Road Transport Corp. Vs. Mohd.Ghilman Sharif & Ors.  INSC 1248 (20
SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL
No._4555___________2009 (@ S.L.P. (C) NO. 29966 of 2008) U.P. State Road
Transport Corp. ...Appellant Mohd. Ghilman Sharif & Others ...
CIVIL APPEAL Nos._4556-4557______ OF 2009 (@ S.L.P.(C)Nos.520 of 2009 and 783
This appeal has been filed against the judgment and order dated
14.11.2008 passed by the Allahabad High Court in Civil Misc. W.P. No.47949 of
2008 filed by the Respondent Nos. 1 and 2 herein, inter alia, for the issuance
of a Writ in the nature Mandamus upon the Transport Department of the State of
U.P. and its authorities to allow the writ petitioners/Respondent Nos.1 and 2
herein, to ply their vehicles against subsisting permits on the route between
Muzaffarnagar-Rohana- Deoband-Nagal-Saharanpur and allied routes.
said order, the High Court disposed of the writ petition with a direction to
the State Transport Authority to decide as to whether the permit of the
Respondent No.1 was subsisting and if the same was found to be subsisting the
respondents would not be prevented from plying their vehicles on the route in
question. The matter was to be decided by a speaking order.
The facts in brief indicate that the Respondent No.1 Mohd. Gilman
Sharif and Mohd. Ruman Sharif, claimed to be joint permit holders in respect of
the aforesaid route. The second petitioner, Vinod Kumar, claims to have had a
permit in respect of the said route which had expired and his application for
renewal of the same is said to be pending.
On 13.2.1986 a Scheme was proposed to notify 38 routes under
Section 68-C of the Motor Vehicles Act, 1939(hereinafter referred to as `the
1939 Act'), which would have the effect of totally excluding all private
operators from the said routes. While Clause (h) of Section 68-C provides for
cancellation of permits granted to private operators upon such Notification,
Clause (j) provides for grant of compensation if no alternative route could be
given to the permit holders. Various 4 objections were filed by the existing
operators to the said proposal and in the mean time on 1.7.1989 the Motor Vehicles Act,
1988 (hereinafter referred to as `the 1988 Act') came
into force and the proposed Scheme continued for consideration under the
provisions of the 1988 Act. The objections were considered by the Hearing
Authority which held that the Scheme had lapsed under Section 100(4) of the
1988 Act. The order of the Hearing Authority was confirmed by the High Court on
16.3.1990. The said view of the High Court was reversed by this Court in
Ramkrishna Verma vs. State of U.P. [(1992) 2 SCC 620] upon the finding that the
Scheme had not lapsed and that the same was required to be finalized.
On 29.5.1993 a Notification was published under Section 100(3) of
the 1988 Act 5 finalizing the Scheme of nationalization with exclusive right of
operation to the appellant Corporation and total exclusion of private
operators. The said Notification was again challenged in several writ petitions
which were dismissed by the High Court on 19.11.1999. The various Special Leave
Petitions which were filed against such dismissal order were allowed by this Court
on 1.5.2001 and the matter was remanded to the Hearing Authority to consider
the objections which had been filed by the private operators and which were
under consideration when the impugned Notification dated 29.5.1993 had been
issued. The Hearing Authority by its order dated 2.11.2001 allowed the existing
operators, such as the Respondent Nos. 1 and 2, to ply on the routes in
question along with the Corporation.
The order was again questioned by the Corporation by filing Writ
Petition No.9332 of 2002 in the High Court and the same was dismissed on
23.7.2002 with the High Court holding that the Scheme had lapsed. The said
order of the High Court was also challenged before this Court by the appellant
Corporation as well as the private operators. Such challenge was upheld on
29.11.2004 and the matters were remanded to the High Court for re-hearing of
Writ Petition No.9332 of 2002 filed by the appellant Corporation.
While Writ Petition No. 9332 of 2002 was still to be heard, the
applications for renewal of the permits of the private operators came up for
consideration before the State Transport Authority which by its order dated
9.6.2005 declined to renew the permits on account of the pendency of the said
Writ Petition before 7 the High Court. Against such refusal, revision petitions
were filed before the State Transport Appellate Tribunal which directed the
permits to be renewed subject to the fate of Writ Petition 9332 of 2002.
Consequently, on 20.1.2006 the permits were renewed subject to the said
On 1.6.2007 the High Court allowed the Writ Petition and set aside
the orders passed by the Hearing Authority holding that permit holders who were
granted permits prior to 1986 were entitled to get compensation according to
the provisions of the Motor
Vehicles Act, 1988. The Special Leave Petitions filed
against the said order were dismissed by this Court on 16.7.2007.
While the Special Leave Petition against the order of the High
Court dated 1.6.2007 allowing Writ Petition No.9332 of 2002 was 8 pending
hearing, the State Transport Authority on 26.6.2007 prevented the private
operators from operating on the routes in question.
Special Leave Petition was dismissed on 16.7.2007 the Government took a
decision on 9.8.2007 to allow private operators to operate on the routes in
question along with the appellant Corporation. On 28.3.2008 the State
Government issued a final Notification allowing private operators to operate on
the notified route in question along with the appellant-Corporation. The said
Notification dated 28.3.2008 was challenged by the U.P.
