Module 2

Need and evolution of CP laws; who is a consumer and case laws; commissions under the act
state, district, national (councils not required) only CP courts; specific causes of action under
CPA defective goods and case laws; deficiency in services and case laws (biggest thing aan
polum) multiple sectors airline, medical services, educational lawyer services; unfair trade
practice; product liability; intermediary liability; pricing of goods and services, sale of
hazardous goods (short answer qs); central CP authority, its powers authority, mediation
(short answer); offenses and penalties (4 or 5 provisions)

Introduction

The growth in independence of world economy and international character of business

practices has contributed to universal pressure on consumer rights, protection, and promotion
and consumer awareness. It is one among the important legislation in history of socio-
economic legislations. This comprehensive piece is enacted for protection of consumers and
to safeguard their interests.

The intention of the act is to provide for simple, speedy and inexpensive redressal for
consumers grievances and relief in specific nature and awarding compensation for
appropriate consumer. The act was mended to extend and cover its scope therefore judiciary
too plays an important character in enhancing the powers of redressal machinery for
protection of rights of consumers.

In this era, consumer protection is one of the greatest concerns of the world. The globalisation
is defined as converting national market into international one. The consumers should be
provided with best quality products and services. The consumer protection act is developed as
recognition of rights of the consumer protected against abuse and exploitation by service
providers. The idea of consumer protection exists in every judicial and social mechanism
whether modern or primitive. In India there is rapid increase of consumer services, goods and
distribution.

Industrial revolution has brought a big change in the human life. Regarding the products used
by them daily in the society of Laissez Faire, State used to intervene in lives of citizens
rarely. There were no good laws to exercise the rights of seller and buyer. There was the
principle of “Caveat Emptor” that is let the buyer beware was the rule in those days. The
consumers were exploited and abused by traders for making of profit at every point. In 1985
a resolution was passed by UN General Assembly focussing on need for educating the
consumers. It laid various guidelines for betterment of consumers. Such guidelines were
stimulating legislation framework for all the countries.

In India, it is the Consumer Protection Act of 1986. The result of the enactment could be
traced by identification of consumer rights, giving cost effective and speedy redressal. The
basic aim of the act is to protect interests of consumers. To help address the new set of
challenges faced by consumers in the digital age, the Indian Parliament passed the landmark
Consumer Protection Act, 2019 which aims to provide timely and effective administration
and settlement of consumer disputes.

In India we have consumer protection in various administrative activity of local authorities.

Along with growth and strengthening of the movement, special laws in this area began in
1980s.it was followed by enactment of an act known as Consumer Protection Act, 1986.it
comprises a wide area of legislation with specified boundaries and parameters. The enactment
includes no. of legislations dealing with consumer protection.

Constitutional law: In it no explicit law is given but many provisions are given which directs
the provisions towards consumers’ interests. Generally, they are DPSP. Under sub clause (g)
of article 19 freedom of profession, trade etc is ensured by state and a citizen cannot be
prevented. But anyhow under article 19(2) no such right could be enforced in case where
business is illegal or dangerous. Regarding licence and permits to carry a business, granting
licence cannot depend on absolute discretion of administration and policies have to be laid to
discretion and have to be exercised judicially.

In Dr. Shivarao Shantaram Wagle and Others v. Union of India and Others, the Supreme
Court followed the same principle when it was invited to issue direction to the government to
forbear from releasing Irish butter for human consumption, which had been imported into
India under the EEC Grant-in-Aid for Operation Food Programme, on the ground of
contamination by Chernobyl nuclear fallout. In the matter the Supreme Court appointed a
Committee of Experts to give its opinion on the question whether milk and dairy products
and other food products containing man-made radio nucleus within permissible levels fixed
by Atomic Energy Regulatory Board on 27th August, 1987, are safe and/or, harmless for
human consumption". When the Committee found the butter in question to be safe and
harmless for human consumption, the Supreme Court declined to issue the restrictive orders
regarding its release for human consumption.

The Supreme Court followed in case of Vincent v. Union of India directions were imposed
for banning of import export of, manufacture, sale and distributing some drugs which had
been recommend to ban by the Drugs Consultative Committee. Supreme Court held that
having regard to the magnitude, complexity and technical nature of the injury involved in the
matter and keeping in view implications of the total ban on certain medicines it is clearly
indicated that a mere judicial proceeding is not sufficient on determination of such a matter.

The distribution of concepts related to product and service between state and centre are
placed under Concurrent List.

The expression ‘consumer’ in the common sense, means ‘all of us may be called
consumers, when we purchase some movable or immovable property or hire services for
various purposes.’ But in the present socio economic scenario, we find that the consumer is a
victim of many unfair and unethical tactics adopted in the market place. The untrained
consumer is no match for the businessman marketing goods and services on an organized
basis and by trained professionals. He is very often cheated in the quality, quantity and price
of goods and services. The consumer who was once the 'King of the market' has become the
victim of it. He is not supplied adequate information so as to the characteristics and
performance of many consumer goods and suffer due to unfairness of many one sided
standard forms of contracts. The modern economic, industrial and social development have
made the notion of 'freedom of contract' largely a matter of fiction and an empty slogan so far
as many consumers are concerned.

The caveat emptor- 'let the buyer beware' doctrine of the law concerning the sale of goods,
assumed that the consumer was responsible for protecting himself and would do so by
applying his intelligence and experience in negotiating the terms of any purchase. That
principle may have been appropriate for transactions conducted in village markets. In early
times, the consumer may have been able to protect himself since the products were less
sophisticated and could be inspected before purchase. But now the conditions have changed.
Many modern goods are technological mysteries. The consumer knows little or nothing about
these highly sophisticated goods. In real life, products are complex and of great variety and
consumers and retailers have imperfect knowledge. The principle of caveat emptor, thus, has
ceased to be appropriate as a general rule. The consumers need protection by law when goods
fail to live up to their promises or indeed cause injury.

With globalisation and development in the international trade and commerce, there has been
substantial increase of business and trade, which resulted in a variety of consumer goods and
services to cater to the needs of the consumers. In recent years, there has been a greater
public concern over consumer protection issues all over the world. Taking into account the
interest and needs of consumers in all countries, particularly those in developing countries,
the consumer protection measures should essentially be concerned with- (i) the protection
from hazards to health and safety; (ii) the promotion and protection of economic interests;
(iii) access to adequate information; (iv) control on misleading advertisements and deceptive
representation; (v) consumer education; (vi) effective consumer redress. The consumer
deserves to get what he pays for in real quantity and true quality.

