or the certificates or
permit referred to in sub-section (3), as the case may be, are not at the time in
77. Sub-S. (2) substituted by Act 54 of 1994, S.39 (w.e.f. 14-11-1994). Prior to its substitution,
sub-S. (2) read as under :-
“(2) The conductor, if any, of a motor vehicle in any public place shall, on
demand by any police officer in uniform, produce his licence for examination”
78. Sub-S.(3) substituted,
ibid
(w.e.f. 14-11-1994). Prior to its substitution, sub-S.(3) read as
under:-
“(3) The owner of a motor vehicle (other than a vehicle registered under section 60), or in
his absence the driver or other person in charge of the vehicle, shall on demand by a registering
authority or any person authorised in this behalf by the State Government, produce the certificate or
registration and the certificate of insurance of the vehicle and, where the vehicle is a transport
vehicle, also the certificate of fitness referred to I section 56 and the permit.
Explanation.
– for the purposes of this sub-section, “certificate of insurance” means the
certificate issued under sub-section(3) of section 147”.

158
the possession of the person to whom demand is made, it shall be a sufficient
compliance with this section if such person produces the licence or
certificates or permit within such period in such manner as the Central
Government may prescribe, to the police officer or authority making the
demand :
Provided that, except to such extent and with such modifications as may
be prescribed, the provisions this sub-section shall not apply to any person
required to produce the certificate of registration or the certificate of fitness of
a transport vehicle.
Corresponding Law.
– Section 130 corresponds to section 86 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 130 requires the driver of a motor vehicle
to produce on demand by a Police Officer, the driving licence, registration
certificate, fitness certificate in the case of transport vehicle.
131. Duty of the driver to take certain precautions at
unguarded railway level crossings. -
Every driver of a motor vehicle at the
approach of any unguarded railway level crossing shall cause the vehicle to
stop and the driver of the vehicle shall cause the conductor or cleaner or
attendant or any other person in the vehicle to walk up to the level crossing
and ensure that no train or trolley is approaching from either side and then
pilot the motor vehicle across such level crossing, and where no conductor or
cleaner or attendant or any other person is available in the vehicle, the driver
of the vehicle shall get down from the vehicle himself to ensure that no train
or trolley is approaching from either side before the railway track is crossed.
Corresponding Law. -
This is a new provision in the 1988 Act.
Objects and Reasons. –
Clause 131 prescribes certain duties for a driver
approaching an unmanned level crossing to ensure safe crossing of the vehicle
in the interest of public safety.
132. Duty of driver to stop in certain cases. –
(1) The driver of
motor vehicle shall cause the vehicle to stop & remain stationary so long as
79
[may
for such reasonable time as may be necessary, but not exceeding twenty-four hours],-

159
80
[(a) when required to do so by any police officer not below the rank
of a Sub-Inspector in uniform, in the event of the vehicle being involved in
the occurrence of an accident to a person, animal or vehicle or of damage to
property, or]
(b) when required to do so by any person in charge of an animal if
such person apprehends that the animal is, or being alarmed by the vehicle will
become, unmanageable, or
(c)
81
[***]
And he shall give his name and address and the name and address of the
owner of the vehicle to any person affected by any such accident or damage
who demands it provided such person also furnishes his name and address.
(2) The driver of a motor vehicle shall, on demand by a person giving
his own name and address and alleging that the driver has committed an
offence punishable under section 184, give his name and address to that person.
(3) In this section the expression “animal” means any horse, cattle,
elephant, camel, ass, mule, sheep or goat.
Corresponding Law. –
Section 132 corresponds to section 87 of the Motor
Vehicles Act, 1939.
Objects and Reasons. –
Clause 132 details the duty of the driver of a
motor vehicle to stop his vehicle in certain circumstances such as when his
vehicle is involved in an accident, etc.
133. Duty of owner of motor vehicle to give information-
The owner
of a motor vehicle, the driver or conductor of which is accused of any offence under
this Act shall, on the demand of any police officer authorised in this behalf by the
79. Substituted for “may reasonably be necessary” by Act 54 of 1994, S.40 (w.e.f. 14-11-1994)
80. Cl. (a) substituted,
ibid
(w.e.f. 14-11-1994). Prior to its substitution, Cl. (a) read as under :-
“(a) when required to do so by any police officer in uniform; or”
81. Cl.(c) omitted by Act 54 of 1994, S.40 (w.e.f. 14-11-1994). Prior to its omission, Cl.(c) read as
under :-
“(c) when the vehicle is involved in the occurrence of an accident to a person, animal or
vehicle or of damage to any property, whether the driving or management of the vehicle was or was
not the cause of the accident or damage,”.

160
State Government, give all information regarding the name and address of, and the
licence held by, the dirver or conductor which is in his possession or could by
reasonable diligence be ascertained by him.
Corresponding Law-
Section 133 corresponds to section 88 of the Motor
Vehicles Act. 1939.
Objects and Reason-
Clause 133 provides that the owner of a motor vehicle
shall, on demand by a Police Officer, furnish the name and address of the driver or the
conductor of the vehicle who are accused of any offence under this Act alongwith the
licence number, etc.
134. Duty of driver in case of accident and injury to a person.
–
When any person is injured or any property of a third party is damaged, as
a result of an accident in which a motor vehicle is involved, the driver of the
vehicle or other person in charge of the vehicle shall –
(a) unless it is not practicable to do so on account of mob fury or any
other reason beyond his control, take all reasonable steps to secure medical
attention for the injured person,
82
[by conveying him to the nearest medical
practitioner or hospital, and it shall be the duty of every registered medical
practitioner or the doctor on the duty in the hospital immediately to attend to the
injured person and render medical aid or treatment without waiting for any
procedural formalities], unless the injured person or his guardian, in case he is
a minor, desired otherwise;
(b) give on demand by a police officer any information required
by him or, if no police officer is present, report the circumstances of the
occurrence, including the circumstances, if any, or not taking reasonable steps to
secure medical attention as required under clause (a), at the nearest police
station as soon as possible, and in any case within twenty-four hours of the
occurrence;
83
[(c) give the following information in writing to the insurer, who has
82. Substituted by S.41,
ibid,
for “and, if necessary, convey him to the nearest
hospital”(w.e.f. 14-11-1994).
83. Inserted by Act 54 of 1994, S. 41 (w.e.f. 14-11-1994).

161
issued the certificates of insurance, about the occurrence of the accident,
namely :-
(i) insurance policy number and period of its validity;
(ii) date, time and place of accident;
(iii.) particulars of the persons injured or killed in the accident;
(iv.) name of the driver and the particulars of his driving licence.
Explanation. –
For the purposes of this section, the expression “driver”
includes the owner of the vehicle.]
Corresponding Law. –
Section 134 corresponds to section 89 of the Motor
Vehicles Act, 1939.
Objects and Reasons. –
Clause 134 sets out the duties of the driver
involved in accident, such as reporting the accident to the Police Station,
rendering medical aid to the injured, etc.
135. Schemes to be
framed for the investigation of accident
cases and wayside amenities, etc. –
(1) The State Government may, by
notification in the Official Gazette, make one or more schemes to provide for -
(a) an in depth study on causes and analysis of motor vehicle
accidents;
(b) wayside Amenities on highways;
(c) traffic aid posts on highways; and
(d) truck parking complexes along highways.
(2) Every scheme made under this section by any State Government
shall be laid, as soon as may be after it is made, before the State Legislature.
Corresponding Law. –
This is new provision in the 1988 Act.
Objects and Reasons. –
Clause 135 empowers the State Government to
frame scheme for indepth study of motor vehicle accident way-side amenities,
traffic and posts and truck parking complexes.
136. Inspection of vehicle involved in accident. –
When any accident
occurs in which a motor vehicle is involved, any person authorised in this
behalf by the State Government may, on production if so required of his
authority, inspect the vehicle and for that purpose may enter at any reasonable

162
time any premises where the vehicle may be, and may remove the vhielce for
examination :
Provided that the place to which the vehicle is so removed shall be
intimated to the owner of the vehicle and the vehicle shall be returned
[after
84
completion of the formalities to the owner, driver or the person in charge of
the vehicle within twenty-four hours.]
Corresponding Law. –
Section 136 corresponds to section 90 of the
Motor Vehicles Act, 1939.
Objects and Reasons. –
Clause 136 prescribes that a motor vehicle
involved in accident should be produced for inspection before the person
authorised by the State Government and for this purpose it empowers the
officers to enter into any premises and remove the vehicle for inspection.
137. Power of Central Government to make rules. –
The Central
Government may make rules to provide for all or any of the following
matters, namely ;-
(a) the occasions on which signals shall be made by drivers of motor
vehicles and such signals under section 121;
(b) the manner in which the licences and certificates may be produced
to the police officer under section 130.
Corresponding Law. –
This is a new provision in the 1988 Act.
Objects and Reasons. –
Clause 137 lays down that the Central
Government may make rules to carry into effect the provisions of this Chapter
where Central Government is authorised.
138. Power of State Government to make rules. –
(1) The State
Government may make rules for the purpose of carrying into effect the
provisions of this Chapter other than the matters specified in section 137.
(2) Without prejudice to the generality of the foregoing power, such
rules may provide for –
(a) the removal and the safe custody of vehicles including their
84. Substituted for “without necessary delay” by Act 54 of 1994, S.42 (w.e.f. 14-11-1994).

163
loads which have broken down or which have been left standing or have been
abandoned on roads;
(b) the installation and use of weighing devices;
(c) the maintenance and management of wayside amenities
complexes;
(d) the exemption from all or any of the provisions of this
Chapter of fire Brigade vehicles, ambulance and other special classes or
descriptions of vehicle, subject to such conditions as may be prescribed;
(e) the maintenance and management of parking places and stands
and the fees, if any, which may be charged for their use;
(f) prohibiting the driving downhill of a motor vehicle with the
gear disengaged either generally or in a specified place;
(g) prohibiting the taking hold of or mounting of a motor vehicle
in motion;
(h) prohibiting the use of foot-paths or pavements by motor
vehicles;
(i) generally, the prevention of danger, injury or annoyance to the
public or any person, or of danger or injury to property or of obstruction to
traffic; and
(j) any other matter which is to be, or may be, prescribed.
Corresponding Law.
– Section 138 corresponds to section 91 of the Motor
Vehicles Act, 1939.
Objects and Reasons.
– Clause 138 empowers the State Government to
make rules for the purposes of carrying into effect the provisions of this Chapter.
CHAPTER IX
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139. Power of Central Government to make rules. –
(1) The
Central Government may, by notification in the Official Gazette, make rules for
all or any of the following purposes, namely :-

164
(a) the grant and authentication of travelling passes, certificates or
authorisations to persons temporarily taking motor vehicles out of India to
any place outside India or to persons temporarily proceeding out of India to
any place outside India and desiring to driver a motor vehicle during their
absence from India;
(b) prescribing the conditions subject to which motor vehicles
brought temporarily into India from outside India by persons intending to make
a temporary stay in India may be possessed and used in India; and
(c) prescribing the conditions subject to which persons entering
India from any place outside India for a temporary stay in India may drive
motor vehicles in India.
(2) For the purpose of facilitating and regulating the services of motor
vehicles operating between India and any other country under any reciprocal
arrangement and carrying passengers or goods or both by road for hire or
reward, the Central Government may, by notification in the Official Gazette,
make rules with respect to all or any of the following matters, namely :-
(a) the conditions subject to which motor vehicles carrying on
such services may be brought into India from outside India and possessed and
used in India;
(b) the conditions subject to which motor vehicles may be taken
from any places in India to any place outside India;
(c) the conditions subject to which persons employed as drivers
and conductors of such motor vehicles may enter or leave India;
(d) the grant and authentication of travelling passes, certificates or
authorisations to persons employed as drivers and conductors of such motor
vehicles.
(e) the particulars (other than registration marks) to be exhibited
by such motor vehicles and the manner in which such particulars are to be
exhibited;
(f) the use of trailers with such motor vehicles;

165
(g) the exemption of such motor vehicles and their drivers and
conductors from all or any of the provisions of this Act [other than those
referred to in sub-section (4)] or the rules made thereunder;
(h) the identification of the drivers and conductors of such motor
vehicles;
(i) the replacement of the travelling passes, certificates or
authorisations, permits, licence or any other prescribed documents lost or
defaced, on payment of such fee as may be prescribed;
(j) the exemption from the provisions of such laws as relate to
customs, police or health with a view to facilitate such road transport services;
(k) any other matter which is to be, or may be, prescribed.
(3) No rule made under this section shall operate to confer on any
person any immunity in any State from the payment of any tax levied in that
State on motor vehicles or their users.
(4) Nothing in this Act or in any rule made thereunder by a State
Government relating to -
(a) the registration and identification of motor vehicles, or
(b) the requirements as to construction, maintenance and equipment
of motor vehicles, or
(c) The licencing and the qualifications of drivers and conductors of
motor vehicles shall apply –
(i) to any motor vehicle to which or to any driver of a
motor vehicle to whom any rules made under clause (b) or clause (c) of sub-
section (1) or under sub-section (2) apply; or
(ii) to any conductor of a motor vehicle to whom any rules
made under sub-section (2) apply.
Corresponding Law.
– Section 139 corresponds to section 92 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 139 authorises the Central Government to
make rules for carrying into effect the provisions of this Chapter relating to

166
the regulation of services of motor vehicles operating between India and any
other country under reciprocal agreement, etc.
CHAPTER X
LIABILITY WITHOUT FAULT IN CERTAIN CASES
140. Liability to pay compensation in certain cases on the
principle of no fault. –
(1) Where death or permanent disablement of any
person has resulted from an accident arising out of the use of a motor vehicle or
motor vehicles, the owner of the vehicles shall, or, as the case may be, the owners
of the vehicles shall, jointly and severally, be liable to pay compensation in respect
of such death or disablement in accordance with the provisions of this section.
(2) The amount of compensation which shall be payable under sub-
section (1) in respect of the death of any person shall be a fixed sum of
[fifty thousand rupees] and the amount of compensation payable under that
85
sub-section in respect of the permanent disablement of any person shall be a
fixed sum of
[twenty – five thousand rupees].
86
(3) In any claim for compensation under sub-section (1), the claimant
shall not be required to plead and establish that the death or permanent
disablement in respect of which the claim has been made was due to any
wrongful act, neglect or default of the owner or owners of the vehicle or
vehicles concerned or of any other person.
(4) A claim for compensation under sub-section (1) shall not be
defeated by reason of any wrongful act, neglect or default of the person in
respect of whose death or permanent disablement the claim has been made nor
shall the quantum of compensation recoverable in respect of such death or
permanent disablement be reduced on the basis of the share of such person in
the responsibility for such death or permanent disablement.
87
(5) Notwithstanding anything contained in sub-section (2) regarding
85. Substituted for “twenty – five thousand rupees” by Act 54 of 1994, S. 43 (w.e.f. 14-11-
1994).
86. Substituted,
ibid,
for “twelve thousand rupees” (w.e.f. 14-11-1994).
87. Inserted, ibid (w.e.f. 14-11-1994).

