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Recovery of consideration for private self-drive vehicle (MOU)


27-Aug-2025 (In Recovery Law)
I would like to seek expert opinion regarding a matter for one of my clients. The client intends to file a summary suit to recover consideration under a MOU through which he rented his private vehicle (bearing a white number plate) for self-drive. 1. Is it legally valid to rent a private vehicle on the basis of an MOU for consideration? 2. Is a summary suit maintainable in such a case, and would it be advisable to proceed with it?
Answers (2)

Answer #1
924 votes
it is not legally Valid to rent out a private vehicle for commercial purposes even under an MOU, as this violates the Motor Vehicle's Act . Such activity requires a commercial licence and yellow plate . an MOU in such context has weak enforceability,as the underlying contract itself is against statutory provisions . Consequently filing a summary suit may not be maintainable . Since the Court generally refuses to enforce agreements contrary to public policy . It is advised to explore recovery under equitable principles like unjust enrichment or conversion but success is uncertain . Proceed with caution , as litigation costs may outweigh recovery .
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Advocate Pavani Kumari

Adv. Pavani Kumari

LawRato Guntur | 400+ Answers
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Answer #2
595 votes
You can't rent a private vehicles on rent. If you rent, it is an offence under MV act. It may cost you fine or seizure of vehicle. However through the MOU, we can say that the other party promised to change the nature of vehicle. The mou is a private affair. You can file summary suit but you need to firstly change your vehicle to private black number plate and then file
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Advocate Sachin Keerthi

Adv. Sachin Keerthi

LawRatoHyderabad | 25+ Answers
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