History of the Act

The origin of consumerism could be traced from Ecclesiastes 5: 11 of the Old Testament in
which it was said, "when Possessions increase, so does the number of consumers, therefore
what good are they to their owners, except to look at them?". Then, the first consumer's
organisations were born in Denmark in 1947 and in Great Britain in 1955, where the
government created the "Consumer Council" in order to enable consumers to express
themselves on issues reserved to producers and traders. But actual "consumerism" started in
the US, where people like Ralph Nader led the movement for consumer rights. Fifty-eight
years ago, on 15 March 1962 (the day on which we celebrate World Consumer's Day), the
then US President John F. Kennedy presented a speech to the US Congress in which he said
that, "If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe or
worthless, if the consumer is unable to choose on an informed basis, then his dollar is wasted,
his health and safety may be threatened and national interest suffers." Then he gave four basic
consumer rights, viz., right to safety, right to be informed, right to choose, and right to be
heard. Later, on 16 April 1985, UN General Assembly passed a resolution which is called
"United Nations Guidelines for Consumer Protection". This resolution added four more rights
to John F. Kennedy's four basic consumer rights, viz., right to satisfaction of basic needs,
right to redress, right to consumer education, and right to a healthy environment. On the lines
of the above eight-fold path for consumerism, Indian Parliament enacted Consumer
Protection Act on 24 December 1986. (This day is celebrated as National Consumers Day in
India.) This legislation bestowed six rights to the consumers, vis-a-vis the right to protection
against hazardous goods and services, right to be informed, right to access to variety of
goods, right to be heard, right to get redressal and right to consumer education. To assure
these rights, the law provided for establishment of Consumer Councils and Consumer Forums
at Districts, State and National level. The 1986 Act became obsolete with the changing time.
In 2015, the Consumer Protection Bill was introduced in Lok Sabha. This Bill was examined
by the Standing Committee on Consumer Affairs, which gave its report in 2016. Based on the
committee recommendations the , Consumer Protection Bill, 2018 was introduced in January
2018 to replace the 2015 Consumer Protection Bill. While the 2018 Consumer Protection Bill
was pending for consideration in Parliament, the 16th Lok Sabha was dissolved and the Bill
lapsed. Hence, in the 17th Lok Sabha, the Consumer Protection Bill, 2019 was introduced,
which was passed by the Lok Sabha on 30 July 2019, and by the Rajya Sabha on 6 August
2019. On 9 August, 2019, the President of India gave his assent to the Consumer Protection
Bill, 2019, thereby, making it the Consumer Protection Act, 2019. The provisiops of the
Consumer Protection Act, 2019 came into force on 20 July 2020 and 24 July 2020
respectively, along with the rules and regulations made thereunder.

Need for the consumer protection Act

Industrial revolution and development of international trade and commerce lead to a

substantial increase of business and trade. This resulted in a variety of consumer goods
appearing in the market to cater to the needs of the consumers. The modern methods of
advertising influence the mind of the consumers and a consumer is tempted to purchase the
goods despite the manufacturing defect or imperfection in the quality. There was also a
possibility of deficiency in the services rendered to the consumer. For the welfare of such
consumers, to protect their interest and to prevent their exploitation, Parliament enacted the
Consumer Protection Act, 1986. The Act made provision for the establishment of
Commissions for settlement of the consumer disputes and matters connected therewith. The
Commissions, under the Act, are quasi-judicial bodies and they are supposed to provide
speedy and simple redressal to consumer disputes and for that purpose, they have been
empowered to give relief of a specified nature and in an appropriate way, to award
compensation.

Transition from caveat emptor to caveat venditor

Technological revolution and globalisation have led to a significant increase in the number of
commercial transactions. The purchasing power of the consumers has increased manifold
resulting in a large number of retail purchases. Laws have been enacted to make it mandatory
for manufacturers to display the description of the product on the packaging cover. While the
consumers have the right to inspect the description of the product before making the
purchase, there are instances where the product conforms to its description but turns out to be
of inferior quality and incapable of fulfilling the purpose for which it was purchased.

The issue that arises in such cases is whether the consumer has the right to return the inferior
quality product or whether he is to bear the loss himself. The doctrine of caveat emptor states
that the consumer takes a risk of quality and effectiveness when he purchases a product and if
the product does not meet his expectations, then the consumer will himself be responsible for
the inferior quality product. The consumer is expected to make a reasonable examination of
the product’s quality and condition before making the purchase.

However, with time, the doctrine of caveat emptor was substituted by the doctrine of caveat
venditor. Thus, there was a paradigm shift from ‘let the buyer beware’ to ‘let the seller
beware’. This substitution was necessitated due to the changed circumstances of the modern
world. The principle of caveat emptor is no longer applied by the judges who are now more
inclined towards safeguarding the interests of the consumers.

The doctrine of caveat emptor evolved several decades ago and became a part of the common
law. However, with the growth of trade and commerce, several exceptions to this principle
were recognized by the policymakers. Gradually, the exceptions became more prominent and
significant than the rule itself.

The principle of caveat emptor reflects the view of 19th-century society towards consumers.
At that time, the interests of the businesses were prioritised over the interests of the
consumers. Thus, the law recognized the principle of caveat emptor and imposed a
responsibility on the buyer to examine the products before making the purchase. The
purchaser is thus expected to protect his interests and ensure that the quality and condition of
the product fulfil his needs.

The first known case of caveat emptor is Chandelor v. Lupus (1603). In this case, the seller
bought a stone thinking it was a bezoar stone. The seller bought the stone thinking that it had
magical healing powers. However, the stone turned out to be fake. The seller filed a suit
claiming refund of the amount. However, the Court held that the seller had not undertaken
any implied warrant of the quality of the stone and the buyer was under a duty to examine the
product before purchase. Thus, the seller was under no liability to refund the amount.

The doctrine of caveat emptor is based on the principle that the buyer should examine the
product using his skill and judgment. If the buyer is satisfied with the condition and quality of
the product and believes that the product would aptly fulfil his requirements, then he should
purchase the product. However, once the buyer makes the purchase after examining the
product, he will have no subsequent right to return or reject the product or claim any damages
from the seller. The buyer would be responsible for his negligence.

The doctrine of caveat emptor has also been incorporated under Indian law through the Sale
of Goods Act, 1930. Section 16 of the Act states that when a product is sold under a contract
of sale, the law would not presume that the seller sold it under an implied warranty of fitness
and quality. It is the consumer who has to examine the quality of the product and satisfy
himself that the product is fit to meet his expectations and serve the purpose for which it is
purchased.

So long as the seller does not commit any fraud and does not provide any express warranty
for the product’s condition or fitness, the buyer will have no remedy against the seller for any
defect in the product.

The doctrine of caveat emptor is based on the principle that consumers should fully examine
the products before making the purchase. They should be satisfied that the product will meet
their expectations. They will have no recourse against the seller if the products fail to stand
up to their desires. The doctrine of caveat emptor is essential to balance the information
asymmetry that exists between the buyer and the seller.

