Brjiendra Kumar Chaudhari and Anr. Etc. Etc. v. State of U.P. and Ors. Etc. Etc.
V. RAMASWAMI, J. We granted leave and dismissed the appeals on
27.3.1992. Here are our reasons for the dismissal of the appeals. In Gur
Bachan Singh & Ors. v, The Regional Transport Officer, Kanpur & Ors. Civil B
Miscellaneous Writ No. 9553 of 1981 a Division Bench of the Allahabad
High Court in their order dated 19th April, 1985 held on the ground that
as the Transport Authority had granted contract carriage permits to their
mini buses to be plied as motor cars, the operators were free to pick up
individual passengers from one point to other. They further held that: C
"the definition of 'contract carriage' was widened by the
Amendment made by Act 56 of 1%9, as a result of which
a contract carriage permit holder is entitled to carry
passenger or passengers for hire or reward OJ} a route or
distance, or from one point to another. The only restric
tion is that it cannot stop between one point to the other
to set down and pick up passengers. Ordinarily contract
carriage permit holder is entitled to carry passengers from
one point to another; but the extended meaning has made
it clear that the contract carriage can be operated as
motor carriage notwithstanding the passengers pay
separate fares. Thus it is apparent that separate individual
passengers may be booked by the contract carriage
holders from one point to another".
It appears that prior to 1971 Transport Authorities of U .P. State F
were generally granting contract carriage permits to Fiat and Ambassador
cars for plying the same from one city to another. On the ground that there
were pressing demands for introduction of mini buses the State Transport
Authority by resolution dated 5/6 November, 1971 decided to adopt a
liberal policy of issuing contract carriage permits to mini buses permitting G
them to ply their vehicles on the various routes in the State. There appears
to have been no definition of a "mini bus" at that time in any enactment.
However, in the view that the 'mini buses' which were constructed or
adapted to carry more than six persons would fall either under the defini-
tion of
1
omni bus' or 'motor cars' contract carriage permits were issued to
these mini buses to be plied as motor cars. There is an obvious mistqke _in H
988 SUPREME COURT REPORTS [1992) SUPP. l S.C.R.
A this view because the definition of 'motor car' excluded transport vehicles.
This decision was holding the field till the new Motor Vehicles Act, 1988
came into force with effect from [st of July, 1989.
When another case came up before another Division Bench in the
case of Samundra Devi v. State Transport Authority {Civil Miscellaneous
Writ No. 25781 of 1990) that Bench in view of the change in the definition
of contract carriage in the new Act referred the matter along with some
other cases to a larger Bench. The Full Bench held that the definition of
'contract carriage' is exhaustive and would take into its fold all types of
vehicles which are permitted to ply as 'contract carriage' irrespective of
their size and seating capacity and that maxi cab and motor cab would also
be included in the definition of contract carriage notwithstanding that
separate fares are charged from its passengers.
"Mini buses" came to be defmed in Section 2(d) of the U.P. Motor
Vehicles {Special Provision) Act, 1976 as under:
"Mini bns means which is constructed or adapted to carry
not more than 35 passengers excluding the driver".
The question which thus arises for considerauon in .these appeals is
E whether the contract carries permit holders of mini bnses are entitled to
pick up individual passengers at the starting point of their journey.
It would be convenient and necessary at this stage to refer to the
relevant provisions under the old Motor Vehicles Act, 1939 and the
provisions of Motor Vehicles Act, 1988 (hereinafter called the Act). Broad
ly the publice passenger transport motor vehicles recognised under the Act
were 'motor cab' and 'omni bus' which in turn with reference to its user
permit is either a 'contract carriage' or a 'stage carriage'. These descriptive
vehicles were defined in the old Act as it was originally enacted as under:
"2{15) "Motor Cab" means any motor vehicles constructed,
adapted or used to carry not more than six passengers
excluding the driver, for hire or reward".
