Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 9
PETITIONER:
A. VISWANATHAN
Vs.
RESPONDENT:
STATE TRANSPORT APPELLATE TRIBUNAL,PONDICHERRY & ANOTHER
DATE OF JUDGMENT06/02/1987
BENCH:
VENKATARAMIAH, E.S. (J)
BENCH:
VENKATARAMIAH, E.S. (J)
OZA, G.L. (J)
DUTT, M.M. (J)
CITATION:
1987 AIR 731 1987 SCR (2) 179
1987 SCC (2) 63 JT 1987 (1) 369
1987 SCALE (1)249
ACT:
Motor Vehicles Act, 1939: Sections 46, 57, 62 &
47(1A)--Issue of temporary permits by R.T.A. repeatedly for
a long number of years-Whether permissible--Temporary per-
mits to be effective for limited period of 4 months--Stage
carriage permits--Reservation for Scheduled Castes, Sched-
uled Tribes--Constitutionally valid.
HEADNOTE:
Respondent No. 1--State Transport Appellate Tribunal set
aside a temporary permit to ply a stage carriage on the
pondicherry-Madras route issued under s.62 of the Motor
Vehicles Act, 1939 in favour of the appellant, and granted
it in favour of respondent no. 2 for the remaining period of
the temporary permit. Hence this appeal by special leave.
The Court found that the period of temporary permit having
come to an end, no further orders are necessary as regards
the person who could operate a stage carriage under that
permit.
The Union Territory of Pondicherry, after ’the lapse of 7
years from the date of the amendment of section 47 of the
Act, issued rules on 12.6. 1985 regarding reservations to be
made in favour of persons belonging to Scheduled Castes and
Scheduled Tribes under Section 47(1A) of the Act. Having
regard to the slackness that is creeping into the manner in
which the provisions of the Act regarding reservation of
certain percentage of stage carriage permits to be made in
favour of persons belonging to Scheduled Castes Scheduled
Tribes, and issue of temporary permits are being adminis-
tered by some Transport Authorities, this Court,
HELD: 1.(1) Section 47 of the Act deals with the proce-
dure to be followed by a Regional Transport Authority. In
considering an application for a stage carriage permit the
Regional Transport Authority should have due regard to the
following matters, namely: (a) the interest of the public
generally; (b) the advantage to the public of the service to
be provided, including the saving of time likely to be
effected thereby and any convenience arising from journeys
not being broken; (c) the adequacy of other passenger trans-
port services operating or
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 9
180
likely to operate in the near future, whether by road or
other means, between the places to be served; (d) the bene-
fit to any particular locality or localities likely to be
afforded by the service; (e) the operation by the applicant
of other transport services, including those in respect of
which applications from him for permits are pending; and (f)
the condition of the roads included in the proposed route or
area. It should also take into consideration any representa-
tions made by persons already providing passenger transport
facilities by any means along or near the proposed route or
area, or by any association representing persons interested
in the provision of road transport facilities recognised in
this behalf by the State Government, or by any local author-
ity or police authority within whose jurisdiction any part
of the proposed route or area lies. Thus the paramount
consideration that should govern the decision of a Regional
Transport Authority in issuing a permit to run a stage
carriage is the interest of the general publice. [183E-H;
184A-B]
1.(2) It was felt that the permits for plying stage
carriages in India were being cornered by persons belonging
to richer and more advanced classes in society, and persons
belonging to the Scheduled Castes, Scheduled Tribes and
other economically weaker sections of the community were not
able to compete with people who were rich and more advanced.
