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Section 98: Chapter to override Chapter V and other laws

Motor Vehicles Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 1988
Section 97 All 217 Sections of Motor Vehicles Act Section 99

Legal Commentary & Landmark Judgments: Section 98

Section 98 of the Motor Vehicles Act, 1988 enacts an absolute non-obstante clause commanding that the provisions of Chapter VI and any approved scheme made thereunder shall have effect notwithstanding anything inconsistent contained in Chapter V or any other law, establishing the statutory supremacy of nationalisation schemes.

  • Overriding Non-Obstante Mandate: Section 98 explicitly commands that Chapter VI provisions and approved transport schemes prevail over all contrary provisions in Chapter V, general transport laws, or custom.
  • Extinguishment of Inconsistent Private Rights: Once a nationalisation scheme is approved and published under Chapter VI, any permit granted or sought under Chapter V that conflicts with the exclusive operation of the STU is rendered void ab initio.
  • Complete Exclusion on Overlapping Sectors: Where a route is nationalised for exclusive operation by an STU, private operators cannot be granted permits even on a minor overlapping sector or portion of that route.
Key Landmark Precedents:
  • Adarsh Travels Bus Service v. State of U.P. (1985) 4 SCC 557: The landmark 5-Judge Constitution Bench held that where a route is nationalised under Chapter VI (or Chapter IV-A of the 1939 Act), no private operator can operate any vehicle on any part or sector of the nationalised route; Section 98 overrides all private rights under Chapter V.
  • Ram Krishna Verma v. State of U.P. (1992) 2 SCC 620 : AIR 1992 SC 1888: The Supreme Court reiterated that approved nationalisation schemes have statutory force; the non-obstante clause in Section 98 renders any permit granted to private operators on notified routes completely illegal and void, prohibiting any corridor or pick-and-drop exceptions.
Courtroom Practice & Strategic Litigation Guidance:

In permit litigation where a private client seeks a stage carriage permit intersecting a nationalized highway, check the Gazette notification of the approved scheme. Under Adarsh Travels and Ram Krishna Verma, not even a 1-kilometer overlap is permissible unless the approved scheme explicitly provides an express corridor protection exception.

Section 97 All 217 Sections of Motor Vehicles Act Section 99