Y. Mahaboob Sheriff & Ors Vs.
Mysore State Transport Authority & Ors [1959] INSC 130 (6 November 1959)
WANCHOO, K.N.
SINHA, BHUVNESHWAR P.(CJ) IMAM, SYED JAFFER
KAPUR, J.L.
GUPTA, K.C. DAS
CITATION: 1960 AIR 321 1960 SCR (2) 146
CITATOR INFO :
E 1962 SC1621 (20,53) RF 1965 SC 40 (17) R
1976 SC 853 (29) D 1982 SC 149 (629,755)
ACT:
Motor vehicles-Stage carriage Permit-Period
of renewal Duty of Transport Authority -Motor Vehicles Act, 1939 (IV of 1939),
as amended by Act 100 of 1956, s. 58.
HEADNOTE:
Sub-section (1)(a) of s. 58 of the Motor
Vehicles Act, 1939, provides," A stage carriage permit or a contract
carriage permit other than a temporary permit issued under s. 62 shall be
effective without renewal for such period not less than three years and not
more than five years, as the Regional Transport Authority may specify in the
permit. " Sub-section (2) provides," A permit may be renewed on an
application made and disposed of as if it were an application for a permit.
Provided that ....................." The
stage carriage permits of the petitioners were ending on March 31, 1958, and
they applied to the Regional Transport Authority, Bangalore for a renewal of
them. The Transport Department of the Mysore State Government opposed such
renewal and applied that fresh permits for the routes in question might be
granted to it as the State Government intended to nationalise the transport
services. The Authority, however, dismissed the applications of both the
contending parties, but, on appeal, its orders were set aside and the matter
was remanded for a fresh decision. A scheme under s. 68C of Ch. IVA of the Act
was in the meantime published and approved by the State Government, which was
later on quashed by the High Court at the instance of the petitioners. The
Authority passed orders renewing the permits of the petitioners for a period of
one year from April 1, 1958, to March 31, 1959. Appeals against the said orders
having proved abortive the petitioners applied to the 147 High Court under
Arts. 226 and 227 of the Constitution and those applications were summarily
dismissed and certificates to appeal to this Court refused. The petitioners
thereupon applied to this Court under Art. 32 of the Constitution.
The question for determination was whether on
a proper construction of sub-s. (1)(a) and, sub-s. (2) of S. 58 of the Act,
read together, the period of renewal was to be the same as provided for the
grant of permits under the former and the Authority in renewing a permit was
bound to specify the period of such renewal. It was contended on behalf of the
Department that, even supposing that a renewal must be for the same period as
provided for the original grant, this Court by writ could do no more than quash
the order made by the Authority, leaving it to decide the question of renewal
in accordance with the law as laid down by it.
Held (per Sinha, C.J., Imam, Wanchoo and Das
Gupta, JJ.), that under s. 58 of the Motor Vehicles Act, 1939, properly
construed, the period for which a permit could be renewed under sub-s. (2) of
that section must be not less than three years and not more than five years as
provided for the grant of a permit under sub-s. (1)(a) thereof and the Regional
Transport Authority, in exercising its discretion to grant a renewal where it
chose to do so, must specify the period of renewal accordingly.
The words " without renewal "
occurring in sub-s. (1)(a) do not signify a contrary intention.
V. C. K. Bus Service Ltd. v. The Regional
Transport Authority, Coimbatore, [1957] S.C.R. 663, distinguished.
Since, in the instant case, the intention of
the Authority to grant renewal was clear, but in doing so it had, under a
misapprehension of the law, limited the renewal to one year only, it was open
to this Court to sever the legal part of its order from the illegal and quash
the latter.
R. M D. Chamarbaughwalla v. The Union of India,
[1957] S.C.R. 930 and Shewpujanrai Indrasanrai Ltd v. The Collector of Customs,
[1959] S.C.R. 821, referred to.
Since this Court was not bound by the
technical rules relating to issue of writs by English Courts, a direction in
the nature of mandamus must issue requiring the Authority to specify the period
of renewal in accordance with the law as laid down by this Court.
T. C. Basappa v. T. Nagappa, [1955] 1 S.C.R.
250, relied on Per Kapur, J.-In cases such as the one under review, the power
of judicial review possessed by this Court under Art.
32 of the Constitution extends to quashing
and not substituting an order in place of what an Administrative tribunal has
done or to direct what it should do.
All that the Court can do is to quash the
order and leave it to the tribunal to reconsider the matter and to exercise its
148 jurisdiction keeping in view the law laid down by the Court. In issuing
such orders the courts would act in consonance with the broad and fundamental
principles governing the granting of writs in English Law.
Consequently, even assuming that in renewing
a permit the Regional Authority had to do so for a period of not less than
three and not more than five years, this Court would only quash the orders
passed by the Regional Transport Authority in the present case, and leave it to
that Authority to reconsider the matter in the light of the decision of this
Court.
Associated Provincial Picture Houses, Ltd. v.
Wednesbury Corporation, (1948) 1 K.B. 223, The King v. Willesden justices, Ex Parte
Utley, (1948) 1 K.B. 397, Veerappa Pillai v. Raman and Raman Ltd., [1952] S.C
R. 584 and Basappa v. Nagappa, [1955] 1 S.C.R. 250, referred to.
Shewpujanrai Indrasamrai Ltd. v. The
Collector of Customs, [1959] S.C.R. 821, explained and distinguished.
R. M. D. Chamarbaugwalla v. Union of India,
[1959] S.C.R. 930, held inapplicable.
Kochunni v. State of Madras, A.I.R. 1959 S C.
725 and United Motors Transport Co. v. Sree Lakshmi Motor Transport Co Lid .
A.I.R. 1945 Cal. 260 distinguished.
ORIGINAL JURISDICTION: Petitions Nos. 54, 75
and 76 of 1959.
