08 October 1965
Supreme Court
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KUMAON MOTOR UNION OWNERS LTD. AND ANOTHER. Vs THE STATE OF UTTAR PRADESH

Bench: GAJENDRAGADKAR, P.B. (CJ),WANCHOO, K.N.,HIDAYATULLAH, M.,SHAH, J.C.,SIKRI, S.M.
Case number: Appeal (civil) 486 of 1965


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PETITIONER: KUMAON MOTOR UNION OWNERS LTD.  AND ANOTHER.

       Vs.

RESPONDENT: THE STATE OF UTTAR PRADESH

DATE OF JUDGMENT: 08/10/1965

BENCH: WANCHOO, K.N. BENCH: WANCHOO, K.N. GAJENDRAGADKAR, P.B. (CJ) HIDAYATULLAH, M. SHAH, J.C. SIKRI, S.M.

CITATION:  1966 AIR  785            1966 SCR  (2) 121  CITATOR INFO :  D          1967 SC1766  (24)  R          1979 SC1271  (7)  R          1991 SC 855  (58)

ACT: Defence of India Rules, 1962 r. 131(2) (gg) and   (i)-Powers under Defence of India Act 1962 s. 43.  If prevails over  s. 68  B of Motor Vehicles Act read with s. 6(4) of Defence  of India  Act-If  order passed mala fide to  avoid  payment  of compensation. Motor Vehicles Act, 1939 s. 68B--Ch.  IV A.

HEADNOTE: The   respondent-State  issued  a  notification   under   r. 131(2)(gg)  and  (i) of the Defence of  India  Rules,,  1962 directing  to stop plying of all vehicles belonging  to  the members  of  the appellant-union on a route  in  the  border region of the Country.  The appellants filed writ  petitions in  the High Court which were dismissed.  In appeal to  this Court  it  was contended. that (i)the order was  beyond  the power  of  the State under r. 131. (2) (gg) and (i)  of  the Defence  of  India Rules; (ii) on a combined reading  of  s. 6(4)  of  the Defence of India Act and S. 68B of  the  Motor Vehicles  Act,  the  provisions of Ch.  IV-A  of  the  Motor Vehicles  Act  with  regard to the framing  of  schemes  and payment of compensation must be complied within where action is  taken  under r. 131(2) (gg). and (i) of the  Defence  of India  Rules, and the act was mala fide; (iii) S. 44 of  the Defence of India Act had been contravened by the order;  and (iv) the satisfaction necessary  for passing the order under the Act and the Rules had not been shown by affidavits filed on behalf of the State and therefore the condition precedent to the passing of such an order was absent. HELD:     (i)  The order passed by the State Government  was clearly within its powers under r. 131(2)(gg) and (i) of the Defence of India Rules. [130 H] When  cl.  (gg)  envisaged  prohibition  or  restriction  of carriage  of  persons or goods by any vehicle  or  class  of vehicles,  it  meant that the order would apply  to  persons

