Motor Vehicles Act, 1988
(1) Where the ownership of any motor vehicle registered under this Chapter is transferred. - (a) the transferor shall, - (i) in the case of a vehicle registered within the same State, within fourteen days of the transfer, report the fact of transfer, in such form with such documents and in such manner, as may be prescribed by the Central Government to the registering authority within whose jurisdiction the transfer is to be effected and shall simultaneously send a copy of the said report to the transferee ; and (ii) in the case of a vehicle registered outside the State, within forty-five days of the transfer, forward to the registering authority referred to in sub-clause (i)- (A) the no objection certificate obtained under section 48 ; or (B) in a case where no such certificate has been obtained, - (I) the receipt obtained under sub-section (2) of section 48 ; or (II) the postal acknowledgement received by the transferor if he has sent an application in this behalf by registered post acknowledgement due to the registering authority referred to in section 48, together with a declaration that he has not received any communication from such authority refusing to grant such certificate or requiring him to comply with any direction subject to which such certificate may be granted ; (b) the transferee shall, within thirty days of the transfer , report the transfer to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward the certificate of registration to that registering authority together with the prescribed fee and a copy of the report received by him from the transferor in order that particulars of the transfer of ownership may be entered in the certificate of registration. (2) Where - (a) the person in whose name a motor vehicle stands registered dies, or, (b) a motor vehicle has been purchased or acquired at a public auction conducted by, or on behalf of, Government, the person succeeding to the possession of the vehicle or, as the case may be, who has purchased or acquired the motor vehicle, shall make an application for the purpose of transferring the ownership of the vehicle in his name, to the registering authority in whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, in such manner, accompanied with such fee, and within such period as may be prescribed by the Central Government. (3) If the transferor or the transferee fails to report to the registering authority the fact of transfer within the period specified in clause (a) or clause (b) of sub-section (1), as the case may be, or if the person who is required to make an application under sub-section (2) ( hereafter in this section referred to as the other person ) fails to make such application within the period prescribed, the registering authority may, having regard to the circumstances of the case, require the transferor or the transferee, or the other person, as the case may be, to pay, in lieu of any action that may be taken against him under section 177 such amount not exceeding one hundred rupees as may be prescribed under sub-section (5) : Provided that action under section 177 shall be taken against the transferor or the transferee or the other person, as the case may be, where he fails to pay the said amount. (4) Where a person has paid the amount under sub-section (3), no action shall be taken against him under section 177. (5) For the purposes of sub-section (3), a State Government may prescribe different amount having regard to the period of delay on the part of the transferor or the transferee in reporting the fact of transfer of ownership of the motor vehicle or of the other person in making the application under sub-section (2). (6) On receipt of a report under sub-section (1), or an application under sub section (2), the registering authority may cause the transfer of ownership to be entered in the certificate of registration. (7) A registering authority making any such entry shall communicate the transfer of ownership to the transferor and to the original registering authority, if it is not the original registering authority. Corresponding Law.- Section 50 corresponds to section 31 of the Motor Vehicles Act, 1939. Objects and Reasons. - Clause 50 provides for recording the transfer of owner ship of a motor vehicle in the certificate of registration by the registering authorities when the property changes hands due to sale, or inheritance or purchase in public auction conducted by the Government. It also lays down that if the transfer is not reported to the registering authorities within prescribed time, the parties are liable for prosecution and if the party pays the prescribed amount in lieu of prosecution, no further action is to be taken. 51. Special provisions regarding motor vehicle subject to hire purchase agreement, etc.