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PETITIONER: A. VISWANATHAN

       Vs.

RESPONDENT: STATE TRANSPORT APPELLATE TRIBUNAL,PONDICHERRY & ANOTHER

DATE OF JUDGMENT06/02/1987

BENCH: VENKATARAMIAH, E.S. (J) BENCH: VENKATARAMIAH, E.S. (J) OZA, G.L. (J) DUTT, M.M. (J)

CITATION:  1987 AIR  731            1987 SCR  (2) 179  1987 SCC  (2)  63        JT 1987 (1)   369  1987 SCALE  (1)249

ACT:     Motor  Vehicles  Act,  1939:  Sections  46,  57,  62   & 47(1A)--Issue of temporary permits by R.T.A. repeatedly  for a  long number of years-Whether permissible--Temporary  per- mits  to be effective for limited period of 4  months--Stage carriage  permits--Reservation for Scheduled Castes,  Sched- uled Tribes--Constitutionally valid.

HEADNOTE:     Respondent No. 1--State Transport Appellate Tribunal set aside  a  temporary permit to ply a stage  carriage  on  the pondicherry-Madras  route  issued under s.62  of  the  Motor Vehicles  Act, 1939 in favour of the appellant, and  granted it in favour of respondent no. 2 for the remaining period of the  temporary permit. Hence this appeal by  special  leave. The  Court found that the period of temporary permit  having come  to an end, no further orders are necessary as  regards the  person  who could operate a stage carriage  under  that permit. The  Union Territory of Pondicherry, after ’the lapse  of  7 years  from the date of the amendment of section 47  of  the Act, issued rules on 12.6. 1985 regarding reservations to be made in favour of persons belonging to Scheduled Castes  and Scheduled  Tribes  under Section 47(1A) of the  Act.  Having regard to the slackness that is creeping into the manner  in which  the  provisions of the Act regarding  reservation  of certain  percentage of stage carriage permits to be made  in favour  of persons belonging to Scheduled  Castes  Scheduled Tribes,  and issue of temporary permits are  being  adminis- tered by some Transport Authorities, this Court,     HELD: 1.(1) Section 47 of the Act deals with the  proce- dure  to be followed by a Regional Transport  Authority.  In considering  an application for a stage carriage permit  the Regional  Transport Authority should have due regard to  the following  matters, namely: (a) the interest of  the  public generally; (b) the advantage to the public of the service to be  provided,  including  the saving of time  likely  to  be effected  thereby and any convenience arising from  journeys not being broken; (c) the adequacy of other passenger trans- port services operating or

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180 likely  to  operate in the near future, whether by  road  or other means, between the places to be served; (d) the  bene- fit  to any particular locality or localities likely  to  be afforded by the service; (e) the operation by the  applicant of  other transport services, including those in respect  of which applications from him for permits are pending; and (f) the condition of the roads included in the proposed route or area. It should also take into consideration any representa- tions made by persons already providing passenger  transport facilities by any means along or near the proposed route  or area, or by any association representing persons  interested in the provision of road transport facilities recognised  in this behalf by the State Government, or by any local author- ity  or police authority within whose jurisdiction any  part of  the  proposed  route or area lies.  Thus  the  paramount consideration that should govern the decision of a  Regional Transport  Authority  in  issuing a permit to  run  a  stage carriage  is the interest of the general  publice.  [183E-H; 184A-B]     1.(2)  It  was felt that the permits  for  plying  stage carriages in India were being cornered by persons  belonging to richer and more advanced classes in society, and  persons belonging  to  the Scheduled Castes,  Scheduled  Tribes  and other economically weaker sections of the community were not able to compete with people who were rich and more advanced. Parliament therefore amended section 47 of the Act by intro- ducing provisions for making reservation of certain percent- age of stage carriage permits to persons belonging to Sched- uled  Castes, Scheduled Tribes and economically weaker  sec- tions of the community, viz Section 47(1A). The  reservation made in favour of the Scheduled Castes and Scheduled  Tribes is protected by clause(4) of Article 15 of the  Constitution of India. [184B-D; G]     1.(3) If stage carriage permits are to be issued then in compliance  with  sub-section(IA) of Section 47 of  the  Act certain  percentage  of the said permits would  have  to  be reserved  for  the persons belonging  to  Scheduled  Castes, Scheduled  Tribes  and if the Government so desires  to  the economically weaker sections of the community. If the  issue of such permits is postponed for any reason and only  tempo- rary permits are issued then the persons belonging to Sched- uled Castes, Scheduled Tribes and the weaker sections  would not be able to enjoy the benefit of the reservations. [186H; 187A-B]     In  the  instant case, it is regrettable that  for  some reason or other the State Transport Authority of Pondicherry has not taken steps to issue regular permits on 18 routes in respect of which it has entered into inter-State  agreements with the State of Tamil Nadu even though the 181 need  for issuing those permits is beyond dispute.  But,  on the  other  hand for nearly six years, the  State  Transport Authority of Pondicherry is issuing temporary permits  under s  62  of the Act repeatedly in respect of the  routes.  The disadvantages  suffered  by  the persons  belonging  to  the Scheduled  Castes,  Scheduled Tribes  and  the  economically weaker sections of the community by the procedure adopted by the State Transport Authority are obvious. [186F-H]     2(1). Under section 62 of the Act it is permissible to a Regional  Transport Authority to issue temporary permits  to be effective for a limited period not exceeding four  months without  following  the procedure laid down in s.57  of  the Act.  Such  temporary  permits can be issued  only  for  the conveyance of passengers on special occasions such as to and