Parliament therefore amended section 47 of the Act by intro-
ducing provisions for making reservation of certain percent-
age of stage carriage permits to persons belonging to Sched-
uled Castes, Scheduled Tribes and economically weaker sec-
tions of the community, viz Section 47(1A). The reservation
made in favour of the Scheduled Castes and Scheduled Tribes
is protected by clause(4) of Article 15 of the Constitution
of India. [184B-D; G]
1.(3) If stage carriage permits are to be issued then in
compliance with sub-section(IA) of Section 47 of the Act
certain percentage of the said permits would have to be
reserved for the persons belonging to Scheduled Castes,
Scheduled Tribes and if the Government so desires to the
economically weaker sections of the community. If the issue
of such permits is postponed for any reason and only tempo-
rary permits are issued then the persons belonging to Sched-
uled Castes, Scheduled Tribes and the weaker sections would
not be able to enjoy the benefit of the reservations. [186H;
187A-B]
In the instant case, it is regrettable that for some
reason or other the State Transport Authority of Pondicherry
has not taken steps to issue regular permits on 18 routes in
respect of which it has entered into inter-State agreements
with the State of Tamil Nadu even though the
181
need for issuing those permits is beyond dispute. But, on
the other hand for nearly six years, the State Transport
Authority of Pondicherry is issuing temporary permits under
s 62 of the Act repeatedly in respect of the routes. The
disadvantages suffered by the persons belonging to the
Scheduled Castes, Scheduled Tribes and the economically
weaker sections of the community by the procedure adopted by
the State Transport Authority are obvious. [186F-H]
2(1). Under section 62 of the Act it is permissible to a
Regional Transport Authority to issue temporary permits to
be effective for a limited period not exceeding four months
without following the procedure laid down in s.57 of the
Act. Such temporary permits can be issued only for the
conveyance of passengers on special occasions such as to and
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 9
from fairs and religious gatherings or for the purposes of a
seasonal business or to meet a particular temporary need or
pending decision on an application for the renewal of a
permit. The Regional Transport Authority cannot grant a
temporary permit for a route or area specified in an appli-
cation for grant of a new permit under s.46 or s.54 of the
Act during the pendency of the application. That section
further provides that a temporary permit issued under that
section shall in no case be granted more than once in re-
spect of any route or area specified in an application for
the renewal of a permit during the pendency of such applica-
tion for renewal. A temporary permit can thus be granted
only if the permit is required for the purposes or reasons
mentioned in clauses (a) to (d) of s.62( D of the Act or in
the circumstances referred to in sub-section(2) thereof.
[188F-H; 189A-B]
2(2). There cannot be also a renewal or revalidation of
a temporary permit. The revalidation or renewal of a tempo-
rary permit or exension of the period for which a temporary
permit is issued is not contemplated by law. [189C-D]
In the instant case, the action taken by the State
Transport Authority in issuing temporary permits repeatedly
for a long number of years is clearly in violation of the
letter and spirit of section 62 of the Act. [189D]
Andhra Pradesh State Road Transport Corporation v.K.
Venkataramireddy and Others, [1971] 3 S.C.R. 803 and Gandha-
ra Transport Co. Ltd. v. The State of Punjab and others, [
1963] Supp. S.C.R. 800, followed.
3(1) The Regional Transport Authority which is charged with
the
182
duty of issuing permits for transport vehicles under the Act
in the public interest should wherever it finds that the
need for issuing such stage carriage permit is established
take immediate steps to invite applications from persons who
are willing to run the stage carriage on the route or in the
area in question and proceed to grant the permit in favour
of a deserving applicant. If any person on his own makes
application for the grant of a stage carriage permit, the
Regional Transport Authority should consider such applica-
tion in accordance with law and proceed to grant a permit if
it finds that it is necessary to do so. [189D-F]
3(2) If a regular permit is issued it would be in force
for a period not less than three years and not more than
five years as may be determined by the Regional Transport
Authority and such permit is capable of being renewed under
section 58 of the Act. But, if the Regional Transport Au-
thority proceeds to issue a temporary permit then at the end
of every four months, it will have to spend time over the
consideration of fresh applications for the issue of such
permits and it is needless to say that the necessity for
making applications at the end of every four months would
entail many undesirable consequences which should be avoid-
ed. [189F-H]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1522 of
1986.
From the Judgment and Order dated 3.4.1986 of the State
Transport Appellate Tribunal, Pondicherry in M.V.A. No. 15
of 1986.
R. Venkataramani for the Appellant.
K.R. Nambiar and S. Srinivasan for the Respondents.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 9
The Judgment of the Court was delivered by,
VENKATARAMIAH, J. This appeal by special leave is filed
against the order dated April 3, 1986 passed by the State
Transport Appellate Tribunal, Pondicherry (hereinafter
referred to as ’the Tribunal’) setting aside a temporary
permit to ply a stage carriage issued in favour of the
appellant in respect of the route Pondicherry to Madras via
Thirukanur, Vikaravandi, Tindivanam and Chingleput under
section 62 of the Motor Vehicles Act, 1939 (hereinafter
referred to as ’the Act’) and granting it in favour of
Respondent No. 2 A. Balasundaram for the remaining period of
the temporary permit, i.e., upto May 31, 1986. The period of
the temporary permit having come
183
to an end no further orders are necessary as regards the
person who could operate a stage carriage under that permit.
This appeal could have been disposed of with this observa-
tion but we are compelled to pronounce a detailed order in
this case having regard to the slackness that is creeping
into the manner in which the provisions of the Act are being
administered by some transport authorities.