- (1) Where an application for registration of a motor vehicle which is held under a hire-purchase, lease or hypothecation agreement ( hereafter in this section referred to as the said agreement ) is made, the registering authority shall make an entry in the certificate of registration regarding the existence of the said agreement. (2) Where the ownership of any motor vehicle registered under this Chapter is transferred and the transferee enters into the said agreement with any person, the 24[last registering authority] shall, on receipt of an application in such form as the Central Government may prescribe from the parties to the said agreement, make an entry as to the existence of the said agreement in the certificate of registration 25[and an intimation in this regard shall be sent to the original registering authority if the last registering authority is not the original registering authority.] (3) Any entry made under sub - section (1) or sub - section ( 2), may be cancelled by the 26[ last registering authority ] on proof of the termination of the said agreement by the parties concerned on an application being made in such form as the Central Government may prescribe 27 [ and an intimation in this behalf shall be sent to the original registering authority if the last registering authority is not the original registering authority.] (4) No entry regarding the transfer of ownership of any motor vehicle which is held under the said agreement shall be made in the certificate of registration except with the written consent of the person whose name has been specified in the certificate of registration as the person with whom the registered owner has entered into the said agreement. (5) Where the person whose name has been specified in the certificate of 24 25 26 27 (6) The registered owner shall, before applying to the appropriate authority, for the renewal of a permit under section 81 or for the issue of duplicate certificate of registration under sub-section (14) of section 41, or for the assignment of a new registration mark 28 29[under section 47, or removal of the vehicle to another State, or at the time of conversion of the vehicle from one class to another, or for issue of no objection certificate under section 48, or for change of residence or place of business under section 49, or for the alteration of the vehicle under section 52, make an application ] to the person with whom the registered owner has entered into the said agreement ( such person being hereafter in this section referred to as the financier ) for the issue of a no objection certificate ( hereafter in this section referred to as the certificate. ) or, as the case may be, a declaration that he has not received any communication from the financier within the period of seven days specified in that sub-section. (9) On receipt of an application for the renewal of any permit or for the issue of duplicate certificate of registration or for assignment of a new registration mark in respect of a vehicle which is held under the said agreement, the appropriate authority may, subject to the other provisions of this act, - (a) in a case where the financier has refused to issue the certificate applied for, after giving the applicant an opportunity of being heard, either - (i) renew or refuse to renew the permit, or (ii) issue or refuse to issue the duplicate certificate of registration, or (ii)assign or refuse to assign a new registration mark ; (b) in any other case, - (j) renew the permit, or (ii) issue duplicate certificate of registration, or (iii) assign a new registration mark. (10) A registering authority making an entry in the certificate of registration regarding- (a) hire-purchase, lease or hypothecation agreement of a motor vehicle, or (b) the cancellation under sub-section (3) of an entry, or (c) recording transfer of ownership of motor vehicle, or (d) any alteration in a motor vehicle, or (e) suspension or cancellation of registration of a motor vehicle, or (f) change of address, shall communicate 30[ by registered post acknowledgement due] to the financier that such entry has been made. 31[(11) A registering authority registering the new vehicle, or issuing the duplicate certificate of registration or a no objection certificate or a temporary certificate of registration, or issuing or renewing, a fitness certificate or substituting entries relating to another motor vehicle in the permit, shall intimate the financier of such transaction. (12) The registering authority where it is not the original registering authority, when making entry under sub-section (1) or sub-section (2), or cancelling the said entry under sub-section (3) or issuing the fresh certificate of registration under sub-section (5) shall communicate the same to the original registering authority.] 31. Sub-s. (11) substituted, ibid (w.e.f. 14-11-1994). Prior to its substitution, sub-S. (11) read as under - “(11) A registering authority issuing a duplicate certificate of registration shall intimate the financier of such issue.” Corresponding Law. - Section 51 corresponds to section 31-A of the Motor Vehicles Act, 1939. Objects and Reasons. - Clause 51 contains special provisions regarding motor vehicles subject to the agreements of hire-purchase, lease and hypothecation. Sub-clauses (1) to (4) make provision that the registering authorities may make a note of such agreement and cancellation of such agreement in the certificate of registration on a joint application by both the parties. It prohibits transfer of ownership of such vehicle without the written consent of the other