167
death or bodily injury to any person, for which the owner of the vehicle is
liable to give compensation for relief, he is also liable to pay compensation
under any other law for the time being in force :
Provided that the amount of such compensation to be given under any
other law shall be reduced from the amount of compensation payable under
this section or under section 163 – A].
Corresponding Law.
- Section 140 corresponds to section 92 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 140 provides for liability to pay
compensation in certain cases on the principle of no fault.
141. Provisions as to other right to claim compensation for
death or permanent disablement
- (1) The right to claim compensation
under section 140 in respect of death or permanent disablement of any person
shall be in addition to
88
[any other right, except the right to claim under the
scheme referred to in section 163 – A (such other right hereafter] in this section
referred to as the right on the principle of fault) to claim compensation in
respect thereof under any other provision of this Act or of any other law for
the time being in force.
(2) A claim for compensation under section 140 in respect of death or
permanent disablement of any person shall be disposed of as expeditiously as
possible and where compensation is claimed in respect of such death or
permanent disablement under section 140 and also in pursuance of any right on
the principle of fault, the claim for compensation under section 140 shall be
disposed of as aforesaid in the first place.
(3) Notwithstanding anything contained in sub-section (1), where in
respect of the death or permanent disablement of any person, the person liable
to pay compensation under section 140 is also liable to pay compensation in
accordance with the right on the principle of fault, the person so liable shall
pay the first-mentioned compensation and -
(a) if the amount of the first-mentioned compensation is less
88. Substituted for “any other right hereafter” by Act 54 of 1994, S. 44 (w.e.f. 14-11-1994)

168
than the amount of the second-mentioned compensation, he shall be liable to
pay (in addition to the first-mentioned compensation) only so much of the
second-mentioned compensation as is equal to the amount by which it exceeds
the first-mentioned compensation;
(b) if the amount of the first-mentioned compensation is equal
to or more than the amount of the second-mentioned compensation, he shall
not be liable to pay the second-mentioned compensation.
Corresponding Law.
–
Section 141 corresponds to section 92 – B of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 141 makes provision to claim
compensation for death or permanent disablement besides the claim for
compensation for no fault liability.
142. Permanent disablement.
– For the purposes of this Chapter,
permanent disablement of a person shall be deemed to have resulted from an
accident of the nature referred to in sub-section (1) of section 140 if such
person has suffered by reason of the accident, any injury or injuries involving :-
(a) permanent privation of the sight of either eye or the hearing of
either ear, or privation of any member or joint; or
(b) destruction or permanent impairing of the powers of any members
or joint; or
(c) permanent disfiguration of the head or face.
Corresponding Law.
– Section 142 corresponds to section 92 – C of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 142 seeks to classify injuries which are
considered as permanent disablement for the purpose of this Act.
143. Applicability of Chapter to certain claims under Act 8 of
1923.
– The provisions of this Chapter shall also apply in relation to any claim
for compensation in respect of death or permanent disablement of any person
under the Workmen’s Compensation Act, 1923 (8 of 1923) resulting from an
accident of the nature referred to in sub-section (1) of section 140 and for this

169
purpose, the said provisions shall, with necessary modifications, be deemed to
form part of that Act.
Corresponding Law.
– Section 143 corresponds to section 92 – D of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 143 lays down that the provision of this
Chapter shall also apply in relation to any claims under Workmen’s
Compensation Act.
144. Overriding effect.
– The provisions of this Chapter shall have effect
notwithstanding anything contained in any other provision of this Act or of any
other law for the time being in force.
Corresponding Law.
– Section 144 corresponds to section 92 – E of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 144 provides for overriding effect of this
Chapter over any other provisions of this Act or any law for the time being in
force.
CHAPTER XI
INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS
145. Definitions.
– In this Chapter, -
(a) “authorised insurer” means an insurer for the time being carrying on
general insurance business in India under the General Insurance Business
(Nationalisation) Act, 1972, and any Government insurance fund authorised to
do general insurance business under that Act,
(b) “certificate of insurance” means a certificate issued by an authorised
insurer in pursuance of sub-section (3) of section 147 and includes a cover note
complying with such requirements as may be prescribed, and where more than one
certificate has been issued in connection with a policy, or where a copy of a
certificate has been issued, all those certificates or that copy, as the case may be;
(c) “liability”, wherever used in relation to the death of or bodily injury
to any person, includes liability in respect thereof under section 140;
(d) “policy of insurance” includes “certificate of insurance”;

170
(e) “property” includes goods carried in the motor vehicle, roads, bridges,
culverts, causeways, trees, posts and mile-stones;
(f) “reciprocating country” means any such country as may on the basis
of reciprocity be notified by the Central Government in the Official Gazette to
be a reciprocating country for the purposes of this Chapter;
(g) “third party” includes the Government.
Corresponding Law.
–
Section 145 corresponds to section 93 of the Motor
Vehicles Act, 1939.
Objects and Reasons. –
Clause 145 seeks to define certain words and
expressions appearing in this Chapter.
146. Necessity for insurance against third party risk. –
(1) No
person shall use, except as a passenger, or cause or allow any other person to
use, a motor vehicle in a public place, unless there is in force in relation to
the use of the vehicle by that person or that other person, as the case may be,
a policy of insurance complying with the requirements of this Chapter :
89
[Provided that in the case of a vehicle carrying, or meant to carry,
dangerous or hazardous goods, there shall also be a policy of insurance under
the Public Liability Insurance Act, 1991 (6 of 1991)].
Explanation. –
A person driving a motor vehicle merely as a paid
employee, while there is in force in relation to the use of the vehicle no such
policy as is required by this sub-section, shall not be deemed to act in
contravention of the sub-section unless he knows or has reason to believe that
there is no such policy in force.
(2) Sub-section (1) shall not apply to any vehicle owned by the Central
Government or a State Government and used for Government purposes
unconnected with any commercial enterprise.
(3) The appropriate Government may, by order, exempt from the
operation of sub-section (1) any vehicle owned by any of the following
authorities, namely :-
(a) the Central Government or a State Government, if the vehicle is
89. Inserted by Act 54 of 1994, S. 45 (w.e.f. 14-11-1994).

171
used for Government purposes connected with any commercial enterprise;
(b) any local authority;
(c) any State transport undertaking :
Provided that no such order shall be made in relation to any such
authority unless a fund has been established and is maintained by that authority
in accordance with the rules made in that behalf under this Act for meeting
any liability arising out of the use of any vehicle of that authority which that
authority or any person in its employment may incur to third parties.
Explanation.
– For the purposes of this sub-section, “appropriate
Government” means the Central Government or a State Government, as the
case may be, and –
(i) in relation to any corporation or company owned by the Central
Government or any State Government, means the Central Government or that
State Government;
(ii) in relation to any corporation or company owned by the Central
Government & one or more State Governments, means the Central Government;
(iii)in relation to any other State transport undertaking or any local
authority, means that Government which has control over that undertaking or
authority.
Corresponding Law. –
Section 146 corresponds to section 94 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
–
Clause 146 speaks of the necessity for insurance
against third party risk.
147. Requirement of policies and limits of liability.
– (1) In order
to comply with the requirements of this Chapter, a policy of insurance must be
a policy which -
(a) is issued by a person who is an authorised insurer; and
(b) insurers the person or classes of persons specified in the
policy to the extent specified in sub – section (2) –
(i) against any liability which may be incurred by him in

172
respect of the death of or bodily
90
[injury to any person, including owner of
the goods or his authorised representative carried in the vehicle] or damage
to any property of a third party caused by or arising out of the use of the
vehicle in a public place ;
(ii) against the death of or bodily injury to any passenger of a
public service vehicle caused by or arising out of the use of the vehicle in a
public place;
Provided that a policy shall not be required –
(i) to cover liability in respect of the death, arising out of and
in the course of this employment, of the employee of a person insured by the
policy or in respect of bodily injury sustained by such an employee arising out
of and in the course of his employment other than a liability arising under the
Workmen’s Compensation Act, 1923 (8 of 1923), in respect of the death of, or
bodily injury to, any such employee -
(a) engaged in driving the vehicle, or
(b) if it is a public service vehicle, engaged as a conductor
of the vehicle or in examining tickets on the vehicle, or
(c) if it is a goods carriage, being carried in the vehicle, or
(ii) to cover any contractual liability.
Explanation.
– For the removal of doubts, it is hereby declared that the
death of or bodily injury to any person or damage to any property of a third
party shall be deemed to have been caused by or to have arisen out of, the
use of a vehicle in a public place notwithstanding that the person who is dead
or injured or the property which is damaged was not in a public place at the
time of the accident, if the act or omission which led to the accident occurred
in a public place.
(2) Subject to the proviso to sub-section (1), a policy of insurance
referred to in sub-section (1), shall cover any liability incurred in respect of
any accident, up to the following limits, namely :-
90. Substituted for “injury to any person” by Act 54 of 1994, S.46 (w.e.f. 14-11-
1994).

173
(a) save as provided in clause (b), the amount of liability incurred.
(b) in respect of damage to any property of a third party, a
limit of rupees six thousand :
Provided that any policy of insurance issued with any limited liability
and in force, immediately before the commencement of this Act, shall continue
to be effective for a period of four months after such commencement or till
the date of expiry of such policy whichever is earlier.
(3) A policy shall be of no effect for the purposes of this Chapter
unless and until there is issued by the insurer in favour of the person by
whom the policy is effected a certificate of insurance in the prescribed form
and containing the prescribed particulars of any condition subject to which the
policy is issued and of any other prescribed matters; and different forms,
particulars and matters may be prescribed in different cases.
(4) where a cover note issued by the insurer under the provisions of
this Chapter or the rules made thereunder is not followed by a policy of
insurance within the prescribed time, the insurer shall, within seven days of the
expiry of the period of the validity of the cover note, notify the fact to the
registering authority in whose records the vehicle to which the cover note
relates has been registered or to such other authority as the State Government
may prescribe.
(5) Notwithstanding anything contained in any law for the time being
in force, an insurer issuing a policy of insurance under this section shall be
liable to indemnify the person or classes of persons specified in the policy in
respect of any liability which the policy purports to cover in the case of that
person or those classes of persons.
Corresponding Law.
– Section 147 corresponds to section 95 of the
Motor Vehicle Act, 1939.
Objects and Reasons.
– Clause 147 lays down the requirements of the
policies and the limit of liability in respect of passengers and persons other
than passengers in relation to passenger vehicles and goods carriages.

174
148. Validity of polices of insurance issued in reciprocating
countries. –
Where, in pursuance of an arrangement between India and any
reciprocating country, the motor vehicle registered in the reciprocating country
operates on any route or within any area common to the two countries and
there is in force in relation to the use of the vehicle in the reciprocating
country, a policy of insurance complying with the requirements of the law of
insurance in force in that country, then, notwithstanding anything contained in
section 147 but subject to any rules which may be made under section 164,
such policy of insurance shall be effective throughout the route or area in
respect of which, the arrangement has been made, as if the policy of insurance
had complied with the requirements of this Chapter.
Corresponding Law.
– Section 148 corresponds to section 95 – A, of
the Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 148 provides for the validity of
policies of insurance issued in a reciprocating country in respect of motor
vehicle of the reciprocating country operating on any route common to the two
countries.
149. Duty of insurers to satisfy judgments and awards against
persons insured in respect of third party risks. –
(1) if, after a certificate
of insurance has been issued under sub-section (3) of section 147 in favour of
the person by whom a policy has been effected, judgement or award in respect
of any such liability as is requirement to be covered by a policy under clause
(b) of sub-section (1) of section 147 (being a liability covered by the terms of
the policy)
91
[or under the provisions of section 163 – A] is obtained against
any person insured by the policy, then, notwithstanding that the insurer may be
entitled to avoid of cancel or may have avoided or cancelled the policy, the
insurer shall, subject to the provisions of this section, pay to the person
entitled to the benefit of the decree any sum not exceeding the sum assured
payable thereunder, as if he were the judgement debtor, in respect of the
91. Inserted by Act 54 of 1994, S. 47 (w.e.f. 14-11-1994).

175
liability, together with any amount payable in respect of costs and any sum
payable in respect of interest on that sum by virtue of any enactment
relating to interest on judgements.
(2) No sum shall be payable by an insurer under sub-section (1)
in respect of any judgement or award unless, before the commencement of the
proceedings in which the judgement or award is given the insurer had notice
through the Court or, as the case may be, the Claims Tribunal of the bringing
of the proceedings, or in respect of such judgement or award so long as
execution is stayed thereon pending an appeal; and an insurer to whom notice
of the bringing of any such proceedings is so given shall be entitled to be
made a party thereto and to defend the action on any of the following
grounds, namely :-
(a) that there has been a breach of a specified condition of the
policy, being one of the following conditions, namely :-
(i) a condition excluding the use of the vehicle -
(a) for hire or reward, where the vehicle is on the date of
the contract of insurance a vehicle not covered by a permit to ply for hire or
reward, or
(b) for organised racing and speed testing, or
(c) for a purpose not allowed by the permit under which the
vehicle is used, where the vehicle is a transport vehicle, or
(d) without side-car being attached where the vehicle is a
motor cycle; or
(ii) a condition excluding driving by a named person or persons
or by any person who is not duly licenced, or by any person who has been
disqualified for holding or obtaining a driving licence during the period of
disqualification; or
(iii)a condition excluding liability for injury caused or
contributed to by conditions of war, civil war, riot or civil commotion; or