Petitions under Article 32 of the
Constitution of India for enforcement of Fundamental Rights.
C. K. Daphtary, Solicitor-General of India,
and B. R. L. Iyengar, for the petitioners.
H. N. Sanyal, Additional Solicitor-General of
India, R. Gopalakrishnan and P. M. Sen, for the respondent No. 3 in Petitions
Nos. 54 and 75 of 1959.
1959. November 6. The judgments of Sinha,
C.J., Imam, Wanchoo and Das Gupta, JJ. was delivered by Wanchoo, J. Kapur, J.,
delivered a separate judgment.
Petitions Nos. 54 and 75 of 1959.
WANCHOO J.-These are two connected petitions
under Act. 32 of the Constitution and raise similar points and will be disposed
of by this judgment.
The brief facts necessary for their disposal are
these: The petitioners are transport operators in what is known as the Anekal
pocket of the State of Mysore.
149 They held stage carriage permits for
various routes, which were expiring on March 31, 1958. They therefore applied
for the renewal of the permits on various dates in January 1958, as required
under the law Normally, their applications should have been disposed of before
March 31, 1958.
However, on February 1, the Mysore Government
Road Transport Department (hereinafter called the Department) made applications
under Chapter IV of the Motor Vehicles Act, No. IV of 1939, (hereinafter called
the Act) for grant of permits on the same routes for which renewal applications
were pending. The Department followed this up by a letter dated February 25,
1958, to the Regional Transport Authority, Bangalore, (hereinafter called the
Authority).
In this letter, the Authority was informed
that the Department had already submitted applications for grant of permits for
operation of transport vehicles in the Anekal pocket and it was proposed to
take over these routes with effect from April, 1, 1958. It was also pointed out
that the Government of Mysore bad been pursuing the policy of nationalisation
of road transport services with a view to rationalise and co-ordinate the
various forms of transport and that the Department was operating 1,200 vehicles
on 700 routes. The letter went on to point out the advantages of granting
permits to the Department resulting in rationalisation of the routes in the
Anekal pocket in which at that time there were 20 routes and 58 operators. It
was therefore requested that the permits of the petitioners should not be
renewed and fresh permits granted to the Department.
The Authority met a number of times from
March to July 1958 but passed no orders on the applications of the petitioners
nor on those of the Department. Eventually, on August 11, 1958, the Authority
dismissed the petitioners' applications for renewal as well as the Department's
for grant of fresh permits. We must say that this appears to be a curious
order, for the result of this order strictly would be that no stage carriages
would be able to ply on these routes.
However, both parties' appealed on September
9, 1958, against the orders of August 11. In the meantime, a 150 scheme under
s. 680 of Chapter IV-A of the Act was published. This scheme was approved on
October 24, 1958, while the appeals were pending. On October 30, the appeals of
both parties were allowed and the matter was remanded to the Authority for
fresh disposal. In the meantime, however, the petitioners had applied to the
High Court for quashing the scheme and it was quashed by the High Court on
December 3, 1958. Thereafter the Authority met again and passed orders renewing
the permits of the petitioners for a period of one year from April 1, 1958 to
March 31, 1959. The petitioners went up in appeal against the orders granting
them renewal only for one year on the ground that they were entitled to renewal
for three years at least under s. 58 of the Act. Their appeals were dismissed
as not maintainable. They also applied to the High Court of Mysore under
Articles 226 and 227 of the Constitution but their petition was dismissed in
limine and a certificate to enable them to appeal to this Court was refused on
March 30, 1959. Thereafter the present petitions were filed in this Court. In
the meantime, however, a fresh scheme was published on January 22, 1959, and
after necessary formalities was approved on April 15, 1959, and finally
published as an approved scheme on April 23, 1959. What happened thereafter is
not really material for purposes of these petitions but we may as well mention
it to complete the narrative. The Department applied for permits under s. 68F
of the Act on April 24, 1959. On April 30, 1959, the petitioners challenged the
new scheme before the High Court of Mysore by a writ petition. That petition
was however dismissed on June 1, 1959. Thereafter they came to this Court for special
leave and prayed for ex parte stay, which was refused. Notice was however
issued on the stay application which was served in June 18,1959. It may be
mentioned here that in order to avoid inconvenience to the public temporary
permits had been granted to the petitioners on the expiry of the renewal upto
March 31, 1959, for a period of four months or upto the time the Department was
granted permits under s.68F, whichever was earlier.
Consequently on June 23, 151 1959, the
Authority met and granted permits to the Department under s. 68F and rejected
the renewal applications of the petitioners which were said to have been filed
under protest. On June 24, 1959, the transport services in pursuance of the
scheme were inaugurated by the Chief Minister. On the same day the petitioners
applied to the High Court by a writ petition challenging the order of June 23,
1959. On July 14, 1959, the High Court held that the grant of permits to the
Department was invalid and the rejection of the renewal applications was incorrect.
But it did not pass any order in favour of the Petitioners on the ground that
the relief granted would be short-lived and dismissed the writ petition. The
petitioners then applied for a certificate to enable them to appeal to this
Court and that application is still pending. Thereafter the Department applied
for temporary permits which were granted on July, 16, Another writ petition was
filed on July 24, 1959, by the petitioners challenging the grant of temporary
permits to the Department which is still pending. In the meantime, the
petitioners filed two other writ petitions in this Court which were admitted
and will be dealt with separately. Finally, the special leave petition against
the judgment of the High Court dismissing the writ petition against the
approved scheme was dismissed by this Court on September 7, 1959.
The main contention of the petitioners 'in
these cases is that they are entitled to carry on the business of transport of
passengers as a fundamental right guaranteed to them under Art. 19(1)(g) of the
Constitution, and that this right can only be restricted in the manner provided
by the Act which is a regulatory measure dealing with motor vehicles.
They contend that they were entitled under s.
