Motor Vehicles Act, 1988
(1) Except as may be otherwise prescribed, a permit granted by the Regional Transport Authority of any one region shall not be valid in any other region, unless the permit has been countersigned by the Regional Transport Authority of that other region, and a permit granted in any one State shall not be valid in any other State unless countersigned by the State Transport Authority of that other State or by the Regional Transport Authority concerned : Provided that a goods carriage permit, granted by the Regional Transport Authority of any one region, for any area in any other region or regions within the same State, shall be valid in that area without the countersignature of the Regional Transport Authority of the other region or of each of the other regions concerned : Provided further that where both the starting point and the terminal point of a route are situate within the same State, but part of such route lies in any other State and the length of such part does not exceed sixteen kilometres, the permit shall be valid in the other State in respect of that part of the route which is in that other State notwithstanding that such permit has not been countersigned by the State Transport Authority or the Regional Transport Authority of that other State : Provided also that - (a) where a motor vehicle covered by a permit granted in one State is to be used for the purposes of defence in any other State, such vehicle shall display a certificate, in such form, and issued by such Authority, as the Central Government may, by notification in the Official Gazette, specify, to the effect that the vehicle shall be used for the period specified therein exclusively for the purposes of defence ; and (b) any such permit shall be valid in that other State notwithstanding that such permit has not been countersigned by the State Transport Authority or the Regional Transport Authority of that other State. (2) Notwithstanding anything contained in sub-section (1), a permit granted or countersigned by a State Transport Authority shall be valid in the whole State or in such regions within the State as may be specified in the permit. (3) A Regional Transport Authority when countersigning the permit may attach to the permit any condition which it might have imposed if it had granted the permit and may likewise vary any condition attached to the permit by the authority by which the permit was granted. (4) The provisions of this Chapter relating to the grant, revocation and suspension of permits shall apply to the grant, revocation and suspension of countersignatures of permits. Provided that it shall not be necessary to follow the procedure laid down in section 80 for the grant of countersignatures of permits, where the permits granted in any one State are required to be countersigned by the State Transport Authority of another State or by the Regional Transport Authority concerned as a result of any agreement arrived at between the States after complying with the requirements of sub section (5). (5) Every proposal to enter into an agreement between the States to fix the number of permits which is proposed to be granted or countersigned in respect of each route or area, shall be published by each of the State Governments concerned in the Official Gazette and in any one or more of the newspapers in regional language circulating in the area or route proposed to be covered by the agreement together with a notice of the date before which representations in connection therewith may be submitted, and the date not being less than thirty days from the date of publication in the Official Gazette, on which, and the authority by which, and the time and place at which, the proposal and any representation received in connection therewith will be considered. (6) Every agreement arrived at between the States shall, insofar as it relates to the grant of countersignature of permits, be published by each of the State Governments concerned in the Official Gazette and in any one or more of the newspaper in the regional language circulating in the area or route covered by the agreement and the State Transport Authority of the State and the Regional Transport Authority concerned shall give effect to it. (7) Notwithstanding anything contained in sub-section (1), a Regional Transport Authority of one region may issue a temporary permit under section 87 to be valid in another region or State with the concurrence, given generally or for the particular occasion, of the Regional Transport Authority of that other region or of the State Transport Authority of that other State, as the case may be. (8) Notwithstanding anything contained in sub-section (1), but subject to any rules that may be made under this Act by the Central Government, the Regional Transport Authority of any one region or, as the case may be, the State Transport Authority, may, for the convenience of the public, 54[grant a special permit to any countersignature of the Regional Transport Authority of the other region or of the State Transport Authority of the other State, as the case may be. (9) Notwithstanding anything contained in sub-section (10 but subject to any rules that may be made by the Central Government under sub-section (14), any State Transport Authority may, for the purpose of promoting tourism, grant permits in respect of tourist vehicles valid for the whole of India, or in such contiguous States not being less than three in number including the State in which the permit is issued as may be specified in such permit in accordance with the choice indicated in the application and the provisions of sections 73, 74, 80, 81, 82, 83, 84, 85, 86, 55 * [clause 58 [] (14) (a) The Central Government may make rules for carrying out the provisions of this section. (b) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :- 56. Sub-S. (100 omitted, ibid ( w.e.f. 14-11-1994 ). Prior to its omission, sub-S. (10) read as under :- “(10) Without prejudice to the provisions of section 74, the State Transport Authority shall, in considering an application for a permit under sub-section (9) in respect of tourist vehicles other than motorcabs have regard to the following matters, namely :- (a) no such permit shall be issued - (i) to an individual owner so as to exceed ten such valid permits in his own name, (ii) to a company so as to exceed twenty such valid permits in its own name ; (b) the restriction under clause (a) regarding the number of permits to be granted shall not apply to the India Tourism Development Corporation, State Tourism Development Corporations, State Tourism Departments or State Transport undertakings ; (c) in computing the number of permits for the purposes of clause (a), the number of permits held by an applicant in the name of any other person and the permits held by any company of which such applicant is a director shall also be taken into account. Explanation .- For the purposes of this sub-section and sub-section (13), “company” means a body corporate, and includes a firm or other association of individuals, and “director”, in relation to a firm, means a partner in the firm”. Explanation. - In this section, - (a) “appropriate authority” , in relation to a national permit, means the authority which is authorised under this Act to grant a goods carriage permit ; (b) “authorisation fee” means the annual fee, not exceeding one thousand rupees, which may be charged by the appropriate authority of a State of enable a motor vehicle, covered by the permit referred to in sub-section (9) and (12) to be used in other States subject to the payment of taxes or fees, if any, levied by the States concerned ; (c) “national permit” means a permit granted by the appropriate authority to goods carriages to operate throughout the territory of India or in such contiguous States not being less than four in number, including the State in which the permit is 58. Sub-S. (13) omitted, ibid ( w.e.f. 14-11-1994 ). Prior to its omission, sub-S. (13) read as under :- “(13) The appropriate authority shall, in considering an application for a national permit, have regard to the following matters, namely :- (a) no national permit shall be issued - (i) to an individual owner so as to exceed five national permits in its own name ; (ii) to a company so as to exceed ten valid national permits in its own name ; (b) the restriction under clause (a) regarding the number of permits to be issued shall not apply to the State transport undertakings ; (c) in computing the number of permits for the purposes of clause (a), the number of permits held by an applicant in the name of any other person and the permits held by any company of which such applicant is a director shall also be taken into account.” issued as may be specified in such permit in accordance with the choice indicated in the application. Corresponding Law. - Section 88 corresponds to section 63 of the motor vehicles act, 1939. Objects and Reasons. - Clause 88 lays down the procedure for validation for use outside the region in which the permit is granted, for entering into an agreement between the States regarding the number of permits to be granted or counter-signed in each State on inter-State routes, for the issue of temporary permits to be valid in another State without the process of counter-signature in the other State, it also provides that national permit for goods carriages issued in one state and permits for tourist vehicle issued in one state shall without counter signature in other state be valid throughout India, without a limit in the number of vehicles for which such permits may be granted but with certain limit on the holding of such permits by both individuals and companies.