Chapter IV of the Act deals with the control of trans-
port vehicles. Section 42 of the Act lays down that no owner
of a transport vehicle shall use or permit the use of the
vehicle in any public place whether or not such vehicle is
actually carrying any passenger or goods save in accordance
with the conditions of a permit granted or countersigned by
a Regional or State Transport Authority of the Commission
authorising the use of the vehicle in that place in the
manner in which the vehicle is being used. Section 44 of the
Act provides for the constitution of the State Transport
Authority and the Regional Transport Authorities to exercise
and discharge the respective powers assigned to them under
the Act. The said Chapter contains the provisions under
which permits may be issued by the Regional Transport Au-
thority for running a stage carriage, a contract carriage, a
private carrier and a public carrier. It also provides for
the issue of permits valid for the whole or any part of
India for running tourist vehicles. Chapter IV contains the
provisions regarding the manner in which the applications
have to be made for different kinds of permits and the
procedure that has to be followed in each case for granting
such permits. Section 47 of the Act which is in Chapter IV
deals with the procedure to be followed by a Regional Trans-
port Authority. In considering an application for a stage
carriage permit the Regional Transport Authority should have
due regard to the following matters, namely: (a) the inter-
est of the public generally; (b) the advantages to the
public of the service to be provided, including the saving
of time likely to be effected thereby and any convenience
arising from journeys not being broken; (c) the adequacy of
other passenger transport services operating or likely to
operate in the near future, whether by road or other means,
between the places to be served; (d) the benefit to any
particular locality or localities likely to be afforded by
the service; (e) the operation by the applicant of other
transport services, including those in respect of which
applications from him for permits are pending; and (f) the
condition of the roads included in the proposed route or
area. It should also take into consideration any representa-
tions made by persons already providing passenger transport
facilities by any means along or near the proposed route or
area, or by any association representing persons interested
in the provision
184
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 9
of road transport facilities recognised in this behalf by
the State Government, or by any local authority or police
authority within whose jurisdiction any part of the proposed
route or area lies. A reading of the aforesaid provisions
shows that the paramount consideration that should govern
the decision of a Regional Transport Authority in issuing a
permit to run a stage carriage is the interest of the gener-
al public.
Since it was felt that the permits for plying stage
carriages issued by the several Regional Transport Authori-
ties in India were being cornered by persons belonging to
richer and more advanced classes in society and persons
belonging to the Scheduled Castes, Scheduled Tribes and
other economically weaker sections of the community were not
able to compete with people who were rich and more advanced,
Parliament amended section 47 of the Act by Act 47 of 1978
by introducing provisions for making reservation of certain
percentage of stage carriage permits to persons belonging to
Scheduled Castes, Scheduled Tribes and economically weaker
sections of the community. After the above amendment section
47(1A) of the Act provides that the Government of a State
shall reserve in that State certain percentage of stage
carriage permits for the Scheduled Castes and the Scheduled
Tribes and the reservation of permits under the said provi-
sion is directed to be made in the same ratio as in the case
of appointments made by direct recruitment by public serv-
ices of the State. Such reservation appears to be mandatory.
Sub-section (1C) of section 47 of the Act provides that the
Government of a State may, having regard to the extent to
which persons belonging to economically weaker section of
the community have been granted stage carriage permits in
that State--(a) reserve in that State such percentage of
stage carriage permits, as may be prescribed, for persons
belonging to economically weaker sections of the community;
or (b) notwithstanding anything contained in the proviso to
sub-section (1) of section 47 give preference, in such
manner as may be prescribed, to applications for stage
carriage permits from such persons. Sub-section (1D) of
section 47 of the Act provides that the number of permits
reserved under subsection (lB) and clause (a) of sub-section
(1C) of section 47 shall not exceed fifty per cent of that
total number of stage carriage permits granted during a
calendar year. The reservation made in favour of the Sched-
uled Castes and the Scheduled Tribes is protected by clause
(4) of Article 15 of the Constitution of India which pro-
vides that nothing in Article 15 shall prevent the State
from making any special provision for the advancement of any
socially and educationally backward classes of citizens or
for the Scheduled Castes and the Scheduled Tribes.