176
(b) that the policy is void on the ground that it was obtained by
the non-disclosure of a material fact or by a representation of fact which
was false in some material particular.
(3) Where any such judgement as is referred to in sub-section (1) is
obtained from a Court in a reciprocating country and in the case of a foreign
judgement is, by virtue of the provisions of section 13 of the Code of Civil
Procedure, 1908 (5 of 1908) conclusive as to any matter adjudicated upon by it,
the insurer (being an insurer registered under the Insurance Act, 1938 (4 of
1938) and whether or not he is registered under the corresponding law of the
reciprocating country) shall be liable to the person entitled to the benefit of the
decree in the manner and to the extent specified in sub-section (1), as if the
judgement were given by a Court in India :
Provided that no sum shall be payable by the insurer in respect of any
such judgement unless, before the commencement of the proceedings in which
the judgement is given, the insurer had notice through the Court concerned of
the bringing of the proceedings and the insurer to whom notice is so given is
entitled under the corresponding law of the reciprocating country, to be made a
party to the proceedings and to defend the action on grounds similar to those
specified in sub-section (2).
(4) Where a certificate of insurance has been issued under sub-section
(3) of section 147 to the person by whom a policy has been effected, so
much of the policy as purports to restrict the insurance of the persons insured
thereby by reference to any conditions other than those in clause (b) of sub-
section (2) shall, as respects such liabilities as are required to be covered by a
policy under clause (b) of sub-section (1) of section 147, be of no effect :
Provided that any sum paid by the insurer in or towards the discharge
of any liability of any person which is covered by the policy by virtue only of
this sub-section shall be recoverable by the insurer from that person.
(5) If the amount which an insurer becomes liable under this section
to pay in respect of a liability incurred by a person insured by a policy
exceeds the amount for which the insurer would apart from the provisions of

177
this section be liable under the policy in respect of that liability, the insurer
shall be entitled to recover the excess from that person.
(6) In this section the expression “material fact” and “material
particular” means, respectively, a fact or particular of such a nature as to
influence the judgement of a prudent insurer in determining whether he will
take the risk and, if so, at what premium and on what conditions, and the
expression “liability covered by the terms of the policy” means liability which
is covered by the policy or which would be so covered but for the fact that
the insurer is entitled to avoid or cancel or has avoided or cancelled the policy.
(7) No insurer to whom the notice referred to in sub-section (2) or
sub-section (3) has been given shall be entitled to avoid his liability to any
person entitled to the benefit of any such judgement or award as is referred to
in sub-section (1) or in such judgement as is referred to in sub-section (3)
otherwise than in the manner provided for in sub-section (2) or in the
corresponding law of the reciprocating country, as the case may be.
Explanation. –
For the purposes of this section, “Claims Tribunal” means
a Claims Tribunal constituted under section 165 and “award” means an award
made by that Tribunal under section 168.
Corresponding Law. -
Section 149 corresponds to section 96 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 149 lays down that it is the duty of the
insurers to satisfy judgements against persons insured in respect of third party
risk.
150. Rights of third parties against insurers on insolvency of
the insured.
– (1) Where under any contract of insurance effected in
accordance with the provisions of this Chapter, a person is insured against
liabilities which he may incur to third parties, then -
(a) in the event of the person becoming insolvent or making a
composition or arrangement with his creditors, or
(b) where the insured person is a company, in the event of a
winding-up order being made or a resolution for a voluntary winding-up being

178
passed with respect to the company or of a receiver or manager of the
company’s business or undertaking being duly appointed, or of possession
being taken by or on behalf of the holders of any debentures secured by a
floating charge of any property comprised in or subject to the charge,
if, either before or after that event, any such liability is incurred by the
insured person, his rights against the insurer under the contract in respect of
the liability shall, notwithstanding anything to the contrary in any provision of
law, be transferred to and vest in the third party to whom the liability was so
incurred.
(2) Where an order for the administration of the estate of a deceased
debtor is made according to the law of insolvency, then, if any debt provable
in insolvency is owing by the deceased in respect of a liability to a third party
against which he was insured under a contract of insurance in accordance with
the provisions of this Chapter, the deceased debtor’s rights against the insurer
in respect of that liability shall, notwithstanding anything to the contrary is any
provision of law, be transferred to and vest in the person to whom the debt is
owing.
(3) Any condition in a policy issued for the purposes of this Chapter
purporting either directly or indirectly to avoid the policy or to alter the rights
of the parties thereunder upon the happening to the insured person of any of
the events specified in clause (a) or clause (b) of sub-section (1) or upon the
making of an order for the administration of the estate of a deceased debtor
according to the law of insolvency shall be of no effect.
(4) Upon a transfer under sub-section (1) or sub-section (2), the
insurer shall be under the same liability to the third party as he would have
been to the insured person, but –
(a) if the liability of the insurer to the insured person exceeds
the liability of the insured person to the third party, nothing in this Chapter
shall affect the rights of the insured person against the insurer in respect of
the excess, and

179
(b) if the liability of the insurer to the insured person is less
than the liability of the insured person to the third party, nothing in this
Chapter shall affect the rights of the third party against the insured person in
respect of the balance.
Corresponding Law.
– Section 150 corresponds to section 97 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 150 provides that in the event of the
insured becoming insolvent any liability incurred by the insured person and his
rights against the insurer will be transferred to and vest in the third party to
whom the liability was so incurred.
151. Duty to give information as to insurance. –
(1) No person
against whom a claim is made in respect of any liability referred to in clause
(b) of sub-section (1) of section 147 shall on demand by or on behalf of the
person making the claim refuse to state whether or not he was insured in
respect of that liability by any policy issued under the provisions of this
Chapter, or would have been so insured if the insurer had not avoided or
cancelled the policy, nor shall he refuse, if he was or would have been so
insured, to give such particulars with respect to that policy as were specified
in the certificate of insurance issued in respect hereof.
(2) In the event of any person becoming insolvent or making a
composition or arrangement with his creditors or in the event of an order
being made for the administration of the estate of a deceased person according
to the law of insolvency, or in the event of a winding-up order being made or
a resolution for a voluntary winding-up being passed with respect to any
company or of a receiver or manager of the company’s business or undertaking
being duly appointed or of possession being taken by or on behalf of the
holders of any debentures secured by a floating charge on any property
comprised in or subject to the charge, it shall be the duty of the insolvent
debtor, personal representative of the deceased debtor or company, as the case
may be, or the official assignee or receiver in insolvency, trustee, liquidator,
receiver or manager, or person in possession of the property to give at the

180
request of any person claiming that the insolvent debtor, deceased debtor or
company is under such liability to him as is covered by the provision of
this Chapter, such information as may reasonably be required by him for the
purpose of ascertaining whether any rights have been transferred to an vested
in him by section 150, and for the purpose of enforcing such rights, if any;
and any such contract of insurance as purports whether directly or indirectly to
avoid the contract or to alter the rights of the parties thereunder upon the
giving of such information in the events aforesaid, or otherwise to prohibit or
prevent the giving thereof in the said events, shall be of no effect.
(3) If, from the information given to any person in pursuance of sub-
section (2) or otherwise, he has reasonable ground for supporting that there
have or may have been transferred to him under this Chapter rights against
any particular insurer, that insurer shall be subject to the same duty as is
imposed by the said sub-section on the persons therein mentioned.
(4) The duty to give the information imposed by this section shall
include a duty to allow all contracts of insurance, receipts for premiums, and
other relevant documents in the possession or power of the person on whom
the duty so imposed to be inspected and copies thereof to be taken.
Corresponding Law. –
Section 151 corresponds to section 98 of the Motor
Vehicles Act, 1939.
Objects and Reasons. –
Clause 151 prescribes that it is the duty of the
insured to give information relating to the insurance on demand by or on
behalf of the person making the claim for compensation.
152. Settlement between insurers and insured persons. –
(1) No
settlement made by an insurer in respect of any claim which might be made
by a third party in respect of any liability of the nature referred to in clause
(b) of sub-section (1) of section 147 shall be valid unless such third party is a
party to the settlement.
(2) Where a person who is insured under a policy issued for the
purpose of this Chapter has become insolvent, or where, if such insured person
is a company, a winding-up order has been made or a resolution for a

181
voluntary winding-up has been passed with respect to the company, no
agreement made between the insurer and the insured person after the
liability has been incurred to a third party and after the commencement of the
insolvency or winding-up, as the case may be, nor any waiver, assignment or
other disposition made by or payment made to the insured person after the
commencement aforesaid shall be effective to defeat the rights transferred to
the third party under this Chapter, but those rights shall be the same as if no
such agreement, waiver, assignment or disposition or payment has been made.
Corresponding Law.
- Section 152 corresponds to section 99 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 152 lays down that any settlement made
by the insurer in respect of any claim which may be made by the third party
will not be valid unless the third party is a party to the claim.
153. Saving in respect of section 150,151 and 152.
– (1) For the
purposes of section 150,151 and 152 a reference to “liabilities to third parties”
in relation to a person insured under any policy of insurance shall not include
a reference to any liability of that person in the capacity of insurer under some
other policy of insurance.
(2) The provisions of section 150, 151 and 152 shall not apply where
a company is wound-up voluntarily merely for the purposes of reconstruction
or of an amalgamation with another company.
Corresponding Law.
– Section 153 corresponds to section 100 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 153 lays down that the liability of the
insurer will be only in respect of that particular policy alone and not in
respect of any other policy of insurance.
154. Insolvency of insured persons not to affect liability of
insured or claims by third parties.
– Where a certificate of insurance has
been issued to the person by whom a policy has been effected, the happening
in relation to any person insured by the policy of any such event as is
mentioned in sub-section (1) or sub-section (2) of section 150 shall,

182
notwithstanding anything contained in this Chapter, not affect any liability of
that person of the nature referred to in clause (b) of sub-section (1) of
section 147; but nothing in this section shall affect any rights against the
insurer conferred under the provisions of section 150,151 and 152 on the
person to whom the liability was incurred.
Corresponding Law.
–
Section 154 corresponds to section 101 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 154 provides that the insolvency of the
insured will not affect the liability of the insured or affect the claims of third
parties or the rights against the insurer.
155. Effect of death on certain causes of action.
–
Notwithstanding
anything contained in section 306 of the Indian Succession Act, 1925 (39 of
1925) of the death of a person in whose favour a certificate of insurance had
been issued, if it occurs after the happening of an event which has given rise
to a claim under the provisions of this Chapter, shall not be a bar to the
survival of any cause of action arising out of the said event against his estate
or against the insurer.
Corresponding Law.
– Section 155 corresponds to section 102 of the
Motor Vehicle Act, 1939.
Objects and Reasons.
– Clause 155 makes it clear that in the event of the
death of the insured after the happening of an accident in which his motor
vehicle was involved, the right of third parties will not be barred against the
insured or his excise.
156. Effect of certificate of insurance.
– When an insurer has issued
a certificate of insurance in respect of a contract of insurance between the
insurer and the insured person, then -
(a) if and so long as the policy described in the certificate has
not been issued by the insurer to the insured, the insurer shall, as between
himself and any other person except the insured, be deemed to have issued to
the insured person a policy of insurance conforming in all respects with the
description and particulars stated in such certificate; and

183
(b) if the insurer has issued to the insured the policy described
in the certificate, but the actual terms of the policy are less favourable to
persons claiming under or by virtue of the policy against the insurer either
directly or through the insured than the particulars of the policy as stated in
the certificate, the policy shall, as between the insurer and any other person
except the insured, be deemed to be in terms conforming in all respects with
the particulars stated in the said certificate.
Corresponding Law.
– Section 156 corresponds to section 103 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 156 provides that where the insurer has
issued a certificate of insurance, and the policy of insurance has not been
issued, then the policy to be issued be deemed to be in terms conforming in
all respects to the particulars mentioned in the certificate of insurance.
157. Trasnfer of certificate of insurance.
– (1) Where a person in
whose favour the certificate of insurance has been issued in accordance with
the provisions of this Chapter transfer to another person the ownership of the
another vehicle in respect of which such insurance was taken together with the
policy of insurance relating thereto, the certificate of insurance and the policy
described in the certificate shall be deemed to have been transferred in favour
of the person to whom the motor vehicle is transferred with effect from the
date of its transfer.
92
[
Explanation.
– For the removal of doubts, it is hereby declared that
such deemed transfer shall include transfer of rights and liabilities of the said
certificate of insurance and policy of insurance.]
(2) The transferee shall apply within fourteen days from the date of
transfer in the prescribed form to the insurer for making necessary changes in
regard to the fact of transfer in the certificate of insurance and the policy
described in the certificate in his favour and the insurer shall make the
necessary changes in the certificate and the policy of insurance in regard to
the transfer of insurance.
92. Inserted by Act 54 of 1994, S. 48 (w.e.f. 14-11-1994)

184
Corresponding Law.
– Section 157 corresponds to section 103-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 157 lays down that when the certificate
of registration is transferred from one person to another, then the policy of
insurance in respect of that vehicle is also deemed to have been transferred to
that other person from the date on which the ownership of the motor vehicle
stands transferred.
158. Production of certain certificates, licence and permit in
certain cases. –
(1) Any person driving a motor vehicle in any public place
shall, on being so required by a police officer in uniform authorised in this
behalf by the State Government, produce -
(a) the certificate of insurance;
(b) the certificate of registration;
(c) the driving licence; and
(d) in the case of a transport vehicle also the certificate of
fitness referred to in section 56 and the permit,
relating to the use of the vehicle.
(2) If, where owing to the presence of a motor vehicle in a public
place an accident occurs involving death or bodily injury to another person, the
driver of the vehicle does not at the time produce the certificate, driving
licence and permit referred to in sub-section (1) to a police officer, he shall
produce the said certificates, licence and permit at the police station at which
he makes the report required by section 134.
(3) No person shall be liable to conviction under sub-section (1) or
sub-section (2) by reason only of the failure to produce the certificate of
insurance if, within seven days from the date on which its production was
required under sub-section (1), or as the case may be, from the date of
occurrence of the accident, he produces the certificate at such police station as
may have been specified by him to the police officer who required its
production or, as the case may be, to the police officer at the site of the

185
accident or to the officer-in-charge of the police station at which he reported
the accident :
Provided that except to such extent and with such modifications as may
be prescribed, the provisions of this sub-section shall not apply to the driver of
a transport vehicle.
(4) The owner of a motor vehicle shall give such information as he
may be required by or on behalf of a police officer empowered in this behalf
by the State Government to give for the purpose of determining whether the
vehicle was or was not being driven in contravention of section 146 and on
any occasion when the driver was required under this section to produce his
certificate of insurance.
(5) In this section, the expression “produce his certificate of insurance”
means produce for examination the relevant certificate of insurance or such
other evidence as may be prescribed that the vehicle was not being driven in
contravention of section 146.
[(6) As soon as any information regarding any accident involving death
93
or bodily injury to any person is recorded or report under this section is
completed by a police officer, the officer-in-charge of the police station shall
forward a copy of the same within thirty days from the date of recording of
information or, as the case may be, on completion of such report to the
Claims Tribunal having jurisdiction and a copy thereof to the concerned
insurer, and where a copy is made available to the owner, he shall also within
thirty days of receipt of such report, forward the same to such Claims Tribunal
and insurer].
93. Sub.-S. (6) substituted by Act 54 of 1994, S.49 (w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (6) read as under :-
“(6) As soon as any information regarding any accident involving death or bodily
injury yo any person is recorded or a report under this section is completed by a police
officer, the officer-in-charge of the police station shall forward a copy of the same also to
the Claims Tribunal having jurisdiction and a copy thereof to the concerned insurer.”

