Section96
The Motor Vehicles Act, 1988

Power of State Government to make rules for the purposes of this Chapter

In force From 01 Jul 1989 Act 59 of 1988 As on 15 Oct 2026

Act 59 of 1988 Ministry Road Transport and Highways Enacted 14 Oct 1988 In force 01 Jul 1989 Cited by 3 provisions Instruments 10

Section 96 of the Motor Vehicles Act, 1988 deals with power of State Government to make rules for the purposes of this Chapter. A State Government may make rules for the purpose of carrying into effect the provisions of this Chapter. The Act came into force on 01 Jul 1989.

(1) A State Government may make rules for the purpose of carrying into effect the provisions of this Chapter.

(2) Without prejudice to the generality of the foregoing power, rules under this section may be made with respect to all or any of the following matters, namely:--

(i) the period of appointment and the terms of appointment of and the conduct of business by Regional and State Transport Authorities and the reports to be furnished by them;

(ii) the conduct of business by any such authority in the absence of any member (including the Chairman) thereof and the nature of business which, the circumstances under which and the manner in which, business could be so conducted;

(iii) the conduct and hearing of appeals that may be preferred under this Chapter, the fees to be paid in respect of such appeals and the refund of such fees;

(iv) the forms to be used for the purposes of this Chapter, including the forms of permits;

(v) the issue of copies of permits in place of permits lost, destroyed or multilated;

(vi) the documents, plates and marks to be carried by transport vehicles, the manner in which they are to be carried and the languages in which any such documents are to be expressed;

(vii) the fees to be paid in respect of applications for permits, duplicate permits and plates;

(vii) the exemption of prescribed persons or prescribed classes of persons from payment of all or any or any portion of the fees payable under this Chapter;

(ix) the custody, production and cancellation on revocation or expiration of permits, and the return of permits which have been cancelled;

(x) the conditions subject to which, and the extent to which, a permit granted in another State shall be valid in the State without countersignature;

(xi) the conditions subject to which, and the extent to which, a permit granted in one region shall be valid in another region within the State without countersignature;

(xii) the conditions to be attached to permits for the purpose of giving effect to any agreement such as is referred to in clause (iii) of sub-section (1) of section 67;

(xiii) the authorities to whom, the time within which and the manner in which appeals may be made;

(xiv) the construction and fittings of, and the equipment to be carried by, stage and contract carriage, whether generally or in specified areas;

(xv) the determination of the number of passengers a stage or contract carriage is adapted to carry and the number which may be carried;

(xvi) the conditions subject to which goods may be carried on stage and contract carriages partly or wholly in lieu of passengers;

(xvii) the safe custody and disposal of property left in a stage or contract carriage;

(xviii) regulating the painting or marking of transport vehicles and the display of advertising matter thereon, and in particular prohibiting the painting or marking of transport vehicles in such colour or manner as to induce any person to believe that the vehicle is used for the transport of mails;

(xix) the conveyance in stage or contract carriages of corpses or persons suffering from any infectious or contagious disease or goods likely to cause discomfort or injury to passengers and the inspection and disinfection of such carriage; if used for such purposes;

(xx) the provision of taxi meters on motor cabs requiring approval or standard types of taxi meters to be used and examining testing and sealing taxi meters;

(xxi) prohibiting the picking up or setting down of passengers by stage or contract carriages at specified places or in specified areas or at places other than duly notified stands or halting places and requiring the driver of a stage carriage to stop and remain stationary for a reasonable time when so required by a passenger desiring to board or alight from the vehicle at a notified halting place;

(xxii) the requirements which shall be complied with in the construction or use of any duly notified stand or halting place, including the provision of adequate equipment and facilities for the convenience of all users thereof; the fees, if any, which may be charged for the use of such facilities, the records which shall be maintained at such stands or places, the staff to be employed thereat, and the duties and conduct of such staff, and generally for maintaining such stands and places in a serviceable and clean condition;

(xxiii) the regulation of motor cab ranks;

(xxiv) requiring the owners of transport vehicles to notify any change of address or to report the failure of or damage to any vehicle used for the conveyance of passengers for hire or reward;

(xxv) authorising specified persons to enter at all reasonable times and inspect all premises used by permit holders for the purposes of their business;

(xxvi) requiring the person in charge of a stage carriage to carry any person tendering the legal or customary fare;