'Omni bus' and 'maxi cab' were not defined in the original Act but
definition of Omni bus was inserted by the Motor Vehicles {Amendment)
H Act, 1956 which reads as under:
BRIJENDRACHAUDHARI v.STATEOFU.P. [RAMASWAMI,J.) 989
"2(18A) 'Omni Bus' means any motor vehicle constructed A
or adapted to carry more than six persons excluding the
driver"~
Stage Carriage was defmed in Section 2(29) of the Old Act as
follows:
"2(29) "Stage Carriage" means a motor vehicles carrying
or adapted to carry more than six persons excluding the
driver which carries passengers for hire or reward at
separate fares paid by or for individual passengers, either
for the whole journey or for stages of the journey''. C
'Contract Carriage' was defined in Section 2(3) and that as it stood prior
to 1970 was under:
'(3) "Contract Carriage" means a motor vehicle which
carries a passenger or passengers for hire or reward under D
a contract expressed or implied for the use of the vehicles
as a whole at or for a fixed or agreed rate of sum and
from one point to another without stopping to pick up or
set down along the line of route passengers not included
in the contract; and includes a motor cab notwithstanding
that the passengers may pay separate fares'. E
After it was amended by Act 56 of 1%9 with effect from 2.3. 70 the
definition read:
'(3) "contract carriage" means a motor vehicle which car·
ries a passenger or passengers for hire or reward under a
contract expressed or implied for the use of the vehicle
as a whole at or for a fixed or agreed rate or sum·
(i) on a time basis whether or not with reference to any
route or distance, or
(ii) from one point to another, and in either case without
stopping to pick up or set down along the line of route
passengers not included in the contract; and includes a
motor cab notwithstanding that the passengers may pay
separate fares
11
.H
The Motor Vehicles Act, 1939 was repealed and the new Act 59 of
1988 came to force as already stated with effet from !st July, 1989. There
is no change in the definition of "motor cab'. The definition of 'stage
carriage' also remains the same. The definition of "contract carriage",
however, has been changed which in our view was intended to convey more
explicitly what the legislature intended to convey by those words even
under the old Act and that definition reads as follows:
'2(7) 'contract carriage" means a motor vehicle which
carries a passenger or passengers for hire or reward and
is engaged under a contract, whether expressed or im
plied, for the use of such vehicles as a whole for the
carriage of passengers mentioned therein and entered into
by a person with a holder of a permit in relation to such
vehicles or any person authorised by him in this behalf on
a fixed or an agreed rate or sum-
(a) on a time basis, whether or not with reference to any
route or distance; or
(b) from one point to another, and in either case, without
stopping to pick up or set down passengers not included
in the contract anywhere during the journey; and includes-
(i) a maxi-cab; and
(ii) a motor-cab notwithstanding that separate fares are
charged for its passengers'
The Legislature has used a new word 'maxi-cab" and that is defined as
follows:
"2(22) 'maxi cab" means any motor vehicle constructed or
adapted to carry more than six passengers, but not more
than twelve passengers, excluding the driver, for hire or
reward".
There is no definition of "mini bus" in the Motor Vehicles Act but
we have to look up to its definition only in the U .P. Act above referred to.
In the light of that definition set out above and the other definitions in the
New Act oruy a motor vehicle constructed or adapted to carry not more
BRIJENDRACHAUDHARI v. STATEOFU.P. [RAMASWAMI,J.] 991
than thirty five passengers excluding the driver .and which is not a "Maxi A
Cab" or "Motor Cab" will normally be treated as a mini bus. It will not come
under the definition of "motor car" in Section ·2(26) as it is a transport
vehicle within the meaning of Section 2( 47). But the definition of 'omni
bus' is wide enough to include within it mini bus as well. Therefore a
contract carriage permit granted in respect of a mini bus will fall under the B
main part of the definition in Section 2(7) of the Act.
The argument of the learned counsel for the appellants was that
though under a contract carriage permit only those persons who ·are
mentioned in the contract could be picked up and stopping on the route
to pick up or set down passengers is prohibited, there could be several C
contracts becuase definition states that it is motor vehicle which 'carries a
passenger or passengers'.