58 of the Act to renewal of their permits for three years in case the Authority
decided to' renew them on the applications which they had made in January 1958
and in so far as the Authority gave them renewal only for one year it was
acting in contravention of the Act and was thus committing a breach of their
fundamental right. They 152 therefore pray that this Court should come to their
aid and protect their fundamental right to carry on the business of transport
in accordance with the Act. The prayer which they actually made is somewhat inartistic
but in effect they want that the authority be directed to renew their permits
in accordance with the Act, which requires that the renewal must be for a
period of not less than three years and not more than five years so far as
stage carriage permits are concerned.
The respondents to these petitions are the
Mysore State Transport Authority, the Regional Transport Authority and the
General Manager, Mysore Government Road Transport Department. No appearance has
been put in on behalf of the first two. The petitions are being opposed by the
third respondent, namely, the Department; and the main contention on its behalf
is that on a correct interpretation of s. 58 of the Act it is open to the
Authority to renew a permit for any period it chooses to fix and therefore it
was acting in accordance with the law when it fixed the period at one year. It
is further contended that even if the Authority must fix a period of not less
than three years and not more than five years, the only order that this Court should
pass in these cases is to quash the order of the Authority dated December 15,
1958, and direct it to decide the renewal applications in accordance with the
law to be laid down by this Court.
It will be clear from the above contentions
of the parties that the first and foremost question in this case is the
interpretation of s. 58 of the Act. That section appears in Chapter IV of the
Act which deals with Control, of Transport Vehicles in which term is included
" a stage carriage " with which we are concerned here. It is
necessary therefore to consider the scheme of Chapter IV in order to interpret
s.
58 thereof. That Chapter begins with s. 42
which prohibits the owner of a transport vehicle from using it except in
accordance with the conditions of a permit granted or countersigned by a
Regional or State Transport Authority.
Section 44 provides for the constitution of
the State 153 and Regional Transport Authorities. Then comes ss. 45 and 46,
which provide for making of an, application for permit and the contents of such
an application. Section 47 sets out matters to which a Regional Transport
Authority shall have regard in considering the application for a stage carriage
permit. Section 48 gives power to the Regional Transport Authority to grant a
stage carriage permit in accordance with the application or with such
modifications as it deems fit. It also provides that every stage carriage
permit shall be expressed to be valid for specified route or routes and sets
out the conditions which may subject to any rules, be attached to a permit. We
are not concerned in these cases with ss. 49 to 56, which deal with other kinds
of transport vehicles. Section 57 provides the procedure in applying for and
granting of permits. Then comes s. 58, which deals with duration and renewal of
permits and is in these terms:
" 58(1)(a)-A stage carriage permit or a
contract carriage permit other than a temporary permit issued under s. 62 shall
be effective without renewal for such period, not less than three years and not
more than five years, as the Regional Transport Authority may specify in the
permit.
(b)-A private carrier's permit or a public
carrier's permit other than a temporary permit issued under s. 62 shall be
effective without renewal for a period of five years.
(2)-A permit may be renewed on an application
made and disposed of as if it were an application for a permit:
Provided that the application for the renewal
of a permit shall be made(a) in the case of a stage carriage permit or public
carrier's permit, not less than sixty days before the date of the expiry; and
(b) in any other case, not less than thirty days before the date of its expiry:
Providing further that, other conditions
being equal, an application for renewal shall be given preference over new applications
for permits.
20 154 (3)...................... " I
will be seen from this scheme of the Act that the duration of a permit is not
one of the conditions attached to it but is specifically provided for in s. 58.
Sub-s. (1)(a) thereof comes into play after
the Authority has decided to grant a permit and lays down that a stage carriage
permit or a contract carriage permit other than a temporary permit issued under
s. 62 shall be effective without renewal for such period not less than three
years and not more than five years as the Authority may specify in the permit.
This sub-section therefore casts a duty on the Authority after it has decided
to grant a stage carriage permit to specify therein the period for which it
shall be valid and this period can in no case be less than three years and more
than five years. This sub-section applies to grant of a permit. Then comes
sub-s. (2), which lays down that a permit may be renewed on an application made
and disposed of as if it were an application for a permit. The contention on
behalf of the petitioners is that this provision means that an application for
renewal shall in all respects be treated as an application for a permit and
therefore the period provided under s. 58(1) (a) for a permit would also govern
the period for which the renewal should be granted. On the other hand, it is
contended for the Department that sub-s. (2) only refers to the procedure for
granting permits and the duration provided for sub-s. (1)(a) being not a matter
of procedure will not apply to a renewal. It is conceded that there is no other
provision in the Act which lays down the period for which a renewal should be
made. But it is urged that this means that it is open to the Authority to fix
any reasonable period for renewal. Reliance in this connection was placed in
particular on the words " without renewal " appearing in a.58(1) and
also on a decision of this Court in V. C. K. Bus Service Ltd. v. The Regional
Transport Authority, Coimbatore (1). That case however did not deal with the
question before us but with a different question altogether.
The question there was whether (1) [1957] 1
S.C.R. 663.
155 a renewal amounted to a grant of a fresh
permit or was merely a continuation of the original permit. This Court held
that the renewal was a continuation of the original permit. It had no occasion
then to deal with the question specifically before us, namely, whether a
renewal should also be for the same period as provided in s. 58 (1)(a).