The analogy behind the formulation of this doctrine is that consumers should be aware of
their rights and should carry out reasonable examinations before purchasing any product.
This principle thus puts the onus on the consumers to protect their rights. Consumers are
expected to analyse and examine a product using their independent judgement and skill.

McKenzie v. Nagendra Nath (1919)

In McKenzie and Co. v. Nagendra Nath (1919), the defendants were car dealers who came to
know that the plaintiff was thinking of purchasing a car. The defendants approached the
plaintiff and represented to him that the Plymouth cars were of excellent quality and
convinced him to buy one of the Plymouth cars. However, subsequently, a defect was
discovered in the car. The plaintiff was asked to pay for the repair of the car.

The plaintiff filed a suit claiming damages for the defective car. The defendants pleaded that
the defect in the car could not be attributed to any fault in the manufacturing process. The
defect was due to the mishandling of the car by the defendant.

Applying Section 16(2), the Calcutta High Court observed that the present case involved a
seller who dealt with cars of a particular description and thus, there was an implied warranty
that the product must be of a merchantable quality. On the issue that the defect in the engine
was discovered after using the car for some time, the Court observed that where Section 16(2)
applies, any latent defect discovered subsequently would be deemed to have existed ab initio.
The only pre-requisite is that the defect should be of such a nature that, if discovered at the
time of the purchase of the product, would have made the product non-merchantable.

The Court observed that Plymouth cars do not usually develop the defects that were
discovered in the plaintiff’s car. Thus, the defect in the plaintiff’s car was due to faulty
manufacturing. Thus, the plaintiff was held entitled to claim damages due to the breach of the
implied warranty.

While originally the courts applied the doctrine of caveat emptor in a strict sense, it
was later accepted that the absolute application of this principle would be detrimental to trade
and commerce. A very high burden was being imposed on the buyer by requiring him to
properly examine the product before making the purchase in all cases.

In many cases, the buyers did not have the requisite skill or information to make a proper
examination. But the buyer nonetheless did not have any remedy against the seller in case any
latent defect in the product was discovered after making the purchase.

Moreover, the buyers often rely on the skill and judgement of the seller while making the
purchase. However, the doctrine of caveat emptor did not provide any remedy to the buyers
even where they made the purchase in good faith.

Due to these reasons, it was felt that the principle of caveat emptor should be diluted to a
certain extent so that the relationship between the buyer and seller could be made
harmonious. A relationship of trust also incentivizes and encourages commercial
transactions.
The doctrine of caveat emptor leads to defective goods as it imposes an impediment in the
course of recovering damages for injury or loss caused by defective goods.

With the passage of time, the exception to the doctrine of caveat emptor became more
relevant and more valuable than the doctrine itself. This led to the evolution of the principle
of caveat venditor which finds its genesis in the exception to caveat emptor. The principle of
caveat venditor ensures that the seller can be held liable for any malpractice committed by
him.

The principle of caveat venditor requires the seller to be cautious and imposes a liability on
the seller for all the hardships borne by the buyer due to the defective or faulty product.

The doctrine of caveat emptor has lost its relevance in the modern technological age. In
today’s age, there is stiff and neck-to-neck competition between large corporations to satisfy
consumers. One of the mechanisms employed by these corporations to please the consumers
is to sell the products with express conditions and warranties. Thus, the contract of sale itself
states that the consumers would be entitled to a replacement or refund if the product turns out
to be defective.

The doctrine of caveat emptor has also lost its relevance due to the enactment of
the Consumer Protection Act, 2019. The Consumer Protection Act clearly embraces the
doctrine of caveat venditor. Section 84 of the Consumer Protection imposes a liability on the
manufacturer for any defect in the manufacturing of the product or for any deviation from the
prescribed manufacturing standards. Moreover, if the product fails to meet the standards laid
down by the express warranty or the product does not contain proper instructions relating to
its usage, then the manufacturer would be held liable for any loss or injury suffered by the
buyer.

In Smt.Rekha Sahu vs The Uco Bank (2013), the petitioner had purchased a plot through an
auction. However, later he found that there were certain encumbrances (electricity dues)
attached to the plot and filed a suit before the Court seeking a direction to the respondent
auctioneers to free the property from the encumbrances. The petitioner pleaded that as per the
sale certificate, the property was supposed to be free from all encumbrances. The auctioneers
relied on the doctrine of caveat emptor and pleaded that the petitioner should have made a
proper enquiry before purchasing the plot. However, the Allahabad High Court held that the
Indian jurisdprudence has witnessed a shift from the doctrine of caveat emptor to the doctrine
of caveat venditor. Thus, the auctioneers were liable to pay the electricity dues.
Who is a consumer?

1. Future goods not included

Buying shares
Suppose an individual buys shares of a company with the expectation of future profits. Here,
the individual is a prospective investor, not a consumer. If the company’s share prices drop,
causing a loss to the investor, they cannot approach a consumer court under the Consumer
Protection Act, as the purchase was made for profit (commercial gain) rather than for
personal consumption.

Purchasing real estate as an investment

An individual purchases a plot of land with the intention of selling it at a higher price in the
future. If there is any delay in possession or issues with land documents, this individual
cannot seek relief under the Consumer Protection Act, as their purchase was for investment
(commercial) purposes, not personal use. However, if the same land was purchased with the
intention of building a personal home, they would likely be considered a consumer under the
Act.

Buying gold for investment purposes

If a person buys gold bars purely as an investment, hoping their value will increase over time,
they are not considered a consumer. Should they face issues like receiving substandard gold
quality, they cannot approach the consumer court, as the purchase was intended for capital
gain rather than personal consumption. However, if the same person buys gold jewelry for
personal wear, they would be covered under the Act.

Hotel book for business use

If a person books a hotel room to conduct a business meeting or stay during a work trip, the
purpose is deemed commercial, even if the individual stays there personally. Should issues
arise, such as substandard facilities or service, they cannot claim protection as a consumer
because the room was booked for business purposes, not personal leisure.
 2. Beneficiary
a) Spring Meadows Hospital v. Harjol Ahluwalia

Where a young child was taken to a private hospital by parents and treated by the doctor, it
was held that not only the child but his parents were also consumers. Hence, when the chid
suffered damage due to negligence of the hospital, doctor and nurse, it was held that both the
child and the parents could claim compensation under the Act.

b) A booked a "watch" from "Yaamazon", with an intention of gifting it to his friend B.