The definition makes it clear that in order that vehicle could be used
to transport passenger or passengers there must be a prior contract express D
or implied that the contract must indicate as to who are the passengers to
be car<ied that the contract shall have been entered into by a person with
the holder of the permit or any person authorised by him and that the
engagement under 'a contract' is for use of the vehicle as a whole. It is not
possible to read the words "under a contract" in the context as referring to
both a single contract and more that one contract. If the construction E
placed by the learned counsel is accepted there would be no distinction
between stage carriage and i:ontract carriage permits. Both these clauses
of permits are intended to meet different requirements. A stage carriage
is intended to meet the requirements of the general travelling public. But
the contract carriages are for those who want to hire the vehicle collectively F
or individually for a group or party for their transport from place to place
and the whole vehicle is at their disposal. This is also made clear in Section
88(8) of the Act corresponding to Section 63 (6) of the Old Act wherein
it is provided:
"Notwithstanding anything contained in sub-section (1),
but subject to any rules that may be made under this Act
by the Central Government, the Regional Transport
Authority of any one region or, as the case may be, the
State Transport Authority, may, for the convenience of
the public, grant a special permit in relation to a vehicle
992
SUPREME COURT REPORTS (1992] SUPP. 1 S.C.R.
covered by a permit issued under section 72 (including a
reserve stage carriage) or under Section 74 or under
sub-section (9) of this Section for carrying a passenger or
passengers for hire or reward under a contract, express
or implied, for the use of the vehicle as a whole without
stopping to pick up or set down along the line of route
passengers not included in the contract, and in every case
where such special permit is granted, the Regional
Transport Authority shall assign to the vehicle, for display
thereon, a special distinguishing mark in the form and
manner specified by the Central Government and such
special permit shall be valid in any other region or state
without the counter signature of th~ Regional Transport
Authority of the other region or of the ·state Transport
Authority of other State, as the case may be."
D The contract shall be prior and the persons who are to be carried shall be
known prior to the journey is also clear from the other limitation lhat the
vehicle cannot stop to pick up or set down passengers not included in the
contract anywhere during the journey. As pointed out by this Court in
Roshan Lal Gautham v. The State of U.P. & Ors., AIR 1965 SC 991:
E "The contract carriage is engaged for the whole of the
journey between two points for carriage of a person or
persons hiring it but it has not the right to pick up other
passengers on route. The sklge carriage on the other hand,
runs between ·two points irrespective of any prior contract
F and it is boarded by pru;sengers en route who pay the fare
for distance they propose to travel."
If as contended by the learned counsel contract carriage permit holder can
pick up individual passengers at the starting point of the journey it is
virtually a stage carriage with corridor restriction. Some express buses and
G stage carriages with corridor restriction pick up pasengers al the starting
point of the journey and drop them at the last termini of the route without
the right to pick up or drop passengers on the notified route between the
two termini. Further the definition in the Act has added the words "for the
carriage of passenger mentioned therein (contract)" which were not there
H earlier. These w0rds clearly show that there must be a prior contract and
.BRUENDRACHAUDHARI v.STATEOFU.P. [RAMASWAMl,J.] 993
the passengers shall be settled in advance.
It was then contended by the learned counsel for the appellants that
the latter part of the definition of contract carriage which says that "not
withstanding that separate fares are charged for its passengers" would show
that there could be separate fares for its passengers and that, therefore,
individual passengers could be picked up at the starting point. According B
to him this is an exception to an otherwise contract carriage permit under
the main part of the definition of Section 2(7). This contention is unsus
tainable. The definition of a contract carriage under Section 2(7) is exhaus-
tive and takes into its fold all types of vehicles which are permitted to ply
as contract carriage irrespective of their size and seating capacity. In the C
main part of the definition which applies to all vehicles certain limitations
and conditions are referred to as implied in the grant of a contract carriage
permit. However, an exception bas been made in the case of a motor cab
and that is notwithstanding separate fares are charged from its passengers
a contract carriage permit could be granted in favour of such motor cab.
But even in the case of a motor cab the condition relating to not picking D
up or dropping passengers on the route is applicable. The exception also
is applicable only where the motor cab is under its permit or under any
law entitled or eligible to charge separate fares from its passengers. The
grant of contract carriage permit in respect of a motor cab will automat
ically attract all the conditions provided in the ~ain part of the section.
However, if there is any other provision or law under which the motor cabs
are permitted to charge separate fares from its passengers then not
withstanding their entitlement to charge separate fares from its passengers
it would be considered as having a contract carriage permit. As already
stated mini bus is neither a maxi cab nor a motor cab and, therefore, the
exception provided in the last part of the definition will not be applicable
to the case of a mini bus. In fact it was not the case of the appellants
themselves that they are running a maxi cab or that their vehicles are motor
cabs. For the foregoing reasons the appeals were dismissed. No costs.
G.N. Appeals dismissed.