Motor Vehicles Act Section 110A — Recall of motor vehicles

CHAPTER VII CONSTRUCTION, EQUIPMENT AND MAINTENANCE OF MOTOR VEHICLES

Civil

Summary

Sub-section (1) lets the Central Government order a manufacturer to recall motor vehicles of a particular type or its variants, but only if two conditions are met. First, a defect in that type of vehicle may cause harm to the environment, the driver, the occupants, or other road users. Second, that defect has been reported to the Central Government by a specified percentage of owners (as set by government notification), or by a testing agency, or by any other source.

Under clause (a) of sub-section (1), the defect must be one that could cause harm to the environment or to the driver, occupants, or other road users. Under clause (b) of sub-section (1), the defect must have been reported to the Central Government by the required percentage of owners, a testing agency, or any other source.

Sub-section (2) states that if the defect is in a motor vehicle component, the Central Government can order the manufacturer to recall all motor vehicles containing that component, regardless of the vehicle's type or variants.

Sub-section (3) says that a manufacturer whose vehicles are recalled under sub-section (1) or (2) must do one of the following: reimburse buyers for the full cost of the vehicle, subject to any hire-purchase or lease-hypothecation agreement; or replace the defective vehicle with another vehicle of similar or better specifications that complies with the standards under the Act, or repair it. The manufacturer must also pay fines and other dues as per sub-section (6).

Under clause (a) of sub-section (3), the manufacturer must reimburse buyers for the full cost of the vehicle, subject to any hire-purchase or lease-hypothecation agreement. Under clause (b) of sub-section (3), the manufacturer must either replace the defective vehicle with one of similar or better specifications that complies with the Act's standards, or repair it. Under clause (c) of sub-section (3), the manufacturer must pay fines and other dues in accordance with sub-section (6).

Sub-section (4) provides that if a manufacturer notices a defect in a vehicle they made, they must inform the Central Government and start recall proceedings on their own. In such a case, the manufacturer is not liable to pay the fine mentioned in sub-section (3).

Sub-section (5) allows the Central Government to authorise any officer to investigate matters under this section. That officer will have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908, for certain matters. These include summoning and enforcing the attendance of any person and examining them on oath, requiring the discovery and production of documents, receiving evidence on affidavit, and any other matter as may be prescribed.

Under clause (a) of sub-section (5), the officer can summon and enforce the attendance of any person and examine them on oath. Under clause (b) of sub-section (5), the officer can require the discovery and production of any document. Under clause (c) of sub-section (5), the officer can receive evidence on affidavit. Under clause (d) of sub-section (5), the officer can handle any other matter as may be prescribed.

Sub-section (6) says the Central Government may make rules for regulating the recall of motor vehicles of a particular type or its variants, for any defect that, in the government's opinion, may cause harm to the environment or to the driver, occupants, or other road users.

Official Text

(1)The Central Government may, by order, direct a manufacturer to recall motor vehicles of a particular type or its variants, if—

(a) a defect in that particular type of motor vehicle may cause harm to the environment or to the driver or occupants of such motor vehicle or other road users; and

(b) a defect in that particular type of motor vehicle has been reported to the Central Government by—

(i) such percentage of owners, as the Central Government, may by notification in the Official Gazette, specify; or

(ii) a testing agency; or

(iii) any other source.

(2) Where the defect referred to in sub-section (1) lies in a motor vehicle component, the Central Government may, by order, direct a manufacturer to recall all motor vehicles which contain such component, regardless of the type or variants of such motor vehicle.

(3) A manufacturer whose vehicles are recalled under sub-section (1) or sub-section (2), shall—

(a) reimburse the buyers for the full cost of the motor vehicle, subject to any hire-purchase or lease-hypothecation agreement; or

(b) replace the defective motor vehicle with another motor vehicle of similar or better specifications which complies with the standards specified under this Act or repair it; and

(c) pay such fines and other dues in accordance with sub-section (6).

(4) Where a manufacturer notices a defect in a motor vehicle manufactured by him, he shall inform the Central Government of the defect and initiate recall proceedings and in such case the manufacturer shall not be liable to pay fine under sub-section (3).

(5) The Central Government may authorise any officer to conduct investigation under this section who shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavit; and

(d) any other matter as may be prescribed.

(6) The Central Government may make rules for regulating the recall of motor vehicles, of a particular type or its variants, for any defect which in the opinion of the Central Government, may cause harm to the environment or to the driver or occupants of such motor vehicle or to other road users.