(1) The transport authority which granted a permit may cancel the permit or may suspend it for such period as it thinks fit—
(a) On the breach of any condition specified in section 84 or of any condition contained in the permit, or
(b) If the holder of the permit uses or causes or allows a vehicle to be used in any manner not authorized by the permit, or
(c) If the holder of the permit ceases to own the vehicle covered by the permit, or
(d) If the holder of the permit has obtained the permit by fraud or misrepresentation, or
(e) If the holder of the goods carriage permit fails, without reasonable cause, to use the vehicle for the purposes for which the permit was granted, or
(f) If the holder of the permit acquires the citizenship of any foreign country:
Provided that no permit shall be suspended or cancelled unless an opportunity has been given to the holder of the permit to furnish his explanation.
(2) The transport authority may exercise the powers conferred on it under sub-section (1) in relation to a permit granted by any authority or person to whom power in this behalf has been delegated under sub-section (5) of section 68 as if the said permit was a permit granted by the transport authority.
(3) Where a transport authority cancels or suspends a permit, it shall give to the holder in writing its reasons for the action taken.
(4) The powers exercisable under sub-section (1) (other than the power to cancel a permit) by the transport authority which granted the permit may be exercised by any authority or person to whom such powers have been delegated under sub-section (5) of section 68.
(5) Where a permit is liable to be cancelled or suspended under clause (a), clause (b), or clause (e) of sub-section (1), and the transport authority is of the opinion that, having regard to the circumstances of the case, it would not be necessary or expedient to cancel or suspend the permit if the holder of the permit agrees to pay a certain sum of money, then, notwithstanding anything contained in sub-section (1), the transport authority may, instead of cancelling or suspending the permit, recover from the holder of the permit the sum of money agreed upon.
(6) The powers exercisable by the transport authority under sub-section (5) may, where an appeal has been preferred under section 89, be exercised also by the appellate authority.
(7) In relation to a permit referred to in sub-section (9) of section 88, the powers exercisable under sub-section (1) (other than the power to cancel a permit) by the transport authority which granted the permit, may be exercised by any transport authority and any authority or persons to whom power in this behalf has been delegated under sub-section (5) of section 68, as if the said permit was a permit granted by any such authority or persons.
Simplified Explanation
Section 86 of the Motor Vehicles Act details the circumstances and procedures for the cancellation and suspension of vehicle permits. This provision ensures that the regulatory authorities have the means to enforce compliance with the rules and conditions specified in the permits, and it serves as a deterrent against violations, maintaining the safety and integrity of transportation services.
Reasons for Cancellation or Suspension
- Violation of Permit Conditions: If a permit holder fails to comply with any of the conditions of the permit, such as route violations, overloading, or failing to maintain the vehicle in a safe condition.
- Safety Violations: Involvement in activities that compromise the safety of passengers, other road users, or the public, including repeated traffic law violations.
- Fraud or Misrepresentation: Providing false information or engaging in deceptive practices during the permit application process or during operations.
- Operational Issues: Failure to use the permit within the stipulated time or using the vehicle for purposes other than those authorized by the permit.
Procedures for Cancellation or Suspension
- Notice and Hearing: The permit holder is typically given a notice outlining the reasons for the proposed cancellation or suspension and an opportunity to present their case in a hearing before the Regional Transport Authority (RTA).
- Temporary Suspension: In cases where immediate suspension is deemed necessary to prevent potential harm or when a serious violation is being investigated, the RTA may temporarily suspend the permit pending a formal hearing.
- Decision: After considering the evidence and hearing the permit holder’s defense, the RTA makes a decision on whether to cancel or suspend the permit. The authority must document the reasons for its decision.
Consequences of Cancellation or Suspension
- Cease of Operations: The permit holder must immediately cease the operation of the vehicle for which the permit was canceled or suspended.
- Reapplication Restrictions: There may be restrictions on when the permit holder can reapply for a new permit, especially if the cancellation was due to serious or repeated violations.
- Appeal Process: The permit holder has the right to appeal the decision to a higher authority or a court, depending on the provisions of the law.
Impact on Stakeholders
- For Permit Holders: Understanding the grounds for cancellation and suspension is crucial for compliance and maintaining their permit. It encourages adherence to safety standards and permit conditions.
- For Regulatory Authorities: Provides a mechanism to enforce rules and maintain control over the transport system, ensuring that operations are safe and compliant with the law.
- For the Public: Enhances public safety and confidence in the transportation system by ensuring that only compliant and safe operators are in service.
Section 86 is crucial for maintaining discipline and safety standards in the transportation sector, ensuring that permit holders adhere strictly to the terms under which they are allowed to operate. This regulatory oversight helps prevent accidents, reduces fraud, and promotes a reliable and efficient transport system.