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plying such vehicles. [127 A] The  impugned  order  was good so long  it  came  within  r. 131(2)(gg)  even  though it may diminish the  profit  making capacity  of a commercial undertaking or even reduce  it  to nothing in a particular line of business. [130 B-C] Clause  (i)  of  r. 131(2) was complementary  to  the  other clauses  of  r. 131(2).  When the State decided to  issue  a prohibition under cl. (gg) it must  naturally  provide   for alternative methods for the carriage of persons or goods  on the prohibited route and cl. (i) clearly makes provision for this. [130 D-E] (ii) Section 43 of the Defence of India Act must prevail  in the  conflict which appears to be apparent between S. 43  on one  hand and S. 68B of the Motor Vehicles Act read with  S. 6(4)  of  the  Defence of India Act on  the  other.   S.  43 appears  in an Act which is later than Motor  Vehicles  Act, and in such a Situation unless there is anything  repugnant, the provisions in the later Act must prevail; looking at the object behind the  two statutes, the Act which was passed to meet an emergency arising out 122 of foreign invasion of the country must prevail over an  Act meant to meet a situation arising out of the taking over  of motor  transport by the state; and s. 43  emphatically  says that  the Defence of India Act will prevail over  any  other enactment  and this suggests that the  legislature  intended that  the emergency legislation in the Defence of India  Act will  be paramount if there is any inconsistency between  it and any other provision of any other law whatsoever. [128 A- G] The argument that the entire Motor Vehicles Act must be read as  a part of the Defence of India Act must be rejected  and in  consequence s. 43 of the Defence of India Act will  have over-riding  effect.   The words "shall have effect"  in  s. 6(4)  of  the Defence of India Act, have to be read  in  the context  of that subsection and in that context  means  that the  Motor Vehicles Act will continue as before  subject  to amendments made by s. 6(4). [129 B-E] There  was no question of the order being mala fide or  been passed  as a device to avoid payment of  compensation  under Ch.   IVA.  "The fact that at one stage nationalisation  and consequent payment of compensation under Ch. IV-A was  under consideration  does not mean that if eventually  action  was taken under s. 131(2) (gg) to stop activities prejudicial to the defence of the country such action wag mala fide or  was merely a device to avoid payment of compensation.  The  long period of almost four years which was taken, in coming to  a decision shows the circumspection with which the State acted when   it  finally  decided  to  pass  an  order  under   r. 131(2)(gg), 1131 E-G] (iii)     Action  taken  was  not more  than  the  situation demanded  and  it did not violate s. 44 of  the  Defence  of India Act.  It is for the person, who contends that an order contravenes s. 44, to show that anything less than what  the order  provides would have met the needs of  the  situation. [132 C] (iv) In view of the affidavit filed in this court on  behalf of  the  State,  there  could be  no  doubt  that  necessary satisfaction  of the State Government which is  a  condition precedent  for  the issue of an order under  the  rules  was there before the impugned order was issued. [133 B-C]

JUDGMENT:

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CIVIL  APPELLATE JURISDICTION : Civil Appeals Nos.  486  and 487 of 1965. Appeals  from the judgments dated the March 12, 1965 of  the Allahabad High Court in Civil Misc.  Writ Nos. 4308 of  1965 and 4309 of 1965. G.   S. Pathak, B. Dutta, J. B. Dadachanji, O. C. Mathur and Ravinder Narain for the appellant. K.   L.  Misra,  Advocate-General  for the  State  of  Uttar Pradesh and O. P. Rana, for the respondent. The Judgment of the Court was delivered by Wanchoo J. These two appeals on certificates granted by  the Allahabad  High  Court raise common questions  and  will  be dealt  with  together.  The appellant,  Kumaon  Motorowners’ Union  Limited  (hereinafter referred to as the  union)  was established  in  1939  and  had at  the  date  of  the  writ petition’s. 330 members all of                             123 whom  owned transport vehicles.  These members  have  public carrier permits as well as stage carriage permits, which are in  force  in the Kumaon region except on  certain  notified routes.  The permits of the various members of the union are valid upto various dates falling in the years 1966 and 1967. On August 17, 1964, the State Government purporting to exer- cise  powers under cls. (gg) and (i)_ of sub-rule (2) of  r. 131  of  the  Defence  of  India  Rules,  1962  (hereinafter referred to as the Rules) issued a notification by which  it was  directed  that with effect from October  1,  1964,  "no private  operators  shall  ply  any  vehicle,  or  class  of vehicles  for  the carriage of persons or goods on,  and  no vehicle  or  class  of  vehicles  operated  by  the  private operators  shall pass through, Tanakpur-Dharchula  route  of Kumaon region".  It was further directed in the notification that  on this route, the U.P. Government  Roadways  vehicles alone  shall ply for the carriage persons and  goods.   This result  of   this  notification was to stop  plying  of  all vehicles belonging to the members of the union on, the route in question and this led to the filing of the two  petitions in  the  High  Court.   The union  was  party  to  both  the petitions, which were in the same terms. In the petitions the appellants challenged the  notification of’  August 17, 1964, and this challenge was based  on  four grounds.  In the first place, it was contended that no order of the kind passed on August 17, 1964 could be passed  under r.  131  (2)  (gg) and (i).  In the  second  place,  it  was contended   that  the  U.P.  Government  was   contemplating nationalisation  of  this route in the Kumaon region  for  a long  time  prior  to  August  1964.   Eventually,  however, instead  of  proceeding with the scheme  of  nationalisation which  would  have necessitated payment of  compensation  to operators  plying in the region, the Government  decided  to circumvent the provisions of Ch.  IV-A of the Motor Vehicles Act, (No. 4 of 1939) and introduced nationalisation  through the device of an order under cls.(gg) and (i) of r. 131  (2) of  the  Rules.   So it 131 (2) of the  Rules.   So  it  was conceded  that  the    action of  the  State  Government  in passing the challenged order was mala fide.  Thirdly, it was contended that s. 44 of the Defence of India Act, No. 51  of 1962,  (hereinafter  referred  to  as  the  Act)  had   been contravened by the order.  Lastly, the contention -was  that the  satisfaction necessary for passing the order under  the Act and the Rules had not been shown by the affidavits filed on  behalf  of  the  State  Government  and  therefore   the condition  precedent  to the passing of such  an  order  was absent. The   petitions  were  opposed  on  behalf  of   the   State