186
Corresponding Law.
- Section 158 corresponds to section 106 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 158 makes it compulsory on the part of
the driver of the vehicle involved in accident, to produce the certificate of
registration and insurance, the certificate of fitness and permit and driving
licence without delay. It also provides that the police officer who makes a
report of accident shall send a copy of the report to the Accident Claims
Tribunal.
159. Production of certificate of insurance on application
for authority to use vehicle.
– A State Government may make rules requiring
the owner of any motor vehicle when applying whether by payment of a tax or
otherwise for authority to use the vehicle in a public place to produce such
evidence as may be prescribed by those rules to the effect that either -
(a) on the date when the authority to use the vehicle comes
into operation there will be in force the necessary policy of insurance in
relation to the use of the vehicle by the applicant or by other persons on his
order or with his permission, or
(b) the vehicle is a vehicle to which section 146 does not
apply.
Corresponding Law.
– Section 159 corresponds to section 107 of the
Motor Vehicle Act, 1939.
Objects and Reasons.
– Clause 159 empowers the State Government to
make rules to require production of certificate of insurance of a motor vehicle
at the time of payment of taxes and in the case of transport vehicle to have a
valid certificate of insurance before the vehicle is put on public road after
obtaining a permit.
160. Duty to furnish particulars of vehicle involved in accident.
– A registering authority or the officer-in-charge of a police station shall, if so
required by a person who alleges that he is entitled to claim compensation in
respect of an accident arising out of the use of a motor vehicle, or if so
required by an insurer against whom a claim has been made in respect of any

187
motor vehicle, furnish to that person or to that insurer, as the case may be, on
payment of the prescribed fee any information at the disposal of the said
authority or the said police officer relating to the identification marks and other
particulars of the vehicle and the name and address of the person who was
using the vehicle at the time of the accident or was injured by it and the
property, if any, damaged in such form and within such time as the Central
Government may prescribe.
Corresponding Law.
- Section 160 corresponds to section 109 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
- Clause 160 lays down that it is the duty of the
police officer registering accident case and the registering authority to furnish
to the person who alleges that he is entitled to claim compensation all such particulars
in such form and within such time as the Central Government may prescribe.
161. Special provisions as to compensation in case of hit and
run motor accident.
– (1) For the purposes of this section, section 162 and
section 163 -
(a) “grievous hurt” shall have the same meaning as in the
Indian Penal Code, 1860 (45 of 1860);
(b) “hit and run motor accident” means an accident arising out
of the use of a motor vehicle or motor vehicles the identity whereof cannot be
ascertained in spite of reasonable efforts for the purpose;
(c) “scheme” means the scheme framed under section 163.
(2) Notwithstanding anything contained in the General Insurance
Business (Nationalisation) Act, 1972 (57 of 1972) or any other law for the time
being in force or any instrument having the force of law, the General
Insurance Corporation of India formed under section 9 of the said Act and the
insurance companies for the time being carrying on general insurance business
in India shall provide for paying in accordance with the provisions of this Act
and the scheme, compensation in respect of the death of, or grievous hurt to,
persons resulting from hit and run motor accidents.

188
(3) Subject to the provisions of this Act and the scheme, there shall
be paid as compensation –
(a) in respect of the death of any person resulting from a hit
and run motor accident, a fixed sum of
[twenty-five thousand rupees];
94
(b) in respect of grievous hurt to any person resulting from a
hit and run motor accident, a fixed sum of
95
[twelve thousand and five
hundred rupees].
(4) The provisions of sub-section (1) of section 166 shall apply for
the purpose of making applications for compensation under this section as they
apply for the purpose of making applications for compensation referred to in
that sub-section.
Corresponding Law.
– Section 161 corresponds to section 109 – A of the
Motor Vehicle Act, 1939.
Objects and Reasons.
– Clause 161 provides for framing of a scheme by
the Central Government for the payment of compensation in “hit and run”
cases. It also lays down the amount of compensation in respect of the death
and also in respect of grievous hurt.
162. Refund in certain cases of compensation paid under section
161.
– (1) The payment of compensation in respect of the death of, or grievous
hurt to, any person under section 161 shall be subject to the condition that if
any compensation (hereafter in this sub-section referred to as the other
compensation) or other amount in lieu of or by way of satisfaction of a claim
for compensation is awarded or paid in respect of such death or grievous hurt
under any other provision of this Act or any other law or otherwise so much
of the other compensation or other amount aforesaid as is equal to the
compensation paid under section 161 shall be refunded to the insurer.
(2) Before awarding compensation in respect of an accident involving
the death of, or bodily injury to, any person arising out of the use of a motor
94. Substituted for “eight thousand and five hundred rupees” by Act 54 of 1994, S.50
(w.e.f. 14-11-1994).
95. Substituted,
ibid,
for “two thousand rupees” (w.e.f. 14-11-1994).

189
vehicle or motor vehicles under any provision of this Act (other than section
161) or any other law, the Tribunal Court or other authority awarding such
compensation shall verify as to whether in respect of such death or bodily
injury compensation has already been paid under section 161 or an application
for payment of compensation is pending under that section, and such Tribunal,
Court or other authority shall, -
(a) if compensation has already been paid under section 161,
direct the person liable to pay the compensation awarded by it to refund to the
insurer, so much thereof as is required to be refunded in accordance with the
provisions of sub-section (1);
(b) if an application for payment of compensation is pending
under section 161 forward the particulars as to the compensation awarded by it
to the insurer.
Explanation.
– For the purpose of this sub-section, an application for
compensation under section 161 shall be deemed to be pending –
(i) if such application has been rejected, till the date of the
rejection of the application, and
(ii) in any other case, till the date of payment of compensation
in pursuance of the application.
Corresponding Law.
- Section 162 corresponds to section 109-B of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 162 seeks to provide that when
compensation is awarded in a case where compensation under clause 161 has
already been paid then so much of the compensation paid as per clause 161
shall be refunded to the insurer.
163. Sceme for payment of compensation in case of hit and run
motor accidents. –
(1) The Central Government may, by notification in the
Official Gazette, make a scheme specifying, the manner in which the scheme
shall be administered by the General Insurance Corporation, the form, manner
and the time within which applications for compensation may be made, the
officers or authorities to whom such applications may be made, the procedure

190
to be followed by such officers or authorities for considering and passing
orders on such applications, and all other matters connected with, or
incidental to, the administration of the scheme and the payment of
compensation.
(2) A scheme made under sub-section (1) may provide that –
(a) a contravention of any provision thereof shall be punishable
with imprisonment for such term as may be specified but in no case exceeding
three months, or with fine which may extend to such amount as may be
specified but in no case exceeding five hundred rupees or with both;
(b) the powers, functions or duties conferred or imposed on any
officer or authority by such scheme may be delegated with the prior approval
in writing of the Central Government, by such officer or authority to any other
officer or authority;
(c) any provision of such scheme may operate with
retrospective effect from a date not earlier than the date of establishment of the
Solatium Fund under the Motor Vehicles Act, 1939 (4 of 1939) as it stood
immediately before the commencement of this Act.
Provided that no such retrospective effect shall be given so as to
prejudicially affect the interests of any person who may be governed by such
provision.
Corresponding Law.
– Section 163 corresponds to section 109-C of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 163 empowers the Central Government to
makes scheme for payment of compensation in “hit and run” accident cases
detailing the procedure for making claim, the authorities to whom the claim
should be made, etc.
163 – A. Special provisions as to payment of compensation on
96
[
structured formuala basis.
– (1) Notwithstanding anything contained in this
Act or in any other law for the time being in force or instrument having the
force of law, the owner of the motor vehicle of the authorised insurer shall be
liable to pay in the case of death or permanent disablement due to accident

191
96. Inserted by Act 54 of 1994, S. 51 (w.e.f. 14-11-1994).
arising out of the use of motor vehicle compensation, as indicated in the
Second Schedule, to the legal heirs or the victim, as the case may be.
Explanation. –
For the purposes of this sub-section, “permanent disability”
shall have the same meaning and extent as in the Workmen’s Compensation
Act, 1923.
(2) In any claim for compensation under sub-section (1), the claimant
shall not be required to plead or establish that the death or permanent
disablement in respect of which the claim has been made was due to any
wrongful act or neglect or default of the owner of the vehicle or vehicles
concerned or of any other person.
(3) The Central Government may, keeping in view the cost of living
by notification in the Official Gazette, from time to time amend the Second
Schedule.]
Corresponding Law.
– This is a new provision in the 1988 Act.
[163-B. Option to file claim in certain cases.
–
97
Where a person is
entitled to claim compensation under section 140 and section 163-A, he shall
file the claim under either of the said sections and not under both.]
Corresponding Law.
– This is a new provision in the 1988 Act.
164. Power of Central Government to make rules. –
(1) The
Central Government may make rules for the purpose of carrying into effect the
provisions of this Chapter, other than the matters specified in section 159.
(2) Without prejudice to the generality of the foregoing power, such
rules may provide for –
(a) the forms to be used for the purposes of this Chapter;
(b) the making of applications for and the issue of certificates
of insurance;
(c) the issue of duplicates to replace certificates of insurance
lost, destroyed or mutilated;
(d) the custody, production, cancellation and surrender of
certificates of insurance;

192
97. Inserted by Act 54 of 1994, S. 51 (w.e.f. 14-11-1994).
(e) the records to be maintained by insurers of policies of
insurance issued under this Chapter;
(f) the identification by certificates or otherwise of persons or
vehicle exempted from the provisions of this Chapter;
(g) the furnishing of information respecting policies of insurance
by insurers;
(h) adopting the provisions of this Chapter to vehicles brought
into India by persons making only a temporary stay therein or to vehicles
registered in a reciprocating country and operating on any route or within any
area in India by applying those provisions with prescribed modifications;
(i) the form in which and the time limit within which the
particulars referred to in section 160 may be furnished; and
(j) any other matter which is to be, or may be, prescribed.
Corresponding Law.
– Section 164 corresponds to section 111 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 164 confers upon the Central Government
the power to frame rules to implement the provisions of clause 60.
CHAPTER XII
CLAIMS TRIBUNALS
165. Claims Tribunals.
– (1) A State Government may, by notification
in the Official Gazette, constitute one or more Motor Accidents Claims
Tribunals (hereafter in this Chapter referred to as Claim Tribunal) for such
area as may be specified in the notification for the purpose of adjudicating
upon claims for compensation in respect of accidents involving the death of, or
bodily injury to, persons arising out of the use of motor vehicles, or damages
to any property of a third party so arising, or both.
Explanation.
– For the removal of doubts, it is hereby declared that the
expression “claims for compensation in respect of accidents involving the death
of or bodily injury to persons arising out of the use of motor vehicles”
includes claims for compensation under section 140
[and section 163-A].
98

193
98. Added by Act. 54 of 1994, S. 52 (w.e.f. 14-11-1994).
(2) A Claims Tribunal shall consist of such number of members
as the State Government may think fit to appoint and where it consists of two
or more members, one of them shall be appointed as the Chairman thereof.
(3) A person shall not be qualified for appointment as a member of a
Claims Tribunal unless he –
(a) is, or has been, a Judge of a High Court, or
(b) is, or has been, a District Judge, or
(c) is qualified for appointment as a High Court Judge
99
[or as a
District Judge.]
(4) Where two or more Claims Tribunals are constituted for any area,
the State Government, may by general or special order, regulate the
distribution of business among them.
Corresponding Law.
– Section 165 corresponds to section 110 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 165 empowers the State Government to
constitute Claims Tribunals to adjudicate upon claims for compensation arising
out of motor vehicle accidents, resulting in death or bodily injury to persons
or damages to any property of third parties.
166. Application for compensation.
– (1) An application for
compensation arising out of an accident of the nature specified in sub-section
(1) of section 165 may be made –
(a) by the person who has sustained the injury; or
(b) by the owner of the property; or
(c) where death has resulted from the accident, by all or any
of the legal representatives of the deceased; or
(d) by any agent duly authorised by the person injured or all or
any of the legal representatives of the deceased, as the case may be :
Provided that where all the legal representatives of the deceased have
not joined in any such application for compensation, the application shall be
made on behalf of or for the benefit of all the legal representatives of the

194
99. Added,
ibid
(w.e.f. 14-11-1994).
deceased and the legal representatives who have not so joined, shall be
impleaded as respondents to the application.
[(2) Every application under sub - section (1) shall be made, at the
1
option of the claimant, either to the Claims Tribunal having jurisdiction over
the area in which the accident occurred or to the Claims Tribunal within the
local limits of whose jurisdiction the claimant resides, or carries on business or
within the local limits of whose jurisdiction the defendant resides and shall be in
such form and contain such particulars as may be prescribed :
Provided that where no claim for compensation under section 140 is
made in such application, the application shall contain a separate statement to
that effect immediately before the signature of the applicant.]
[***]
2
[(4) The Claims Tribunal shall treat any report of accidents forwarded
3
1. Sub.-S. (2) substituted by Act 54 of 1994, S.53 (w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (2) read as under:-
“(2) Every application under sub-section (1) shall be made to the Claims Tribunal having
jurisdiction over the area in which the accident occurred, and shall be in such form and shall
contain such particulars as may be prescribed :
Provided that where any claim for compensation under section 140 is made in such
application, the application shall contain a separate statement to that effect immediately before
the signature of the applicant.”
2. Sub-S. (3) omitted,
ibid
(w.e.f. 14-11-1994). Prior to its omission, sub-S.(3) read as
under :-
“(3) No application for such compensation shall be entertained unless it is made
within six months of the occurrence of the accident:
Provided that the Claims Tribunal may entertain the application after expiry of the said
period of six months but not later than twelve months, if it is satisfied that the applicant was
prevented by sufficient cause from making the application in time.”
3. Sub-S. (4) substituted by Act 54 of 1994, S. 53 (w.e.f. 14-11-1994). Prior its
substitution, sub-S. (4) read as under :-
“(4) Where a police officer has filed a copy of the report regarding an accident to a
Claims Tribunal under this Act, the Claims Tribunal may, if it thinks necessary so to do, treat
the report as if it were an application for compensation under this Act.”

