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Section 108: Certain powers of State Government exercisable by the Central Government

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988
Section 107 All 217 Sections of Motor Vehicles Act Section 109

Legal Commentary & Landmark Judgments: Section 108

Section 108 of the Motor Vehicles Act, 1988 divests State Governments and vests exclusive Chapter VI statutory powers in the Central Government with respect to nationalization schemes on inter-State routes operated by corporations or companies owned or controlled by the Central Government alone or jointly with States.

  • Exclusive Central Jurisdiction over Multi-Jurisdictional Schemes: Expressly limits State Government authority by vesting Chapter VI powers exclusively in the Central Government whenever an undertaking owned or controlled by the Centre (or jointly by Centre and States) is involved.
  • Inter-State Route or Area Criterion: The exercise of Central Government power is strictly conditioned upon the nationalization scheme operating across an inter-State route or area connecting two or more States.
  • Statutory Ouster of Unilateral State Authority: Prevents individual State Governments from unilaterally formulating, approving, or modifying nationalization schemes that affect inter-State transport undertakings in which the Union of India holds ownership or financial control.
Key Landmark Precedents:
  • Aman Hingorani v. Union of India (2010) 171 DLT 685: The Delhi High Court observed that Section 108 ensures federal coherence in inter-State transport operations, holding that where a national transport corporation is involved, individual States cannot bypass Central authority in regulating inter-State routes.
  • Deep Narain Pandey v. State of Bihar AIR 1960 Pat 575: The Patna High Court held that the legislative architecture of Section 108 operates as a constitutional check, ensuring that inter-State vehicular carriage under Central auspices is immune from conflicting regional State transport regulations.
Courtroom Practice & Strategic Litigation Guidance:

When litigating inter-State permit disputes involving Central or joint public sector undertakings (such as multi-State road transport corporations), immediately check whether the scheme was approved by the Central Government. Any unilateral scheme modification issued by a State Government over an inter-State corridor covered by Section 108 is void for lack of jurisdiction.

Section 107 All 217 Sections of Motor Vehicles Act Section 109