Abdul Hai Khan v. Subal Chandra Ghose and Ors.
D.P. MOHAPATRA, J. Leave is granted in all the special leave
petitions.
These appeals filed by certain private stage carriage operators in
Calcutta region of the State of West Bengal are directed against the judgment
of the Division Bench of the High Court of Calcutta disposing of a batch of
appeals filed by some private operators challenging the judgment passed by
single Judges declining to grant any relief to the petitioners .. Since all these
appeals have been heard together, the facts in S.L.P. (Civil) No.8634/99 are D
being referred for the sake of convenience.
The Division Bench of the High Court disposed of the appeals by
passing the order operative portion of which reads as follows:
"For the reasons aforementioned these appeals and the Writ E
applications are disposed of with the direction upon the Regional
Transport Authority to consider grant of permit as if the 1980 Scheme
is no longer in force and for that purpose applications filed by the
concerned operators may be considered strictly in accordance with
law. In the facts and circumstances of this case there will be no order
as to costs." F
From the discussions in the impugned judgment it is clear that the
Division Bench took the view that the scheme formulated under the
Notification issued on 10.4.1980 was ultra vires the provisions of Chapter
IVA of the Motor Vehicles Act, 1939 since it was contrary to the intent and
purport of provisions in the said chapter. The Division Bench observed : G
" ......... Ex-facie, therefore the said 1980 Notification is ultra vires
Section 68C of 1939 Act. Any notification issued contrary to the
Statute shall be invalid and inoperative."
It was further held in the judgment that since the 1980 scheme was not H
A in operation for a long time and the Court had been passing orders directing
the authorities concerned to consider applications for grant of stage carriage
permit and pursuant to such orders a large number of stage carriage permits
had been granted to private operators; in such a situation the doctrine of
'Desuetude' should be applied in the case. The Division Bench observed that
the main scheme notified in 1963 which was subsequently amended had not
B been placed before the Court. The Division Bench took note of the statements
made by the counsel appearing on behalf of the State and made the following
observations :
"It may further be placed on record that both Mr. Dey and Mr. Khan
appearing on behalf of the State' specifically stated before us that
although in the affidavit-in-opposition the State had taken a stand
that 1980 Notification still exists, the fact remains that the same had
not been adhered to and State Carriage permits had been granted in
favour of a large number of operators."
D Referring to certain decisions of the Supreme Court and of different
High Courts the Division Bench rendered the judgment operative portion of
which has been quoted earlier.
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Analysing the facts of the case appearing from the records and arguments
placed by learned counsel appearing for the parties the following factual
E position emerges:
Initially the passenger transport services in Calcutta region were operated
by holders of stage carriage permits issued by the Regional Transport
Authority, Calcutta. By the Notification issued on 19.8.1963 the State of
West Bengal published a scheme nationalizing certain routes in the Calcutta
F and Howrah regions under Section 68-D of the Motor Vehicles Act, 1939
(for short the 'Old Act') . In the said Scheme provision was made to permit
the existing private operators to continue their services on the routes specified
in the permits. The previous notification dated 2.5.62 published in the Calcutta
Extra-ordinary Gazette was modified in terms of the ·Scheme notified in
G 1963. Subsequently, the 1963 Scheme was modified in 1964, 1970 and in
1980, permitting private operators to operate certain routes within the region.
The writ petitioners who are the appellants herein, were issued stage carriage
permits on the routes included in the notification. They have been operating
on the nationalized routes. Their grievance appears to be that the Regional
Transport Authority, Calcutta has granted permits to private operators on
H routes overlapping the nationalized routes on which they are operating under
ABDUL HAI KHAN v. SUBALCHANDRAGHOSE [D.P. MOHAPATRA,J.] 116)
· the modified scheme ignoring the notification issued in 1963 as modified in A
1980. It is the contention of the appellants that the nationalization scheme has
been given a complete go-bye by indiscriminate grant of permits to private
stage carriage operators on routes overlapping the nationalized routes. In
essence the contention of the appellants is that they have a right to operate
on the nationalized routes on which they have been granted permits to the
exclusion of any other private operator on the entire route or on a portion of B
it.
The following reliefs were sought in the petition :
(a) A writ of and/or in the nature of Mandamus commanding the
respondents, each one of them, their agents, subordinates and/ c
or assigns to forbear from granting any stage carriage permit
(bus) on route No.210 which is overlapping the notified route
no. 76/76A and also without complying with the provisions of
Chapter VI of the Motor Vehicles Act 1988 in any manner
whatsoever. D
(b) ·A Writ of and/or in the nature of Certiorari to issue directing
the respondents, their agents, subordinates and/or assigns to
transmit the entire record of the case forming the basis of the
purp~rted grant of stage carriage (bus) permits in respect of
route No.210 which is overlapping the notified route No.76/ E
76A before this Hon 'ble Court and to certify them and on
being so certified quash the same.