Let us therefore turn to the contention based
on the words " without renewal " appearing in s. 58 (1)(a). It is
urged that these words clearly indicate that s. 58(1)(a) applies only to the
first grant of the permit and cannot in any circumstances apply to a renewal of
the permit. As we have already said, s. 58(1)(a) specifically deals only with
the grant of a permit and not with a renewal. The words " without renewal
" appearing in that sub-section only signify that in counting the period
of a permit renewals should be disregarded. It was necessary to put in these
words to meet a possible contention arising out of the fact that a renewal only
amounts to a continuation of the original permit. The effect of these words is
that in considering the period of a permit the period of the renewal should not
be added to the period of the permit, thus making the total period which may be
more than five years invalid under s. 58(1)(a). For example, a permit may be
granted for five years. It is then renewed for another five years. Now the
permit is the same and the renewal is only endorsed upon it. If the words
" without renewal " were not in the sub-section it might be contended
that the permit being the same its period was ten years and therefore it
contravened s. 58 (1)(a). These words therefore were necessary to meet this
contention and are no indication that the period mentioned in s. 58(1)(a) does
not apply to renewals. We may in this connection refer to the language of s. 10
where also the same two words occur, i.e. : " A driving licence issued or
renewed under this Act shall, subject to the provisions contained in this Act
as to the cancellation of driving licences and disqualification of holders of
driving licences for holding or obtaining driving licences, be effective 156
without renewal for a period of three years only, from the date of the issue of
the licence or, as the case may be, from the date with effect from which the
licence is renewed under s. 11." Thus, though the earlier part of s. 10
specifically deals with issue and renewal of driving licences, the words "
without renewal " are to be found in the latter part and that clearly
indicates that these words were necessary to be put in to meet the contention
that the licence remaining the same even after renewal its period could not in
any case exceed three years in all. It was however submitted that s. 10
specifically provides for renewals also for three years and that is not
provided in s. 58(1)(a). That is undoubtedly so. But the reason why s. 58(1)(a)
does not provide specifically for renewals is to be found in the fact that
there is s. 58(2) specifically providing that an application for renewal shall
be made and disposed of as if it were an application for a permit. Section 11
which deals with renewal of licences has no comparable words, for it merely
says that any licensing authority may on application made to it, renew a
licence issued under the provisions of this Act from the date of its expiry.
Different language used in sub-s. (2) of s. 58 therefore must have a different
effect and the contention on behalf of the petitioners is that s. 58(2) when it
says that an application for renewal shall be made and disposed of as if it
were an application for a, permit must mean that all incidents which apply to a
permit shall also apply to a renewal application. One of the incidents which
applies to a permit is that the Authority is enjoined by sub-s. (1)(a) of s. 58
to indicate a period of not less than three years and not more than five years
in the permit, so far as its duration is concerned.
The same must apply to a renewal and the
Authority must indicate when granting a renewal a period of not less than three
years and not more than five years as the duration.
We are of opinion that the contention of the
petitioners as to the effect of s. 58(2) is correct. There is no other
provision in the Act which fixes the duration of a renewal.
It could hardly be the intention of the 157
legislature that the duration of the renewal should be left entirely to the
discretion of the Regional Transport Authority, particularly when the
legislature took care to fix the duration for the permit itself It is urged
that the legislature intended that the duration of the renewal should be left
to the Authority which would prescribe a reasonable period, which may even be
less than three years.
If that was so, it would be equally open to
the Authority to specify a period for more than five years which it may
consider reasonable. We do not think that this was the intention of the
legislature and the reason why no other provision was made for the duration of
a renewal was that the legislature intended by these words in s. 58(2) that the
renewal would be for such period as was prescribed in s. (1)(a) for a fresh
permit. It is not disputed that the effect of s. 58(2) is that the
considerations for renewal would be the same as for the grant of the permit and
the procedure would also be the same. But it is said that the legislature did
not intend to go further and prescribe the same duration for a renewal as for a
permit. We are of opinion that there is no reason why we should stop short at
s. 57 and should not take into account s. 58(1)(a) as applying to a renewal
along with all other considerations that apply to the grant of a permit. S.
58(2) lays down that a renewal application shall be made and disposed of as if
it were an application for a permit and we think that all that applies to the
grant of a permit would also apply to the grant of a renewal. One of the
provisions which apply to the grant of a permit is s. 58(1)(a) relating to the
duration of a permit and that must in our opinion on the words of s. 58(2)
apply to the duration of a renewal.
It may also be mentioned that there were
amendments of s. 58 by various State legislatures by which the duration of a
permit could be fixed at less than three years. When, however, the Central
legislature made amendments in the Act by the Amending Act No. 109 of 1956, the
amendments made by the State legislatures earlier fell through and the Central
158 legislature did not think it fit to give power to the State legislatures to
reduce the period below three years in the case of a permit. If it were
intended that a permit may be granted for less than three years and a renewal
may be made also for less than three years, we would have expected some
provision to that effect in the Amending Act of 1956, for the Central
legislature could not be unware of the amendments made by the various State
legislatures. In the circumstances we are of opinion that the duration of a
permit under s. 58(1)(a) being not less than three years and more than five
years, the same applies to a renewal. We, therefore, hold that reading ss.
58(1)(a) and 58(2) together, a renewal must also be governed by the same
provision which governs the duration of a permit.
This brings us to the question of relief to
be granted to the petitioners. It is contended on behalf of the Department that
all that this Court can do is to quash the order of December 15, 1958, and send
the case back to the Authority for consideration of the question of renewal
afresh. On the other hand, the petitioners contend that this Court should quash
the illegal condition limiting the duration of the renewal to one year and
direct the Authority to specify a period of not less than three years and not more
than five years in conformity with s. 58(1)(a) in the order of renewal. This
raises the question of severability of a part of the order passed by the
Authority. The principles on which any unconstitutional provision can be
severed and struck down leaving other parts of a statute untouched were laid
down by this Court in R. M. D. Chamarbaugwalla v. The Union of India (1), and
the first principle is whether the legislature would have enacted the valid
part if it had known that the rest of the statute was invalid. This principle
relating to statutes was extended by this Court to orders in Shewpujanrai
Indrasanrai Ltd. v. The Collector of Customs and Others (2), where a part of
the order of the Collector of Customs was quashed. The question therefore
resolves into this: Would the Authority have ordered renewal if it knew that it
could not reduce (1) [1957] S.C.R. 930.