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Government.  It was not disputed that at one time  prior  to August 1964 the State Sup C1166-9 124 Government had thought of nationalizing this route and  this matter was under consideration for sometime since 1962.  But the  State Government justified the passing of the  impugned order  on  the ground that since 1960  reports  had  started coming  in  from  the  State  Intelligence  Department  that certain   anti-national   and   subversive   elements   were infiltrating the transport Organisation and were  exercising influence  over  the drivers, employees  and  other  private operators  of the union.  As far back as October  1960,  the Deputy Commissioner, Almora had sent a report to  Government that  it was necessary in the interest of national  security that,  no  new  routes in Pithoragarh should  be  given  for operation  to the union and that their operation  should  be limited  to Almora proper.  Thereupon in a meeting  of  high officials  on  November 14, 1960, it was  decided  that  the Deputy  Inspector  General Intelligence, should  supply  the Transport  Commissioner with a list of the ring  leaders  of such anti-national elements, and the Transport  Commissioner should  make  efforts for the elimination of  such  elements from  the transport Organisation.  It was also decided  that the management of the union should be asked to screen  their employees before they were employed and the police would  be ready to render assistance in the matter of verification  of antecedents  of  persons  to  be  employed  by  the   union. Finally, it was also decided that the Transport Commissioner should  consider the question of running  buses  exclusively owned by Government on the border routes. Further  meetings  were held in January and August  1961  in which it was pointed out that it was difficult to  eliminate undesirable elements from transport organizations on account of existing labour laws.  In the meantime, more reports  had come  in of undesirable activities by workers  of  transport organizations in the border region.  Therefore, in May 1962, it was tentatively decided by the State Government that  the real  solution  to  the  problem lay  in  the  operation  of transport  in the border areas by Government alone.  In  the meantime the Transport Commissioner informed the  Government that  as  the  union was a private  concern,  the  transport department could do nothing itself to eliminate these  anti- national elements from the union and that the management  of the  union  also  appeared to be powerless  in  the  matter. Consequently  in October 1962, the transport department  was asked to consider the question of nationalisation of some of the border routes from the point of view of security. This was the, situation when the Chinese attacked in October 1962.  In November 1962, an employee of the union had to  be detained under r. 30 (1) (b) of the Rules as his  activities were                             125 considered  prejudicial to the defence of India  and  public safety.  The matter remained under consideration for another year  and  in, October 1963 it was again  impressed  on  the Transport  Commissioner to eliminate anti-national  elements from  the  transport  organisations,  including  the   union serving  in  the border areas.  The  Transport  Commissioner however expressed his inability to do so and was then  asked to  examine  the implication of  nationalisation  of  border routes  on  the  ground of security.   In  January  1964  it appears   that  the  transport  department   reported   that nationalisation  would  not  be  economical  and  that   the Government would stand to lose if it eliminated all  private