A paid the amount for the watch and the address of B was given for "delivery of
goods". Instead of "watch", "Yaamazon" delivered a "bracelet" to B. Here, as the act
of "Yaamazom" amounts to "deficiency in service", either A or B can file a consumer
complaint against "Yaamazon" because, here A by paying the amount availed the
service of "Yaamazon", and B, by agreeing to use the "watch" with the consent of A,
became a beneficiary of such service.
c) M purchased a "T-shirt" from Z, a cloth shop, by paying the required consideration
and took a purchase bill for the same. C, M's friend, comes to M's house and uses the
"T-shirt" by wearing it for a party without the consent of M. C later finds that "T-shirt"
purchased by M is torn from the beginning and wants to file a consumer complaint
against Z. Here, C is not a consumer, as he has not used the "T-shirt" of M with M's
permission.
3. Commercial purpose

Purchaser of a taxi car is not a consumer. Purchaser of a motor lorry for commercial purpose
is not a consumer.

a) Vasundhra and Blue star v. BK Goyal: Delivery of a water cooler for installation at a
bus stand for free public service to be a consumer sale.
b) Contractor is not a consumer but the other party for whom the contractor works for is
a consumer.
c) Trees purchased not self-consumption but for commercial purpose is not a consumer.
 Motor Vehicles Act

Evolution and need for this legislation; licensing and rules surrounding the driver's licensing;
registration of vehicles and its rules; insurance especially third-party insurance and its
incidental rules (145 to 152); liability under MVA (fault and no-fault); prohibited acts under
the MVA (110-134); offences and penalties under the MVA (177-203)

Evolution and need for this legislation

The Motor Vehicle Act of 1988 regulates all the essential components of road transport
vehicles. It took effect on July 1, 1989, covering various laws relating to traffic laws, vehicle
insurance, motor vehicle registration, controlling permits, and penalties. The Act of 2019
dealt with the issuance of licences and permits related to motor vehicles, established
standards for motor vehicles, and imposed penalties for violations of these provisions.

The Motor Vehicle Act comes within the ambit of the law of torts. The law of torts is based
on the Latin maxim ubi jus, ibi-remedium, i.e., where there is a right, there is a remedy. This
maxim brings into play the concepts of damage and compensation. At this point, the idea of
compensating and giving damages comes into action. The Motor Vehicle Act, 1988, is
considered a law of welfare aiming to provide relief to those injured in an accident. While
the Motor Vehicle Act of 1939 initially consolidated all motor vehicle legislations, it required
frequent amendments to stay updated. With the progression of advancements in road
transport technology, the expansion of the road network, and changes in passenger transport
patterns, a comprehensive revision of the Act became necessary to address new developments
related to motor vehicles and its rules and regulations.

The main objective of the Act of 1988 is to provide relief to innocent road users who often,
through no fault of their own, become victims of accidents and struggle to receive the
compensation they deserve. Under this Act, beyond the laws relating to licensing and
registration, various other aspects of road transport vehicles are also covered.

Motor insurance is one of the most important mandatory laws. The motor vehicle should at
least have third-party insurance in order to register and drive a vehicle on Indian roads.
The Act of 2019 introduces stricter penalties for driving a vehicle without a licence, including
a fine of Rupees Two Thousand, three months of imprisonment, and community service for
first-time offenders, and a fine of Rupees Four Thousand for repeated offenders.
Objectives of the Act of 1988:

- Implementing strict procedures for issuing licences and determining their validity
period;
- Ensuring road safety by regulating the transportation of hazardous and explosive
materials and enforcing pollution control measures;
- Manage the rapid increase in the number of personal and commercial vehicles in the
country;
- Increase the amount of compensation available to the victims of hit-and-run accidents;
- Remove the time limit for traffic accident victims to file compensation claims.

The Motor Vehicles Act, 1988 is a comprehensive enactment in respect to various matters
relating to traffic safety on the roads and minimization of road accidents. The Act came into
force from 1 July 1989. It replaced Motor Vehicles Act, 1939, which earlier replaced the first
such enactment Motor Vehicles Act,1914.

The Act provides in detail the legislative provisions regarding licensing of drivers/
conductors, registration of motor vehicles, control of motor vehicles through permits, special
provisions relating to State transport undertakings, traffic regulations, insurance, liability,
offences and penalties etc.

There are various rights created for claiming compensation in case of any death or bodily
injury caused in an accident arising out of the use of motor vehicles.

By the Motor Vehicles (Amendment) Act, 1994, inter alia, amendments were made for make
special provisions under sections 66 & 67, provided 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.

Over the years, judiciary has not only been called upon time to time to interpret these
statutory provisions and apply them to different facts and situations, but also to lay down
various legal principles for assessing compensation. The Motor Vehicles Act, 1988, does not
provide any guidelines for the identification of the items of loss to be compensated, nor does
it lay down any criteria for the compilation of the quantum of compensation for each item of
loss.
Overview of the Evolution of the MVA

The Motor Vehicles Act in India, initially enacted in 1914 during the British era, has
undergone numerous amendments to adapt to the nation’s changing transportation landscape.
The Act initially aimed to regulate the burgeoning use of motor vehicles on Indian roads,
which was limited to a small population. In 1939, a significant update aimed at structuring
road safety, vehicle registration, and licensing marked the Act’s early efforts to standardize
road usage and enforcement measures. However, as India gained independence and motor
vehicle ownership expanded exponentially, the need for more robust legislation became
evident. This led to the 1988 Motor Vehicles Act, which introduced mandatory insurance,
penalties for traffic violations, and road safety guidelines.

Over the years, the Act has been amended to address the growing complexities of modern
road systems, improve road safety, and promote responsible driving practices. The
amendments in 2019, for example, marked a milestone with stringent penalties for traffic
violations, stricter DUI laws, and an emphasis on digital enforcement through CCTV and
automated surveillance systems. Some of the key changes in the 2019 amendment included:

1. Enhanced Penalties: Heavier fines for violations like drunk driving, speeding, and
seatbelt infractions aimed to instill better road discipline.

2. Protection of Good Samaritans: Individuals helping accident victims were granted

legal protection from procedural hassles.

3. Strict Licensing Process: Increased scrutiny in issuing licenses, aiming to improve

road discipline and reduce reckless driving.

4. Road Safety Measures: Higher fines for violations by minors, mandatory vehicle
recall for defects, and steps toward safer infrastructure.

These changes were not only aimed at regulating motor vehicle usage but also intended to
support a more responsible driving culture.

The Need for the MVA

India, with its vast road network and high vehicle density, faces significant challenges in road
safety and traffic management. The high rate of road accidents—among the highest in the
world—demands stringent enforcement to ensure safe transportation. The Motor Vehicles Act
serves several critical needs:

1. Regulation and Standardization: The Act creates a uniform framework for

licensing, vehicle registration, and inspection. This helps streamline processes and
ensure that vehicles on the road meet minimum safety and emissions standards.
2. Road Safety: With penalties in place, the Act is a deterrent against reckless driving,
driving under the influence, and other offenses that endanger lives. The provisions
encourage better behavior on the roads and address various accident-causing factors.
3. Environmental Concerns: Emission norms have been introduced and tightened
through the Act, crucial in combating urban pollution.
4. Liability and Compensation: The Act outlines the responsibilities of drivers and
vehicle owners, making insurance compulsory and establishing compensation
mechanisms for victims in cases of accidents.
5. Public Transport and Ridesharing: With increasing use of public transport and
shared mobility options, the Act establishes guidelines for the operations of taxis,
buses, and rideshare vehicles, ensuring safe and regulated usage.