195
to it under sub-section (6) of section 158 as an application for compensation
under this Act.]
Corresponding Law.
– Section 166 corresponds to section 110-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 166 provides for the form of application
for compensation, the person who may claim compensation, the time within
which the application should be filed, etc. It also provides that if the Claims
Tribunal, think so, may treat the accident report filed by the Police Officer as
per clause 158 as an application under this Act.
167. Option regarding claims for compensation in certain cases. –
Notwithstanding anything contained in the Workmen’s Compensation Act, 1923
(8 of 1923) where the death of, or bodily injury to, any person gives rise to a
claim for compensation under this Act and also under the Workmen’s
Compensation Act, 1923, the person entitled to compensation may without
prejudice to the provisions of Chapter X claim such compensation under either
of those Acts but not under both.
Corresponding Law.
– Section 167 corresponds to section 110-AA of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 167 lays down that when claim arises
under this Act and under the Workmen’s Compensation Act, the person entitled
to claim compensation may claim compensation only under either of these Acts
and not under both the Act.
168. Award of the Claims Tribunal.
– (1) On receipt of an
application for compensation made under section 166, the Claims Tribunal
shall, after giving notice of the application to the insurer and after giving the
parties (including the insurer) an opportunity of being heard, hold an inquiry
into the claim or, as the case may be, each of the claims and, subject to the
provisions of section 162 may make an award determining the amount of
compensation which appears to it to be just and specifying the person or
persons to whom compensation shall be paid and in making the award the
Claims Tribunal shall specify the amount which shall be paid by the insurer or

196
owner or driver of the vehicle involved in the accident or by all or any of
them, as the case may be :
Provided that where such application makes a claim for compensation
under section 140 in respect of the death or permanent disablement of any
person, such claim and any other claim (whether made in such application or
otherwise) for compensation in respect of such death or permanent disablement
shall be disposed of in accordance with the provisions of Chapter X.
(2) The Claim Tribunal shall arrange to deliver copies of the award
to the parties concerned expeditiously and in any case within a period of
fifteen days from the date of the award.
(3) When an award is made under this section, the person who is
required to pay any amount in terms of such award shall, within thirty days of
the date of announcing the award by the Claims Tribunal, deposit the entire
amount awarded in such manner as the Claims Tribunal may direct.
Corresponding Law.
– Section 168 corresponds to section 110-B of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 168 provides that the Claims Tribunal
shall deliver the copies of the award to the parties within fifteen days of the
award and that the person against whom the award is made shall deposit the
amount awarded within thirty days of announcement of the award.
169. Procedure and powers of Claims Tribunals.
– (1) In holding
any inquiry under section 168, the Claims Tribunal may, subject to any rules
that may be made in this behalf, follow such summary procedures as it thinks
fit.
(2) The Claims Tribunal shall have all the powers of a Civil Court
for the purpose of taking evidence on oath and of enforcing the attendance of
witnesses and of compelling the discovery and production of documents and
material objects and for such other purposes as may be prescribed; and the
Claims Tribunal shall be deemed to be a Civil Court for all the purposes of
section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

197
(3) Subject to any rules that may be made in this behalf, the Claims
Tribunal may, for the purpose of adjudicating upon any claim for
compensation, choose one or more persons possessing special knowledge of any
matter relevant to the inquiry to assist it in holding the inquiry.
Corresponding Law.
– Sub – sections (1), (2) and (3) correspond to sub-
section (1), (2) and (3) respectively, of section 110 – C of the Motor Vehicles
Act, 1939.
Objects and Reasons.
– Clause 169 lays down the procedure to be
followed by the Claims Tribunal in setting claims compensation and the powers
of the Claim Tribunals.
170. Impleading insurer in certain cases.
– Where in the course of
any inquiry, the Claims Tribunal is satisfied that -
(a) there is collusion between the person making the claim and the
person against whom the claim is made, or
(b) the persons against whom the claim is made has failed to contest
the claim,
it may, for reasons to be recorded in writing, direct that the insurer who may
be liable in respect of such claim, shall be impleaded as a party to the
proceeding and the insurer so impleaded shall thereupon have, without
prejudice to the provisions contained in sub-section (2) of section 149, the right
to contest the claim on all or any of the grounds that are available to the
person against whom the claim has been made.
Corresponding Law.
– Section 170 corresponds to section 110-C(2-A) of
the Motor Vehicles Act, 1939.
171. Award of interest where any claim is allowed.
– Where any
Claims Tribunal allows a claim for compensation made under this Act, such
Tribunal may direct that in addition to the amount of compensation simple
interest shall also be paid at such rate and from such date not earlier than the
date of making the claim as it may specify in this behalf.
Corresponding Law.
– Section 171 corresponds to section 110-CC of the
Motor Vehicles Act, 1939.

198
Objects and Reasons.
– Clause 170 empowers the Claims Tribunal to
order that simple interest at such rates as it thinks fit shall also be paid
alongwith the award of compensation.
172. Award of compensatory costs in certain cases.
– (1) Any
Claims Tribunal adjudicating upon any claim for compensation under this Act,
may in any case where it is satisfied for reasons to be recorded by it in
writing that -
(a) the policy of insurance is void on the ground that it was obtained
by representation of fact which was false in any material particular, or
(b) any party or insurer has put forward a false or vexatious claim
or defence
such Tribunal may make an order for the payment, by the party who is guilty of mis-
representation or by whom such claim or defence has been put forward of special
costs by way of compensation to the insurer or, as the case may be, to the party
against whom such claim or defence has been put forward.
(2) No Claims Tribunal Shall pass an order for special costs under sub-
section (1) for any amount exceeding one thousand rupees.
(3) No person or insurer against whom an order has been made under this
section shall, by reason thereof be exempted from any criminal liability in respect of
such mis-representation, claim or defence as is referred to in sub-section (1).
(4) Any amount awarded by way of compensation under this section
in respect of any mis-representation, claim or defence, shall be taken into
account in any subsequent suit for damages for compensation in respect of
such mis-representation, claim or defence.
Corresponding Law.
– Section 172 corresponds to section 110-CCC of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 171 seeks to empower the Claims
Tribunals to award special compensatory costs where in certain cases it is
found that there has been mis-representation of case or vexatious to claims or
defence.

199
173. Appeals.
– (1) Subject to the provisions of sub-section (2), any
person aggrieved by an award of a Claims Tribunal may, within ninety
days from the date of the award, prefer an appeal to the High Court :
Provided that no appeal by the person who is required to pay any
amount in terms of such award shall be entertained by the High Court, unless
he has deposited with it twenty-five thousand rupees of fifty per cent, of the
amount so awarded, whichever is less, in the manner directed by the High
Court :
Provided further that the High Court may entertain the appeal after the
expiry of the said period of ninety days, if it is satisfied that the appellant
was prevented by sufficient cause from preferring the appeal in time.
(2) No appeal shall lie against any award of a Claims Tribunal if the
amount in dispute in the appeal is less than ten thousand rupees.
Corresponding Law.
- Section 173 corresponds to section 110-D of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 172 makes provision for appeal to High
Court by the aggrieved against the orders of Claim Tribunal and where the
person aggrieved is the person who has to pay the compensation such person
shall deposit 50 percent of the amount awarded as directed by the High Court.
174. Recovery of money from insurer as arrear of land revenue.
- Where any amount is due from any person under an award, the Claim
Tribunal may, on an application made to it by the person entitled to the
amount, issue a certificate for the amount to the Collector and the Collector
shall proceed to recover the same in the same manner as an arrear of land
revenue.
Corresponding Law.
– Section 174 corresponds to section 110-E of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 173 lays down that any money due from
any person under an award by the Claim Tribunal may be recovered by the
Collector as arrears of land revenue.

200
175. Bar on jurisdiction of Civil Courts.
– Where any Claims
Tribunal has been constituted for any area, no Civil Court shall have
jurisdiction to entertain any question relating to any claim for compensation
which may be adjudicated upon by the Claim Tribunal for that area, and no
injunction in respect of any action taken or to be taken by or before the
Claims Tribunal in respect of the claim for compensation shall be granted by
the Civil Court.
Corresponding Law.
- Section 175 corresponds to section 110-F of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 174 bars the jurisdiction of Civil Courts
where any Claims Tribunal has been constituted.
176. Power of State Government to make rules.
– A State
Government may make rules for the purpose of carrying into effect the
provisions of sections 165 to 174, and in particular, such rules may provide
for all or any of the following matters, namely :-
(a) the form of application for claims for compensation and the
particulars it may contain, and the fees, if any, to be paid in respect of such
applications;
(b) the procedure to be followed by a Claims Tribunal in
holding an inquiry under this Chapter;
(c) the powers vested in a Civil Court which may be exercised
by a Claims Tribunal;
(d) the form and the manner in which and the fees (if any) on
payment of which an appeal may be preferred against an award of a Claims
Tribunal; and
(e) any other matter which is to be, or may be, prescribed.
Corresponding Law.
– Section 176 corresponds to section 111-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 176 confers upon the State Government to
make rules for carrying into effect provisions of clauses 165 to 173.

201
CHAPTER XIII
O
FFENCES,
P
ENALTIES AND
P
ROCEDURE
177. General provision for punishment of offences.
– Whoever
contravenes any provision of this Act or of any rule, regulation or notification
made thereunder shall, if no penalty is provided for the offence, be punishable
for the first offence, with fine which may extend to one hundred rupees, and
for any second or subsequent offence with fine which may extend to three
hundred rupees.
Corresponding Law.
– Section 177 corresponds to section 112 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 177 provides for a general provision for
punishment of offences.
178. Penalty for travelling without pass or ticket and for
dereliction of duty on the part of conductor and refusal to ply
contract carriage, etc
-
(1) Whoever travels in a stage carriage without
having a proper pass or ticket with him or being in or having alighted from a
stage carriage fails or refuses to present for examination or to deliver up his
pass or ticket immediately on a requisition being made therefore, shall be
punishable with fine which may extend to five hundred rupees.
Explanation.
– In this section, “pass” and “ticket” have the meanings
respectively assigned to them in section 124.
(2) If the conductor of a stage carriage, or the driver of a stage
carriage performing the functions of a conductor in such stage carriage, whose
duty is –
(a) to supply a ticket to a person travelling in a stage carriage on
payment of fare by such person, either wilfully or negligently, -
(i) fails or refuses to accept the fare when tendered, or
(ii) fails or refuses to supply a ticket, or
(iii)supplies an invalid ticket, or
(iv) supplies a ticket of a lesser value, or

202
(b) to check any pass or ticket, either wilfully or negligently fails
or refuses to do so,
he shall be punishable with fine which may extend to five hundred rupees.
(3) If the holder of a permit or the driver of a contract carriage
refuses, in contravention of the provisions of this Act or rules made
thereunder, to ply the contract carriage or to carry the passengers, he shall, -
(a) in the case of two-wheeled or three-wheeled motor vehicles, be
punishable with fine which may extend to fifty rupees; and
(b) in any other case, be punishable with fine which may extend
to two hundred rupees.
Corresponding Law.
– Section 178 corresponds to section 112 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 178 provides for penalty for travelling
without ticket or pass by a passenger and also for penalty for the conductor
and operator of a contract carriage permit for dereliction of his duties.
179. Disobedience of orders, obstruction and refusal of
information.
– (1) Whoever wilfully disobeys any direction lawfully given by
any person or authority empowered under this Act to give such direction, or
obstructs any person or authority in the discharge of any functions which such
person or authority is required or empowered under this Act to discharge,
shall, if no other penalty is provided for the offence, be punishable with fine
which may extend to five hundred rupees.
(2) Whoever, being required by or under this Act to supply any
information, wilfully withholds such information or gives information which he
knows to be false or which he does not believe to be true, shall, if no other
penalty is provided for the offence, be punishable with imprisonment for a term
which may extent to one month or with fine which may extend to five hundred
rupees or with both.
Corresponding Law.
–
Section 179 corresponds to section 113 of the
Motor Vehicle Act, 1939.

203
Objects and Reasons.
– Clause 179 provides for penalties for disobedience
of orders given by persons authorised to give such instruction and refusal
to give information and for causing obstruction.
180. Allowing unauthorised persons to drive vehicles.
– Whoever,
being the owner or person in charge of a motor vehicle, causes or permits,
any other person who does not satisfy the provisions of section 3 or section 4
to drive the vehicle shall be punishable with imprisonment for a term which
may extend to three months, or with fine which may extend to one thousand
rupees, or with both.
Corresponding Law.
– Section 180 corresponds to section 113 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 180 provides penalty both for the owner
and person in charge of the vehicle for allowing unauthorised persons to drive
the vehicle.
181. Driving vehicles in contravention of section 3 or section 4. -
Whoever
drives a motor vehicle in contravention of section 3 or section 4 shall
be punishable with imprisonment for a term which may extend to three
months, or with fine which may extend to five hundred rupees, or with both.
Corresponding Law.
–
Section 181 corresponds to section 113 – B of the
Motor Vehicle Act, 1939.
Objects and Reasons.
–
Clause 181 prescribes penalty of imprisonment or
fine or with both for persons driving a motor vehicle without a driving licence
or when he has not attained the requirement age to drive a motor vehicle.
182. Offences relating to licences.
– (1) Whoever, being disqualified
under this Act for holding or obtaining a driving licence, drives a motor
vehicle in a public place or in any other place, or applies for or obtains a
driving licence or, not being entitled to have a driving licence issued to him
free of endorsement, applies for or obtains a driving licence without disclosing
the endorsement made on a driving licence previously held by him shall be
punishable with imprisonment for a term which may extend to three months,

204
or with fine which may extend to five hundred rupees or with both, and any
driving licence so obtained by him shall be of no effect.
(2) Whoever, being disqualified under this Act for holding or obtaining
a conductor’s licence, acts as a conductor of a stage carriage in a public place
or applies for or obtains a conductor’s licence or, not being entitled to have a
conductor’s licence issued to him free of endorsement, applies for or obtains a
conductor’s licene without disclosing the endorsements made on a conductor’s
licence previously held by him, shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend to one
hundred rupees, or with both, and any conductor’s licence so obtained by him
shall be of no effect.
Corresponding Law.
– Section 182 corresponds to section 114 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 182 lays down that driving a motor
vehicle during disqualified period or driving while in possession of a driving
licence obtained by misrepresentation is punishable with imprisonment or with
fine or with both.
[182-A. Punishment for offences relating to construction and
4
maintenance of vehicles. –
Any person who contravenes the provisions of
sub-section (3) of section 109, shall be punishable with a fine of one thousand
rupees for the first offence, and with a fine of five thousand rupees for any
subsequent offence.]
Corresponding Law.
– This is a new provision in the 1988 Act.
183. Driving at excessive speed, etc.
– (1) Whoever drives a motor
vehicle in contravention of the speed limits referred to in section 112 shall be
punishable with fine which may extend to four hundred rupees, or, if having
been previously convicted of an offence under this sub-section is again
convicted of an offence under this sub-section, with fine which may extend to
one thousand rupees.
(2) Whoever causes any person who is employed by him or is subject
4. Inserted by Act 54 of 1994, S. 54 (w.e.f. 14-11-1994).

