(1) Whoever travels in a stage carriage without having a proper pass or ticket with him or being in or having alighted from a stage carriage fails or refuses to present for examination or to deliver up his pass or ticket immediately on a requisition being made therefor, shall be punishable with fine which may extend to five hundred rupees.
Explanation.— In this section, pass and ticket have the meanings respectively assigned to them in section 124.
(2) If the conductor of a stage carriage, or the driver of a stage carriage performing the functions of a conductor in such stage carriage, whose duty is
(a) to supply a ticket to a person travelling in a stage carriage on payment of fare by such person, either wilfully or negligently,
(i) fails or refuses to accept the fare when tendered, or
(ii) fails or refuses to supply a ticket, or
(iii) supplies an invalid ticket, or
(iv) supplies a ticket of a lesser value, or
(b) to check any pass or ticket, either wilfully or negligently fails or refuses to do so, he shall be punishable with fine which may extend to five hundred rupees.
(3) If the holder of a permit or the driver of a contract carriage refuses, in contravention of the provisions of this Act or rules made thereunder, to ply the contract carriage or to carry the passengers, he shall,
(a) in the case of two-wheeled or three-wheeled motor vehicles, be punishable with fine which may extend to fifty rupees; and
(b) in any other case, be punishable with fine which may extend to [five hundred rupees].
Legal Commentary & Landmark Judgments: Section 178
Section 178 of the Motor Vehicles Act, 1988 enforces public transport discipline and operational integrity by prescribing specific penal sanctions for passenger ticketless travel, dereliction of statutory duty by conductors, and wrongful refusal by contract carriage drivers (taxis and auto-rickshaws) to ply or carry passengers.
In defending commercial drivers against Section 178(3) challans for refusal to ply, establish valid statutory justification such as mechanical breakdown, end-of-shift CNG refill transit, or out-of-permit territorial boundaries. For transport undertakings, ensure passenger inspection reports are contemporaneously signed by independent flying squad officers to withstand labor court scrutiny.