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operators  from this route and substituted government  owned vehicles in their place.  Even so, it was finally decided in August  1964  after the matter was put up before  the  Chief Minister  who dealt with matters arising out of the Act  and the  Rules  that  in the interest of  security,  this  route should  be taken away from private operators like the  union and  that  the  transport  department  should  run  its  own vehicles  on it.  It was in consequence of this decision  of the  Chief  Minister  finally made in  July  1964  that  the impugned notification was issued on August 17, 1964. On these averments, it was contended on behalf of the  State Government in the High Court that there was no mala fides in eliminating  operators from this route and entrusting it  to the  transport  department.  It was further  contended  that there was no contravention of s. 44 of the Act.  Further  it was  urged that the order in question was  justified  within the  terms of r. 131 (2) (gg) and (i) of the Rules.   Lastly it  was contended that the order had been passed  after  the necessary satisfaction of the Chief Minister. The  High  Court  negatived all the  contentions  raised  on behalf  of  the appellants.  As to the satisfaction  of  the Chief  Minister before the issue of the impugned order,  the High  Court  was  of the view that the  affidavit  filed  on behalf  of the State Government was not  very  satisfactory; but  on the whole it came to the conclusion that  the  order had  been  issued  after  the  necessary  satisfaction   and consequently  the petitions were dismissed.  The  appellants then obtained certificates from the High Court; and that  is how the matter has come up before us. The same four points which were raised before the High Court have been raised before us on behalf of the appellants.   We shall first consider the contention that the impugned  order is  beyond  the  power  of the  State  Government  under  r. 131(2)(gg)  and (i).  Rule 131 provides for control of  road and water transport.  Sub- 126 rule  (2) thereof with which we are  particularly  concerned reads thus :               " (2) Without prejudice to any other provision               of these Rules, the Central Government or  the               State  Government  may by general  or  special               order-               (a) to (g)               "(gg)  provide for prohibiting or  restricting               the  carriage  of  persons  or  goods  by  any               vehicle or class of vehicles, either generally               or  between  any particular places or  on  any               particular, route;               (h)               (i)   make  such other provisions in  relation               to road transport as appear to that Government               to be necessary or expedient for securing  the               defence of India and civil defence, the public               safety, the maintenance of public order or the               efficient  conduct of military operations,  or               for   maintaining   supplies   and    services               essential to the life of the community." The  order of August 17, 1964 says that "in the  opinion  of the State Government it is necessary and expedient so to  do for  securing  the defence of India and civil  defence,  the public  safety,  the maintenance of public,  order  and  the efficient conduct of military operations and for maintaining supplies   and  services  essential  to  the  life  of   the community" and then follow the two directions which we  have set out above.

