Dadra and Nagar Haveli and Daman and Diu · Act 59 of 1988

The Motor Vehicles Act, 1988

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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  1st  

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  119th  Report  had  recommended  that  

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  1st  July, 1989. 



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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; 

 Corresponding Law.- Section 2 (12) corresponds to section 2 (6) of the Motor 

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 2[7500] kilograms ; 

Corresponding Law. - Section 2 (21) corresponds to section 2 (13) of the 

Motor Vehicles Act, 1939. 
3[(21-A) “manufacturer” means a person who is engaged in the 

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). 



12 

 

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 ; 

Corresponding Law. - Section 2 (33) corresponds to section 2 (22) of the 

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. 
5[(39) “semi-trailer” means a vehicle not mechanically propelled ( other 

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 ;] 

Corresponding Law.- This is a new provision in the 1988 Act. 

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;”. 

 



15 

 

(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). 



16 

 

(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. 



17 

 

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 7[ a motorcab or motor cycle]  hired  for  his  own  use  or  rented under 

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 8[a motor cycle with engine capacity not exceeding 50 cc] may 

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). 



18 

 

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. 

10[ Provided that no such medical certificate is required for licence to drive a 

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. 
12[(5) Where the applicant does not pass the test, he may be permitted to re-

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 ; 
13[(e) transport vehicle ;] 
 
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 [*] 
15 [Provided that in the case of licence to drive a transport vehicle carrying 

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 ; 
18 [ (ii)  if the person referred to in sub-clause (i), has 

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 require. 

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 19 [printed copy or copy in such other form as the Central Government may require], 

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 28[from the registered owner] owing to the default of the registered owner 

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 29[under section 47, or removal of the vehicle to another State, 

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 30[ by registered post acknowledgement due] to the financier that 

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.  

32[52.  Alteration 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 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; 
42[(ca) Government to formulate routes for playing stage carriages; and ] 

(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] 
46[(iv) any other class or category of persons, as the State Government 

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. 



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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;  



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(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  



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(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; 



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(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 :- 



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(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 ; 



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(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: 



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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, from time to time, prescribe; 

(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.  



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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 50[ Regional Transport Authority, State Transport Authority 

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 



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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. 

(3) A 52[Regional Transport Authority, State Transport Authority or any 

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. 



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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: 



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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. 



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(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 ; 



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(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 



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(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 



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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  



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(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 : 



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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. 



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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. 



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 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 



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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 

meters ; 

(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. 



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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. 



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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. 



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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. 



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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. 



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(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. 



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(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. 



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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   

63. Inserted  by  Act 54  of  1994, S. 31 (w.e.f. 14-11-1994). 

following  matters,  namely :- 

(a) the  width,  height,  length  and  overhand  of  vehicles  and  of  the  

loads  carried; 
64[(b) the  Size,  nature, 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; 
65[(n) installation  of  catalytic  convertors  in  the  class  of  vehicles  to  be  

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  66[ and  fees  to  be  charged  for  such  test ;] 

(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  
68[transport  vehicles]  by  the  State  or  Regional  Transport  Authorities  and  may  

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  70[the  First  

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  72[the  First  Schedule],  or  any  traffic  sign  of  similar  form  

(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  74[public  place],  or  its  physical  appearance  is  causing  the  

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. 

 77[(2)  The  conductor,  if  any,  of  a  motor  vehicle  on  any  public  place  

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”. 



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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  84[after  

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 
MMOOTTOORR  VVEEHHIICCLLEESS  TTEEMMPPOORRAARRIILLYY  LLEEAAVVIINNGG  OORR    VVIISSIITTIINNGG  IINNDDIIAA  

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  
85[fifty  thousand  rupees]  and  the  amount  of  compensation  payable  under  that  

sub-section  in  respect  of  the  permanent  disablement  of  any  person  shall  be  a  

fixed  sum  of  86[twenty – five  thousand  rupees]. 

 (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”; 



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(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   



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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. 
93[(6) As  soon  as  any  information  regarding  any  accident  involving  death  

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. 



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(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  94[twenty-five  thousand  rupees]; 

(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. 
96[163 – A.  Special  provisions  as  to  payment  of  compensation  on  

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. 
97[163-B.  Option  to  file  claim  in  certain  cases. – 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; 



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  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  98[and  section 163-A]. 



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  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. 
1[(2)  Every  application   under   sub - section  (1)  shall  be  made,  at  the  

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[***] 
3[(4)  The  Claims  Tribunal  shall  treat  any  report  of  accidents  forwarded   

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. 



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 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 
OFFENCES,  PENALTIES  AND  PROCEDURE 

 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. 

 4[182-A. Punishment  for  offences  relating  to  construction  and  

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  



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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. 
6[192.  Using  vehicle  without  registration. – (1)  Whoever  drives  a  

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. 

 11[(2) A police officer in uniform may arrest without warrant any  person, who  

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. – 12[(1)  A  police  officer  in  uniform  or  an  officer  of  

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. 
14[217-A.  Renewal  of  permits,  driving  licences  and  registration  

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). 


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Jurisdiction
Dadra and Nagar Haveli and Daman and Diu
Enactment date
1988-11-14
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