Section 73: Application for contract carriage permit

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1988

Legal Commentary & Landmark Judgments: Section 73

Section 73 of the Motor Vehicles Act, 1988 sets out the statutory procedure and essential particulars required for submitting an application for a contract carriage permit, covering taxis, maxi-cabs, tourist buses, and chartered motor vehicles.

  • Particulars of Vehicle and Operational Domain: Under Section 73, the application must state the type and seating capacity of the motor vehicle, the area or designated routes for which the permit is sought, and compliance with passenger safety infrastructure.
  • Nature of Contract Carriage Operation: Unlike stage carriages, contract carriages operate under an express or implied contract for carrying passengers from one point to another as a group, without picking up or setting down individual passengers en route.
  • Applicant Eligibility and Open Application: Applications may be filed by individual owners, fleet companies, or tourist operators at any time under the liberalized procedural regime of Chapter V.
Key Landmark Precedents:
  • State of Andhra Pradesh v. B. Noorulla Khan (2004) 6 SCC 194: The Supreme Court held that the distinguishing characteristic of a contract carriage under Section 73 is that it carries passengers under a single contract from one point to another without plying for hire like a stage carriage.
  • Roshan Lal Gautam v. State of U.P. (1990) 4 SCC 344: The Supreme Court explained the fundamental dichotomy between stage carriage applications under Section 70 and contract carriage applications under Section 73, warning against disguised operations.
Courtroom Practice & Strategic Litigation Guidance:

In applications under Section 73, clearly specify the intended operational category (e.g., all-India tourist cab, local meter taxi, or chartered corporate bus). Ensure that the vehicle configuration matches the prescribed contract carriage safety norms under the CMVR to prevent mechanical objections by the RTO.