(2) [1959] S.C.R. 821.
159 the period of a permit to below three
years ? Looking at the facts of these cases which we have set out earlier, it
is to our mind obvious that the Authority would have granted renewal in the
circumstances of these cases when it did so in December 1958. The previous
permits in these cases had expired on March 31, 1958, and the petitioners had
been plying their stage carriages right up to the time when the order was
passed on December 15, 1958; they could not do so without a permit in view of
s. 42 of the Act. Therefore, renewal in these cases was certain when the order
was passed on December 15, 1958. In the circumstances it is open to us to sever
the illegal part of the order from the part which is legal, namely, the grant
of the renewal.
The next question is what order should be
passed in the circumstances. This depends on the exigencies of each case, for
this Court is not confined by the technical rules relating to issue of writs by
the English Courts. In T. C. Basappa v. T. Nagappa and Another this Court
observed as follows at p. 256:
" The language used in articles 32 and
226 of our Constitution is very wide and the powers of the Supreme Court as
well as of all the High Courts in India extend to issuing of orders, writs or
directions including writs in the nature of habeas corpus, mandamus, quo
warranto, prohibition and certiorari as may be considered necessary for
enforcement of the fundamental rights and in the case of the High Courts, for
other purposes as well. In view of the express provision in our Constitution we
need not now look back to the early history or the procedural technicalities of
these writs in English law, nor feel oppressed by any difference or change of
opinion expressed in particular cases by English Judges. We can make an order
or issue a writ in the nature of certiorari in all appropriate cases, and in,
appropriate manner, so long as we keep to the broad and fundamental principles
that regulate the exercise of jurisdiction in the matter of granting such writs
in English law." (1) [1955] 1 S.C.R. 250, 160 It is therefore upon to us
to issue a direction in the nature of mandamus requiring the Authority to
follow the law as laid down by this Court in respect to the order of renewal
granted by it in accordance with S. 58 (1) (a). It is true that where it is a
case of discretion of an authority, this Court will only quash the order and
ask the authority to reconsider the matter if the discretion has not been
properly exercised. But in this case, the discretion is not absolute; it is
circumscribed by the provision of s. 58(1)(a), which lays down a duty on the
Authority which grants a renewal to specify a period which is not less than
three years and not more than five years. The duty being laid on the Authority
which has in this case decided to grant a renewal to specify a period not less
than three and not more than five years as the duration of the renewal, it is
in our opinion open to this Court to direct the Authority to carry out the duty
laid on it by s. 58 (1) (a) read with s. 58 (2), when it has granted the
renewal.
We therefore allow the petitions and quash
that part of the order complained against which specified the renewal of the
permits upto March 31, 1959, and direct the Regional Transport Authority,
Bangalore, to comply with the requirements of the law as laid down in s. 58 (1)
(a) read with s. 58 (2) in the order of renewal made by it in favour of the
petitioners on December 15, 1958. The petitioners will: get one set of costs
from the Mysore Government Road Transport Department which alone has contested
these petitions.
Petition No. 76 of 1959.
WANCHOO J.-This is a petition under Art. 32
of the Constitution by certain transport operators in the State of Mysore and
raises a question as to the interpretation of s. 58(2) of the Motor Vehicles
Act, No. IV of 1939 (hereinafter called the Act.) The brief facts which are
necessary for our purpose are these: The petitioners were operating on the
basis of stage carriage permits on certain routes which are under the control
of the Regional Transport Authorities, Bangalore and Kolar (hereinafter called
the Authorities).
The routes 161 being inter-district routes,
the permits are. issued by the Regional Transport Authority, Bangalore, and are
countersigned by the Regional Transport Authority, Kolar.
That is why both have been made parties to
the petition.
The permits of the petitioners were expiring
on December 31, 1957, and were renewed upto March 31, 1958. Applications for
renewal were invited thereafter for three years from April 1, 1958.
Consequently the petitioner made applications for renewal of their permits. It
appears that the Mysore Government Road Transport Department (hereinafter
called the Department) also applied for permits for the same routes. The
Department also wrote a letter each to the two Authorities in which it pointed
out that the Government of Mysore was pursuing a policy of nationalisation of
road transport services in the State and that it would be in a better position
to run the -services on these routes and would be able to rationalise and
co-ordinate the various forms of transport and offer better service to the
public.
It therefore requested that the permits of
the petitioners should not be renewed and that the Department was prepared to
take over the services from April 1, 1958. Though meetings were held from May
to December 1958, the Authorities did not pass any orders on the applications
for renewal. It appears, however, that the applications of the Department 'for
grant of permits were dismissed in September 1958. The Department went up in
appeal against this order which was allowed in March 1959 and the Authorities
were directed to reconsider the applications . In the meantime the Regional
Transport Authority, Bangalore, ordered in January 1959 that the applications
for renewal should be renotified and this was done. Upon this, the Department
wrote again to the Bangalore Authority on February 20, 1959, not to renew the
permits of the petitioners. Eventually, the Regional Transport Authority,
Bangalore, met on March 29, 1959, and renewed permits relating to certain other
routes for three years while the applications of the present petitioners were
postponed. There was another meeting on April 30, 1959, when the permits of the
petitioners were renewed 162 till September 30, 1959. It is this order which is
being challenged by the present petition. The petitioners case is that they are
entitled to carry on the business of transport of passengers as a fundamental
right guaranteed to them under Art. 19(1(g) of the Constitution, and that this
right can only be restricted in the manner provided by the Act which is a
regulatory measure dealing with motor vehicles. They contend that they were
entitled under s. 58 of the Act to renewal of their permits for at least three
years in case the Authorities decided to grant renewal on the applications
which they had made in January 1958 and in so far as the Authorities gave them
renewal only upto September 30, 1958, they were acting in contravention of the
Act and were thus committing a breach of their fundamental right. They
therefore pray that this Court should come to their aid and protect their
fundamental right to carry on the business of transport in accordance with the
Act. The prayer which they actually made is somewhat inartistic but in effect
they want that the Authorities be directed to renew their permits in accordance
with the Act, which requires that the renewal must be for a period of not less
than three years and not more than five years so far as stage carriage permits
are concerned.