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from fairs and religious gatherings or for the purposes of a seasonal business or to meet a particular temporary need  or pending  decision  on an application for the  renewal  of  a permit.  The  Regional Transport Authority  cannot  grant  a temporary permit for a route or area specified in an  appli- cation  for grant of a new permit under s.46 or s.54 of  the Act  during  the pendency of the application.  That  section further  provides that a temporary permit issued under  that section  shall in no case be granted more than once  in  re- spect  of any route or area specified in an application  for the renewal of a permit during the pendency of such applica- tion  for  renewal. A temporary permit can thus  be  granted only  if the permit is required for the purposes or  reasons mentioned in clauses (a) to (d) of s.62( D of the Act or  in the  circumstances  referred to in  sub-section(2)  thereof. [188F-H; 189A-B]     2(2). There cannot be also a renewal or revalidation  of a temporary permit. The revalidation or renewal of a  tempo- rary permit or exension of the period for which a  temporary permit is issued is not contemplated by law. [189C-D]     In  the  instant  case, the action taken  by  the  State Transport Authority in issuing temporary permits  repeatedly for  a long number of years is clearly in violation  of  the letter and spirit of section 62 of the Act. [189D]     Andhra  Pradesh  State Road Transport  Corporation  v.K. Venkataramireddy and Others, [1971] 3 S.C.R. 803 and Gandha- ra  Transport Co. Ltd. v. The State of Punjab and others,  [ 1963] Supp.  S.C.R. 800, followed. 3(1) The Regional Transport Authority which is charged  with the 182 duty of issuing permits for transport vehicles under the Act in  the  public interest should wherever it finds  that  the need  for issuing such stage carriage permit is  established take immediate steps to invite applications from persons who are willing to run the stage carriage on the route or in the area  in question and proceed to grant the permit in  favour of  a  deserving applicant. If any person on his  own  makes application  for the grant of a stage carriage  permit,  the Regional  Transport Authority should consider such  applica- tion in accordance with law and proceed to grant a permit if it finds that it is necessary to do so. [189D-F]     3(2) If a regular permit is issued it would be in  force for  a  period not less than three years and not  more  than five  years as may be determined by the  Regional  Transport Authority and such permit is capable of being renewed  under section  58 of the Act. But, if the Regional  Transport  Au- thority proceeds to issue a temporary permit then at the end of  every four months, it will have to spend time  over  the consideration  of fresh applications for the issue  of  such permits  and  it is needless to say that the  necessity  for making  applications at the end of every four  months  would entail many undesirable consequences which should be  avoid- ed. [189F-H]

JUDGMENT:     CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 1522  of 1986.     From the Judgment and Order dated 3.4.1986 of the  State Transport  Appellate Tribunal, Pondicherry in M.V.A. No.  15 of 1986. R. Venkataramani for the Appellant. K.R. Nambiar and S. Srinivasan for the Respondents.

