Full Judgment Text
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CASE NO.:
Appeal (civil) 1725 of 2001
PETITIONER:
Captain Sube Singh & Ors.
RESPONDENT:
Lt. Governor of Delhi & Ors.
DATE OF JUDGMENT: 30/04/2004
BENCH:
R. C. Lahoti, B. N. Srikrishna & G. P. Mathur
JUDGMENT:
J U D G M E N T
SRIKRISHNA, J.
This appeal by special leave is directed against the judgment of the
High Court of Delhi dated 19th October, 2000 dismissing the writ petition of
the appellants under Article 226 of the Constitution of India challenging the
notification dated 31st December, 1999 issued by the Lt. Governor of the
National Capital Territory of Delhi.
Appellant Nos. 1 to 4 are transport operators who have been issued
stage carriage permits by the State Transport Authority, Delhi under various
schemes. Appellant No. 5 is an association of bus operators in Delhi, whose
members have been granted permits under various schemes for upliftment of
different sections of society.
Respondent Nos. 1 to 3 represent the Government of the National
Capital Territory of Delhi and Respondent No. 4 is a statutory corporation
set up under Section 3 of the Road Transport Corporation Act, 1950.
Respondent No. 4, Delhi Transport Corporation (DTC), was
continuously making losses and found itself unable to handle the volume of
work required for providing efficient transport facilities for the public in
Delhi. The work of transport was opened up to private operators like the
appellants, who were granted stage carriage permits under the provisions of
the Motor Vehicles Act, 1988 read with the Rules made thereunder
(hereinafter referred to, respectively, as ’the Act’ and ’the Rules’). Under
the new policy, which was adopted in or about 1991-92, about 3000 private
buses were permitted to operate within the territory of Delhi. These private
operators were granted permits to run buses under the provisions of the Act.
The permit conditions were notified under a Scheme for grant of State
Carriage Permits to private bus operators in Delhi by the State Transport
Authority. The Scheme was framed for augmentation of the public
transport in Delhi. The Scheme was formulated and publicised and also
freely available to all persons intending to seek permits for operating stage
carriages. Although, there was some dispute as to which were the exact
permit conditions under which the stage carriages were operated, at our
instance, the Secretary-cum-Commissioner of State Transport Authority,
Department of Transport, Government of N.C.T. of Delhi has filed an
affidavit dated 13th April, 2004 and also remained present before the Court
and answered the queries put by the Court. On the material placed before
us, we are satisfied that the said affidavit reflects the correct factual
situation.
Sometime in the year 1992, when the scheme was first formulated,
the permit condition stipulated in the scheme was as under:
"13. The permit holder shall ensure that concessional passes
issued to various sections authorized for these buses shall be
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honoured."
In the year 1995, another scheme was launched by the S.T.A., Delhi
for granting 392 stage carriage permits to the private operators. A copy of
this scheme is produced and marked as Annexure \0262 to the affidavit of Mr.
Rajeev Talwar, Secretary-cum-Commissioner, S.T.A. Apart from indicating
the fare structure, the scheme provided that "there shall be a provision for
free passes for freedom fighters only. There may be a provision for
monthly/quarterly passes valid in all the private buses on a particular route."
The permits for stage carriage operations of private buses were, inter alia,
made subject to the following conditions:
"13. The permit holder shall ensure that concessional
passes issued to various sections authorised for these
buses shall be honoured.
....
17. Permit holder shall ensure that the bus stops to pick
up and allow the passengers to get off at the authorised
DTC bus stops and no passengers is allowed to board or
to get down at a non-prescribed bus stop. The operators
will have to pay service charges @ Rs. 250/- per bus on
monthly basis to the DTC for using DTC bus stops as
determined by STA in consultation with the DTC.
....
"25. The State Transport Authority, may after giving
notice of not less than one month:
(a) Vary the conditions of the permit.
(b) Attach to the permit further conditions."
In the year 2002, another scheme for grant of stage carriage permits to
private CNG bus operators in Delhi was formulated and published by the
respondent authorities. A copy of this scheme is marked as Annexure \0263 to
the aforesaid affidavit. Apart from indicating the fare structure, the scheme
also says, "there shall be a provision for free passes for freedom fighters
only. There may be a provision of monthly/quarterly passes valid in all the
private buses on a particular route." The relevant permit conditions
indicated in this scheme are as follows:
"13. The permit holder shall ensure that concessional
passes issued to various sections authorised for these
buses shall be honoured.
....
