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Trade Certificate

An Application for the grant or renewal of a trade certificate shall be made in Form 16 and shall be accompanied by the appropriate fee as specified in rule 81.

Separate applications shall be made for each of the following classes of vehicles, namely:-

  • motor cycle;
  • invalid carriage;
  • light motor vehicle;
  • medium passenger motor vehicle;
  • medium goods vehicle;
  • heavy passenger motor vehicle;
  • heavy goods vehicle;
  • any other motor vehicle of a specified description.

Grant or renewal of trade certificate

On receipt of an application for the grant or renewal of a trade certificate in respect of a vehicle , the registering authority may, if satisfied that the applicant is a bonafide dealer and requires the certificates specified in the applicant one or more certificate , as the case may be , in Form 17[within thirty days from the date of receipt of such an application] and shall assign in respect of each certificate a trade registration mark consisting of the registration mark referred to in notification made under sub-section (6) of section 41 and followed by two letters and a number containing not more than three digits for each vehicle, for example

  • AB - Represent State Code.
  • 12 - Registration District Code.
  • TC1 - Trade certificate number for the vehicle.

No applicant for trade certificate shall be refused by the registering authority unless the applicant is given an opportunity of being heard and reasons for such refusal are given in writing.

Refund

where the registering authority refuses to issue or renew a trade certificate, it shall refund to the applicant fifty percent of the fee paid along with the application.

Period of validity

A trade certificate granted or renewed under rule 35 shall be in force for a period of twelve months from the date of issue or renewal there of shall be effective throughout India.

Issue of duplicate certificates

If at any time the trade certificate is lost or destroyed, its holder shall report to the police station in the jurisdiction of which the loss or destruction has occurred and intimate the fact in writing to the registering authority by whom the certificate was issued and apply in Form 18 to the said authority for a duplicate certificate accompanied by the appropriate fee as specified in rule 81.

On receipt of an application along with the fee , the registering authority may issue a duplicate trade certificate clearly marked "Duplicate".

If after the issue of a duplicate certificate the original is traced, the same shall be surrendered forthwith to the registering authority by which it was issued.

Use of trade registration mark and number

A trade registration mark and number shall not be used upon more than one vehicle at a time or upon any vehicle other than a vehicle bonafide in the possession of the dealer in the course of his business or on any type of vehicle other than the one for which the trade certificate is issued.

The trade certificate shall be carried on a motor vehicle in a weather-proof circular folder and trade registration mark shall be exhibited in a conspicuous place in the vehicle.

Restrictions on use of trade certificate or trade registration mark and number

A trade certificate shall be used only by the person to whom it is issued and such person shall not allow or offer or cause the certificate or the number assigned in connection there with to be used by any other person;

Provided that the provision of this rule shall not apply where the person to whom the certificate is granted, or a person bonafide in his employment and acting under his authority , or any other person bonafide acting on behalf of the folder of a trade certificate is present in the vehicle , or if such vehicle is designed for use by only one person and is being used by a prospective purchaser of that vehicle for the purpose of reasonable test or trail.

Purposes for which motor vehicle with trade certificate may be used

  • for test, by or on behalf of the holder of a trade certificate during the course of, or after completion of, construction or repair; or
  • for proceeding to or returning from a weigh bridge for or after weighment, or to and from any place for its registration; or
  • for a reasonable trail or demonstration by or for the benefit of a prospective purchaser and for proceeding to or returning from the place where such person intends to keeps it; or
  • (d) for proceeding to or returning from the premises of the dealer or of the purchaser or of any any other dealer for the purpose of delivery; or
  • for proceeding to or returning from a workshop with the objective of fitting a body to the vehicle or painting or for repairs; or
  • for proceeding to and returning from airport, railway station, wharf for or after being transported, or
  • for proceeding to or returning from an exhibition of motor vehicles or any place at which the vehicle is to be or has been offered for sale; or
  • for removing the vehicle after it has been taken possession of by or on behalf of the financier due to any default on the part of the other party under the provisions of an agreement of hire-purchase, lease or hypothecation.

Delivery of vehicle subject to registration

No holder of a trade certificate shall deliver a motor vehicle to a purchaser without registration, whether temporary or permanent.