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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  ame nds  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  th e  country  and  particularly  the  improved  techniques  in  
the  motor  vehicles  management. 
2. Various  Committees,  like,  Nation al  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  Member s  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  sugges tions  and  recommendations  earlier  
made  by  various  bodies  and  institutions  like  Central  Institute  of  Road  Transport 
(CIRT),  Automotive  Research  Association  of  India (ARA I),  and  othe r  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  
T r a n s p o r t   M i n i s t e r s   o f   a l l   S t a t e s   a n d   U n i o n   t e r r i t o r i e s .   S o m e   o f   t h e   m o r e   
important  modifications  so  suggested  related  for  taking  care  of  - 
 
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(a) the  fast  increasing  n u m b e r   o f   b o t h   c o m m e r c i a l   v e h i c l e s   a n d   
personal  vehicles  in  the  country ; 
(b) the  need  for  encouraging  adop tion  of  higher  technology  in  
automotive  sector; 
(c) the  greater  flow  of  passenge r  and  freight  with  the  least  
impediments  so  that  islands  of  isolation  are  not  created  leadin g  to  regional  or  
local  imbalances; 
(d) concern  for  road  safety  standard s,  and  pollution-control  measures,  
standards  for  transportation  of hazardous  and  explosive  materials; 
(e) simplification  of  proc edure  and  policy  liberal ization’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  ma de  certain  suggestions  to   raise  the  limit  of  
compensation  payable  as  a  result  of  mo tor  accidents  in  resp ect  of  death  and  
permanent  disablement  in  the  event  of  th ere  being  no  proof  of  fault  on  the  
part  of  the  person  involve d  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  th e  class  or  type  of  ve hicles  involved  in  the  
accident.  The  above  suggestions  made by  the  Supreme  Court  have  been  
incorporated  in  the  Bill. 
5. The  proposed  legislatio n  has  been  prepared  in   the  light  of  the  
above  background.  Some  of  the  more  important  prov isions  of  the  Bill  provide  
for  the  following  matters,  namely :- 
(a) rationalization  of  certain  definition s  with  additions  of  certain  new  
definitions of  new  types  of  vehicles; 
(b) stricter  procedures  re lating  to  grant  of  dr iving  licences  and  the  
period  of  validity  thereof; 
(c) laying  down  of  stan dards  for  the  components  and  parts  of  motor  
vehicles; 
(d) standards  for  anti-pollution  control  devices; 
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(e) provision  for  issuing  f itness  certificates  of  ve hicles  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  compensati on  in  cases  of  “no  fault  
liability”  and  in  hit and  run  motor  accidents; 
(j) provision  for  payment  of  compensa t i o n   b y   t h e   i n s u r e r   t o   t h e   
extent of  actual  liability  to  the  victims  of  motor  accidents  irrespective  of  the  
class  of  vehicles; 
(k) maintenance  of  State  registers  for  driving  licen ces  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  clause s  explain  the  provisions  of  the  Bill.   
Amendment  Act  54  of  1994 -  Stat ement  of  Objects  and  Reasons. -   The  
Motor  Vehicles  Act, 1988 ( 59 of 1988)   consolidated  and  rationalised  various  
laws  regulating  road  transport.  The  Act  came  into  force  with  effect  from  1 st  
July, 1989  replacing  the  Motor  Vehicles  Act, 1939. 
2. After  the  coming  into  force  of   the  Motor  Vehicles  Act, 1988,  
Government  received  a  numb er  of  representations  an d suggestions  from the state 
govt. transport operators and members of  public  regarding  the  inconvenience  faced  
by  them  because  of  the oper ation  of  some  of  the  provi sions  of   the  1988  Act.  
A  Review  Committee  was,  th erefore,  constituted  by  th e  Government  in  March, 
1990  to  examine  and  review  the  1988  Act. 