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The first contention on behalf of the appellants is that  r. 131 (2)   (gg)  must  be read in the context of  control  of road transport and  so read it only gives power to the State Government  to  control  the use of vehicles  and  does  not empower  it  to  prohibit  private  operators  from   plying vehicles  on any particular route with respect to which  the order may be made.  It is true that r. 131 deals inter  alia with control of road transport and cl. (gg) of r. 1 3 1  (2) provides  for  prohibiting or restricting  the  carriage  of persons or goods by any vehicle or class of vehicles, either generally  or  between  any  particular  places  or  on  any particular route.  But we are of opinion that the  vehicles, the  control  of which is envisaged in cl. (gg),  cannot  be divorced  from the persons who are plying the vehicles.   No order can be issued to vehicles which are inanimate  objects and  an order under cl. (gg) will have to be issued  to  the persons   plying  the  vehicles  and  the   prohibition   or restriction  envisaged  by  cl. (gg) must  be  addressed  to persons plying the 127 vehicles   mentioned  therein.  -Therefore  when  cl.   (gg) envisages prohibition or restriction of carriage of  persons or  goods by any vehicle or class of vehicles, it  obviously means  that  the  order will apply to  persons  plying  such vehicles.   The  argument based on divorcing  vehicles  from persons  plying  the vehicles is in our  opinion  completely fallacious  and  consequently  when cl.  (gg)  provides  for prohibition  or  restriction with respect  to  vehicles,  it obviously  refers  to regulation of the conduct  of  persons plying  the  vehicles or prohibiting  them  completely  from plying vehicles.  We think that is the only way to carry out the purposes of this clause. In this connection our attention is drawn to S. 6 (4) of the Act, which lays down that during the continuance in force of the  Act,  the Motor Vehicles Act, 1939, shall  have  effect subject to certain provisions specified in cls. (a) to  (f). The  provisions in cls. (a) to (f) make certain  changes  in the  provisions of the Motor Vehicles Act with which  we-are not concerned in the present appeals.  The argument  however is  that  this provision shows that the Motor  Vehicles  Act will  have full force and effect subject to  the  amendments mentioned  in cls. (a) to (f) and therefore it was not  open to  the State Government to take over the route in  question and  exclude  private operators  altogether  without  paying compensations   provided  in  chapter  IV-A  of  the   Motor vehicles Act. Attention has also been invited to s. 68-B  of the  Motor  Vehicles  Act, which appears in  Ch.   IV-A  and provides that "the provisions of this Chapter and the  rules and orders made thereunder shall have effect notwithstanding anything  inconsistent therewith contained in Chapter IV  of this Act or in any other law for the time being in force  or in any instrument having effect by virtue of any such  law". "It  is urged on a combined reading of s. 6 (4) of  the  Act and s- 68- Motor Vehicles Act that the provisions of Ch. IV- A  with  regard  to the framing of schemes  and  payment  of compensation  must  be complied with even  where  action  is taken under r. 131 (2) (gg) of  the Rules. This argument is met on behalf of the State by reference to S.   43  of the Act which lays down that "the provisions  of this Act or any rule made thereunder or any order made under any  such  rule shall have effect  notwithstanding  anything inconsistent therewith contained in any enactment other than this Act or in any instrument having effect by virtue of any enactment other than this Act." It does appear that there is some apparent conflict between s. 43 on the one hand and  s.