Relevance of the MVA today

In the context of 21st-century challenges, the Motor Vehicles Act remains relevant but
requires continuous updates to adapt to the latest developments. Rapid urbanization, an
increase in private vehicle ownership, and the emergence of electric vehicles and smart
transportation systems necessitate new provisions. Digital tools, like automated traffic
management systems, can enhance the Act's effectiveness in enforcing regulations. Here are
some ways in which the Act holds contemporary significance:

1. Adaptation to Technological Advancements: Automated vehicles and electric

vehicle regulations are emerging domains that require policy inclusion. The Act’s
adaptation to these technologies can help regulate new transport modes while
ensuring safety and compliance.
2. Enhanced Road Safety: With a growing number of vehicles and a high road accident
rate, India’s road safety requires sustained, stringent enforcement.
3. Public Health: Rising pollution levels in cities increase the importance of emission
standards, encouraging the transition to green vehicles through regulatory oversight.
 4. Promotion of Shared Mobility: The rise of ride-sharing and micro-mobility services
requires updated regulations to ensure these platforms operate within a safe and
structured framework.

Way forward for the MVA

To align with modern transportation trends and effectively address road safety challenges, the
Motor Vehicles Act can evolve in the following ways:

1. Integration of Technological Innovations: With advancements in AI and IoT,

integrating these technologies into traffic enforcement can enhance road monitoring.
Automatic number plate recognition (ANPR), speed cameras, and data-driven
analytics can improve enforcement and deter violations.

2. Regulation for Autonomous and Electric Vehicles: As autonomous vehicles (AVs)

and electric vehicles (EVs) become more prevalent, the Act should provide specific
guidelines for manufacturing, safety standards, and on-road behavior for these
vehicles.

3. Data-Driven Policy Making: Using data analytics to monitor and evaluate accident-
prone areas, peak traffic hours, and violation trends can support more efficient and
targeted policy interventions.

4. Improved Licensing Procedures: Incorporating rigorous practical tests and

mandatory driving education programs could reduce unskilled drivers, thus lowering
accident rates.

5. Focus on Public Awareness and Behavioral Change: While enforcement is critical,

awareness programs and campaigns for behavioral change are equally essential.
Public outreach can encourage a culture of safe and responsible driving.

6. Promotion of Eco-Friendly Transport: Encouraging a shift to cleaner, more

sustainable forms of transport by providing incentives for EV purchases and
establishing standards for fuel emissions can reduce urban pollution and promote
sustainable practices.

The Motor Vehicles Act continues to be foundational for India’s road transport regulations,
ensuring safety, legal clarity, and environmental responsibility. Through periodic updates and
the incorporation of digital and policy-driven innovations, the Act can address future
challenges in India's transportation ecosystem.

Licensing and rules surrounding the driver's licensing

It is mandatory under the Motor Vehicles Act to have a valid driving license and it should be
registered under the Act. Under the Act, the civil proceedings happen in the Claims Tribunal
and criminal proceedings in Magistrate. The changes in road transport technology, the pattern
of passengers, developments in the road network in the country are all taken into
consideration by this Act.

A driving license in India is an essential document for car/bike owners and drivers. It is a
legal document that permits one to drive a specified vehicle. Driving any vehicle without a
license can land you in the zone of troubles, including monetary compensations and
disqualifications.
It is the most important document which a car driver should own. In case, you are pulled over
by a police officer, the first and foremost thing he will ask is to show your license. Without it,
there is no right to operate a vehicle on public roadways. This is a universally accepted form
of personal identification because it contains contact info and a picture for identification. In
case, the driver met with an accident, the first thing we can do is to find the license to
identify. The name and address will help the people to locate and contact family members to
inform them and the hospital staff can use this information on the driver’s license to begin the
admission process.

Section 2(10) of the MVA defines the term ‘driving license’ which means the license issued
by a competent authority under Chapter II authorizing the person specified therein to drive,
otherwise than as a learner, a motor vehicle or a motor vehicle of any specified class or
description. Section 2(19) defines ‘learner’s license’, means the license issued by a
competent authority under Chapter II authorizing the person specified therein to drive as a
learner, a motor vehicle or a motor vehicle of any specified class or description.

Section 3: Necessity of driving license

This section mandates that:

  Only licensed individuals can drive: No person is permitted to drive any motor
vehicle in a public space unless they hold an effective driving license specifically
authorizing them to drive that vehicle class.

 Special license requirements for transport vehicles: To drive transport vehicles,

excluding motor cabs or motorcycles hired for personal use, a driver must possess a
license that expressly allows them to operate transport vehicles.

 Exemptions for learners: Conditions may be set by the Central Government

allowing persons learning to drive to be exempt from the need for a valid driving
license, as long as they meet prescribed conditions.

From this section begins Chapter II titled ‘Licensing of Drivers of Motor Vehicles’.
Section 3(1) states that no person shall drive a motor vehicle in any public place unless he
holds an effective driving licence issued to him authorizing him to drive the vehicle.
Whereas clause (2) states that the conditions subject to which (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.
So we see that clause (1) provides for the need to have a license to drive a motor vehicle and
gives special authorization to drive a transport vehicle. It is said that what vehicle is specified
in the license, only that vehicle can be driven. The next clause empowers the Central
Government to prescribe conditions subject to which a vehicle may be driven by a person
receiving instructions in driving.

Section 4: Limit in connection with driving motor vehicles

This section specifies minimum age requirements for drivers:

 General minimum age: To drive a motor vehicle, an individual must be at least 18

years old.

 Motorcycles with limited engine capacity: Motorcycles with engines under 50cc can
be driven by individuals aged 16 or older.

 Age for transport vehicles: The minimum age for driving transport vehicles is 20
years.

 License issuance restrictions: Driving or learner’s licenses are only issued to those
eligible by age and vehicle class under this section.
Section 5: Responsibility of owners of motor vehicles

This section places liability on the owners of motor vehicles:

 Owners must ensure compliance: It is the responsibility of the vehicle owner or the
person in charge to prevent anyone who does not meet the requirements of Section 3
(license requirement) or Section 4 (age restriction) from driving their vehicle.

 Legal accountability: If a vehicle owner or the person in charge allows an

unqualified individual to drive, they may be held liable for contravening these
provisions.

Section 6: Restrictions on the Holding of Driving Licenses

This section details limitations on holding multiple licenses:

 No duplicate licenses: A person cannot possess more than one driving license at a
time, except for a learner’s license or a license issued under Section 18 (relating to
licenses for differently-abled individuals).