(xxvii) the conditions under which and the types of containers or vehicles in which animals or birds may be carried and the seasons during which animals or birds may or may not be carried;

(xxviii) the licensing of and the regulation of the conduct of agents or canvassers who engage in the sale of tickets for travel by public service vehicles or otherwise solicit custom for such vehicles;

(xxix) the licensing of agents engaged in the business of collecting for forwarding and distributing goods carried by goods carriages;

(xxx) the inspection of transport vehicles and their contents and of the permits relating to them;

(xxxi) the carriage of persons other than the driver in goods carriages;

(xxxii) the records to be maintained and the returns to be furnished by the owners of transport vehicles; and

1[(xxxiia) framing of schemes under sub-section (3) of section 67;

(xxxiib) the promotion of effective competition, passenger convenience and safety, competitive fares and prevention of overcrowding;]

(xxxiii) any other matter which is to be or may be prescribed.

Section 96, The Motor Vehicles Act, 1988 (Act 59 of 1988).

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Premkumari vs Prahlad Dev

    Supreme Court of India 18 Jan 2008 Binding (Supreme Court)

    Court's Decision & Legal Precedent

    An insurance company cannot escape liability to pay motor accident compensation merely on the ground that the driver possessed a fake or invalid driving license. The insurance company must establish that the insured (vehicle owner) committed a breach of policy conditions by negligently failing to verify a driver's license or being aware that the license was fake. A vehicle owner who verifies that a driver possesses a license that appears genuine on its face and is competent to drive has not breached any policy condition. Therefore, in such cases, the insurance company remains liable to innocent third parties, though it may be entitled to recover the amount from the insured if breach is substantially proved. The compulsory insurance scheme under the Motor Vehicles Act is fundamentally designed to protect accident victims, and this protective purpose cannot be defeated by technical grounds related to driver licensing.

    On this section: Historical provision on insurance liability conditions prior to 1988 Act

    Read the full order on eCourts India

  2. Uber India Systems Private Limited vs Union of India

    Supreme Court of India 13 Feb 2023 Persuasive (Other HC) - Non-Binding Procedural

    Court's Decision & Legal Precedent

    The statutory requirement for aggregator licensing under Section 93(1) Motor Vehicles Act 1988 cannot be suspended or indefinitely deferred even when State rules remain in draft form, but the Court may grant reasonable timelines for compliance and ensure procedurally fair opportunity for applicants to address licensing conditions through representation to the regulator, with provision for judicial review of grievances if State action remains unreasonable.

    On this section: Rule-making power conferred on State Government to make rules for carrying into effect provisions of Chapter V

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. Supreme Court of India 14 Dec 2017 SCIN010187582011

    … Court has laid down that the motive and philosophy of a provision should be probed, keeping in mind the goals to be achieved by enacting the same, and the defense built upon an exclusion clause by insurer cannot succeed because on a true interpretation of the relevant clause which interpretation is at peace with section 96 of the Motor Vehicles Act, the condition excluding driving by a person not duly licensed is not absolute. The promisor is exculpated when he does everything in his power to keep promise. The Court has laid down thus : "12. The defence built on the exclusion clause cannot succeed for three reasons, viz.: > …

    Read this order on eCourtsIndia

Made under this section, and citing it

10 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.

All subordinate legislation

Questions about Section 96

What have the courts held on Section 96 of the Motor Vehicles Act?

Premkumari vs Prahlad Dev (18 Jan 2008) is the leading judgment on this section among those set out below: Historical provision on insurance liability conditions prior to 1988 Act. Another 1 judgment on this section is set out below, all of them from the Supreme Court. They run from 2008 to 2023.

How do I find court cases under Section 96 of the Motor Vehicles Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: MV Act 96, section 96 MV Act, section 96 of the Motor Vehicles Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Premkumari vs Prahlad Dev (18 Jan 2008).

What should I read with Section 96 of the Motor Vehicles Act, and has it changed?

Its own text turns on section 67 (Power to State Government to control road transport), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 10: most recently Amendment in rule RMV, 1990 for carriage of goods in passenger buses and introduction of refresher training course (2021), then JHARKHAND ON-DEMAND TRANSPORTATION TECHNOLOGY AGGREGATOR RULES, 2019 (2019), and 8 more.

When did Section 96 of the Motor Vehicles Act come into force?

Section 96 of the Motor Vehicles Act, cited as MV Act 96, came into force on 01 Jul 1989, having been enacted on 14 Oct 1988. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.