205
to his control in driving to drive a motor vehicle in contravention of the speed
limits referred to in section 112 shall be punishable with fine which may
extend to three hundred rupees, or, if having been previously convicted of an
offence under this sub-section, is again convicted of an offence under this sub-
section, with fine which may extend to five hundred rupees.
(3) No person shall be convicted of an offence punishable under sub-
section (1) solely on the evidence of one witness to the effect that in the
opinion of the witness such person was driving at a speed which was
unlawful, unless that opinion is shown to be based on an estimate obtained by
the use of some mechanical device.
(4) The publication of a time table under which, or the giving of any
direction that any journey or part of journey is to be completed within a
specified time shall, if in the opinion of the Court it is not practicable in the
circumstances of the case for that journey or part of a journey to be
completed in the specified time without contravening the speed limits referred
to in section 112 be
prima facie
evidence that the person who published the
time table or gave the direction has committed an offence punishable under
sub-section (2).
Corresponding Law.
– Section 183 corresponds to section 115 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 183 provides that whoever drives a motor
vehicle at a speed exceeding the limit prescribed for such vehicle is punishable
with fine.
184. Driving dangerously
– Whoever drives a motor vehicle at a speed
or in a manner which is dangerous to the public, having regard to all the
circumstances of the case including the nature, condition and use of the place
where the vehicle is driven and the amount of traffic which actually is at the
time or which might reasonably be expected to be in the place, shall be
punishable for the first offence with imprisonment for a term which may extend
to six months or with fine which may extend to one thousand rupees, and for
any second or subsequent offence with imprisonment for a term which may

206
extend to two years, or with fine which may extend to two thousand rupees,
or with both.
Corresponding Law.
–
Section 184 corresponds to section 116 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 184 provides for punishment for driving
recklessly and dangerously.
185. Driving by a drunken person or by a person under the
influence of drugs.
– Whoever, while driving, or attempting to drive, a motor
vehicle -
5
[(a) has, in his blood, alcohol exceeding 30 mg. Per 100 ml. of
blood detected in a test by a breath analyser, or ]
(b) is under the influence of a drug to such an extent as to be
incapable of exercising proper control over the vehicle.
shall be punishable for the first offence with imprisonment for a term which
may extend to six months, or with fine which may extend to two thousand
rupees, or with both; and for a second or subsequent offence, if committed
within three years of the commission of the previous similar offence, with
imprisonment for a term which may extend to two year, or with fine which
may extend to three thousand rupees, or with both.
Explanation –
For the purposes of this section, the drug or drugs
specified by the Central Government in this behalf, by notification in the
Official Gazette, shall be deemed to render a person incapable of exercising
proper control over a motor vehicle.
Corresponding Law.
- Section 185 corresponds to section 117 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 185 provides for punishment or driving
under the influence of drink or drug
5. Cl. (a) substituted by Act 54 of 1994, S. 55 (w.e.f. 14-11-1994). Prior to its
substitution, Cl. (a) read as under :-
“(a) has, in his blood, alcohol in any quantity, howsoever small the quantity may
be, or”

207
186. Driving when mentally or physically unfit to drive-
Whoever
drives a motor vehicle in any public place when he is to his knowledge vehicle to
be a source of danger to the public, shall be punishable for the first offence with fine
which may extend to two hundred rupees and for a second or subsequent offence with
fine which may extent to five Hundred rupees.
Corresponding Law.
- Section 186 corresponds to section 118 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 186 provides for penalty for driving a
motor vehicle when the driver is mentally or physically unfit to drive.
187. Punishment for offeence relating to accident.
– Whoever fails
to comply with the provisions of clause (c) of sub-section (1) of section 132
or of section 133 or section 134 shall be punishable with imprisonment for a
term which may extend to three months, or with fine which may extend to
five hundred rupees, or with both or, if having been previously convicted of
an offence under this section, he is again convicted of an offence under this
section, with imprisonment for a term which may extend to six months, or
with fine which may extend to one thousand rupees, or with both.
Corresponding Law.
– Section 187 corresponds to section 118-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 187 provides for punishments relating to
accidents which may be imprisonment or fine or both.
188. Punishment for abetment of certain offences.
– Whoever abets
the commission of an offence under section 184 or section 185 or section 186
shall be punishable with the punishment provided for the offence.
Corresponding Law.
– Section 188 corresponds to section 119 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 188 makes provision for abetment of
certain offences.
189. Racing and trials of speed.
– Whoever without the written
consent of the State Government permits or takes part in a race or trial of
speed of any kind between motor vehicles in any public place shall be

208
punishable with imprisonment for a term which may extend to one month, or
with a fine which may extend to five hundred rupees, or with both.
Corresponding Law.
– Section 189 corresponds to section 120 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 189 provides for punishment for offences
of racing or trial of speed of any kind.
190. Using vehicle in unsafe condition.
– (1) Any person who drives
or causes or allows to be driven in any public place a motor vehicle or trailer while
the vehicle or trailer has any defect, which such person knows of or could have
discovered by the exercise of ordinary care and which is calculated to render the
driving of the vehicle a source of danger to persons and vehicles using such place,
shall be punishable with fine which may extend to two hundred and fifty rupees
or, if as a result of such defect an accident is caused causing bodily injury or
damage to property, with imprisonment for a term which may extend to three
months, or with fine which may extend to one thousand rupees, or with both.
(2) Any person who drives or causes or allows to be driven, in any public
place a motor vehicle, which violates the standard prescribed in relation to road safety,
control of nose and air-pollution, shall be punishable for the first offence with a fine of
one thousand rupees and for any second or subsequent offence with a fine of two
thousand rupees.
(3) Any persons who drives or causes or allows to be driven, in any
public place a motor vehicle which violates the provisions of this Act or the
rules made thereunder relating to the carriage of goods which are of dangerous
or hazardous nature to human life, shall be punishable for the first offence
which may extend to three thousand rupees, or with imprisonment for a term
which may extend to one year, or with both, and for any second or
subsequent offence with fine which may extend to five thousand rupees, or
with imprisonment for a term which may extend to three years, or with both.
Corresponding Law.
– Section 190 corresponds to section 121 of the
Motor Vehicles Act, 1939.

209
Objects and Reasons.
– Clause 190 provides for penalty for persons
driving and person permitting to drive a motor vehicle which is in an
unsafe condition. It also provides for penalty for driving a motor vehicle
which
violates the standards prescribed for safety, control of noise and air pollution.
191. Sale of vehicle in or alteration of vehicle to condition
contravening this Act.
– Whoever being an importer of or dealer in motor
vehicles, sells or delivers or offers to sell or deliver a motor vehicle or trailer
in such condition that the use thereof in a public place would be in
contravention of Chapter VII or any rule made thereunder or alters the motor
vehicle or trailer so as to render its condition such that its use in public place
would be in contravention of Chapter VII or any rule made thereunder shall be
punishable with fine which may extend to five hundred rupees :
Provided that no person shall be convicted under this section if he proves that
he had reasonable cause to believe that the vehicle would not be used in a public
place until it had been put into a condition in which it might lawfully be so used.
Corresponding Law.
– Section 191 corresponds to section 122 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 191 lays down that whoever sells a vehicle
or alters a vehicle in contravention of the provisions of Chapter VII is punishable.
[192. Using vehicle without registration.
– (1) Whoever drives a
6
motor vehicle or causes or allows a motor vehicle to be used in contravention
of the provisions of section 39 shall be punishable for the first offence with a
fine which may extend to five thousand rupees but shall not be less than two
thousand rupees for a second or subsequent offence with imprisonment which
may extend to one year or with fine which may extend to ten thousand rupees
but shall not be less than five thousand rupees or with both :
Provided that the Court may, for reasons to be recorded, impose a lesser
punishment.
Nothing in this section shall apply to the use of a motor vehicle in an
emergency for the conveyance of persons suffering from sickness or injuries of for

210
6. S. 192 substituted by Act 54 of 1994, S. 56 (w.e.f. 14-11-1994). Prior to its substitution,
S. 192 read as under :-
“192. Using vehicle without registration or permit.
– (1) Whoever drives a motor
vehicle or causes or allows a motor vehicle to be used in contravention of the provisions of
section 39 or without the permit required by sub-section (1) of section 66 or in contravention
of any condition of such permit relating to the route on which or the area in which or the
purpose for which the vehicle may be used or to the maximum number of passengers and
maximum weight of luggage that may be carried on the vehicle, shall be punishable for the
first offence with fine which may extend to two thousand rupees and for any second or
subsequent offence with imprisonment which may extend to six months or with fine which
may extend to three thousand rupees, or with both.
(2) Nothing in this section shall apply to the use of a motor vehicle in an emergency for the
conveyance of persons suffering from sickness or injury or for the transport of materials for repair or
for the transport of food or materials to relieve distress or of medical supplies for a like purpose :
Provided that the person using the vehicle reports such use the to the Regional
Transport Authority within seven days from such use.
(3) Where a person is convicted of an offence under this section the Court by which such
person is convicted may, in addition to any sentence which may be passed under sub-section (1) by
order –
(a) if the vehicle used in the commission of the offence is a motor car, suspend
its certificate of registration for a period not exceeding four months.
(b) if the vehicle used in the commission of the offence is a transport vehicle,
suspend its permit for a period not exceeding six months or cancel it.
(4)
The Court to which an appeal lies from any conviction in respect of an offence
of the nature specified in sub-section (1) may set aside or vary any order of suspension or
cancellation made under sub-section (3) by the Court below and the Court, to which appeals
ordinarily lie from the Court below, may set aside or vary any such order of suspension or
cancellation made by the Court below, notwithstanding that no appeal lies against the
conviction in connection with which such order was made.”
(2) the transport of food or materials to relieve distress of medical supplies
for a like purpose :
Provides that the persons using the vehicle reports about the same to the
Regional Transport Authority within seven days from the date of such use.
(3) The Court to which an appeal lies from any conviction in respect
of an offence of the nature specified in sub-section (1), may set aside or vary

211
any order made by the Court below, notwithstanding that no appeal lies against
the conviction in connection with which such order was made.
Corresponding Law.
– Section 192 corresponds to section 123 of the
Motor Vehicles Act, 1939.
192-A. Using vehicles without permit. –
(1) Whoever drives a motor
vehicle or causes or allow a motor vehicle to be used in contravention of the
provisions of sub-section (1) of section 66 or in contravention of any condition
of a permit relating to the route on which or the area in which or the purpose
for which the vehicle may be used, shall be punishable for the first offence
with a fine which may extend to five thousand rupees but shall not be less
than two thousand rupees and for any subsequent offence with imprisonment
which may extend to one year but shall not be less than three months or with
fine which may extend to ten thousand rupees but shall not be less than five
thousand rupees or with both :
Provided that the Court may for reasons to be recorded, impose a lesser
punishment.
(2) Nothing in this section shall apply to the use of a motor vehicle
in an emergency for the conveyance of persons suffering from sickness or
injury or for the transport of materials for repair or for the transport of food
or materials to relieve distress or of medical supplies for a like purpose :
Provided that the person using the vehicle reports about the same to the
Regional Transport Authority within seven days from the date of such use.
(3) The Court to which an appeal lies from any conviction in respect
of an offence of the nature specified in sub-section (1), may set aside or vary
any order, made by the Court below, notwithstanding that no appeal lies
against the conviction in connection with which such order was made].
Corresponding Law.
– Section 192-A corresponds to section 123 of the
Motor Vehicles Act, 1939.
193. Punishment of agents and canvassers without proper
authority.
– Whoever engages himself as an agent or canvasser in
contravention of the provisions of section 93 or of any rules made thereunder

212
shall be punishable for the first offence with fine which may extend to one
thousand rupees and for any second or subsequent offence with
imprisonment which may extend to six months, or with fine which may extend
to two thousand rupees, or with both.
Corresponding Law.
– Section 193 corresponds to section 123-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 193 lays down that persons acting as Goods
Booking Agents or Travel Agents without a proper licence are punishable.
194. Driving vehicle exceeding permissible weight.
–
7
[(1) Whoever
drives a motor vehicle or causes or allows a motor vehicle to be driven in
contravention of the provisions of section 113 or section 114 or section 115
shall be punishable with minimum fine of two thousand rupees and an
additional amount of one thousand rupees per tonne of excess load, together
with the liability to pay charges for off-loading of the excess load].
(2) Any driver of a vehicle who refuses to stop and submit his
vehicle to weighing after being directed to do so by an officer authorised in
this behalf under section 114 or removes or causes the removal of the load or
part of it prior to weighing shall be punishable with fine which may extend to
three thousand rupees.
Corresponding Law.
– Section 194 corresponds to section 124 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 194 lays down that driving any
overloaded vehicle is punishable and that refusal to stop the vehicle and submit
to weighment is also punishable with fine.
7. Sub-S. (1) substituted by act 54 of 1994, S.57 (w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (1) read as under :-
“(1) Whoever drives a motor vehicle or causes or allows a motor vehicle to be driven in
contravention of the provisions of section 113 or of the conditions prescribed under that section or
in contravention of any prohibition or restriction imposed under section 113 or section 115 shall
be punishable for the first offence with fine which may extend to two thousand rupees, and
for any second or subsequent offence with fine which may extend to five thousand rupees.”