17. Permit holder shall ensure that the bus stops to pick
up and allow the passengers to get off at the authorised
DTC bus stops and no passenger is allowed to board or to
get down at a non-prescribed bus stop. The operators will
have to pay service charges for using DTC bus stops &
bus terminals as determined by STA in consultation with
the DTC from time to time.
....
"25. The State Transport Authority, may after giving
notice of not less than one month:
(a) Vary the conditions of permit.
(b) Attach to the permit further conditions."
Sometime in the year 1997, both the DTC and the private operators
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appealed to the State Transport Authority (STA) for revision in the fares on
the ground that the cost of various inputs like diesel, oil, staff salary and
wages, insurance, road tax, permit fee, repair charges, apart from increase
in capital investment for replacement and interest rates of borrowed capital,
had increased between 25 per cent to 300 per cent. The State Transport
Authority did not accede to the request. Repeated and continued
representations together with an unprecedented 35 per cent hike in diesel
price in October, 1999 brought about a rethinking on the part of the STA as
a result of which a decision was taken on 16th October, 1999 by the State
Government to revise the fare structure applicable to the DTC and the
private operators with effect from the said date on the same lines as
proposed by the DTC in the year 1998. It was also decided that the fare
structure should be uniform for both the DTC and the private operators. On
21st December, 1999, the State Government issued an order to the STA
directing that along with the upward revision of fare the private operators
would be required to:
(a) pay Rs. 2500/- p.m. as Bus Shelter charges to DTC;
(b) pay Rs. 5000/- p.m. for using the Bus Terminus to DTC; and that
(c) passes issued by DTC would be applicable to all Private Stage
Carriages.
This decision was made applicable to all Private Stage Carriages with
immediate effect. The appellants and other stage carriers challenged the said
order before the Delhi High Court on various grounds. While the petition
was pending before the Delhi High Court, on 31st December, 1999,
purportedly in exercise of its power under Section 67(1) of the Act, the State
Government issued a notification in the following terms:
" TRANSPORT DEPARTMENT
NOTIFICATION
Delhi, the 31st December 1999.
No. F.189/Secy/STA/99/2832 \026 In exercise of the powers
conferred by clause (i) of sub-section (1) of Section 67 of the
Motor Vehicles Act, 1988 (59 of 1988), the Lt. Governor of the
National Territory of Delhi, having regard to clauses (a) to (d)
of the said sub-section (1) hereby issues the following
directions to the State Transport Authority of Delhi, namely:
Directions:
1. The fares chargeable by the operators of stage carriages/city
buses plying in the National Capital Territory of Delhi shall be
as follows :
Distance Fare
Upto 4 kilometers Rs. 2.00
From 4 kilometers upto 8 kilometers Rs. 4.00
From 8 kilometers upto 12 kilometers Rs. 6.00
Above 12 kilometers Rs. 8.00
For the ’LTD’, ’Green Line’ and ’Railway Spl.’ Buses the fare
structure shall be ten rupees instead of six rupees.
2. For concessional bus passes the following rates shall be
applicable.
Type of pass New Rate
General Destination Rs. 200/-
General All-Route Rs. 400/-
General All route (Ltd) Rs. 450/-
In the case of ’General Destination Pass’ the route shall
be specified in the pass itself and one change of bus shall be
allowed rates of all other passes including ’student’, ’Re-
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settlement Colony’, ’Press’ and ’Old age’ shall remain the
same.
3 (a) The Private Stage Carriage with the upward revision of
fares shall pay with effect from 16th October, 1999.
(i) Rs. 2500/- per month as bus queue shelters to DTC
(ii) Rs. 5000/- per month for using the bus terminal to DTC.
(b) All DTC passes shall be applicable to all
private Stage Carriages."
Being aggrieved by the notification, the appellants filed a writ petition
before the High Court of Delhi which came to be dismissed by the judgment
of the High Court dated 19th October, 2000 upholding the legality and
validity of the said notification. Hence, this appeal by special leave.
Learned counsel for the appellants contends that the impugned
notification is ultra vires the powers of the State Government under Section
67 of the Act, apart from being arbitrary and imposing unreasonable
restrictions on the fundamental right to trade and business guaranteed under
Article 19(1)(g) of the Constitution of India. It is also contended that, as far
as the provisions of the Act are concerned, DTC is just an operator and
private operators cannot be put into a situation where they are required to
subsidise the losses made by DTC for any reason. It is also urged that
neither the State Government nor the State Transport Authority (STA) has
the statutory authority under Section 67 of the Act to impose conditions,
other than fixing of fares, which are highly onerous and discriminative
against the private operators.
