Full Judgment Text
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PETITIONER:
ANNA TRANSPORT CORPORATION LTD., SALEM
Vs.
RESPONDENT:
SAFE SERVICE LTD. AND OTHERS
DATE OF JUDGMENT22/08/1991
BENCH:
PUNCHHI, M.M.
BENCH:
PUNCHHI, M.M.
RAMASWAMY, K.
CITATION:
1992 AIR 64 1991 SCR (3) 708
1992 SCC Supl. (1) 401 JT 1991 (6) 306
1991 SCALE (2)499
ACT:
Motor Vehicles Act, 1939--Sections 68F(1-D) Proviso,
68C, 68D(3), and 134(1- A)--Permit--Grant of--Draft scheme
u/s. 68C pending--Effect of-Continuing permits--Renewal of.
HEADNOTE:
In Civil Appeal No. 937 of 1980 the Regional Transport
Authority, out of two permits, Wanted one permit an the
route Salem to Poolambadi to the appellant-State Transport
Undertaking and tie other to the first respondent.
In Civil Appeal No. 938 of 1980 them was only one permit
for the route Salem to Pallipatti, which was Wanted to the
State Transport Undertaking, denying the second respondent.
In Civil Appeal No. 939 of 1980, on the route Salem to
Poolambadi, ant of two permits, one permit was granted to
the State Transport Undertaking and the other to another
private operator, denying the permit to the respondent
therein.
In Civil Appeal No. 940 of 1980, on the route Salem to
Erode, the objection of the State Transport Undertaking on
the renewal sought by the respondent was sustained and the
permit was granted to the State Transport Undertaking.
In Civil Appeal No. 941 of 1980, an the route Salem to
Tiruchangode, the renewal application of the respondent was
declined on objection by the State Transport Undertaking,
who in turn, an its cation, was granted the permit.
All the aggrieved parties preferred appeals before the
State Transport Appellate Tribunal, which dismissed the
appeals, holding that since a draft scheme under Section 68C
of the Motor Vehicles Act, 1939 had been published by the
State Government and was under consideration at the time
when the matter was pending in appeal, subsection (1-D) of
Section 68-F of the Act stood in the way for any relief
being granted to the private operators.
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The High. Court allowing the revision preferred by the
private operators, upset the orders of the Appellate Author-
ity, directing the Regional Transport Authority to re-con-
sider the matters on merit against which the State Transport
Undertaking approached this Court by Special Leave.
The appellants-the private operators in C.A. Nos. 940-
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941 of 1980 contendeed that Section 68(F)(1-D), proviso of
the Motor Vehicles Act, 1939 was applicable to their cases
on the strength of orders in terms of Section 134(1-A), as
valid permits were continuing and were capable of being
renewed for a limited period, so as to cease being effective
on the publication of the final scheme under .section
68D(3).
Allowing C.A. Nos. 937-939 of 1980 unqualifiedly and
C.A. Nos. 940-941 of 1980 qualifiedly, this Court,
HELD 1. To the cases of non-grant of permits to the ag-
grieved private operates, sub-section (1-D) of Section 68F
of the Act was clearly attracted .No permit could be granted
on their asking in the presence of the draft scheme. And
when none could be granted the exercise of consideration of
the claim of the private operators on merit, was itself a
futlifty. When the law forbade the grant of a permit, merits
of grant stood nowhere. [711F-G]
2. The private operators in C.A. Nos. 940-941 of 1980
were functioning and had sought renewal of their existing
permits on the routes in question and, on denial of the
same, and corresponding grant thereof to the State Transport
Undertaking, grievance arose to those private operators to
take the matter in appeal. Their cases fail within the
proviso to sub-section (1-D) to Section 68F of the Act.
Their permits were capaable of being renewed for a limited
period provided they had exlpired after the publication of
the draft scheme under Section 68C of the Act, [712B-C]
3. Even though the two appeals in C.A. Nos. 940-941 of
1980 shall also meet the same fate as that of C.A. Nos.
937-939 of 1980, they shall remain subjected to an alternate
that in the event of orders under sub-section (1-A) of
Section 134 being existent the Appellate Authority shah
examine the question and pass such orders in relation to the
appeals of these private operators in accordance with law;
but in case there were no such orders earlier, the view of
the Appellate Authority dismissing the appeals shall stand
affirmed. [712G-713A]
710
K.A. Natarajan v.M. Naina Mohammed & Ant., AIR 1978
Madras 28O, referred to.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 93794 1
of 1980.
From the JUdgment and Order dated 22.2.1980 of the
Madras High Court in C.R.P. Nos. 934/78, 602/77, 110/78 and
111/78 and dated 29.2.1980 in C.R.P. No. 601 of 1977.
A.V. Rangam for the Appellant.
S. Srinivasan for the RespOndents.
The following Order of the Court was delivered:
These are five Civil Appeals by Special Leave against
identical orders of a learned Single Judge of the Madras
High Court.