3. The  recommendations  of  the  Revi ew  Committee  were  forwarded  to  
the  State  Governments  for  comments  and  they  generally  ag ree  with  these  
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recommendations.  The  Government  also  considered  a  large  number  of  
representations  received,  af ter  finalisation  of  the  Report  of  the  Review  
Committee,  from  the  transport  operators  and  public  for  making  amendments  in  
t h e   A c t .   T h e   d r a f t   o f   t h e   p r o p o s a l s   based  on  the  recommendation  of  the  
Review  Committee  and  representations  from  the  public  were  placed  before  the  
Transport  Development  Counci l  for  seeking  their  view s  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  compensati on  to  victims  of  road  
accidents  without  going  into  longdrawn  procedure; 
(c) Protecting  consumers’  interest  in  Transport  Sector; 
(d) Concern  for  road  safety  stan dards,  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  vehicl es  running  on  non-polluting  
fuels; 
(e) ceilings  on  indivi duals  or  company  holdings  removed  to  
curb “benami”  holdings; 
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(f) states  authorised  to  appoint  o n e   o r   m o r e  S t at e   T r a n s p o r t  
Appellate  Tribunals; 
(g) punitive  checks  on  the  use  of   such  components  that  do  not  
conform  to  the  prescribed  standards  by  manufactures,  and  al so  stocking / sale  
by  the  traders; 
(h) increase  in  the  amo unt  of  compensation  of  the  victims  of  
hit  and  run  cases; 
(i) removal  of  time  limit  for  fi lling  of  application  by  road  
accident  victims  for  compensation; 
(j) punishment  in  case  of  cert ain  offences  is  made  stringent; 
(k) a  new  pre-determined  formula  for  payment  of  compensation  
to  road  accident  victims  on   the  basis  of  age / income,  which  is  more  liberal  
and  rational. 
5. The  Law  Commission  in  its  119 th  Report  had  recommended  that  
every  application  for a  claim  be  made  to  the  Claims  Tribunal having  jurisdiction  
over  the  area  in  which  th e  accident  occurred  or  to th e  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  claima nt.  The  bill  also  ma kes  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  an d  rationalised  various  laws  regulating  
road  transport.  The  said  Act  was  amended  in  1994. 
2. Further  amendments  in  the  afor esaid  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.  Howeve r,  the  alteration  of  
vehicles  with  a  view  to  facilitating  the  use  of  eco-friendly  fuel  including  
Liquefied  Petroleum  Gas  (LPG)  is  being  pe rmitted.  Further,  it  is  proposed  to  
confer  powers  on  the  Cent ral  Government  to  allow  the  alteration  of  vehicles  
for  certain  specified  purposes. 
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3. At  present,  the  educational  institu tions  are  not  required  to  obtain  
permits  for  the  operation  of   buses  owned  by  them.  It   is  proposed  to  bring  
the  buses  run  by  thes e  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  legi slation through which  the  
road transport is regulated in  the  countr y.  By the Motor Vehicles  (Amendment ) 
Act, 1994,  inter  alia,   amendments were made for ma ke 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  th at  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  wh ich  in  terms  of  sections  
66  and  67,  as  amended  by  the  Moto r  Vehicles  ( Amendment) Act, 1994,  are  
operating  without  any  requireme nt  of  permits  and  are,  therefore,  not  subject  to  
any  control  of  the  State  Go vernments.  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  St ates  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  prov ision  of  this  Ac t,  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”  m eans  the  certificate  issued by  a  
competent  authority  to  the  e ffect  that  a  motor  vehicle  has  been  duly  registered  
in  accordance  with  the  provisions  of  Chapter IV; 
Corresponding  Law.  –  Section 2(4)  corresponds  to   s e c t i o n  2 ( 2 )   o f   t h e  
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  passeng ers,  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  th e  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  menti oned  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  pi ck  up  or  set  do wn  passengers  not  
included  in  the  contract  anywhere  during  the  journey,  and  includes – 
   (i) a  maxicab;  and 
(ii) a  motorcab  notwithstand ing  that  separate  fares  
are  charged  for  its  passengers; 
Corresponding  Law.  –  Section 2(7)  corresponds  to   s e c t i o n  2 ( 3 )   o f   t h e  
Motor  Vehicles  Act, 1939. 
(8) “dealer” includes a pe rson 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-p urchase 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 pe rson 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 in stitution and used solely for the purpose of 
transporting students or staff of the educat ional institution in connection with any of 
its activities; 
Corresponding Law.- This is a new provision in the 1998 Act. 
(12) “fares” includes sums payable fo r 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 livi ng 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; 
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Corresponding Law.- Section 2 (13) corresponds to  section 2 (7) of the Motor 
Vehicles Act, 1939. 