It is also submitted that the operational statistics filed by the DTC
before the High Court clearly brings out that more than two thirds of the
passengers travelling by the DTC buses have been issued concessional
passes and it would be unfair and unjust to expect the private operators to
give service in respect of holders of such passes even though the revenue
generated therefrom is appropriated by the DTC.
Learned counsel for the respondents have reiterated their contentions
which weighed with the High Court. They submit that, in the interest of
discharging its ’social obligations’ the DTC has already constructed several
bus shelters and terminals, which are permitted to be used by private
operators and that in discharge of its social obligations the DTC has issued
concessional passes to several sections of society and thereby incurs huge
losses. Since differential fare structures cannot be fixed in respect of
different operators, it is but fair, just and reasonable that a portion of this
cost of social obligations is imposed upon the private operators by an order
made under the provisions of the Act and the Rules.
Respondents also contend that the impugned notification is fully
justified as it is pursuant to ’the desirability of preventing uneconomic
competition among holders of permits’ within the meaning of Section
67(1)(d) of the Act.
Clause (xxi) of sub-section (2) of Section 96 empowers the State
Government to make rules to ensure that stage carriages halt only at
designated places. Clause (xxii) of sub-section (2) of Section 96 empowers
the State Government to prescribe rules with regard to the construction or
use of any duly notified stand or halting place and the fees, if any, which
may be charged for the use of such facilities. Correspondingly, we have
Rules 75 and 76.
No transport vehicle can be plied without a permit under Section 66
of the Act. Section 69 provides for making of applications for permits to the
Regional Transport Authority. Such permits in respect of stage carriages are
issued under Section 70 after following the procedure prescribed in Sections
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71 and 72. Section 72(2) of the Act empowers the Regional Transport
Authority to grant a stage carriage permit subject to any rule that may be
made under the Act and by attaching to the permit any one or more of the
conditions enumerated in Clauses (i) to (xxiv). Clauses (xx), (xxii) and
(xxiv) of Section 72(2) are relevant for our purposes and read as under:
"(xx) that any specified bus station or shelter maintained
by Government or a local authority shall be used and that
any specified rent or fee shall be paid for such use.
\005.
(xxii) that the Regional Transport Authority may, after
giving notice of not less than one month,-
(a) vary the conditions of the permit;
(b) attach to the permit further conditions
Provided that the conditions specified in pursuance
of clause (i) shall not be varied so as to alter the distance
covered by the original route by more that 24 kilometres,
and any variation within such limits shall be made only
after the Regional Transport Authority is satisfied that
such variation will serve the convenience of the public
and that it is not expedient to grant a separate permit in
respect of the original route as so varied or any part
thereof.
(xxiv) any other conditions which may be prescribed."
The State Government has made the Delhi Motor Vehicles Rules,
1993 in exercise of its powers under the Act. Of relevance to the present
discussion are Rules 75 and 76. Rule 75 provides for the manner of halting
of stage carriages. Under sub-rule (2) of Rule 75 the District Magistrate may
direct that in any street or any road in an urban area notified by him in this
behalf, no stage carriage shall take up or get down passengers except at a
place appointed by him at a bus stop or at a stand. Rule 76 deals with
construction and control of stands and provides that the District Magistrate
may in consultation with the local authority having jurisdiction in the area
concerned, make an order permitting any place to be used as a stand and
that, without such an order no place shall be so used as a stand. When a
privately owned place is to be so notified, the rule provides that the District
Magistrate shall, from time to time, fix the fees or the maximum fees
payable at any stand.
Section 67 of the Act empowers the State Government, inter alia, to
fix the fares and freights for such stage carriages, contract carriages and
goods carriages. The relevant provision reads as under:
"67. Power to State Government to control road transport.-
(1) A State Government, having regard to-
(a) \005
(b) \005
(c) \005
(d) the desirability of preventing uneconomic
competition among holders of permits.