185
Such special provision would, therefore, be out of the
mischief of clause (1) of Article 15 which provides that the
State shall not discriminate against any citizen on grounds
only of religion, race, caste sex, place of birth or any of
them. It is also in consonance with Article 46 of the Con-
stitution. Such special provision is necessary to assist the
members belonging to the Scheduled Castes and Scheduled
Tribes and to the weaker sections of society economically as
they cannot otherwise compete with the other sections of
society. After the introduction of sub-sections (1A) to (1H)
into section 47 of the Act the Government of India sent a
communication to all the State Governments and Union Terri-
tories to implement the reservations for members belonging
to Scheduled Castes and Scheduled Tribes provided therein
without delay. It reads thus:
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 9
"Government of India
Ministry of Shipping and Transport
No. TGM(70) New Delhi
dated the 24th August, 1979
To
All the State Govt/Union Territory Administrations.
Sub: Reservation of permits for scheduled castes/
scheduled tribes as provided in the Motor Vehicles (Amend-
ment) Act 1978.
Sir.
I am directed to refer to this
Ministry’s letter of even number dated the
31st January 1979 on the above subject and to
say that so far as reservation in favour of
scheduled castes and scheduled tribes is
concerned, the provisions of the Motor Vehi-
cles (Amendment) Act, 1978 can be implemented
straight way. The implementation of this
provision need not wait for the framing of any
Rules, since the rules are required to be
framed only in respect of circumstances under
which, the manner in which, and the extent to
which the reservation may be carried forward.
Since the question of carrying forward will
arise only after the expiry of the current
year, rules in this respect can be finalised
during the course of the year. The State
Govts/Union Ter-
186
ritories are requested to kindly have the
provisions of the Act in regard to reservation
for scheduled castes and scheduled tribes in
respect of stage carriage permits, public
carrier permits and national permits imple-
mented without further delay.
2. The State Govts/Union territory Administra-
tions are also requested to indicate the
number of permits of various categories grant-
ed, after the provisions of the Motor Vehicles
(Amendment) Act, 1978 was brought into force;
the number reserved for scheduled
castes/scheduled tribes and the number of
permits actually granted to scheduled castes
and scheduled tribes with reasons for short-
fall if any.
Yours faith-
fully,
Sd/-
B.R.
CHAVAN
DEPUTY SECRETARY TO
THE
GOVERNMENT OF
INDIA".
The Union Territory of Pondicherry after the lapse of
nearly seven Years from the date of the amendment of section
47 of the Act issued rules regarding reservations to be made
in favour of persons belonging to Scheduled Castes and
Scheduled Tribes under section 47(1A) of the Act on 12.6.
1985. On the issue of said rules a number of writ petitions
were filed by persons not belonging to Scheduled Castes and
Scheduled Tribes questioning the validity of sub-section
(1A) of section 47 of the Act and the said petitions are
still pending. We shall not say anything more on the merits
of those petitions.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 9
It is regrettable that for some reasons or other the
State Transport Authority of Pondicherry has not taken steps
to issue regular permits on about 18 routes in respect of
which it has entered into inter-State agreements with the
State of Tamil Nadu even though the need for issuing those
permits is beyond dispute. But, on the other hand for nearly
six years, it is stated, that the State Transport Authority
of Pondicherry is issuing temporary permits under section 62
of the Act repeatedly in respect of the routes. the disad-
vantages surffeted by the persons belonging to the Scheduled
Castes, Scheduled Tribes and the economically weaker sec-
tions of the community by the procedure adopted by the State
Transport Authority are obvious. If stage carriage permits
are to be issued then in compliance with sub-section (1A) of
section 47 of the Act certain percentage of the said permits
would
187
have to be reserved for the persons belonging to Scheduled
Castes, Scheduled Tribes and if the Government so desires to
the economically weaker sections of the community. If the
issue of such permits is postponed for any reason and only
temporary permits are issued then the persons belonging to
Scheduled Castes, Scheduled Tribes and the weaker sections
would not be able to enjoy the benefit of the reservation.
It is unfortunate that even though Parliament had enacted
the amendments nearly nine years ago the benefit of those
provisions has not been availed of by those for whose bene-
fit they were enacted. We are informed that the appellant
and some others belonging to Scheduled Castes or Scheduled
Tribes have made applications for grant of regular permits
and those applications have remained undisposed of on ac-
count of the litigiousness of others.
The action taken by the State Transport Authority in
issuing temporary permits repeatedly for a long number of
years is clearly in violation of the letter and spirit of
section 62 of the Act under which such temporary permits are
issued. Section 62 of the Act reads thus:
"62. Temporary permits--(1) A Regional
Transport Authority may without following the
procedure laid down in section 57, grant
permits, to be effective for a limited period
not in any case to exceed four months, to
authorise the use of a transport vehicle
temporarily--
(a) for the conveyance of passengers on
special occasions such as to and from fairs
and religious gatherings, or
(b) for the purposes of a seasonal business,
or
(c) to meet a particular temporary need, or
(d) pending decision on an application
for the renewal of a permit and may attach to
any such permit any condition it thinks fit.