party to the agreement. Sub-clause (5) provides for the issue of fresh certificate of registration to the financier by the registering authorities whether the financier has taken possession of the vehicle for default of the hirer and hirer has refused to hand over the certificate of registration. Sub-clause (6) to (9) lays down the procedure in making an application by the registered owner of the vehicle to the financier for grant of NOC, the grant of such certificate by the financier, production of NOC alongwith the application for the renewal of permit or the duplicate copy of the certificate of registration or for assignment of fresh registration mark to a motor vehicle. The powers of the appropriate authorities for the grant or refusal of the application for the renewal of permit, and issue of duplicate certificate of registration and issue of fresh registration mark. Sub-clause (10) makes provision that the registering authorities making entries in the certificate of registration regarding certain transactions shall intimate such transactions to the financier. 32[52. Alteration in motor vehicle. - (1) No owner of a motor vehicle shall so alter the vehicle that the particulars contained in the certificate of registration are at variance with those originally specified by the manufacturer : Provided that where the owner of a motor vehicle makes modification of the engine, or any part thereof of a vehicle for facilitating its operation by different type of fuel or source of energy including battery, compressed natural gas, solar power, liquid petroleum gas or any other fuel or source of energy, by fitment of a conversion kit, such modification shall be carried out subject to such conditions as may be prescribed: 32. S.52 substituted by Act 27 of 2000, S.2 (w.e.f. 11-8-2000). Prior to its substitutin, S. 52 read as under :- “52. Alternation in motor vehicle .- (1) No owner of a motor vehicle shall so alter the vehicle that the particulars contained in the certificate of registration are no longer accurate, unless.- (a) he has given notice to the registering authority within whose jurisdiction he has the residence or the place of business where the vehicle is normally kept, as the case may be of the alteration he proposes to make; and (b) he has obtained the approval of that registering authority to make such alteration : Provided that it shall not be necessary to obtain such approval for making any change in the unladen weight of the motor vehicle consequent on the addition or removal of fittings or accessories, if such change does not exceed two per cent. of the weight entered in the certificate of registration : *[Provided further that modification of the engine, or any part thereof, of a vehicle for facilitating its operation by a different type of fuel or source of energy including battery, compressed natural gas, solar power or any other fuel or source of energy other than liquid petroleum gas shall be treated as an alteration but that shall be subject to such conditions as may be prescribed.] (2) Where a registering authority receives a notice under sub-section (1), it shall, within seven days of the receipt thereof, communicate, by post, to the owner of the vehicle its approval to the proposed alteration or otherwise : Provided further that the Central Government may prescribe specifications conditions for approval, retrofitment and other related matters for such conversion kits; Provided also that the Central Government may grant exemption for alteration of vehicles in a manner other than specified above, for any specific purpose. (2) Notwithstanding anything contained in sub-section (1), a State Government may, by notification in the Official Gazette, authorise, subject to such conditions as may be specified in the notifications, and permit any person owing not less than ten transport vehicles to alter any vehicle owned by him so as to replace the engine thereof with engine of the same make and type, without the approval of registering authority. (3) Where any alteration has been made in motor vehicle without the approval of registering authority or by reason of replacement of its engine without such approval under sub-section (2), the owner of the vehicle shall, within fourteen days of the making of the alteration, report the alteration to the registering authority within whose jurisdiction he resides and shall for ward the certificate of registration to that authority together with the prescribed fee in order that particulars of registration may be entered therein. (4) A registering authority other than the original registering authority making any such entry shall communicate the details of the entry to the original registering authority. (5) Subject to the provisions made under sub-section (1), (2), (3) and (4), no person holding a vehicle under a hire-purchase agreement shall make any alteration to the vehicle except with the written consent of the registered owner. Explanation. - For the purpose of this section, “alteration” means a change in the structure of a vehicle which results in change in its basic feature.] Corresponding Law.- Section 52 corresponds to section 32 of the Motor Vehicles Act, 1939.