Section 217: Repeal and savings

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988

Legal Commentary & Landmark Judgments: Section 217

Section 217 of the Motor Vehicles Act, 1988 codifies the formal repeal of the Motor Vehicles Act, 1939 and corresponding provincial laws, enacting an exhaustive savings framework under Section 6 of the General Clauses Act, 1897 to protect accrued rights, existing licences, permits, pending litigation, and third-party insurance liabilities.

  • Express Repeal of 1939 Act and Corresponding Laws: Section 217(1) expressly repeals the Motor Vehicles Act, 1939 (4 of 1939) and any corresponding provincial or state enactment in force across India, completing statutory unification under the modern parliamentary code.
  • Comprehensive Savings of Accrued Rights and Instruments: Section 217(2) enacts comprehensive savings preserving any notification, rule, regulation, licence, certificate, permit, registration, appointment, or fee issued or granted under the repealed Act, deeming them to have been issued under corresponding provisions of the 1988 Act.
  • Preservation of General Clauses Act Principles and Pending Claims: Section 217(4) explicitly clarifies that the mention of particular savings shall not prejudice the general operation of Section 6 of the General Clauses Act, 1897, preserving accrued tortious compensation claims and pending MACT proceedings without abatement or forfeiture.
  • Seamless Continuity of Third-Party Insurance Mandates: Ensures that statutory third-party insurance policies and rights acquired prior to statutory repeal remain completely enforceable against insurers, preserving the jurisprudence settled under the earlier enactment.
Key Landmark Precedents:
  • G. Govindan v. New India Assurance Co. Ltd. (1999) 3 SCC 754: A three-Judge Bench of the Supreme Court held that the fundamental social welfare principles governing compulsory third-party insurance under the 1939 Act continued seamlessly under the 1988 Act via Section 217 savings; transfer of vehicular ownership automatically transfers the third-party insurance policy to safeguard victims.
  • State of Punjab v. Mohar Singh Pratap Singh, AIR 1955 SC 84: The Supreme Court held that the repeal of an enactment followed by a fresh statute preserves all accrued rights, liabilities incurred, and legal proceedings initiated under the repealed law by virtue of Section 6 of the General Clauses Act, unless a different legislative intention clearly appears.
Courtroom Practice & Strategic Litigation Guidance:

In transitional claims or long-pending appeals originating under the 1939 Act, cite Section 217(4) r/w Section 6 of the General Clauses Act and G. Govindan to prevent insurers from asserting that statutory repeal extinguished their indemnity covenants. Accrued statutory remedies and substantive liabilities survive the repeal unconditionally.