213
195. Imposition of minimum fine under certain circumstances.
–
(1) Whoever having been convicted of an offence under this Act or the
rules made thereunder commits a similar offence on a second or subsequent
occasion within three years of the commission of the previous offence, no
Court shall, except for reasons to be recorded by it in writing, impose on him
a fine of less than one-fourth of the maximum amount of the fine imposable
for such offence.
(2) Nothing in sub-section (1) shall be construed as restricting the
power of the Court from awarding such imprisonment as it considers necessary
in the circumstances of the case not exceeding the maximum specified in this
Act in respect of that offence.
Corresponding Law.
– Section 195 corresponds to section 124-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 195 speaks of imposition of minimum
fine in certain cases.
196. Driving uninsured vehicle-
Whoever drives a motor vehicle or causes
or allows a motor vehicle to be driven in contravention of the provisions of section
146 shall be punishable with imprisonment which may extend to three months, or with
fine which may extend to one thousand rupees, or with both.
Corresponding Law-
Section 196 corresponds to section 125 of the Motor
Vehicles Act, 1939
Objection and Reasons-
Clause 196 lays down that driving a motor vehicle
and allowing a motor vehicle to be driven without a valid insurance is punishable with
imprisonment or with fine or with both.
197. Taking vehicle without authority.
– (1) Whoever takes and
drives away any motor vehicle without having either the consent of the owner
thereof or other lawful authority shall be punishable with imprisonment which
may extend to three months, or with fine which may extend to five hundred
rupees, or with both :
Provided that no person shall be convicted under this section, if the
Court is satisfied that such person acted in the reasonable belief that he had

214
lawful authority or in the reasonable belief that the owner would in the
circumstances of the case have given his consent if he had been asked
therefor.
(2) Whoever, unlawfully by force or threat of force or by any other
form of intimidation, seizes or exercise control of a motor vehicle, shall be
punishable with imprisonment which may extend to three months, or with fine
which may extend to five hundred rupees, or with both.
(3) Whoever attempts to commit any of the acts referred to in sub-
section (1) or sub-section (2) in relation to any motor vehicle, or abets the
commission of any such act, shall also be deemed to have committed an
offence under sub-section (1) or, as the case may be, sub-section (2).
Corresponding Law.
– Section 197 corresponds to section 126 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 197 provides for a penalty of
imprisonment or fine o r with both for the offence of taking away a motor
vehicle without authority or by force or by other forms of intimidation.
198. Unauthorised interference with vehicle.
- Whoever otherwise
than with lawful authority or reasonable excuse enters or moves any stationary
motor vehicle or tampers with the brake or any part of the mechanism of a
motor vehicle shall be punishable with fine which may extend to one hundred
rupees.
Corresponding Law.
– Section 198 corresponds to section 127 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
- Clause 198 provides for punishment of fine for
tampering with a stationery vehicle.
199. Offences by companies.
– (1) Where an offence under this Act
has been committed by a company, every person who, at the time the offence
was committed, was in charge of, and was responsible to, the company for the
conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the contravention and shall be liable to be proceeded
against and punished accordingly :

215
Provided that nothing in this sub-section shall render any such person
liable to any punishment provided in this Act, if he proves that the
offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an
offence under this Act has been committed by a company, and it is proved that
the offence was committed with the consent or connivance of, or is attributable
to any neglect on the part of any director, manger, secretary or other officer of
the company, such director, manger, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation.
– For the purposes of this section –
(a)
“company”
mans any body corporate and includes a firm or
other association of individuals; and
(b) “director”, in relation to a firm, means a partner in the firm.
Corresponding Law.
– Section 199 corresponds to section 127 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 199 lays down that where the
contravention is committed by a company then the person who was in charge
and was responsible to the company shall be liable for the punishment.
200. Composition of certain offences.
– (1) Any offence whether
committed before or after the commencement of this Act punishable under
section 177, section 178, section 179, section 180, section 181, section 182, sub-
section (1) or sub-section (2) of section 183, section 184, section 186,
8
[section 189,
sub-section (2) of section 190,] section 191, section 192, section 194, section 196,
or section 198, may either before or after the institution of the prosecution, be
compounded by such officers or authorities and for such amount as the State
Government may, by notification in the Official Gazette, specify in this behalf.
(2) Where an offence has been compounded under sub-section (1), the
offender, if in custody, shall be discharged and no further proceedings shall be
8. Substituted for “section 189” by Act 54 of 1994, S. 58 (w.e.f. 14-11-1994).

216
taken against him in respect of such offence.
Corresponding Law.
– Section 200 corresponds to section 127-B of
the Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 200 provides for compounding of certain
offences under this Chapter by officers authorised by the State Government for
such amount as may be specified by the State Government.
201. Penalty for causing obstruction to free flow of traffic.
– (1)
Whoever keeps a disabled vehicle on any public place, in such a manner, so
as to cause impediment to the free flow of traffic, shall be liable for penalty
up to fifty rupees per hour, so long as it remains in that position :
Provided that the vehicle involved in accidents shall be liable for penalty
only from the time of completion of inspection formalities under the law :
9
[Provided further that where the vehicle is removed by a Government
agency, towing charges shall be recovered from the vehicle owner or person
in-charge of such vehicle.]
10
[(2) Penalties or towing charges under this section shall be recovered
by such officer or authority as the State Government may, by notification in
the Official Gazette, authorise.]
Corresponding Law-
This is a new provision in the 1988 Act.
Objects and Reasons-
Clause 201 lays down penalty for keeping a disabled
vehicle on public road causing impediment to the free flow of traffic.
202. Power to arrest without warrant.
– (1) A police officer in
uniform may arrest without warrant any person who in his presence commits
an offence punishable under section 184 or section 185 or section 197 :
9. Inserted by Act 54 of 1994, S. 59 (w.e.f. 14-11-1994).
10. Sub.-S. (2) substituted,
ibid
(w.e.f. 14-11-1994). Prior to its substitution, sub-S. (2) read
as under :-
“(2)The penalties under this section shall be recoverable by the prescribed officers or
authorities.”

217
Provided that any person so arrested in connection with an offence
punishable under section 185 shall, within two hours of his arrest, be
subjected to a medical examination referred to in sections 203 and 204 by a
registered medical practitioner failing which he shall be released from custody.
[(2) A police officer in uniform may arrest without warrant any person, who
11
has committed an offence under this Act, if such person refuses to give his name and
address.’
(3) A police officer arresting without warrant the driver of a motor
vehicle shall if the circumstances so require take or cause to be taken any
steps he may consider proper for the temporary disposal of the vehicle.
Corresponding Law.
– Section 202 corresponds to section 128 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 202 confers upon Police Officers the
power to arrest without warrant persons committing certain serious offences
such as drunken driving, taking vehicle without authority, etc.
203. Breath tests.
–
[(1) A police officer in uniform or an officer of
12
the Motor Vehicle Department as may be authorised in this behalf by that
Department, may require any person driving or attempting to drive a motor
vehicle in a public place to provide one or more specimens of breath for
breath test there or nearby, if such police officer or officer has any reasonable
cause to suspect him to having committed an offence under section 185:
Provided that requirement for breath test shall be made (unless it is
made) as soon as reasonably practicable after the commission of such offence.]
11. Sub-S. (2) substituted by Act 54 of 1994, S. 60 (w.e.f. 14-11-1994). Prior to its
substitution, sub-S. (2) read as under :-
“(2) A police officer in uniform may arrest without warrant :-
(a) any person who being required under the provisions of this Act to give his name and
address refuses to do so, or gives a name or address which the police officer has reason to believe to
be false, or
(b) any person concerned in an offence under this Act or reasonably suspected to
have been so concerned, if the police officer has reason to believe that he will abscond or
otherwise avoid the service of a summons."

218
(2) If a motor vehicle is involved in an accident in a public place and a
police officer in uniform has any reasonable cause to suspect that the
person who was driving the motor vehicle at the time of the accident had
alcohol in his blood or that he was driving under the influence of a drug
referred to in section 185 he may require the person so driving the motor
vehicle, to provide a specimen of his breath for a breath test –
(a) in the case of a person who is at a hospital as an indoor
patient, at the hospital,
(b) in the case of any other person, either at or near the place
where the requirement is made, or, if the police officer thinks fit, at a police
station specified by the police officer :
Provided that a person shall not be required to provide such a specimen
while at a hospital as an indoor patient if the registered medical practitioner in
immediate charge of his case is not first notified of the proposal to make the
requirement or object to the provision of a specimen on the ground that its
provision or the requirement to provide it would be prejudicial to the proper
care or treatment of the patient.
(2) If it appears to a police officer in uniform, in consequence of a
breath test carried out by him on any person under sub-section (1) or sub-
section (2), that the device by means of which the test has been carried out
indicates the presence of alcohol in the person’s blood, the police officer may
arrest that person without warrant except while that person is at a hospital as
an indoor patient.
12. Sub-S. (1) substituted by S.61,
ibid
(w.e.f. 14-11-1994). Prior its substitution, sub-S. (1)
read as under :-
“(1) A police officer in uniform may require any person driving or attempting to drive a motor
vehicle in a public place to provide one or more specimen of breath for breath test there or nearby, if
the police officer has any reasonable cause to suspect him of having committed an offence punishable
under section 185.
Provided that no requirement for breath test shall be made unless it is made as soon
as reasonably practicable after the commission of such offence.”

219
(3) If a person, required by a police officer under sub-section (1) or
sub-section (2) to provide a specimen of breath for a breath test, refuses or
fails to do so and the police officer has reasonable cause to suspect him of
having alcohol in his blood, the police officer may arrest him without warrant
except while he is at a hospital as an indoor patient.
(4) A person arrested under this section shall while at a police
station, be given an opportunity to provide a specimen of breath for a breath
test there.
(5) The results of a breath test made in pursuance of the provisions
of this section shall be admissible in evidence.
Explanation.
-
For the purposes of this section “breath test”, means a
test for the purpose of obtaining an indication of the presence of alcohol in a
person’s blood carried out, on one or more specimens of breath provided by
that person, by means of a device of a type approved by the Central
Government, by notification in the Official Gazette, for the purpose of such a
test.
Corresponding Law.
– Section 203 corresponds to section 128-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 203 empowers the Police Officers to
require any person driving a motor vehicle in a public place to provide for
breath test and if, it is found that there is presence of alcohol in his blood or
urine, the Police Officer may arrest him without warrant.
204. Laboratory test.
– (1) A person, who has been arrested under
section 203 may, while at a police station, be required by a police officer to
provide to such registered medical practitioner as may be produced by such
police officer, a specimen of his blood for a laboratory test if, -
(a) it appears to the police officer that the device, by means of which
breath test was taken in relation to such person, indicates the presence of
alcohol in the blood of such person, or
(b) such person, when given the opportunity to submit to a breath
test, has refused, omitted or failed to do so :

220
Provided that where the person required to provide such specimen is
a female and the registered medical practitioner produced by such police
officer is a male medical practitioner, the specimen shall be taken only in the
presence of a female, whether a medical practitioner or not.
(2) A person while at a hospital as an indoor patient may be required
by a police officer to provide at the hospital a specimen of his blood for a
laboratory test -
(a) if it appears to the police officer that the device by means of
which test is carried out in relation to the breath of such person indicates the
presence of alcohol in the blood of such person, or
(b) if the person having been required, whether at the hospital or
elsewhere, to provide a specimen of breath for a breath test, has refused,
omitted or failed to do so and a police officer has reasonable cause to suspect
him of having alcohol in his blood :
Provided that a person shall not be required to provide a specimen of
his blood for a laboratory test under this sub-section if the registered medical
practitioner in immediate charge of his case is not first notified of the proposal
to make the requirement or objects to the provision of such specimen on the
ground that its provision or the requirement to provide it would be prejudicial
to the proper care or treatment of the patient.
(4) the results of a laboratory test made in pursuance of this section
shall be admissible in evidence.
Explanation.
- For the purposes of this section, “ laboratory test “ means
the analysis of a specimen of blood made at a laboratory established,
maintained or recognised by the Central Government or a State Government.
Corresponding Law
. - Section 204 corresponds to section 128-b of the
Motor Vehicles Act 1939.
Objects and Reasons
- Clause 204 lays down the procedure for
laboratory test of blood and urine to be followed by Police officers in
suspected cases of drunken driving.

221
205. Presumption of unfitness to drive
- In any proceeding for an
offence punishable under section 185 if it is proved that the accused ,
when requested by a police officer at any time so to do, had refused, omitted
or failed to consent to the taking of or providing a specimen of his breath
for a breath test or a specimen of his blood for a laboratory test, his refusal,
omission or failure may, unless reasonable cause therefor is shown, be
presumed to be a circumstance supporting any evidence given on behalf of the
prosecution or rebutting any evidence given on behalf of the defence, with
respect to his condition at that time.
Corresponding Law
- section 205 corresponds to section 128-C of the
Motor Vehicles Act, 1939.
Objects and Reasons
- Clause 205 lays down that refusal by a driver
to submit himself to breath test or urine test to prove drunkenness without any
reasonable case will amount to presumption by the Prosecution of the driver’s
unfitness to drive.
206. Power of police officer to impound document
- (1) Any
police officer or other person authorised in this behalf by the State
Government may, if he has reason to believe that any identification mark
carried on a motor vehicle or any licence, permit, certificate of registration,
certificate of insurance or other document produced to him by the driver or
person in charge of a motor vehicle is a false document within the meaning
of section 464 of the Indian Penal Code , 1860 (45 of 1860 ) seize the mark or
document and call upon the driver or owner of the vehicle to account for his
possession of or the presence in the vehicle of such mark or document.
(2) Any police officer or other person authorised in this behalf by the
State Government may, if he has reason to believe that the driver of a motor
vehicle who is charged with any offence under this Act may abscond or
otherwise avoid the service of a summons, seize any licence held by such
driver and forward it to the Court taking coznizance of the offence and the
said Court shall on the first appearance of such driver before it, return the

222
licence to him in exchange for the temporary acknowledgement given under
sub-section (3).
(3) A police officer or other person seizing a licnce under sub-section
(2) shall give to the person surrendering the licence a temporary
acknowledgement therefor and such acknowledgement shall authorise the holder
to drive until the licence has been returned to him or until such date as may
be specified by the police officer or other person in the acknowledgement,
whichever is earlier :
Provided that if any Magistrate, police officer or other person authorised
by the State Government in this behalf is, on an application made to him,
satisfied that the licence cannot be, or has not been returned to the holder
thereof before the date specified in the acknowledgement for any reason for
which the holder is not responsible, the Magistrate, police officer or other
person, as the case may be, may extend the period of authorization to drive to
such date as may be specified in the acknowledgement.
Corresponding Law.
- Section 206 corresponds to section 129 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
–
Clause 206 gives powers to police officers to
impound documents in certain cases.
207. Power to detain vehicles used without certificate of
registration permit, etc.
– (1) Any police officer or other person authorised in
this behalf by the State Government may, if he has reason to believe that a
motor vehicle has been or is being used in contravention of the provisions of
section 3 or section 4 or section 39 or without the permit required by sub-
section (1) of section 66 or in contravention of any condition of such permit
relating to the route on which or the area in which or the purpose for which
the vehicle may be used, seize and detain the vehicle, in the prescribed
manner and for this purpose take or cause to be taken any steps he may
consider proper for the temporary safe custody of the vehicle :
Provided that where any such officer or person has reason to believe that
a motor vehicle has been or is being used in contravention of section 3 or

223
section 4 or without the permit required by sub-section (1) of section 66 he
may, instead of seizing the vehicle, seize the certificate of registration of
the vehicle and shall issue an acknowledgement in respect thereof.
(2) Where a motor vehicle has been seized and detained under sub-
section (1), the owner or person in charge of the motor vehicle may apply to
the transport authority or any officer authorised in this behalf by the State
Government together with the relevant documents for the release of the vehicle
and such authority or officer may, after verification of such documents, by
order, release the vehicle subject to such conditions as the authority or officer
may deem fit to impose.
Corresponding Law.
– Section 207 corresponds to section 129-A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 207 empowers a police officer to
impound a motor vehicle if he has reason to believe that the vehicle is being
driven without registration, without a permit, driven by a person who has no
driving licence or plying on unauthorised route and the vehicle may be
released only after satisfying that the vehicle complies with the requirement of
this section.
208. Summary disposal of cases. –
(1) The Court taking cognizance
of any offence (other than an offence which the Central Government may be
rules specify in this behalf) under this Act, -
(i) may, if the offence is an offence punishable with imprisonment
under this Act; and
(ii) shall, in any other case.
State upon the summons to be served on the accused person that he –
(a) may appear by pleader or in person; or
(b) may, by a specified date prior to the hearing of the
charge, plead guilty to the charge and remit to the Court, by money order,
such sum (not exceeding the maximum fine that may be imposed for the
offence) as the Court may specify, and the plea of guilt indicated in the money
order coupon itself.