 Restriction on sharing licenses: A driver cannot allow someone else to use their
driving or learner’s license.

 Addition of vehicle classes: Licensing authorities may expand the classes of vehicles
that an existing license holder is permitted to drive if they meet necessary
requirements.

Section 7: Restrictions on the Granting of Learner's Licenses for Certain Vehicles

This section specifies rules for issuing learner’s licenses:

 Prerequisite experience for transport vehicles: To apply for a learner’s license for a
transport vehicle, an individual must have held a license to drive a light motor vehicle
for at least one year.

 Special conditions for minors: Individuals under 18 need written consent from their
legal guardian to receive a learner’s license for a motorcycle without gears.

Section 8: Grant of Learner’s License

This section outlines the process for obtaining a learner’s license:

  Eligibility criteria: Any individual who meets the age and disqualification
requirements of Section 4 and is not barred from holding a license may apply for a
learner’s license.

 Application requirements: Applicants must apply through the licensing authority in

the jurisdiction of their residence or training institution, paying the required fee and
submitting documents as prescribed by the Central Government.

 Medical and fitness certification: The application must include a medical certificate
attesting to the applicant’s fitness unless the license is for a non-transport vehicle.

 Health restrictions: The licensing authority may refuse a learner’s license if the
applicant has a condition that could endanger public safety while driving. However,
an exception exists for invalid carriages if the applicant can safely operate such a
vehicle.

 Learner’s test requirement: Applicants must pass a prescribed test to the satisfaction
of the licensing authority before receiving a learner’s license.

 Special issuance and exemptions: The Central Government may allow certain
exemptions, and licenses issued before the Act came into force will be considered
valid for all motorcycles regardless of gear specifications.

This section deals with the grant of a learner’s license. Learners license is issued during
the course of learning to drive the car. We have to pass the learners’ test to get this license.
After that, we will have another test which should be taken within 6 months after which we
will get a valid driving license.
According to this Act, a person under the age of 18 years shall not drive a motor vehicle at
any public place and no learner’s license or driving license 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. According to (1) of section 8, “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 license may apply to the licensing authority having jurisdiction
in the area-
i) in which he resides and
ii) in which the driving school or establishment where he intends to receive instruction in
driving a motor vehicle is situated.
The next clause talks about the application for a learner’s license. (2) Every application shall
be in such form and shall be accompanied by such documents and with such fee as may be
prescribed by the Central Government.
The need for a medical certificate for application is stated in the next clause.
(3) Every application shall be in such form and shall be accompanied by a medical certificate
in the form prescribed by the Central Government and signed by a registered medical
practitioner.
(4) If the applicant suffers from any disease or disability which is likely to cause the driving
of the specified vehicle as mentioned in the license, to be a source of danger to the general
public or passengers, the licensing authority shall refuse to issue such a license.

Section 9: Grant of Driving License

This section provides the procedure and requirements for obtaining a driving license:

 Application process: Eligible individuals not disqualified from holding a license may
apply to the licensing authority in their area of residence or training for the issuance
of a driving license.

 Tests and exemptions: Applicants must pass a prescribed driving test unless they
provide proof of a previously held valid license for the same vehicle class, issued
within five years, or if they hold an international license that meets specific Indian
requirements.

 Medical fitness: Applicants must provide a medical certificate if necessary, especially

for transport vehicles, confirming that they are fit to drive and free from any condition
that may pose a danger.

 Minimum qualifications for transport vehicles: For transport vehicle licenses,

applicants need certain educational qualifications and a driving certificate from a
recognized training institution.

 Re-examination for unsuccessful candidates: Applicants who fail the driving test
may retake it after seven days. However, failing the test three times requires a wait of
60 days before retesting.

 Vehicle-type competency: The test must be conducted with a vehicle type relevant to
the license category.
  Special conditions and license denials: The authority can refuse a license if the
applicant has a history of criminality, substance abuse, or a previously revoked
license, with appeals allowed within 30 days of refusal.

This section deals with the grant of a driving license. The first and second clauses are similar
to that of section 8. The third clause is added through the 1994 Amendment. It states that if
the applicant passes the test prescribed by the Central Government, then the driving license
may be issued provided that such test is not necessary if the applicant produces proof to show
that he or she had previously held a license to drive that class of a vehicle and the period or
gap between the date of application and date of expiry does not exceed 5 years.

Section 10: Form and Contents of Licenses to Drive

This section dictates the format and information included on a learner’s or permanent driving
license:

 Form and details: The Central Government prescribes the license form, which
should state the license type and the vehicle classes it authorizes the holder to drive.

 Vehicle classes: Licenses specify authorized vehicle categories, including

motorcycles (with and without gear), light motor vehicles, transport vehicles, and
specialized vehicles like road rollers or specific motor vehicle types.

A learner’s license and driving license shall contain information as prescribed by the Central
Government. But if a driving license is issued under Section 18, then the situation changes.
Section 18 talks about the licenses to drive motor vehicles belonging to the Central
Government. In such situations, it shall specify the class or description of the vehicle which
the driver is entitled to drive and the period for which he is entitled. The authority which
issues this license shall request the State Government to furnish information respecting the
person as that Government may at any time require. So according to Section 10, both
learner’s license and driving license should express the vehicle which he is entitled to drive,
namely, Motorcycle with gear and without gear, the invalid carriage which is usually referred
to the vehicles used by disabled people, light motor vehicle and motor vehicle of a specified
description.

Section 11: Additions to Driving License

This section allows drivers to apply to expand their license to additional vehicle classes:
  Application process: License holders who are eligible can apply to add new vehicle
classes to their existing license. Applications should include specified fees and
documents.

 Compliance with Section 9: The procedure for adding classes follows the same rules
as for issuing a new license, including competency tests.

Section 14: Validity of Licenses

This section specifies the duration of learner’s and driving licenses:

 Learner’s license validity: Learner’s licenses are valid for six months from the date
of issue.

 Driving license validity for transport vehicles: These licenses are valid for three
years, except for transport vehicles carrying hazardous materials, which have a one-
year validity and require an annual refresher course.

 Other licenses: If the holder is under 50, the license is valid for 20 years or until they
turn 50, whichever is earlier. For those aged 50 or older, licenses are valid for five
years.

 Grace period: A grace period of 30 days post-expiry allows for continued validity
during the renewal process.

Section 15: Renewal of Driving Licenses

This section outlines the process for renewing driving licenses:

 Timely renewal: License renewals should be applied for within 30 days of expiry to
retain the original issuance date. Late applications result in the renewal date marking
the new effective date.

 Medical certification: Applicants over 40 or those applying to renew a transport

vehicle license must submit a medical certificate confirming their fitness to drive.