Provided that a temporary permit
under this section shall, in no case, be
granted in respect of any route or area speci-
fied in an application for the grant of a new
permit under section 46 or section 54 during
the pendency of the application:
Provided further that a temporary permit under
this
188
section shall, in no case, be granted more
than once in respect of any route or area
specified in an application for the renewal of
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 9
a permit during the pendency of such applica-
tion for renewal.
(2). Notwithstanding anything con-
tained in subsection (1), a temporary permit
may be granted thereunder in respect of any
route or area where--
(i) no permit could be issued under
section 48 or section 51 or section 54 in
respect of that route of area by reason of an
order of a court or, other competent authority
restraining the issue of the same, for a
period not exceeding the period for which the
issue of the permit has been so restrained; or
(ii) as a result of the suspension by
a court or other competent authority of the
permit of any vehicle in respect of that route
or area, there is no transport vehicle of the
same class with a valid permit, in respect of
that route or area, or there is no adequate
number of such vehicles in respect of that
route or area, for a period not exceeding the
period of such suspension;
Provided that the number of transport
vehicles in respect of which the temporary
permit is so granted shall’ not exceed the
number of vehicles in respect of which the
issue of a permit has been restrained or as
the case may be, the permit has been suspend-
ed."
Under section 62 of the Act it is permissible to a
Regional Transport Authority to issue temporary permits to
be effective for a limited period not exceeding four months
without following the procedure laid down in section 57 of
the Act. Such temporary permits can be issued only for the
conveyance of passengers on special occasions such as to and
from fairs and religious gatherings or for the purposes of a
seasonal business or to meet a particular temporary need or
pending decision on an application for the renewal of a
permit. The regional Transport Authority cannot grant a
temporary permit for a route or area specified in an appli-
cation for grant of a new permit under section 46 or section
54 of the Act during the pendency of the application. That
section further provides that a temporary permit issued
under that section shall in no case be granted more that
once in respect of any
189
route or area specified in an application for the renewal of
a permit during the pendency of such application for renew-
al. A temporary permit can thus be granted only if the
permit is required for the purposes or reasons mentioned in
clauses (a) to (d) of section 62(1) of the Act which are
mentioned above or in the circumstances referred to in sub-
section (2) thereof. This is clear from the decision of this
Court in Andhra Pradesh State Road Transport Corporation
v.K. Venkataramireddy and others, [1971] 3 S.C.R. 803. In
that decision this court held that a temporary permit could
be issued only for the purposes or reasons mentioned in
clauses (a) to (d) of section 62 of the Act as it stood
then. Subsequent to the amendment of section 62 of the Act a
temporary permit can also be issued under the circumstances
mentioned in sub-section (2) of section 62 of the Act. There
cannot be also a renewal or revalidation of a temporary
permit as held by this CoUrt in Gandhara Transport Co. Ltd.
v. The State of Punjab and others, [1963] Supp. 1 S.C.R.
800. The revalidation or renewal of a temporary permit or
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 9
extension of the period for which a temporary permit is
issued is not contemplated by law. The issue of temporary
permits by the State Transport Authority in the instant case
continuously for a number of years is clearly in violation
of the statute. The Regional Transport Authority which is
charged with the duty of issuing permits for transport
vehicles under the Act in the public interest should wherev-
er it finds that the need for issuing such stage carriage
permit is established take immediate steps to invite appli-
cations from persons who are willing to run the stage car-
riage on the route or in the area in question and proceed to
grant the permit in favour of a deserving applicant. If any
person on his own makes application for the grant of a stage
carriage permit, the Regional Transport Authority should
consider such application in accordance with law and proceed
to grant a permit if it finds that it is necessary to do so.
It may also be noted that if a regular permit is issued, it
would be in force for a period not less than three years and
not more than five years as may be determined by the Region-
al Transport Authority and such permit is capable of being
renewed under section 58 of the Act. But, if the Regional
Transport Authority proceeds to issue a temporary permit
then at the end of every four months it will have to spend
time over the consideration of fresh applications for the
issue of such permits and it is needless to say that the
necessity for making applications at the end of every four
months would entail many undesirable consequences which
should be avoided. With these observations we dispose of the
appeal.
M.L.A. Appeal disposed
of.
190