(14) “goods carriage” means any moto r 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” me ans 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 ve hicle” means any public service 
vehicle or private service ve hicle or educational institution bus or omnibus the gross 
vehicle weight of any of which, or a moto r car the unladen weight of which, exceeds 
12,000 kilograms. 
 Corresponding Law. - Section 2 (17) co rresponds to section 2 (9-A) of the 
Motor Vehicles Act, 1939. 
(18) “invalid carriage” means a mo tor 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 pe rson 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 mo re 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” mean s 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 ve hicle” means any public service 
vehicle or private service vehicle, or educational institution bus other than a motor 
cycle, invalid carriage, light motor vehicle or heavy passenger motor vehicle ; 
 
2. Substituted for “6000” by Act 54 of 1994, S.2.(w.e.f. 14-11-1994). 
3. Inserted, ibid (w.e.f. 14-11-1994).  
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Corresponding Law. - Section 2 (24) corresponds to section 2 (14-A) of the 
Motor Vehicles Act, 1939. 
3.  “motorcab” means any motor vehicle constructed or adapted to carry 
not more than six passengers excluding the driver for hire or reward ; 
Corresponding Law.  - Section 2 (25) corresponds to section 2 (15) of the 
Motor Vehicles Act, 1939. 
(25) “motor car” means any moto r vehicle other th an 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-wh eeled 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 “vehicl e” means any mechanically propelled 
vehicle adapted for use upon roads whether the power of propulsion is transmitted 
thereto from an external or in ternal 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 le ss 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 Pu njab and Haryana High Court in 
United India Insurance Company Ltd. v. Pr itpal Singh (1996-2) 113 Punj. L.R. 49 
held that even though trailer may be drawn by a motor vehicl e if by if self is a motor 
vehicle and both the Tractor & Trailer take n 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 ve hicle 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 wh ose name a motor vehicle stands 
registered and where such person is a mi nor, 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 hyp othecation, 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” mean s a motor vehicle constructed or 
adapted to carry more than six persons exclud ing 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 otherwis e 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, str eet, 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 vehi cle” 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” mean s in respect of the axle of any 
vehicle, the axle weight certified and re gistered 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 co nnected 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 mo tor 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 Corpor ation established under section 
3 of the Road Transport Corporations Act, 1950 ; 
(iii) any municipality or any co rporation or company owned or 
controlled by the Central Gove rnment or one or more Stat e 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 passenger s 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 cont ract carriage constructed or adapted 
and equipped and maintained in accordan ce 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 us ed 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 sign als, 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 me ans 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 weig ht 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 li cence 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 wi th 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 cap acity 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 se ction 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 licen ce 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 cycl e without gear. To drive a motor vehicle 
other than a transp ort 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 owne r 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 fo r 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 doc ument 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 prev ent 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 l earner’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 wi thout 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 beco mes 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 vehi cle and who is not for the time being 
disqualified for holding or obtaining a drivi ng licence may, subject  to the provisions 
of section 7, apply to the licensing authority having jurisdiction in the area – 
(i) in which he ordinarily resi des 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 vehi cle 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 wi th such fee as may be prescribed by 
the Central Government. 
(3) Every application under sub-sect ion  (1) shall be accompanied by a 
medical certificate in such fo rm 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 certifi cate is required fo r 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 l earner’s licence applied for to drive to be a source of 
danger to the public or to the passengers, th e licensing authority shall refuse to issue 
the learner’s licence; 
Provided that a learner’s licence limite d to driving an invalid carriage may be 
issued to the applicant, if the licensing author ity 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 li cence 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 ma y issue a learner’s licence to drive a 
motor cycle or a light motor vehicle notwit hstanding that it is not the appropriate 
licensing authority, if such au thority is  satisfied that th ere 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 beha lf, 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 th is Act shall, after such co mmencement, 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 l earner’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 obtain ing a driving licence may apply to the 
licensing authority having jurisdiction in the area – 
(i) in which he ordinarily resi des 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 documen ts 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 ap plicant 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 exem pt 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 sa me 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 u nder 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 li cence to drive such class of vehicle 
issued by a competent author ity of any country outside India, subject to the 
condition that the applicant complies with the provisions of sub-section (3) of sec

Excerpt shown. Open the full act in Lexace.

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