 Fees: Different fees apply depending on whether the renewal application is submitted
on time or delayed beyond 30 days.

 Five-year limit on late renewals: If a license expires and remains inactive for over
five years, a new driving test may be required for renewal.
  Inter-authority communication: Renewing authorities must inform the original
issuing authority when a license renewal is processed by a different authority.

This is one of the most important sections regarding licensing. It talks about the renewal of
the driving licenses. The licensing authority should receive the application for renewal of the
license within 30 days after its expiry. If the applicant has attained forty years of age, a
medical certificate should be attached along with the application. The second clause states
that the application for renewal should be made in such form as prescribed by the Central
Government. The fee payable for the renewal is as prescribed by the Central Government. If
the application is given more than five years after the expiry of the license, then the licensing
authority has the option to refuse the renewal of the driving license. But if the applicant
passes the test of competence as referred under section 9, the renewal can take place.
According to the last clause of this section, if the issuing authority is not the one who
renewed the driving license, then the applicant shall intimate the fact of renewal to the
authority to the issuing authority.

Section 16: Revocation of Driving License on Grounds of Disease or Disability

This section allows licensing authorities to revoke a license if the holder is deemed medically
unfit:

 Medical review: If the authority suspects a license holder’s health may affect driving
safety, it can request a medical certificate.

 Revocation process: Upon confirmed health concerns, the authority may revoke the
license, notifying the original issuing authority if different.

The licensing authority can at any time revoke a driving license on grounds of disease or
disability. The medical certificate in the same form as prescribed under section 8 must be
attached if the licensing authority has reasonable grounds to believe that the holder of the
license is, by virtue of any disease or disability, unfit to drive a motor vehicle and the
authority which revoked it, is not the issuing authority, it shall bring to notice this fact of
revocation to the issuing authority.

Section 18: Driving Licenses for Motor Vehicles Belonging to the Central Government

This section sets out rules for issuing driving licenses to individuals who drive vehicles
owned or controlled by the Central Government:
  Special licenses for government vehicles: Individuals over 18 can be issued licenses
to drive Central Government vehicles used solely for government purposes,
particularly for defense, and not related to commercial activities.

 License specifications: Such licenses are valid nationwide, specifying the class of
vehicle and the license’s validity period.

 Restrictions on license usage: The license issued under this section allows the holder
to drive only the specific government vehicles and does not authorize them to drive
other motor vehicles.

 Information sharing with state governments: The issuing authority can share
information on license holders with state governments as requested.

Section 19: Power of Licensing Authority to Disqualify or Revoke Licenses

This section provides licensing authorities the power to disqualify individuals from holding a
license or to revoke a license for various reasons:

 Grounds for disqualification or revocation: A license can be revoked or

disqualification imposed if the license holder:

o Is a habitual criminal, drunkard, or drug addict under the Narcotic Drugs and
Psychotropic Substances Act, 1985.

o Has used a vehicle to commit a serious offense.

o Has demonstrated dangerous driving behavior.

o Obtained a license through fraud or misrepresentation.

o Committed acts likely to cause danger or nuisance to the public, as prescribed

by the government.

o Refused required testing or is underage and no longer under a guardian’s care

who initially provided consent for the license.

 Process for disqualification or revocation: The authority must provide the driver a
chance to be heard before making any disqualification or revocation order.
  Return and endorsement of license: The disqualified driver must surrender the
license immediately, with the licensing authority retaining or marking the license with
the disqualification or revocation.

 Appeal process: Affected individuals can appeal the order within 30 days to a
prescribed authority, which can alter or overturn the decision as deemed fit.

This section is of utmost importance as it states the powers of the licensing authority to
disqualify from holding a driving license. Disqualifying a person means he or she is not
permitted from driving or possessing a valid license. It is like a form of suspension. If the
authority knows that the holder of the driving license is a criminal or a habitual drunkard, it
can disqualify the license. The license can also be disqualified, if he has obtained the said
license by fraud or misrepresentation, has committed an act likely to cause nuisance or
danger to the public as said by the Central Government, or is a habitual addict to any narcotic
drug as mentioned under the Narcotic Drugs and Psychotropic Substances Act. The main
difference of this section from Section 20 is that the former is a disqualification by the
licensing authority whereas the latter is by the courts. For Section 20, the reasons for
disqualification can be from the evidence and hearing of parties. It is a comprehensive
evaluation of all courts

Section 20: Power of Court to Disqualify

This section allows courts to impose disqualification from holding a driving license as part of
a sentence for certain offenses:

 Disqualification in case of conviction: Courts can declare an individual disqualified

from driving specific or all classes of vehicles if they are convicted of an offense
under the MVA or an offense involving a motor vehicle.

o First-time and repeat offenses: Disqualification for first or second offenses

under Section 183 (speed limits) may be avoided, but repeat or serious
offenses mandate disqualification for a set period.

o Mandatory disqualification for serious offenses: Courts must disqualify

offenders for at least one month for offenses under Sections 132 (disobeying
orders of police officers), 134 (duty of driver in case of accident), and at least
six months for offenses under Section 185 (driving under the influence of
alcohol or drugs).
 o Longer disqualification for repeated offenses: If an individual is convicted
of certain repeat offenses (e.g., dangerous driving, unauthorized vehicle use),
they may be disqualified for up to five years.

 Testing requirements: The court may also require that the convicted person pass a
driving competence test again before the disqualification period ends, ensuring they
meet safety standards.

 Appellate power over disqualification: If an appeal is filed against a conviction, the

appellate court has the authority to review and modify any disqualification order
associated with that conviction, even if no appeal lies against the conviction itself.

Section 21: Suspension of Driving License in Certain Cases

This section mandates the suspension of driving licenses for individuals who have been
previously convicted of dangerous driving and are involved in another incident involving
serious harm:

 Automatic suspension on registration of a case: If a driver with a prior conviction

for dangerous driving (as per Section 184) is involved in an incident resulting in death
or grievous injury due to alleged dangerous driving, their license is automatically
suspended:

o For six months from the date the case is registered by the police, or

o Until acquittal or discharge if the driver is acquitted or discharged before six

months have elapsed.

 Court notification and endorsement: Once the license suspension is initiated, the
police officer handling the case must notify the relevant court. The court will then:

o Take possession of the driving license,

o Endorse the suspension on the license, and

o Inform the licensing authority (which issued or last renewed the license) about
the suspension.

 Cancellation of suspension upon acquittal: If the driver is acquitted or discharged,

the court will cancel the suspension endorsement on the license.
  Restriction during suspension: While suspended, the driver is prohibited from
holding or applying for any license for that specific vehicle class until the suspension
period ends.

