Section 63 in The Motor Vehicles Act, 1939

63. Validation of permits for use outside region in which granted.

(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: 1[ Provided that a private carrier' s permit, granted by the Regional Transport Authority of any one region with the approval of the State Transport Authority, for any area in any other region or re- gions 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: 2[ 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-.] 3[ 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.]

(1A) 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.]

(2) A Regional Transport Authority when countersigning the permit may attach to the permit any condition which it might have

1. Ins. by Act 100 of 1956, s. 56 (w. e. f. 16- 2- 1957 ).

2. Ins. by Act 56 of 1969, s. 29 (w. e. f, 2- 3- 1970 ),

3. Ins. by Act 47 of 1978, s. 24 (w. e. f. 17- 1- 83).

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.

(3) 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: 1[ Provided that it shall not be necessary to follow the procedure laid down in section 57 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 2[ after complying with the requirements of sub- section (3A), or for the grant of countersigna- tures of permits in pursuance of any direction issued by the Commis- sion under clause (c) of subsection (2) of section 63A].]

(3A) 2[ Every proposal to enter into an agreement between the States referred to in the proviso to sub- section (3) and every pro- posal in such agreement 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 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 such publication, on which, and the authority by which, and the time and place at which, the proposal and any representations received in connection therewith will be considered: Provided that no person, association or authority,- other than those mentioned hereunder, shall have a right to make such representation, namely:-

(i) any person already providing passenger or goods transport facilities by any means in the proposed area or along or near the proposed route;

(ii) any association representing persons interested in the provision of road transport facilities recognised in this behalf by the State Government;

(iii) any local authority or police authority within whose jurisdiction any part of the proposed area or route lies.

1. Ins. by Act 100 of 1956, s. 56 (w. e. f. 16- 2- 1957 ).

2. Ins. by Act 56 of 1969, s. 29 (w. e. f. 2- 3- 1970 ),

(3B) Every agreement arrived at between the States shall,, in so far as it relates to the grant of counter signature of permits, be published in the Official Gazette by each of the State concerned and the State Transport Authority of the State and the Regional Transport Authority concerned shall give effect to it.] [ (4) Notwithstanding anything contained in sub- section (1), a Regional Transport Authority of one region may issue a temporary permit under clause (a) or clause (c) of sub- section (1) of section 62 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.

(6) Notwithstanding anything contained in sub- section (1), but subject to any rules that may be made under this Act, the Regional Transport Authority of any one region may, for the convenience of the public, grant a special permit in relation to a public service vehicle for carrying a passenger or passengers for hire or reward under a contract, express or implied, for the use of the vehicle as a whole without stopping to pick up or set down, along the line of route passengers not included in the contract,' and in every case where such special permit is granted, the Regional Transport Authority shall assign to the vehicle, for display thereon, a special distinguishing mark in the form and manner specified by the Central Government and such special permit shall be valid in any other region or State without the 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.]

(7) 2[ Notwithstanding anything contained in sub- section (1) but subject to any rules that may be made under this Act, any State Transport Authority may, for the purpose of promoting tourism, grant 3[ permits valid for the whole or any part of India, in respect of such number of tourist vehicles] as the Central Government may, in respect of that State, specify in this behalf, and the provisions of sections 49, 50, 51. 57, 58, 59, 59A, 60, 61 and 64 shall, as far as may be apply in relation to such permits: 4[ Provided that preference shall be given to applications for permits from-

(i) the India Tourism Development Corporation;

(ii) a State Tourism Development Corporation;

(iii) a State Tourist Department;

(iv) such operators of tourist cars, or such travel agents, as may be approved in this behalf by the Ministry of the Central Government dealing in tourism.]

(8) Every applicant for a permit under sub- section (7) shall depo- sit, by way of security, in such manner and such amount, not exceed-

1. Sub- section (5) omitted by Act 25 of 1968, s. 2 and Sch. (w. e. f. 15- 8- 1968 ).

2. Ins. by Act 56 of 1969, s, 29 (w. e. f. 1- 10- 1970 ),

3. Subs. by Act 27 of 1977, s. 7 (w. e. f. 1- 9- 1977 ).

4. Ins. by Act 47 of 1978, s. 24 (w. e. f. 16- 1- 1979 ).

ing rupees two thousand per motor vehicle, as the Central Government may with reference to each class of vehicle, by notification in the Official Gazette, specify, and such security shall be refunded wholly or in part to the applicant if his application for permit has not been granted, or, as the case may be, granted for a lesser number of vehicles than what was applied for.