The petition has been opposed by the
Department and the main contention on its behalf is that on a correct
interpretation of s. 58 of the Act it is open to a Regional Transport Authority
to renew a permit for any period it chooses to fix and therefore the
Authorities in this case were acting in accordance with the law when they
renewed the permits of the petitioners upto September 30, 1959. It is further
contended that even if the Regional Transport Authority must fix a period of
not less than three years and not more than five years, the only order that
this Court should pass is to quash the order dated April 30, 1959, renewing the
permits upto September 30, 1959, and direct the Authorities to decide the
renewal applications in accordance with the law to be laid down by this Court.
163 This case is similar to Writ Petitions
Nos. 54 and 75 of 1959, in which judgment has been just delivered today and
raises the same two questions which have been raised there.
The only difference is that there no scheme
prepared under Chapter IV-A in connection with the routes with which we are
concerned here. We have considered the interpretation of s. 58(2) read with s.
58(1(a) in Writ Petitions Nos. 75 and 54 of 1959 and the form of the order to
be passed. For reasons given in those petitions, we are of opinion that this
petition should be allowed.
We therefore allow the petition and quash
that part of the order complained against which specified the renewal of the
permits upto September 30, 1959, and direct the Authorities to comply with the
requirements of the law as laid down in s. 58(1)(a) read with s. 58(2) in the
order of renewal made by them in favour of the petitioners on April 30, 1959.
The petitioners will get their costs, except
hearing costs as the hearing was common with Petition No. 75 of 1959, from the
Mysore Government Road Transport Department which alone has opposed the
petition.
Petitions Nos. 54, 75 and 76 of 1959.
KAPUR J.-In the circumstances of this case I
do not propose to give any opinion on the question whether in renewing a permit
the Regional Transport Authority had to do so for a period of not less than
three and not more than five years.
Assuming that it should have been so, what is
the form of order that this Court could and should make in a case like the present.
The petitioners' prayer was as follows :" Wherefore your petitioners most
humbly pray that the order of the 2nd respondent dated 15th December, 1958, and
be quashed as illegal, arbitrary, unreasonable, unconstitutional and void and
the 2nd respondent be directed to grant renewal of your petitioners' permit
strictly according to law as has been done in the case of all other operators
in that region, upto 31st March, 1961." If the Impugned order is without
jurisdiction then it is liable to be quashed. If it is such that no reasonable
164 body could have given it then it must be deemed to be in excess of
jurisdiction and in that case also it is liable to be quashed. The power of a
superior court in such cases is not that of an Appellate Authority overriding
the decision of the Administrative Tribunal-in this case the Regional Transport
Authority: Associated Provincial Picture Houses, Ltd. v. Wednesbury Corporation
(1).
The Petitioners submitted that the Regional
Transport Authority be directed to grant renewal of the permits for a period of
three years; in other words what the petitioners want is not only that the
order of the Regional Transport Authority be quashed but it should be
substituted by the order directing the Authority to act in a particular manner,
that is, to renew the permits for a period of not less than three and not more
than five years. By doing this Court will be directing an order in substitution
of the order passed and not merely quashing the order-made by the Regional
Transport Authority but also amending it. In England the power of certiorari
did not extend to ordering an amendment of an order: The King v. Willesden
Justices, Exparte Utley (2). In that case a person was properly convicted for
an offence by the Justices but was erroneously fined in a sum in excess of the
statutory maximum and it was held that the conviction was bad on the face of it
and the order must be quashed because unlike the Appeal Court a court acting in
its extraordinary prerogative jurisdiction had no power to amend the order and
all that could be decided in a case of that kind was whether the conviction was
good in law. In a number of other cases a similar view was taken by the English
Courts.
Even where the matter is one which falls
under the power of issuing a mandamus the order can only command the Tribunals
to hear and decide the particular matter and no writ will be issued dictating,
to them in what manner they are to decide.
This rule holds good even though the decision
is erroneous not only as to facts but also in point of law and although the
particular circumstances of the case are such that (1) (1948) 1 K.B. 223.
(2) (1948) 1 K.B. 397.
165 there is only one way of performing the
duty in question.
Halsbury's Laws of England, 3rd Edition, Vol.
11, page 101, paragraph 187. This principle was accepted in Veerappa Pillai v.
Raman &Raman Ltd.(1). Chandrasekhara Iyer, J., while delivering the
judgment of this Court said at page 596:
" Further, it will be noticed that the
High Court here did not content itself with merely quashing the proceedings, it
went further and directed the Regional Transport Authority, Tanjore, " to
grant to the petitioner permit in respect of the five buses in respect of which
a joint application was made origin. ally by the petitioner and Balasubramania
Pillai and that in case the above buses have been condemned, the petitioner
shall be at liberty to provide substitutes within such time as may be
prescribed by the authorities ".
Such a direction was clearly in excess of its
powers and jurisdiction".
In Basappa v. Nagappa (2) this case was
referred to with approval.
The petitioners relying upon two judgments of
this Court submitted that the impugned order was severable and it should be
severed and the portion which is not in accordance with law should be excised
and a direction given that the tribunal should specify a period of not less
than three years and not exceeding five years. In my opinion this is nothing
more than substituting an order in place of the order passed by the Regional
Transport Authority itself. It must be recognised that under Art. 32 this Court
has the power to enforce fundamental rights and a right under Art.