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68-B of the Motor Vehicles Act read with S. 6 (4) of the Act on the other, and that conflict has 128 to be resolved.  The only way to do it is to decide  whether in such a situation, S. 43 of the Act will prevail or S. 68- B of the Motor Vehicles Act will prevail.  We are of opinion that s. 43 of the Act must prevail.  In the first place,  s. 43 appears in an Act which is later than the Motor  Vehicles Act  and  therefore  in such a  situation  unless  there  is anything  repugnant,  the provisions in the later  Act  must prevail.  Secondly, if we look at the object behind the  two statutes, namely, the Act and the Motor Vehicles Act,  there can  be no doubt that the Act, which was passed to  meet  an emergency  arising out of the Chinese invasion of  India  in 1962, must prevail over the provisions contained in Ch.  IV- A  of  the  Motor Vehicles Act which were meant  to  meet  a situation arising out of the taking over of motor  transport by the State.  Thirdly, if we compare the language of S.  43 of  the Act with S. 68-B of the Motor Vehicles Act  we  find that  the  language  of S. 43 is  more-  emphatic  than  the language  of s. 68-B.  Section 43 provides that  the  provi- sions  of  the Act or any rule made  thereunder  shall  have effect   notwithstanding  anything  inconsistent   therewith contained  in any enactment other than the Act.  This  would show that the intention of the legislature was that the  Act shall  prevail over other statutes.  But we do not find  the same  emphatic language in S. 68-B which lays down that  the provisions  of  Ch.   IV-A  would  prevail   notwithstanding anything inconsistent therewith contained in Ch.  IV of  the Motor Vehicles Act or in any other law for the time being in force.   The  intention  seems to be clear in  view  of  the collocation  of the words "in Chapter IV of this  Act"  with the  words  "in any other law for the time being  in  force" that  Ch.   IV-A was to prevail over Ch.  IV  of  the  Motor Vehicles Act or over any other law of the same kind  dealing with motor vehicles or for compensation.  On the other  hand s. 43 of the Act emphatically says that the Act will prevail over  any  enactment other than the Act, and  this  suggests that the legislature intended that the emergency legislation in  the Act will be paramount if there is any  inconsistency between  it  and  any  other  provision  of  any  other  law whatsoever.   Such a provision is understandable in view  of the emergency which led to the passing of the Act. Another  argument under S. 6 (4) of the Act is that by  that provision the Motor Vehicles Act must be held to derive  its authority  from the Act and thus be treated as if it  was  a part of the Act.  Emphasis is laid on the words "shall  have effect" in this connection and it is urged that by virtue of these words, the Motor Vehicles Act must be deemed to derive its authority from the Act and therefore must be treated  as part thereof.  In consequence, it is said 129 that  s.  43  which lays down that the  Act  and  the  Rules thereunder   shall  have  effect  notwithstanding   anything inconsistent therewith contained in any enactment other than the  Act will not apply because the Motor Vehicles Act is  a part  of the Act.  We are of opinion that there is no  force in  this argument.  The words "shall have effect"  appearing in s. 6(4) of the Act have to be read in the context of that sub-section, In that context they only mean’ that the  Motor Vehicles  Act  will  continue  as  before  subject  to   the amendments  made by s. 6(4).  These words in the context  of s.  6 (4) do not mean that the entire Motor Vehicles Act  is being made a part of the Act; and it is only the six clauses making  changes in the Motor Vehicles Act which can at  the,

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best be treated as part of the Act.  The over-riding  effect given to orders passed under the Act and the Rules by s.  43 of  the Act cannot therefore be taken away with  respect  to the provisions of the Motor Vehicles Act other than  clauses (a)  to (f) of s. 6 (4).  It is not in dispute that  we  are not  concerned in the present case with cls. (a) to (f)  and as  a  matter of fact if we look at these clauses  they  are concerned  with  making provisions which  over-ride  certain provisions of the Motor Vehicles Act.  The argument that the entire Motor Vehicles Act must be read as a part of the  Act must  therefore be rejected and in consequence s. 43 of  the Act  will  have over-riding effect in  accordance  with  its tenor.      In view therefore of the provisions contained in S.  43 of the Act which as we have said already was passed to  meet a grave national emergency, the argument that the provisions contained  in  Ch.  IV-A for framing  a  scheme  and  paying compensation  must  still be complied with where  action  is taken under r. 131 (2) (gg) of the Act must be rejected.      Then  it is urged that by passing the  impugned  order, the  commercial undertaking of the union is  destroyed,  and that this could not be the intention behind cl. (gg) of r. 1 3  1 (2) of the Rules. We are of opinion that in  this  case there is no destruction of the commercial undertaking of the union,  for the simple reason that it is not  disputed  that this is not the only route on which the union is plying  its vehicles  and  the impugned order does not touch  the  other routes on which the appellants may be plying their vehicles. Further  there  is nothing in the order which  destroys  the commercial  undertaking even otherwise, for it  has  neither taken  over any of the assets of the commercial  undertaking nor  has  it in any way interfered with the working  of  the commercial undertaking; all that the order provides is  that the union shall not ply its vehicles on a particular  route. This  in  our  opinion does not  amount  to  destroying  the commercial un- 130 dertaking  which is left untouched by the order.   All  that may  be  said to have resulted from the order  is  that  the profit  making capacity of the commercial undertaking  might have  been reduced to a certain extent.  That  however  does not in our opinion mean that the commercial undertaking  has been  destroyed.  We may add that even if the profit  making capacity  of the commercial undertaking was lost due to  one line  of  business being stopped that would  not  amount  to destruction of the commercial undertaking, which could  take up  other business.  So long as the order under cl. (gg)  of r. 131(2) comes within the terms of that clause, it will  be good even though it may diminish the profit making  capacity of a commercial undertaking or even reduce it to nothing  in a particular -line of business.  We are therefore of opinion that the impugned ’order is in accordance with the terms  of cl.  (gg),  sub-r. (2) of r. 131 and cannot be  said  to  go beyond the powers conferred on the State Government by  that clause. Lastly  it is urged that in any case the second part of  the order which directs that the Roadways Vehicles will only ply for  carriage of persons and goods on the route in  question cannot fall under cl. (1) of r. 131(2).  We have already set out cl. (1).  That clause in a sense is complementary to the provisions  of other clauses of r. 131(2).  Where the  State Government decides to issue a prohibition under cl. (gg), it must  naturally  provide  for alternative  methods  for  the carriage of persons or goods on the prohibited route and cl. (1)  clearly makes provision for this.  It gives  powers  to