In relation to Civil Appeal No. 937 of 1980 the Regional
Transport Authority, out of two permits, granted one permit
on the route Salem to Poolambadi to the appellant State
Transport Undertaking and the other to the first respondent,
Safe Service Ltd. In Civil Appeal No. 938 of 1980 there was
only one permit for the route Salem to Pallipatti which was
granted to the State Transport Undertaking. 1n other words,
it was denied to the Second respondent, R.P. David. In Civil
Appeal No. 939 of 1980, on the route Salem to Poolambadi,
out of two permits, one permit was granted to the State
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Transport Undertaking and the other to another private
operator, Suganeswara Motor Service denying the permit to
R.P. David-respondent herein. In Civil Appeal No. 940 of
1980, on the route Salem to Erode, the objection of the
State Transport Undertaking on the renewal sought by Parsu-
raman Pillai-respondent was sustained and the permit was
granted to the State Transport Undertaking, leaving the
private operator aggrieved. In Civil Appeal No. 94 1 of
1980, on the route Salem to Tiruchangode, the renewal appli-
cation of K. Ramaswamy-respondent operator was declined on
objection by the State Transport Undertaking, who in turn,
on its application, was granted the permit leaving the
private operator K. Ramaswamy-respondent aggrieved. All the
aggrieved parties preferred appeals before the State Trans-
port Appellate Tribunal. The Tribunal identically in all
these Cases took the view that since a draft scheme under
Section 68C of the Motor Vehicles Act, 1939 had been pub-
lished by the’ State Government and was under
711
consideration at the time when the matter was pending in
appeal, sub-section 1-D of Section 68-F of the Act stood in
the way for any relief ’being granted to the private opera-
tors and thus dismissed the appeals. That provision forbids
permits being granted or renewed during the period interven-
ing between the date of publication of any draft scheme
under Section 68-C of the Act, and the date of publication
of the approved or modified scheme, in favour of any person,
or for any class of road transport service, in relation to
an area, or route, or portion thereof, covered by such
scheme. However, the proviso thereto permits that where the
period of operation of a permit in relation to any area,
route or portion thereof specified in the scheme published
under Section 68-C expires after such publication, such
permit may be renewed for a limited period, but the permit
so renewed shall cease to be effective on the publication of
the scheme under sub-section (3) of Section 68-D of the Act.
As is evident, the Appellate Authority applied sub-
section(1-D) of Section 68F to all the five cases and not
the proviso. The High Court on revision preferred by the
private operators upset the orders of the Appellate Authori-
ty directing the Regional Transport Authority to re-consider
the matter on merit. While doing so it relied on a judgment
of the Madras High Court in K.A. Natarajan v.M. Naina Mo-
hammed & Anr., AIR 1978 Madras 280 to the effect that appeal
before the Appellate Authority was maintainable even though
a draft scheme within the terms of Section 68C of the Act
had appeared on the scene. The State Transport Undertaking
being aggrieved is before us by Special Leave.
We have heard learned counsel on both sides. So far as
Civil Appeal Nos. 937-939/80 are concerned, these are cases
of non grant of permits to the aggrieved private operators.
To their cases sub-section (D) of Section 68F of the Act was
clearly attracted. No permit could be granted on their
asking in the presence of the draft scheme. And when none
could be granted the exercise of consideration of the claim
of the aggrieved. private operators on merit, was itself a
futility. When the law forbade the grant of a permit in the
aforesaid duration, merits of grant stood nowhere. In this
view of the matter, we are inclined to take the view that
the High Court was in error in accepting the related revi-
sion petitions of the private operators and remitting their
cases to the Appellate Authority for reconsideration on
merits. And as a consequence it was further in error in
ordering that till such orders were passed by the Appellate
Authority, both the State Transport Under-
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712
taking and private operators could be allowed to run, in
view of the facts which glare out on the record.
So far as Civil Appeal Nos. 940-941 of 1980 are con-
cerned, the respective private operators were functioning
and had sought renewal of their existing permits on the
routes in question and, on denial of the same, and corre-
sponding grant thereof to the State Transport Undertaking,
grievance arose to those private operators to take the
matter in appeal. Theirs were cases which could perhaps fall
within the proviso to sub-section (1-D) to Section 68F of
the Act. Their permits were capable of being renewed for a
limited period provided they had expired after the publica-
tion of the draft scheme under Section 68C of the Act. The
controverted plea of the State Undertaking however is cate-
goric that the renewal application was rejected on 30th
August, 1974 in one case and on 19th October, 1974 in the
other, and on such rejection both the permits were granted
to the State Transport Undertaking, and when the matter was
in appeal before the Appellate Tribunal, the draft scheme
was, much later, published on 4.6.1976.
Mr. S. Srinivasan, learned counsel appearing for the
private operators in Civil Appeal NOs. 940-941 of 1980
contends that when an appeal was taken to the Appellate
Authority, the provisions of subsection (1-A) of Section 134
of the Act were invoked and orders were obtained, notwith-
standing the expiration of the term of the permit, so as to
continue the permit to be valid until the appeals before the
Appellate Authority were disposed of. On that basis it is
contended that the proviso to sub-section (1-D) of Section
68F of the Act comes to his rescue, on the strength of
orders in terms of sub-section (1-A) of Section 134 of the
Act, as valid permits were continuing and were capable of
being renewed for a limited period, so as to cease being
effective on the publication of the final scheme under sub-
section (3) of Section 68D of.the Act. It may not require
examining the contention because it is fractionally factual.
The necessary factual data has not been placed before us in
the form of a counter or the suggestive orders as such. We
are thus left in the dark. Still, lest we cause any injus-
tice to Mr. S. Srinivasan’s clients, we are goaded to take
the view that even though these two appeals shall also meet
the same fate as that of Civil Appeal Nos. 937-939 of 1980
they shall remain subjected to an alternate that in the
event of orders under sub-section (1-A) of Section 134 being
existent, the Appellate Authority shall examine the question
and pass such orders in relation to the appeals of these
private operators in accordance with law; but in case there
were no such
713
orders earlier, the view of the Appellate Authority dismiss-
ing the appeals shall stand affirm,ed.
In view of what has been said above, we allow Civil
Appeal Nos. 937-939 of 1980 unqualifedly and Civil Appeal
Nos. 940-941 of 1980 qualifiedly in the terms above stated.
Parties shall bear their own costs in all these appeals.
V.P.R. Appeals al-
lowed.
714