32 itself is a fundamental right but when
this Court exercises the power of judicial review in the matter of enforcement
of fundamental rights which are alleged to be infringed because of some order
passed by an administrative Tribunal in the exercise of its jurisdiction this
Court has to proceed on certain principles and one of the recognised principles
is that:
"....... in the whole of administrative
law the functions that can be performed by judicial review (1) [1952] S.C.R.
584. (2) [1955] 1 S.C.R. 250.
166 are fairly limited ". The role of
the courts in this field " is to serve as a check on the administrative
branch of government----a check against excess of power and abusive exercise of
power in derogation of private right ". The judicial function is thus one
of control: we may expect " judicial review to check-not to supplant-administrative
action. "(Bernard Schwartz on American Administrative Law, page 113).
The question is whether the powers given
under Art. 32 are such that this Court can direct the exercise of direction by
the administrative tribunal in the manner that this Court would have exercised
it. It is said that the tribunal would have ordered the renewal of the permits
irrespective of whether they were going to be for a period of not less than
three and not more than five years. There is slender basis for this assumption
and the fact that there was nationalisation in the offing do not give it much
support. In giving such a direction, as is proposed, this Court will be
substituting itself in place of the Regional Transport Authority and acting as
if it was the Authority itself which is beyond the scope of judicial review.
Reliance was placed by the petitioners on
Shewpujanrai Indrasanrai Ltd. v. The Collector of Customs (1). In that case the
Collector of Customs purporting to act under section 167(8) of the Sea Customs
Act ordered (1) confiscation of the smuggled gold (2) in lieu thereof an option
to pay fine of Rs. 10 lakhs and (3) in addition to pay proper customs duty and
other charges leviable thereupon and (4) imposed a condition that the release
of gold will be subject to the production of a permit from the Reserve Bank of
India within a period specified in the order. It was conceded that 'the
Collector had no power to impose the last, two conditions and it was contended
that the order being a composite and integrated whole, part of it was within
jurisdiction of the Collector and part of it without and the superior court
must quash the whole order as being in excess of jurisdiction. Relying upon (1)
[1959] S.C.R. 821.
167 the judgment of this court in R. M. D.
Chamarbaugwalla v. Union of India(1) this Court was of the opinion that there
was no difficulty in enforcing the order even after excising the two illegal
conditions. S. K. Das, J., in delivering the judgment of the Court said:"
There is no legal difficulty in enforcing the rest of the impugned order after
separating the invalid conditions therefrom; .For these reasons we agree with
the Division Bench of the High Court that the invalid conditions imposed by the
Collector in this case are severable from the rest of the impugned order."
But these observations have to be read in the context of the facts and the
decision of the case The King v. Willesden Justices, Ex parte Utley (2) was
cited but was not applied because of the observations of this Court in T. C.
Basappa v. T. Nagappa & Anr. (4) to which I shall refer presently.
The main ground on which the order of
severability was passed was that the appellant in that case had not merely
asked for a writ of certiorari but also for a writ of mandamus and prohibition
and that the prayers were neither unnecessary nor mere surplus ages and they
were appropriate for the purpose of getting rid of conditions imposed by the
Collector for the release of gold. It was held in that case that if a decision
of an inferior court or tribunal was partly within and partly without its
jurisdiction, prohibition will lie against what is in excess of jurisdiction
and reference was made to Halsbury's Laws of England, 3rd Edition, Vol. 11,
page 116, paragraph 216 and also to Shree Ram Krishna Dalmia v. Shri Justice S.
R.
Tendolkar & Ors. (4) where the principle
of severability was applied. In Shewpujanrai's case(,') two passages from
Basappa v. Nagappa(3) at page 257 were quoted with approval.
After a review of these various authorities
S. K. Das, J., said at page 844:" Therefore, we do not see any insuperable
difficulty in the present case in prohibiting respondents 1 to 3 from enforcing
the two invalid conditions (1) [1957] S.C.R. 930.
(3) [1955] 1 S.C.R. 250.
(2) (1948) 1 K.B. 397.
(5) [1959] S.C.R. 821, (4) [1959] S.C.R. 279,
168 which the Collector of Customs had imposed for release of the gold on
payment of the fine-in lieu of confiscation, and the time limit of four months
fixed by the Collector must accordingly run from the date of this order."
It will be seen therefore that in Shewpujanrai's case (1) although this Court
was of the opinion that the powers of the Court are wider than those of the
Courts in England yet in the exercise of those powers of issuing writs the
broad and fundamental principles that regulate the exercise of jurisdiction
granting such writs in English law will be observed. The case is no authority
for saying nor did it lay down that in the matter of judicial review this Court
will proceed on different principles than the Courts in England. The main
decision in the case proceeded on the ground that a writ of prohibition was
prayed for, in granting which it was open to the Court to issue a writ quashing
that portion which was in excess of jurisdiction.
Besides, in that case, by severing the
illegal conditions which had been imposed the order of the Collector still
remained one enforceable and not a truncated order which would be incomplete by
the excision of those two conditions.
Can it be said in the instant case that the
impugned order can remain one whole integrated and intelligible order by taking
away the condition in regard to the period and could it fall within the rules
laid down in Chamar baughwalla's case (2 ). The 6th condition there laid down
at page 951 was that if after the invalid portion was expunged what remained
could not be enforced without making alterations and modifications therein then
the whole must be struck down.
Can it be said as it could be said in
Shewpujanrai's case (1) that the order is enforceable without the period and
without making a substituted order in place of the order made by the -Regional
Transport Authority. In my opinion it cannot be.
Then I come to the consideration in T. C.
Basappa v. T. Nagappa (3). That was a case which arose in appeal against the
decision of the Mysore High Court (1) [1959] S.C.R. 821. (2) [1957] S.C.R. 930.
(3) [1955] 1 S.C.R. 250.