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the  State  Government  to make  such  other  provisions  in relation  to road transport as appear to it to be  necessary -or  expedient  for  securing the  defence  of  India,  etc. Obviously  when  the  State Government,  as  in  this  case, prohibited  the  union  from plying  its  vehicles  on  this particular  route,  a vacuum was created in  the  matter  of carriage of persons and goods.  That vacuum had to be filled in  the  interest of securing the defence  of  India,  civil defence  etc.   To  fill that vacuum  the  State  Government directed  that U.P. Government Roadways vehicles  shall  ply for the same purpose on this route.  Clearly the vacuum  was filled  by  the  Roadways,  because  that  Organisation  was readily  available to Government to fill it.   Otherwise  we have no doubt that the Government could have made some other arrangement  to  fill the vacuum.   Therefore,  whether  the vacuum  was  filled by ordering the Roadways  to  ply  their vehicles  on  the route in question or by making  any  other arrangement,  that would clearly be within the power of  the State  Government  under  cl.  (1) of  r.  131(2).   We  are therefore  of  opinion that the order passed  by  the  State Government                             131 on  August 17, 1964 was within its powers under r., 131  (2) (gg) and (i) of the Rules. This brings us to the question of mala fides.  The  argument is that the order was passed under r. 131 (2) (gg) in  order to avoid payment of compensation by taking action under  Ch. IV-A of the Motor Vehicles Act.  In that connection we  have already  set out the affidavit filed on behalf of the  State Government  as to how the order came to be passed.  We  have no reason to think that the averments made in the  affidavit with regard to subversive activities on the border of  India with China are not correct.  In view of the facts  mentioned therein  there  can  be no doubt that the  action  under  r. 131(2) (gg) was taken as stated in the order for the purpose of  the defence of India, civil defence, the public  safety, the maintenance of public order and the efficient conduct of military  operations,  and  for  maintaining  supplies   and services essential to the life of the community.  It is true that  at  one  stage the State Government  was  thinking  of nationalising  this particular route and if that scheme  had gone  through, action would have had to be taken  under  Ch. IV-A of the Motor Vehicles Act.  But the reports as to  sub- versive  activities which were thought to be prejudicial  to the  defence of India had started to come in as far back  as 1960  long  before the ’Chinese invasion of  India  and  the matter was under consideration for almost four years  before the  impugned order was passed.  The question became  urgent after  the Chinese invasion of India in October 1962.   Even so, the State Government explored various means of  stopping activities prejudicial to the defence of India on the border between  India  and China.  There can be no doubt  that  the matter was considered from all aspects and eventually it was decided  to take action under r. 131 (2) (gg) of the  Rules. In  these circumstances it cannot possibly be said that  the action  was  mala  fide and was taken to  avoid  payment  of compensation  under  Ch. IV-A.  The fact that at  one  stage nationalisation and consequent payment of compensation under Ch.   IV-A  was under consideration does not  mean  that  if eventually  action was taken under r. 131 (2) (gg)  to  stop activities  prejudicial to the defence of India such  action was  mala  fide or was merely a device to avoid  payment  of compensation.   The long period of almost four  years  which was taken for coming to a decision shows the  circumspection with  which  the  State Government  acted  when  it  finally