224
Provided that the Court shall, in the case of any of the offence referred
to in sub-section (2), state upon the summons that the accused person, if
he pleads guilty, shall so plead in the manner specified in clause (b) and shall
forward his driving licence to the Court with his letter containing such plea.
(2) Where the offence dealt with in accordance with sub-section (1) is
an offence specified by the Central Government by rules for the purposes of
this sub-section, the Court shall, if the accused person pleads guilty to the
charge and forward his driving licence to the Court with the letter containing
his plea , make an endorsement of such conviction on his driving licence.
(3) Where an accused person pleads guilty and remits the sum
specified and has complied with the provisions of sub-section (1), or as the
case may be, sub-section (1) and (2), no further proceedings in respect of the
offence shall be taken against him nor shall be liable, notwithstanding anything
to the contrary contained in this Act, to be disqualified for holding or
obtaining a licence by reasons of his having pleaded guilty.
Corresponding Law.
– Section 208 corresponds to section 130 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 208 provides for summary disposal of
certain cases and the procedure to be followed in such cases.
209. Restriction on conviction
– No person prosecuted for an offence
punishable under section 183 or section 184 shall be convicted unless –
(a) he was warned at the time the offence was committed that the
question of prosecuting him would be taken into consideration, or
(b) within fourteen days from the commission of the offence, a
notice specifying the nature of the offence and the time and place where it is
alleged to have been committed was served on or sent by registered post to
him or the person registered as the owner of the vehicle at the time of the
commission of the offence, or
(c) within twenty-eight days of the commission of the offence, a
summons for the offence was served on him:

225
Provided that nothing, in this section shall apply where the Court
is satisfied that –
(a) the failure to serve the notice or summons referred to in this
sub-section was due to the f act that neither the name and address of the
accused nor the name and address of the registered owner of the vehicle could
with reasonable diligence have been ascertained in time, or
(b) such failure was brought about by the conduct of the accused.
Corresponding Law.
– Section 209 corresponds to section 131 of
the Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 209 places some restrictions on
conviction of persons for certain offences.
210. Courts to send intimation about conviction.
– Every
Court by which any person holding a driving licence is convicted of an
offence under this Act or of an offence in the commission of which a motor
vehicle was used, shall send intimation to -
(a) the licensing authority which issued the driving licence, and
(b) the licensing authority by whom the licence was last renewed,
and every such intimation shall state the name and address of the holder of
the licence, the licence number, the date of issue and renewal of the same, the
nature of the offence, the punishment awarded for the and such other
particulars as may be prescribed.
Corresponding Law.
– Section 210 corresponds to section 131 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 210 requires the Court convicting persons
holding driving licence to send intimation of the punishment awarded with the
name and address of the licence holder, licence No., etc., to the licensing
authority.
CHAPTER XIV
MISCELLANEOUS

226
211. Power to levy fee.
– Any rule which the Central Government
or the State Government is empowered to make under this Act may,
notwithstanding the absence of any express provision to that effect, provide for
the levy of such fees in respect of applications, amendment of documents,
issue of certificates, licences, permits, tests, endorsements, badges, plates,
countersignatures, authorisation, supply of statistics or copies of documents or
orders and for any other purpose or matter involving the rendering of any
service by the officers or authorities under this Act or any rule made
thereunder as may be considered necessary :
Provided that the Government may, if it considers necessary so to do, in
the public interest, by general or special order, exempt any class of persons
from the payment of any such fee either in part or in full.
Corresponding Law.
– Section 211 corresponds to section 132 – A of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 212 empowers the Central Government
and the State Government to levy fees under this Act in respect of application,
certificate, etc.
212. Publication, commencement and laying of rules and
notifications.
– (1) The power to make rules under this Act is subject to the
condition of the rules being made after previous publication.
(2) All rules made under this Act shall be published in the Official
Gazette, and shall unless some later date is appointed, come into force on the
date of such publication.
(3) Every rule made by any State Government shall be laid, as soon
as may be after it is made, before the State Legislature.
(4) Every rule made by the Central Government under this Act, every
scheme made by the Central Government under sub-section (1) of section 75
and sub-section (1) of section 163 and every notification issued by the Central
Government under sub-section (4) of section 41, sub-section (1) of section 58,
sub-section (1) of section 59, the proviso to sub-section (1) of section 112,

227
13
[sub-section (4) of section 163-A] and sub-section (4) of section 213 shall be
laid, as soon as may be after it is made, before each House of Parliament
while it is in session for a total period of thirty days which may be comprised
in one session or in two or more successive sessions, and if, before the expiry
of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule, scheme or
notification or both Houses agree that the rule or scheme should not be made
or the notification should not be issued, the rule, scheme or notification shall
thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule,
scheme or notification.
Corresponding Law.
– Section 212 corresponds to section 133 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 213 provides for pre-publication of rules
which shall come into force from the date such publication and the rules made
by the Central Government and the State Government shall be places on the
table of the Legislature and of the Parliament respectively.
213. Appointment of motor vehicles officers.
– (1) The State
Government may, for the purpose of carrying into effect the provisions of this
Act, establish a Motor Vehicles Department and appoint as officers thereof
such persons as it think fit.
(2) Every such officer shall be deemed to be a public servant within
the meaning of the Indian Penal Code, 1860.
(3) The State Government may make rules to regulate the discharge
by officers of the Motor Vehicles Department of their functions and in
particular and without prejudice to the generality of the foregoing power to
prescribe the uniform to be worn by them, the authorities to which they shall
be subordinate, the duties to be performed by them, the powers (including the
powers exercisable by police officers under this Act) to be exercised by them,
13. Inserted by Act 54 of 1994, S. 62 (w.e.f. 14-11-1994).

228
and the conditions governing the exercise of such powers.
(4) The Central Government may, having regard to the objects of
the Act, by notification in the Official Gazette, prescribe the minimum
qualifications which the said officers or any class thereof shall possess for
being appointed as such.
(5) In addition to the powers that may be conferred on any officer of
the Motor Vehicles Department under sub-section (3), such officer as may be
empowered by the State Government in this behalf shall also have the power to, -
(a) make such examination and inquiry as he thinks fit in order to
ascertain whether the provisions of this Act and the rules made thereunder are
being observed :
(b) with such assistance, it any, as he thinks fit, enter, inspect and
search any premises which is in the occupation of a person who, he has reason
to believe, has committed an offence under this Act or in which a motor
vehicle in respect of which such offence has been committed is kept :
Provided that, -
(i) any such search without a warrant shall be made only by
an officer of the rank of a Gazetted Officer;
(ii) where the offence is punishable with fine only the search
shall not be made after sunset and before sunrise;
(iii)where the search is made without a warrant, the Gazetted
Officer concerned shall record in writing the grounds for not obtaining a
warrant and report to his immediate superior that such search has been made;
(c) examine any person and require the production of any register
or other document maintained in pursuance of this Act, and take on the spot
or otherwise statements of any person which he may consider necessary for
carrying out the purposes of this Act;
(d) seize or take copies or any registers or documents or portions
thereof as he may consider relevant in respect of an offence under this Act
which he has reason to believe has been committed;

229
(e) launch prosecutions in respect of any offence under this Act
and to take a bond for ensuring the attendance of the offender before any
Court ;
(f) exercise such other powers as may be prescribed;
Provided that no person shall be compelled under this sub-section to
answer any question or make any statement tending to incriminate himself.
(6) The provisions of the Code of Criminal Procedure, 1973 (2 of
1974) shall, so far as may be, apply to any search or seizure under this
section as they apply to any search or seizure under the authority of any
warrant issued under section 94 of the Code.
Corresponding Law.
– Section 213 corresponds to section 133-A of
the Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 214 empower the State Government
to establish a Motor Vehicle Department and appoint officers for the purpose
of carrying into effect the provisions of the Act and the powers exercisable by
such officers. It also empowers the Central Government to prescribe
qualification for such officers.
214
Effect of appeal and revision on orders passed by
.
original authority.
– (1) Where an appeal
has been preferred or an application
for revision has been made against any order passed by an original authority
under this Act, the appeal or the application for revision shall not operate as a
stay of the order passed by the original authority and such order shall remain
in force pending the disposal of the appeal or the application for revision, as
the case may be, unless the prescribed appellate authority or revisional
authority otherwise directs.
(2) Notwithstanding anything contained in sub-section (1), if an
application made by a person for the renewal of permit has been rejected by
the original authority and such person has preferred an appeal or made an
application for revision under this Act against such rejection, the appellate
authority or, as the case may be, the revisional authority may by order direct
that the permit shall, notwithstanding the expiration of the term specified

230
therein, continue to be valid until the appeal or application for revision is
disposed of,
(3) No order made by a competent authority under this Act shall be
reversed or altered on appeal or revision on account of any error, omission or
irregularity in the proceedings, unless it appears to the prescribed appellate
authority or revisional authority, as the case may be, that such error, omission
or irregularity has, in fact, occasioned a failure or justice.
Corresponding Law.
- Section 214 corresponds to section 134 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 215 empowers the Appellate Authorities
to grant stay of the orders of the original authorities pending disposal of
appeal or revision petition and in the case of appeal against the orders refusing
the renewal of permit the Appellate Authority may order that the permit may
continue to be valid till the disposal of the appeal.
215. Road Safety Councils and Committees.
– (1) The Central
Government may, by notification in the Official Gazette, constitute for the
country a National Road Safety Council consisting of a Chairman and such
other members as that Government considers necessary and on such terms and
conditions as that Government may determine.
(2) A State Government may, by notification in the Official Gazette,
constitute for the State a State Road Safety Council consisting of a Chairman
and such other members as that Government considers necessary and on such
terms and conditions as that Government may determine.
(3) A State Government may, by notification in the Official Gazette,
constitute District Road Safety Committee for each district in the State consisting
of a Chairman and such other members as that Government considers necessary
and on such terms and conditions as that Government may determine.
(4) The Councils and Committees referred to in this section shall
discharge such functions relating to the road safety programmes as the Central
Government or the State Government, as the case may be, may, having regard
to the objects of the Act, specify.

231
Corresponding Law.
– This is a new provisions in the 1988 Act.
Objects and Reasons.
– Clause 216 seeks to empower the Central
Government to constitute a National Road Safety Council and the State
Government to constitute a State Safety Council for the State and District
Road Safety Committee for the districts consisting of a Chairman and such
other members as that Government consider necessary on such terms and
conditions as that Government may determine.
216. Power to remove difficulties.
– (1) If any difficulty arises in
giving effect to the provisions of this Act, the Central Government may, by
order published in the Official Gazette, make such provisions, not inconsistent
with the provisions of this Act as appear to it to be necessary or expedient for
removing the difficulty :
Provided that no such order shall be made after the expiry of a period
of three years from the date of commencement of this Act.
(2) Every order made under this section shall, as soon as may be
after it is made, be laid before each House of Parliament.
Corresponding Law.
– This is a new provisions in the 1988 Act.
Objects and Reasons.
– Clause 217 confers powers on Central Government to
issue orders to remove difficulties of any that may arises in giving effect to the
provisions of the Act and any such order shall be placed before each House of
Parliament.
217. Repeal and savings.
– (1) The Motor Vehicles Act, 1939 (4 of
1939) and any law corresponding to that Act in force in any State immediately
before the commencement of this Act in that State (hereafter in this section
referred to s the repealed enactments) are hereby repealed.
(2) Notwithstanding the repeal by sub-section (1) of the repealed
enactments. –
(a) any notification, rule, regulation, order or notice issued, or
any appointment or declaration made, or exemption granted or any confiscation
made, or any penalty or fine imposed, any forfeiture, cancellation or any other
thing done or any other action taken under the repealed enactments, and in

232
force immediately before such commencement shall, so far as it is not
inconsistent with the provisions of this Act, be deemed to have been
issued, made, granted done or taken under the corresponding provision of this
Act;
(b) any certificate of fitness or registration or licence or permit
issued or granted under the repealed enactments shall continue to have effect
after such commencement under the same conditions and for the same period
as if this Act had not been passed;
(c) any document referring to any of the repealed enactments or
the provisions thereof, shall be construed as referring to this Act or to the
corresponding provision of this Act;
(d) the assignment of distinguishing marks by the registering
authority and the manner of display on motor vehicles in accordance with the
provision of the repealed enactments shall, after the commencement of this Act,
continue to remain in force until a notification under sub-section (6) of section
41 of this Act is issued;
(e) any scheme made under section 68-C of the Motor Vehicles
Act, 1939 (4 of 1939) or under the corresponding law, if any, in force in any
State and pending immediately before the commencement of this Act shall be
disposed of in accordance with the provisions of section 100 of this Act.
(f) The permits issued under sub-section (1-A) of section 68-F
of the Motor Vehicles Act, 1939 (4 of 1939), or under the corresponding
provisions, if any, in force in any State immediately before the commencement
of this Act shall continue to remain in force until the approved scheme under
Chapter VI of this Act is published.
(3) Any penalty payable under any of the repealed enactments may be
recovered in the manner provided by or under this Act, but without prejudice to any
action already taken for the recovery of such penalty under the repealed enactments.
(4) The mention of particular matters in this section shall not be held
to prejudice or affect the general application of section 6 of the General
Clauses Act, 1987 (10 of 1987) with regard to the effect repeals.

233
Corresponding Law.
– Section 217 corresponds to section 135 of the
Motor Vehicles Act, 1939.
Objects and Reasons.
– Clause 218 contains repeal and saving provisions.
[217-A. Renewal of permits, driving licences and registration
14
granted under the Motor Vehicles Act, 1939.
– Notwithstanding the repeal
by sub-section (1) of section 217 of the enactments referred to in that sub-
section, any certificate of fitness or registration licence or permit issued or
granted under the said enactments may be renewed under this Act.]
Corresponding Law.
– This is a new provisions in the 1988 Act.
14. Inserted by Act 27 of 2000, S. 5 (w.e.f. 11-8-2000).