169 given under Art. 226 in regard to an
election matter where the Election Tribunal had found certain issues in favour
of the petitioner and had declared the election to be void and the respondent
filed an application under Art. 226 for a writ or direction in the nature of
certiorari which was allowed. The question raised in this Court was that the
Tribunal whose order had been quashed had neither acted without jurisdiction
nor was there any error apparent on the face of the record and the two
questions which arose for decision were (1) what was the extent of the power of
the High Court in exercise of its powers under Art, 226 to grant a writ of
certiorari to quash the adjudication of an Election Tribunal and (2) whether
such grounds did exist.
After reference to the principles on which
superior courts in England act in issuing writs of certiorari and how the power
had developed, Mukherjea, J. (as he then was) observed that under the
Constitution of India new and wide power had been conferred on the High Courts
of issuing directions, orders or writs primarily for the enforcement of
fundamental rights and also included the power of issuing such directions for
any other purpose. At p. 256 the learned Judge said:In view of the express
provisions in our Constitution we need not now look back to the early history
or the procedural technicalities of these writs in English law, nor feel
oppressed by any difference or change of opinion expressed in particular cases
by English Judges. We can make an order or issue a writ in the nature of
certiorari in all appropriate cases and in appropriate manner, so long as we
keep to the broad and fundamental principles that regulate the exercise of
jurisdiction in the matter of granting such writs in English law."
(Italics are mine).
It will thus be seen that in that case this
court did not hold that the principles that regulate the exercise of jurisdiction
in the matter of granting such writs in English law were not to be keptin view.
As a matter of fact the learned Judge then gave quotations from 22 170 various
English decisions e.g. Rex v. Electricity Commissioners (1); King v. Nat Bell
Liquors Limited( 2). At page 258 a passage from the judgment of Morris, L. J.,
in Rex v. Northumberland Compensation Appellate Tribunal(3) was quoted with
approval and then a passage from the judgment of Chandrasekhara Iyer, J., in
Veerappa Pillai v. Raman & Raman Ltd. (4) at p. 594 " However
extensive the jurisdiction may be it seems to us that it is not so wide or
large as to enable the High Court to convert itself into a Court of Appeal and
examine for itself the correctness of the decision impugned and decide what is
the proper view to be taken or the order to be made was quoted. After referring
to these various passages Mukherjea, J. (as he then was) said :These passages
indicate with sufficient fullness the general principles that govern the
exercise of jurisdiction in the matter of granting writs of certiorari under
article 226 of the Constitution. " It cannot therefore be said that in
Basappa's case this Court said or intended to say that a superior court acts in
a manner different from that in which the courts acted in England. All it
intended to say was that in that case on the facts and circumstances found by
the High Court a writ of certiorari was rightly issued. This Court did not say
that in issuing a writ of certiorari a superior court could substitute orders
or direct what the order should be. In other words judicial review extends to a
check on administrative tribunals and not to supplant administrative action. In
my opinion the power of this Court only extends to quashing and not to
substituting an order in place of what an administrative tribunal has done or
to direct what it should do. Reference was made by the learned Solicitor
General to Kochunni v. State of madras (6) in which certain observations were
made as to the power of this Court to frame its writs or orders to suit the
exigencies of the case. That was not a case of judicial review of
administrative action but of the exercise of (1) (1924) 1 K.B 171 at p. 205.
(2) (1922) 2 A C. 128 at p. 156.
(3) (1952) 1 K.B. 338 at P. 357.
(4) [1952] S.C.R. 584.
(5) [1955] S.C.R. 250.
(6) A.I.R. (1959) S.C 725.
171 the powers under Art. 32 in a case where
the validity of an Act eo instanti abridging the petitioner's rights under Art.
19(1)(f) was in dispute. The decision, the
observations and the rule laid down must be read in the context and in the
circumstances of that case. United Motors Transport Co. v.
Sree Lakshmi Motors Transport Co., Ltd. (1),
also was not a case of judicial review but an appeal from a decree and does not
affect the question now before us.
The petitioners applied to the High Court
under Arts. 226 & 227 of the Constitution against the order made by the
Regional Transport Authority but that was dismissed and a certificate for
appeal was also refused by the High Court.
As to what is the legal effect of the order
of the High Court which has become final by its not being appealed against, I
do not propose to discuss in this case as we have not had the advantage of its
being debated at the Bar.
In my opinion no order commanding the
Regional Transport Authority as to what order it should pass and what period
should be substituted in place of the order passed by the Regional Transport
Authority can be made by this Court and all that this Court can do is to quash
the order and leave it to the Regional Transport Authority to reconsider the
matter and exercise its discretion keeping in view the law as laid down by this
Court. As the petitioners' success would be partial, I leave the parties to
bear their own costs in this Court.
ORDERS OF COURT.
In Petitions Nos. 54 and 75 of 1959.
In accordance with the opinion of the
majority, we allow the petitions and quash that part of the order complained
against which specified the renewal of the permits upto March 31, 1959, and
direct the Regional Transport Authority, Bangalore, to comply with the
requirements of the law as laid down in s. 58 (1)(a) read with s. 58(2) in the
order of renewal made by it in favour of the petitioners on December 15, 1958.
The petitioners will get one set of costs from the Mysore (1) A.I.R. (1945)
Cal. 260.
172 Government Road Transport Department
which alone has contested these petitions.
In Petition No. 76 of 1959.
In accordance with the opinion of the
majority, we allow the petition and quash that part of the order complained
against which specified the renewal of the permits upto September 30, 1959, and
direct the Authorities to comply with the requirements of the law as laid down
in s. 58(1)(a) read with s. 58(2) in the order of renewal made by them in favour
of the petitioners on April 30, 1959.
The petitioners will get their costs, except
hearing costs as the hearing was common with Petition No. 75 of 1959, from the
Mysore Government Road Transport Department which alone has opposed the
petition.
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