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decided  to  pass the order under r. 131(2)  (gg).   We  are therefore of opinion that there is no question of the  order being  mala fide or having been passed as a device to  avoid payment of compensation under Ch. IV-A of the Motor Vehicles Act.   Some  of the words used in the  counter-affidavit  on behalf of the State Government in reply 132 are  somewhat  Unfortunate and inapt, but we have  no  doubt that,  the impugned order was passed without any  mala  fide and   was   not  a  device  merely  to  avoid   payment   of compensation. Then we come to the argument that the action taken was more, than the situation demanded and therefore under s. 44 of the Act  the order was vitiated.  Section 44 provides that  "any authority  or person acting in pursuance of this  Act  shall interfere  with  the  ordinary avocation  of  life  and  the enjoyment of property as little as may be consonant with the purpose  of ensuring the public safety and interest and  the defence of India and civil defence".  We are of opinion that if a person contends that a particular order contravenes  s. 44,  it is for him to show that anything less than what  the order  provides would have met the needs of  the  situation. In  the present case the appellants have failed to show  any such  thing.  Besides the affidavit filed on behalf  of  the State  Government shows that for a long time  attempts  were made  to  see if the prejudicial  activities  complained  of could be stopped in any Other Way.  It was only when it  was felt that there was no other way of stopping the prejudicial activities  of the employees of the union that the order  in question  was  passed.   In the  circumstances  we  are  not prepared to hold that the order in question interferes  with the rights of the appellants more than was necessary for the purpose to be attained. This  brings  us to the last point that has  been  urged  on behalf  of  the appellants, namely, that it was  not  proved that  the  State  ’Government  was  satisfied  that  it  was necessary  and expedient for securing the defence  of  India and  civil  defence, the public safety, the  maintenance  of public   order  and  the  efficient  conduct   of   military operations   and  for  maintaining  supplies  and   services essential  to  ’the  life of the community  that  the  order should be passed.  It does appear that the affidavits  filed in  the  High  Court were not quite  clear  on  this  point. Therefore we gave an opportunity to the State Government  to file an affidavit to show that the satisfaction of the State Government  necessary before passing an order of  this  kind was  arrived at.  In consequence an affidavit was  filed  on behalf  of  the State Government on August 16, 1965  by  the Deputy Secretary (Home Department) U.P. Government, Lucknow. In  that affidavit it has been stated that under  the  rules relating to the allocation of business, matters relating  to the  subject matter which led to the issue of  the  impugned notification  have  to be submitted to  the  Chief  Minister before  the  issue of orders.  It was  further  stated  that after  various meetings of the officials of the  State,  the matter was put up before                             133 The  Chief Minister on December 5, 1963 or so and the  Chief Minister  after considering all aspects decided that it  was necessary  to take over the route in question.  The  matters were  further considered by various officers and  there  was correspondence  with the Government of India and  eventually on  July  30,  1964, it was finally  decided  by  the  Chief Minister to take over the route in question in the  interest of security.  It was thereafter that the order of August 17,

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1964  was  issued  by  the  Transport  department  with  the concurrence and approval of the Home Department.  In view of this  affidavit  filed in this Court there can be  no  doubt that  the  necessary satisfaction of  the  State  Government which  is  a condition precedent for the issue of  an  order under  the  rules was there before the  impugned  order  was issued. The appeals therefore fail and are hereby dismissed.  In the circumstances we order the parties to bear their own costs.                      Appeals dismissed. 134