Section 22: Suspension or Cancellation of Driving License on Conviction

This section allows the court to take stricter actions, including canceling a license if the
individual is convicted of severe offenses:

 Suspension or cancellation upon conviction: If a driver, previously convicted of

dangerous driving under Section 184, is again convicted for causing death or grievous
harm through dangerous driving:

o The court can choose to suspend or cancel the license concerning the specific
vehicle class involved in the incident, for a duration it deems appropriate.

 Repeat offenses for driving under the influence (Section 185): If a driver,
previously convicted for driving under the influence of alcohol or drugs (Section
185), is convicted again for the same offense, the court is required to cancel their
driving license.

 Custody and endorsement by the court: When a license is canceled or suspended:

o The court takes custody of the license and marks it with the cancellation or
suspension endorsement.

o The license is then sent to the issuing or renewing authority, which will retain
the license in its safe custody.

o For suspended licenses, the driver may apply for the license’s return after the
suspension period ends.

 Conditions for license return: Before the license is returned post-suspension, the
driver must:

o Pass a fresh driving competency test, as outlined in Section 9(3), and

o Provide a medical certificate, as specified in Section 8(3), confirming fitness

to drive.
  Debarment from specific vehicle classes: If a license to drive a particular class or
type of vehicle is canceled or suspended, the driver is barred from holding or applying
for a license for that class as long as the cancellation or suspension remains in force.

Changes brought about in the amended Act

The Motor Vehicles Act, 1988 was amended on 9th August 2019. The new Rules wanted to
prevent individuals from violating traffic rules. So for this purpose, they have introduced
heavy fines for over-speeding, drunken driving, and driving without a valid license.

There were changes in few sections of the 1988 Act. Section 8 which talks about the grant of
learner’s license has been modified. Now, an eligible person can apply for this license in any
of the licensing authority of the state. The fee and other expenses can be paid through
electronic media and also the issuance of the learner’s license in electronic form. Also, the
condition of having ‘minimum educational qualification as may be prescribed by the Central
Government’ for obtaining a license has been removed. When the applicant does not pass the
driving test even after doing it 3 times, in addition to his disqualification to re-appear for the
test before the expiry of a period of sixty days from the date of the last test. For that, the
person should complete a remedial driver training course from any school or establishment.
Then, Section 15 talks about the renewal of the driving license. The renewal is made either
one year prior to the date of expiry or within one year after the date of expiry. Furthermore, if
the application is made one year after the driving license has expired, the renewal shall be
refused. The power of licensing authority to disqualify from holding a driving license or
revoke the license is mentioned in Section 19. Even the fine for driving without a valid
license is increased from Rs.500 to Rs.5000. (Section 181) and fine for unauthorized use of
vehicles without a license is increased from Rs.1000 to Rs.5000.

Registration of vehicles and its rules

The core objective of Chapter IV is to ensure that every motor vehicle operating on public
roads is registered, identifiable, and conforms to safety and emission standards. It regulates
the registration process, conditions for temporary registration, transfer of ownership, renewal,
and cancellation of registration. This helps authorities maintain vehicle records and trace
vehicles in case of accidents or criminal activities.

Section 39: Necessity for Registration

  Mandates that no person may drive or permit a vehicle to be driven in any public
place without valid registration.

 Unregistered vehicles are prohibited on roads to ensure all vehicles are recorded in the
national database.

Section 40: Registration Where Vehicle is Subject to Control

 Specifies that registration must be carried out by the registering authority in the
jurisdiction where the owner ordinarily resides or where the vehicle is kept.

Section 41: Registration, Renewal, and Marking of Motor Vehicles

 Describes the procedures for registration, including assigning a registration number,

valid for the vehicle’s lifetime unless canceled or transferred.

 The Amendment Act introduced Vehicle Registration Certificates (VRCs) as digital

records accessible across states.

 Registration validity for transport vehicles: The 2019 Amendment mandates that
transport vehicles renew their registration every 15 years and every 5 years thereafter.

Section 42: Special Permit for Vehicles Temporarily at Place Other than Residence

 Allows temporary registration for vehicles used temporarily outside their registered
state, such as commercial vehicles crossing state borders.

 Temporary registration may be valid for up to one month, extendable by registering

authority approval.

Section 43: Temporary Registration

 Enables temporary registration for new vehicles pending permanent registration, valid
for a maximum of one month.

 The Amendment Act allows for a more streamlined process by introducing digital
tracking for temporary registrations.

Section 44-46: No Ownership Transfer Without Registration

 Mandates vehicle owners to update registration records upon transferring ownership

to ensure accurate ownership details in the database.
  When transferring vehicles between states, the owner must re-register the vehicle in
the new state within a specified period (12 months as per the 2019 Amendment).

Section 47: Transfer of Ownership Due to Death

 Provides guidelines for transferring ownership in the event of the owner’s death,
requiring legal heirs or claimants to notify the registering authority.

Section 49-50: Transfer, Renewal, and Issuance of Fitness Certificates

 Emphasizes the renewal of fitness certificates for transport vehicles and mandates
compliance with fitness standards.

 With the Amendment, fitness certificates can be revoked if a vehicle fails to meet
safety standards, improving road safety.

Section 52: Alteration in Vehicle

 Restricts unauthorized alterations to a vehicle after registration, including changes to

its structure or fuel type.

 2019 Amendment: Introduced a provision allowing modifications for converting

vehicles to electric vehicles (EVs) or vehicles meeting BS-VI emission standards.

Section 53: Suspension of Registration

 The registering authority has the power to suspend a vehicle’s registration if it is

found in an unsafe condition or violates registration rules.

 The Amendment Act strengthened this by adding provisions for suspending

registration due to severe violations like frequent traffic violations or failure to meet
pollution standards.

Section 55: Cancellation of Registration

 A vehicle’s registration can be canceled if it is permanently damaged, dismantled, or

no longer in operational condition.

 The 2019 Amendment Act added provisions for automatic cancellation if the vehicle
fails to renew its fitness certificate.

Impact of the 2019 Amendment Act on Vehicle Registration

The Motor Vehicles (Amendment) Act, 2019 brought significant changes, focusing on
digitalization, accountability, and safety:

 Digitization of Records: The amendment mandates digital VRCs and vehicle

databases, allowing easy verification across states.

 National Register for Vehicles: Established a central database for vehicle records
accessible by all RTOs, facilitating easy transfer, record updates, and verification.

 Automated Fitness Testing: The amendment introduced technology-driven fitness

testing centers, promoting transparency and ensuring unbiased assessments of vehicle
roadworthiness.

 Tighter Penalties: For non-compliance with registration rules, fitness renewal, and
pollution control, the amendment introduced higher penalties to deter violations.

 Simplified Ownership Transfers: The interstate transfer process was made easier
with mandatory NOCs and extended timelines for re-registration, supporting hassle-
free relocation of vehicles across states.

Liability under MVA (fault and no-fault)