Central Government Act
Section 7(6) in The Motor Vehicles Act, 1939
(6) No. 1[ driving licence] shall be issued to any applicant unless-- 2[ he passes to the satisfaction of the licensing authority the test of competence to drive specified in the Third Schedule. 3[ 3[ 4[ Provided that, where the application is for a licence to drive a motor cycle or a light motor vehicle, the licensing authority shall exempt the applicant from Part I of the test specified in the Third Schedule, if the licensing authority is satisfied-
that the applicant has previously held a licence to drive and that the period between the date of expiry of that licence and the date of such application does not exceed five years; or
that the applicant holds a driving licence issued by a competent authority of any country outside India:]
Provided further that where the application is for a 1[ driving licence] to drive a motor vehicle (not being a transport vehicle) otherwise than as a paid employee, the licensing authority may exempt the applicant from 2[ the test specified in the Third Schedule if the applicant possesses a driving certificate issued by an automobile association recognised in this behalf by the State Government.