( c) A writ of and/or in the nature prohibition prohibiting the
respondents, their agents, servants subordinates and/or assigns
from granting any stage carriage permits on route no.21 O which
is overlapping the notified route no.76/76A and also without F
complying with the provisions of the Motor Vehicles Act 1988
in any manner whatsoever.
(d) Rule NISI in terms of prayers (a) to (c) as above.
(e) An order of Injunction to issue restraining the respondents, G
each one of them, their agents, subordinates, servants and/or
assigns from granting any stage carriage permits to private
operator; in respect of route no.210 which is over-lapping the
notified route no. 76/76A without following the provisions of
Chapter VI of the Motor Vehicles Act I 988 in any manner
whatsoever. H
1162
SUPREME COURT REPORTS [2002) 2 S.C.R.
(f) Ad-interim order in terms of prayer (e) as above.
(g) ' And to pass such further other order or orders and/or direction ·
or directions as to Your Lordship may deem fit and proper"
(Emphasis supplied)
B We have heard Sri Rakesh Dwivedi, learned senior counsel appearing
for the appellants and Shri Altaf Ahmad, learned Additional Solicitor General
for the respondents. The main thrust of the arguments of Shri Dwivedi is that
the Notification issued under Chapter IV A of the old Act which has not been
cancelled after the said Act was repealed by the Motor Vehicle Act, 1988 (for
C short the "new Act") is binding on all parties, the private operators, the State
Undertakings and the Transport Authorities under the Act. The authorities
are not entitled to ignore the modified scheme or render it otiose by
indiscriminately granting permits to private operators on routes overlapping
the nationalized routes. The further submissions of Shri Dwivedi was that the
High Court erred in holding that the modified scheme notified in 1980 is
D against the intent and purport of nationalization of transport services and it
is contrary to Section 68-D. The learned counsel contended that the High
Court erred in applying the doctrine of desuetude to the case.
Per contra Shri Altaf Ahmad while accepting the position of law that
E the notified scheme is the law which is binding on the parties contended that
the 1963 scheme which has undergone modifications from time to time (1964,
1970 and 1980) clearly shows that it is not a total exclusion scheme but only
·a partial exclusion scheme. In such a case submitted Shri Ahmad there is no
legal bar for the RTA to issue permits to private operators on routes other
than the nationalized routes even if s.uch routes overlap portions of any
F nationalized route. Shri Altaf Ahmad further contended that the scheme for
granting permits to operators under the Motor Vehicles Act has undergone a
sea change. In the new Act Section 47 of the old Act which required the RTA
to fix a limit of number of permits to be granted before considering any
application for permit has been done away with in the new Act. In the said
Act no restriction is placed on the Transport Authority for granting stage
G carriage permit if it is satisfied that issue of such permit is required in public
interest. Shri Altaf Ahmad fairly accepted the position that on the facts and
circumstances of the case, the Notification issued in 1980 cannot be held as
ultra vires Chapter IV-A of the Motor Vehicles Act, 1939. He strenuously
contended that after the new Act has come into force the appellants are only
H entitled to contend that no other private operator can be granted permit on the
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ABDUL HAI KHAN v. SUBAL CHANDRAGHOSE [D.P. MOHAPATRA, J.]] ]63
notified routes or other routes overlapping the notified routes . A •
From the contentions raised by the learned counsel for the parties it is
clear to us that there is no dispute about the position of law that the notified
scheme whether totally excluding private operators or partially excluding
them is binding on all concerned so long as it remains in force. At the same
time it is also clear that the scheme as framed in 1963 does not totally B
exclude private operators. Indeed it permits operation of stage carriage service
< by private operators. Therefore, the scheme is only a partial exclusion scheme.
In such a case it is not open to a private operator who is himself operating
on a nationalized route on account of modification of the scheme is entitled
> to seek a writ of mandamus to the authority not to grant permit to any other c private operator on that route or a route overlapping a portion of the route.
To put it differently he is not entitled to enjoy a monopoly of operation of
the route. It is up to the Authority to consider whether the application filed
by a private operator for permit on that route or another route overlapping
that route should be issued or not. In case the private operator who is operating
' D on the nationalized route has a grievance that the number of private operators
specified in the notified scheme is being exceeded then the permit issued to
• the operator/operators in excess of the specified limit, may be challenged
.... before the statutory fora in accordance with provisions of the Act. In any
view of the matter, the writ petition seeking the relief quoted earlier is not
maintainable particularly when neither the private operators who are alleged E to have got the permits in excess of the number specified in the Notification
nor the State Undertaking have been impleaded as parties in the case. In such
a case a prayer for a declaration in the form as sought in the writ petition
could not be granted.
On consideration of the relevant aspects of the matter we are of the F
view that the single Judge was right in declining to grant relief to the writ
petitioners and the Division Bench was in error in interfering with the
judgment. Accordingly the judgment of the Division Bench is set aside and
that passed by the learned single Judge in each case is restored. The appeals
~~ are disposed of accordingly. No costs.
N.J. Appeal disposed of .
....
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