may, from time to time, by notification in the Official
Gazette, issue directions both to the State Transport
Authority and Regional Transport Authority \026
(i) regarding the fixing of fares and freights (including
the maximum and minimum in respect thereof) for stage
carriages, contract carriages and goods carriages:
(ii) \005
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(iii) \005"
It was the case of the respondents before the High Court, and it is
their case before us, that the notification has been issued by the State
Government in exercise of its power under Section 67(1)(d) read with sub-
clause (i). In other words, it is contended that the notification is one which
fixes the fares and freights of the stage carriages, having regard to the
desirability of preventing uneconomic competition among holders of
permits. The submission is that DTC had already invested capital in
construction of bus shelters and terminals; if the private operators are
permitted to use these facilities without compensation to the DTC, the DTC
would be put in a situation of uneconomic competition, that DTC being a
statutory corporation, and aware of its social responsibility, had issued a
large number of concessional passes to students, war widows and their
dependents, freedom fighters, disabled persons and such others, which
caused a heavy economic burden to DTC; the private operators are not by
law obliged to discharge this social responsibility, as a result of which there
is uneven playing field and uneconomic competition as far as the DTC is
concerned. Hence, it is just, fair and reasonable that private operators are
made to honour the concessional passes issued by DTC, which can be done
by recourse to Section 67 of the Act.
The learned counsel for the appellants may be justified in his
contention that, apart from the concessions, which are expressly made
available under the Act in favour of State Transport Undertakings (see in
this connection Chapter VI of the Act), there are no special considerations in
favour of DTC which must be treated as any other operator. Reliance was
placed on the observations of this Court in Ishwar Singh Bagga and Ors.
v. State of Rajasthan , at paragraphs 7 and 11. That, however, is not
conclusive of the matter.
The action of the respondent authorities was not merely about giving
a preferential or favourable treatment to D.T.C. as an operator. The peculiar
circumstances under which the running of stage carriage permits within the
N.C.T. of Delhi were thrown open to private operators and the specific
conditions imposed in the permits would have to be kept in mind for
adjudging the legality of the impugned notification. With these factors in
mind, the respondent had appropriately prescribed permit condition No. 17
in the scheme published in the year 1992 which reads as under:
"17. Permit holder shall ensure that the bus stops to pick up
and allow the passengers to get off at the authorised DTC bus
stops and no passengers is allowed to board or to get down at a
non prescribed bus stop. The operators will have to pay service
charges @ Rs. 250/- per bus on monthly basis to the DTC for
using DTC bus stops as determined by STA in consultation
with the DTC."
This condition came to be modified in the scheme of 2002. Thus, the
private operators were granted stage carriage permits only on the condition
that they shall have to ensure that the passengers are picked up and dropped
up at authorised DTC bus stops and not elsewhere. They were also required
to pay service charges to use DTC bus stops and bus terminals "as
determined by STA in consultation with the DTC from time to time".
The respondents contend that though, initially, the service charges for
use of DTC bus stops was fixed at Rs. 250/- per bus per month, they have
been revised by STA in consultation with the DTC and the revision is
reflected in the notification dated 31st December, 1999. As a result of the
said notification, the permit conditions stood revised. Clause 3 of the
impugned notification revises permit conditions and consequently the
private stage carriage operators have to pay with effect from 16th October,
1999, Rs. 2,500/- per month as charges for using bus queue shelters to DTC
and Rs. 5,000/- per month for using the bus terminal to DTC.
As already noticed, Section 72(2) of the Act gives power to the
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Regional Transport Authority to attach conditions to stage carriage permits
which are required to be followed by the stage carriage operators. The
condition in clause (xx) would require that any specified bus station or
shelter maintained by Government or a local authority shall be used and that
any specified rent or fee shall be paid therefor. A stage carriage operator
has no liberty in the manner of halting of the motor vehicle in public places
by reason of the directions made under Rule 75. Consequently, the stage
carriage operator is required to stop the bus only at such places as directed
by the conditions of the permit. It so happens that, in the case of the
appellants before us, they were directed to stop their buses only at the bus
stations and terminals of DTC. Thus, they have no choice in the matter and
are obliged to halt their buses at such specified places.
It is settled law that the condition of a permit can be varied by a
notification issued by the Government under Section 67 of the Act. (See in
this connection B. Srikantiah and Ors. vs. The Regional Transport
Authority, Anantapur and Ors. and Sree Gajanana Motor Transport
Co. Ltd. vs. The State of Karnataka and Ors. )
The appellants have not challenged the legality of condition No. 17.
Their only grievance is about the steep increase in the charges. Condition
No. 17 requires the private stage carriage bus operators to make payment of
such charges as shall be determined by the STA in consultation with the
DTC from time to time. This was the very condition subject to which the
permit was issued to the appellants. The fact that originally the service
charges payable were @ Rs. 250/-, or that it has subsequently been revised,
does not make the condition of the permit illegal or ultra vires the powers of
the respondent authorities, as contended by the appellants. We find no merit
in the contention that the increase in the service charges payable to the DTC
are unauthorised or ultra vires the powers of the STA and the State
Government.