Karamchari Union in W.P. No.398 of 2008 and the Lucknow Bench of the Allahabad
High Court by its order dated 7.5.2008, restrained the authority from issuing
permits on the notified routes. The private respondents also filed W.P.
No.47949 of 2008 in the High Court for a direction upon the 9 respondent
Authority to allow them to ply on the routes in question on the strength of the
permits held by them as no action had been taken either under the Scheme or in
terms of Section 103 of the 1988 Act or even under Sections 104 and 105
thereof. The said Writ Petition No.47949 of 2008 was allowed by the High Court
on 14.11.2008 and the State Transport Authority was directed to consider the
applications filed by the respondents in the light of the Notification dated
28.3.2008 by which private operators had been permitted to operate on the
routes in question along with the appellant-Corporation.
It is against the said order of remand that the present appeal has
been filed by the U.P. State Road Transport Corporation.
Mr. Dushyant Dave, learned senior counsel appearing for the
appellant-Corporation, while 10 narrating the above-mentioned facts confined
his submissions to the issue regarding renewal of the permits upon the orders
of the State Transport Appellate Tribunal, subject to the decision in Writ
Petition No.9332 of 2002. The said Writ Petition was, in fact, disposed of by
the Allahabad High Court on 1.6.2007 in favour of the appellant Corporation
upon negating the stand that the Corporation was not in a position to cater to
the needs of the travelling public on account of suffering huge losses and
insufficient number of buses which disabled them from providing sufficient,
adequate, economical and properly coordinated transport service to the
pointed out that the order of the Hearing Authority in so far as it modified
the approved Scheme dated 29.5.1993, could not be sustained, and was set aside
by the High Court. Mr. Dave also pointed out that while 11 disposing of the
said writ petition the High Court had categorically held that permit holders
who had been granted permit before 13.2.1986 i.e., before the date of
publication of the Scheme, whose permits were going to be affected by the
approved Scheme on 29.5.1993, were only entitled to compensation in terms of
the provisions of the Act.
Mr. Dave submitted that after such decision there was no scope for
the private operators, including the Respondent Nos.1 and 2 herein, to be given
any further opportunity of hearing regarding their claim to operate on the
route in question on the basis of their permits which had been cancelled.
Mr. Ranjit Kumar, learned senior counsel appearing for Respondent
Nos. 1 and 2, submitted that all that the said respondents wanted was an
opportunity to place their 12 respective cases before the State Transport
Authority in order to establish their eligibility on the strength of the
permits issued to them earlier to operate on the routes in question. Mr. Ranjit
Kumar urged that the permits issued to the respondents did not stand cancelled
as per the procedure under Section 103(2) of the 1988 Act, but merely became
He also urged that after a survey conducted in June 2007, the
State Transport Authority had arrived at a conclusion that the appellant-
Corporation was not in a position to provide appropriate service on the
notified routes which caused the State Government to issue a Notification on
12.12.2007 proposing to modify the exclusive Scheme in terms of section 102 of
the 1988 Act. It was urged that even on a notified route, when a notified
operator was 13 unable to provide adequate service, the State Transport
Authority and the State Government were vested with powers under Section 102 of
the 1988 Act to modify the Scheme. Mr. Ranjit Kumar referred to the
Constitution Bench decision of this Court in A.P. State Road Transport
Corporation vs. Regional Transport Authority and another [(2005) 4 SCC 391]
wherein, while considering a similar question it was held that it was for the
State Government to consider what is suitable for public service. The State
Government has the power to modify the Scheme in case of a need since the
Scheme is after all intended for the benefit of the public and if any step was
required to be taken in that regard the State Government could always do so by
modifying the Scheme.
We are afraid, we are unable to agree with Mr. Ranjit Kumar on the
question of further hearing to be given to Respondent Nos. 1 and 2 on their
claim to be allowed to operate on the notified routes in question on the basis
of the permits which according to the said respondents were dormant and were
capable of being reviewed in the existing circumstances.
As we have indicated earlier, the permits of the private operators
on the said routes were renewed by the State Transport Appellate Authority by
its order dated 20.1.2006 which made it very clear that such renewal would be
subject to the fate of W.P. No.9332 of 2002.
writ petition was disposed of on 1.6.2007 by the Allahabad High Court and the
said judgment has been reported in 2001 Vol. 5 ALJ at page 255. After
considering the entire matter in detail, the Division Bench of the 15 High
Court has allowed the said writ application filed by the appellant-Corporation
and has negated the contentions of the private operators who, it was held, were
only entitled to compensation in terms of the provisions of the 1988 Act.
In that view of the matter, the present appeal has to be allowed.
The directions given by the High Court in Civil Misc. Writ Petition No. 47949
of 2008 are hereby set aside and the prayer made by Respondent Nos. 1 and 2
herein for being given a hearing to establish their claims is also refused.
This will not, however, prevent the said respondents from claiming compensation
under Section 105 of the Motor
Vehicles Act, 1988.
The appeal is accordingly allowed in the above terms.
There will, however, be no order as to costs.
NOs. ________ OF 2009 (@ S.L.P.(C)Nos.520 of 2009 and 783 of 2009)
view of the aforesaid, leave is also granted in these two special leave
petitions, which are also allowed and disposed of accordingly.
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