(9) Any amount deposited by way of security under sub- section (8) may, at any time, be forfeited in whole or in part by the State Transport Authority if it is satisfied after making such inquiry as it thinks fit that-

(a) the permit was obtained by fraud or misrepresentation, or

(b) the holder of the permit has failed without reasonable cause to use the vehicle or vehicles for the purpose for which the permit was granted, or

(d) the holder of the permit has used or caused it to be used in any manner not authorised by the permit: Provided that no such forfeiture shall be made unless the State Transport Authority has given the permit- holder a reasonable oppor- tunity of being heard.

(10) The following shall be conditions of every permit granted under sub- section (7), namely:-

(i) every motor vehicle in respect of which such permit is granted shall conform to such description, requirement regarding the seating capacity, standards of comforts, amenities and other matters, as the Central Government may specify In this behalf;

(ii) every such motor vehicle shall be driven by a person having such qualifications and satisfying such conditions as may be specified by the Central Government; and

(iii) such other conditions as may be prescribed by the Cen- tral Government.]

(11) 2[ Notwithstanding anything contained in sub- section (1), but, subject to the rules that may be made by the Central Government under sub- section (15), the appropriate authority may, for the purpose of encouraging long distance inter- State road transport, 3[ grant, in a State, national permits to the owners of motor vehicles who use, or intend to use, such vehicles for the carriage of goods, for hire or reward, and the provisions of 5[ section 45, 54] 56, 57, 58, 59, 59A, 60, 61, and 64 shall as for as may be, apply to or in relation to the grant of national permits; 5[ Explanation.- In this section-

(a) " national permit" means a permit granted by the appropriate authority 3[ to the owner of a motor vehicle authorising him to operate as a public carrier] throughout the territory of India or in such contiguous States, not being less than five in number (including the State in which the permit is issued), as may be specified in such permit in accordance with the choice to whom such permit is granted; 3[ indicated by such owner]

(b) " appropriate authority" in relation to a national permit means the authority which is authorised by this Act to grant a public carrier' s permit.

(12) the appropriate authority shall, in considering an application for a national permit, 5[ have regard to the following matters, namely:

(a) no national permit shall be issued-

(i) to an individual owner if he already holds in his own name three or more valid national permits, or, when he holds valid national permits as well as valid inter- State region permits, if the aggregate number of such permits is three or more;

(ii) to a company which already holds in its Own name seven or more valid national permits, or, when it holds valid national permits as well as valid inter- State region permits, if the aggregate number of such permits is seven or more;

(b) other conditions being equal, preference shall be given to applicants who are ex- army personnel, 4[ and] who have valid licences for driving transport vehicles. Explanation.- In this sub- section" company" includes a body corporate.

(13) If, as a result of the acquisition of one or more inter- State region permits by an individual owner or a company after one or more national permits have been granted to him or it, the aggregate number of the permits held by such individual or company exceeds, in the case of the individual, three, or, in the case of a company, seven, the appropriate authority shall, notwithstanding anything contained in section 60, cancel such number of national permits a would bring down the aggregate number of national permit and inter- State region permit held by such individual, to three, or, in the case of a company, to seven: Provided that before cancelling any national permit, the appro- priate authority shall give to the individual owner or the company, as the case may be, an option to indicate which of the national permits held by him or it should be so cancelled.

(14) Nothing contained in sub- section (12) and (13) shall to a State Transport Undertaking.

(15) (a) The Central Government may make rules for carrying out the provisions of sub- section (11).

(b) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the follow- ing matters, namely-.-

(i) the authorisation fee payable for the issue of a national permit;

(ii) the fixation of the laden weight of the motor vehicle;

(iii) the distinguishing particulars or marks to be carried or exhibited in or on the motor vehicle;

(iv) the colour or colours in which the motor vehicle is to be painted;

(v) any matter, not specified in this Act, which shall be borne in mind by the appropriate authority in granting a na- tional permit. Explanation'- In this sub- section" authorisation fee" means the annual fee, not exceeding seven hundred rupees, which may be charged by the appropriate authority of a State to enable a motor vehicle, covered by the national permit, to be used in other States.]