The next contention urged by the appellants is that Paragraph 3(b) of
the notification which provides, "all DTC passes shall be applicable to all
private stage carriages," is illegal and ultra vires. There appears to be some
merit in this contention. As we have noticed, the permit condition in the
1992 scheme merely provided : "there shall be a provision for free passes
for freedom fighters only. There may be a provision of monthly/quarterly
passes valid in all the private buses on a particular route." Even the permit
condition No. 13 declared : "the permit holder shall ensure that concessional
passes issued to various sections authorised for these buses shall be
honoured." A fair reading of these conditions of permit would be that the
STA would approve the issuing of concessional passes by the transport
operator and indicate the conditions subject to which such concessional
passes are approved. Even in the Scheme of 2002, the relevant condition of
the permit reads as under:
"13. The permit holder shall ensure that concessional passes
issued to various sections authorised for these buses shall be
honoured."
The contention of the respondents that by reason of the aforesaid
condition of permit the concessional passes issued by the DTC would
automatically become enforceable and binding upon private operators who
were issued stage carriage permits, does not appear to be sustainable.
In Anjum M.H. Ghaswala a Constitution Bench of this Court
reaffirmed the general rule that when a statute vests certain power in an
authority to be exercised in a particular manner then the said authority has
to exercise it only in the manner provided in the statute itself. (See also in
this connection Dhanajaya Reddy v. State of Karnataka ) The statute in
question requires the authority to act in accordance with the rules for
variation of the conditions attached to the permit. In our view, it is not
permissible to the State Government to purport to alter these conditions by
issuing a notification under Section 67(1)(d) read with sub-clause (i) thereof.
The contention of the respondents is that the power to enforce the
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binding nature of the concessional passes issued by the DTC on the private
stage carriage operators can be spelled from the provisions of Section
67(1)(d) of the Act. In our view, such a power cannot be subsumed under
the powers of the State Government to fix fares and freights for stage
carriages having regard to the desirability of preventing uneconomic
competition among holders of permits. Permit condition No. 13 merely
stipulates that the permit holder shall ensure that concessional passes issued
to various sections authorised for these buses shall be honoured. The
authorisation has to come from the STA. In other words, only concessional
passes which are authorised by the STA would be binding on the operators.
We see no power in Section 67(1)(d) of the Act or otherwise by which a
concessional pass issued by the DTC could be made binding upon private
stage carriage operators, particularly when there was no such condition
imposed in the permit issued. Hence, we are of the view that Paragraph 3(b)
of the impugned notification is clearly ultra vires the powers of the State
Government under Section 67 of the Act and, therefore, liable to be quashed
and set aside.
Appellants contend that the condition imposed upon the appellants of
honouring all DTC passes is nothing but a covert attempt to subsidise the
losses being incurred by DTC. Even if we assume that the losses are not on
account of mismanagement or inefficiency of the DTC, and are really
attributable to the so called honouring of its "social obligations", we see no
warrant or justification, under the provisions of the Statute as it stands, for
transferring this assumed responsibility to competing transport operators. If
the state authorities are of the view that the fare structures should be
identical for all operators including the DTC, we see no justification for this
indirect method of passing on the costs to the appellant operators.
In the first place, we are unable to accept that all concessional passes
issued are necessarily in the discharge of "social obligations", as claimed. A
perusal of the operational statistics of the DTC, which is placed on record as
Annexure P-9 to the writ petition filed before the High Court, (pp. 64, 66
and 68) justifies the contention of the appellants. From the operational
statistics we notice that nearly 48 per cent of the persons travelling in the
DTC buses were pass holders in April, 1998 and this figure has gone to
about 68 per cent in November, 1999. While it may be possible to say that
granting of concessional passes to war widows and their dependants,
disabled persons, freedom fighters and such categories may be in discharge
of "social obligations", it would not hold true with regard to a large number
of other holders of concessional passes. In the writ petition before the High
Court, the appellants pointed out that ’destination passes’, ’general passes’
and ’all route’ passes are nothing but smart exercises designed to catch
captive commuters. These passes are really intended to collect advance fares
which would save commuters the trouble of frequently going to the office of
the operator for paying for their passes by offering a marginal concession. In
other words, a large amount of the fare gets collected, much in advance, and
what the DTC has to forego is only a small amount designed to cut down the
collection cost, get money in advance and catch captive commuters. We,
therefore, agree with the contention of the appellants that such concessional
passes are nothing but advance tickets with marginal concessions giving
services to the captive commuters. The attempt of the DTC through the STA
and the State Government now appears to be to ensure that even service is
not required to be given to all the captive commuters holding such
concessional passes by DTC, by requiring the private operators to provide
service to the pass holders who have paid to the DTC. We see no discharge
of "social obligations", nor even the shadow of Article 38 of the
Constitution, in this arrangement which is sought to be brought into force by
resort to the purported power under Section 67 of the Act. If the DTC
incurs losses in its running, it is bailed out by the State Government by
subsidies and convenient loans which are written off; but, on the other
hand, private operators have to raise capital at enormous servicing cost and
do not have finance or subsidy on tap. The learned counsel for the appellants
is right in contending that this is clearly an attempt to rob Peter to pay Paul.
In our view, the condition imposed in Paragraph 3(b) of the impugned
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notification is ultra vires the power of the State Government under Section
67. It is not possible for us to accept the view of the High Court that Section
67(1)(d) read with sub-clause (i) thereof clothes the State Government with
the power to impose the condition in Paragraph 3(b) of the impugned
notification dated 31st December, 1999, or that it has been imposed having
regard to "the desirability of preventing uneconomic competition among
holders of permits" within the meaning of clause (d) of sub-section (1) of
Section 67 of the Act. The directions which can be issued under sub-clause
(i) are only with regard to ’fares and freights’. The expression ’fare’ has
been defined in Section 2(12) as inclusive of sums payable for a season
ticket or in respect of the hire of a contract carriage. By Paragraph 2 of the
impugned notification the Transport Department has also prescribed what
can be the fares for concessional bus passes of different categories. This
only means that, if the permit holders were to issue concessional bus passes
for different categories including ’students’, ’re-settlement colony’, ’press’,
and ’old age’, then the fares chargeable are at the rates indicated in
Paragraph 2. This is a perfectly permissible exercise of power.
The High Court relied upon the judgment of this Court in Sree
Gajanana Motor Transport Co. Ltd. v. The State of Karnataka and
Ors. , arising under Section 43 of the Motor Vehicles Act, 1939, to the
effect that when the State has exercised its power under Section 43
(corresponding to the present Section 67 of the 1988 Act), then the
conditions of the permit automatically get altered. There is no doubt as to
this proposition, but the rub is that the notification must have been validly
issued in exercise of the said power. Paragraph 3(b) of the impugned
notification, however, travels much beyond the legitimate scope of the
power under Section 67(1)(d) read with sub-clause (i). We are of the view
that the impugned notification, insofar the condition in Paragraph 3(b) is
concerned, is wholly ultra vires the powers of the State Government under
Section 67 of the Act, illegal and liable to be quashed and set aside.
Learned counsel for the appellants stated that they too are conscious
of the "social obligations", and since the number of concessional passes
issued to disabled persons, freedom fighters and war widows and their
dependants is small, without prejudice to their legal contentions, they are
willing to honour such concessional passes issued by DTC.
In the result, we hold that the condition imposed in Paragraph 3(b) of
the impugned notification is ultra vires of the powers of the State
Government and is, therefore, liable to be quashed and set aside. However,
it appears to us that sudden discontinuation of the concessional passes would
seriously affect the commuters, particularly students community, holding a
large number of concessional passes issued by the DTC. We are, therefore,
of the view that some locus poenitentia should be given to the respondents
to make alternative arrangements by formulating an appropriate scheme in
accordance with law which should take care of the student concessional
passes.
In the result, we make the following order:-
(1) The provisions of the impugned notification dated 31st
December, 1999, except paragraph 3(b), are held valid and
intra vires;
(2) The condition imposed under Paragraph 3(b) of the
impugned notification is held ultra vires, illegal and
unenforceable;
(3) The appellants, as agreed, shall continue to honour the
concessional passes issued by DTC to disabled persons,
freedom fighters, war widows, and their dependants;
(4) The respondents shall lawfully bring forth an appropriate
scheme to provide relief to the students concessional pass
holders of DTC, within a period of four months from
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today, i.e., on or before 31st July, 2004, failing which the
condition imposed under Paragraph 3(b) of the impugned
notification shall stand quashed and set aside with effect
from 1st August, 2004.
The judgment of the High Court is modified and the appeal is allowed
to the aforegoing extent.
There shall be no order as to costs.