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The Judgment of the Court was delivered by,     VENKATARAMIAH, J. This appeal by special leave is  filed against  the order dated April 3, 1986 passed by  the  State Transport   Appellate  Tribunal,  Pondicherry   (hereinafter referred  to  as ’the Tribunal’) setting aside  a  temporary permit  to  ply  a stage carriage issued in  favour  of  the appellant in respect of the route Pondicherry to Madras  via Thirukanur,  Vikaravandi,  Tindivanam and  Chingleput  under section  62  of the Motor Vehicles  Act,  1939  (hereinafter referred  to  as  ’the Act’) and granting it  in  favour  of Respondent No. 2 A. Balasundaram for the remaining period of the temporary permit, i.e., upto May 31, 1986. The period of the temporary permit having come 183 to  an  end no further orders are necessary as  regards  the person who could operate a stage carriage under that permit. This  appeal could have been disposed of with this  observa- tion  but we are compelled to pronounce a detailed order  in this  case having regard to the slackness that  is  creeping into the manner in which the provisions of the Act are being administered by some transport authorities.     Chapter  IV of the Act deals with the control of  trans- port vehicles. Section 42 of the Act lays down that no owner of  a transport vehicle shall use or permit the use  of  the vehicle  in any public place whether or not such vehicle  is actually carrying any passenger or goods save in  accordance with the conditions of a permit granted or countersigned  by a  Regional or State Transport Authority of  the  Commission authorising  the  use of the vehicle in that  place  in  the manner in which the vehicle is being used. Section 44 of the Act  provides  for the constitution of the  State  Transport Authority and the Regional Transport Authorities to exercise and  discharge the respective powers assigned to them  under the  Act.  The said Chapter contains  the  provisions  under which  permits may be issued by the Regional  Transport  Au- thority for running a stage carriage, a contract carriage, a private  carrier and a public carrier. It also provides  for the  issue  of permits valid for the whole or  any  part  of India for running tourist vehicles. Chapter IV contains  the provisions  regarding the manner in which  the  applications have  to  be  made for different kinds of  permits  and  the procedure that has to be followed in each case for  granting such  permits. Section 47 of the Act which is in Chapter  IV deals with the procedure to be followed by a Regional Trans- port  Authority. In considering an application for  a  stage carriage permit the Regional Transport Authority should have due regard to the following matters, namely: (a) the  inter- est  of  the  public generally; (b) the  advantages  to  the public  of the service to be provided, including the  saving of  time likely to be effected thereby and  any  convenience arising from journeys not being broken; (c) the adequacy  of other  passenger transport services operating or  likely  to operate in the near future, whether by road or other  means, between  the  places to be served; (d) the  benefit  to  any particular  locality or localities likely to be afforded  by the  service;  (e) the operation by the applicant  of  other transport  services,  including those in  respect  of  which applications  from him for permits are pending; and (f)  the condition  of  the roads included in the proposed  route  or area. It should also take into consideration any representa- tions made by persons already providing passenger  transport facilities by any means along or near the proposed route  or area, or by any association representing persons  interested in the provision 184

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of  road transport facilities recognised in this  behalf  by the  State Government, or by any local authority  or  police authority within whose jurisdiction any part of the proposed route  or area lies. A reading of the  aforesaid  provisions shows  that the paramount consideration that  should  govern the decision of a Regional Transport Authority in issuing  a permit to run a stage carriage is the interest of the gener- al public.     Since  it  was felt that the permits  for  plying  stage carriages issued by the several Regional Transport  Authori- ties  in India were being cornered by persons  belonging  to richer  and  more advanced classes in  society  and  persons belonging  to  the Scheduled Castes,  Scheduled  Tribes  and other economically weaker sections of the community were not able to compete with people who were rich and more advanced, Parliament  amended section 47 of the Act by Act 47 of  1978 by introducing provisions for making reservation of  certain percentage of stage carriage permits to persons belonging to Scheduled  Castes, Scheduled Tribes and economically  weaker sections of the community. After the above amendment section 47(1A)  of the Act provides that the Government of  a  State shall  reserve  in that State certain  percentage  of  stage carriage permits for the Scheduled Castes and the  Scheduled Tribes and the reservation of permits under the said  provi- sion is directed to be made in the same ratio as in the case of  appointments made by direct recruitment by public  serv- ices of the State. Such reservation appears to be mandatory. Sub-section (1C) of section 47 of the Act provides that  the Government  of a State may, having regard to the  extent  to which  persons belonging to economically weaker  section  of the  community have been granted stage carriage  permits  in that  State--(a)  reserve in that State such  percentage  of stage  carriage permits, as may be prescribed,  for  persons belonging to economically weaker sections of the  community; or (b) notwithstanding anything contained in the proviso  to sub-section  (1)  of  section 47 give  preference,  in  such manner  as  may  be prescribed, to  applications  for  stage carriage  permits  from such persons.  Sub-section  (1D)  of section  47 of the Act provides that the number  of  permits reserved under subsection (lB) and clause (a) of sub-section (1C)  of section 47 shall not exceed fifty per cent of  that total  number  of stage carriage permits  granted  during  a calendar year. The reservation made in favour of the  Sched- uled Castes and the Scheduled Tribes is protected by  clause (4)  of Article 15 of the Constitution of India  which  pro- vides  that  nothing in Article 15 shall prevent  the  State from making any special provision for the advancement of any socially  and educationally backward classes of citizens  or for the Scheduled Castes and the Scheduled Tribes. 185 Such  special  provision  would, therefore, be  out  of  the mischief of clause (1) of Article 15 which provides that the State shall not discriminate against any citizen on  grounds only of religion, race, caste sex, place of birth or any  of them.  It is also in consonance with Article 46 of the  Con- stitution. Such special provision is necessary to assist the members  belonging  to the Scheduled  Castes  and  Scheduled Tribes and to the weaker sections of society economically as they  cannot  otherwise compete with the other  sections  of society. After the introduction of sub-sections (1A) to (1H) into  section 47 of the Act the Government of India  sent  a communication to all the State Governments and Union  Terri- tories  to implement the reservations for members  belonging to  Scheduled Castes and Scheduled Tribes  provided  therein without delay. It reads thus:

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"Government of India Ministry of Shipping and Transport       No. TGM(70)                        New Delhi                             dated the 24th August, 1979 To All the State Govt/Union Territory Administrations.       Sub: Reservation  of  permits  for  scheduled  castes/ scheduled  tribes as provided in the Motor Vehicles  (Amend- ment) Act 1978. Sir.                         I  am  directed  to  refer  to  this               Ministry’s  letter  of even number  dated  the               31st January 1979 on the above subject and  to               say  that so far as reservation in  favour  of               scheduled  castes  and  scheduled  tribes   is               concerned,  the provisions of the Motor  Vehi-               cles (Amendment) Act, 1978 can be  implemented               straight  way.  The  implementation  of   this               provision need not wait for the framing of any               Rules,  since  the rules are  required  to  be               framed only in respect of circumstances  under               which, the manner in which, and the extent  to               which the reservation may be carried  forward.               Since  the question of carrying  forward  will               arise  only  after the expiry of  the  current               year,  rules in this respect can be  finalised               during  the  course  of the  year.  The  State               Govts/Union Ter-               186               ritories  are  requested to  kindly  have  the               provisions of the Act in regard to reservation               for  scheduled castes and scheduled tribes  in               respect  of  stage  carriage  permits,  public               carrier  permits and national  permits  imple-               mented without further delay.               2. The State Govts/Union territory Administra-               tions  are  also  requested  to  indicate  the               number of permits of various categories grant-               ed, after the provisions of the Motor Vehicles               (Amendment) Act, 1978 was brought into  force;               the    number    reserved    for     scheduled               castes/scheduled  tribes  and  the  number  of               permits  actually granted to scheduled  castes               and  scheduled tribes with reasons for  short-               fall if any.                                                Yours  faith-               fully,                                                             Sd/-                                                      B.R.               CHAVAN                                          DEPUTY SECRETARY TO               THE                                            GOVERNMENT     OF               INDIA".     The  Union Territory of Pondicherry after the  lapse  of nearly seven Years from the date of the amendment of section 47 of the Act issued rules regarding reservations to be made in  favour  of  persons belonging to  Scheduled  Castes  and Scheduled  Tribes under section 47(1A) of the Act  on  12.6. 1985. On the issue of said rules a number of writ  petitions were filed by persons not belonging to Scheduled Castes  and Scheduled  Tribes  questioning the validity  of  sub-section (1A)  of  section 47 of the Act and the said  petitions  are still pending. We shall not say anything more on the  merits of those petitions.

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   It  is  regrettable that for some reasons or  other  the State Transport Authority of Pondicherry has not taken steps to  issue regular permits on about 18 routes in  respect  of which  it has entered into inter-State agreements  with  the State  of Tamil Nadu even though the need for issuing  those permits is beyond dispute. But, on the other hand for nearly six years, it is stated, that the State Transport  Authority of Pondicherry is issuing temporary permits under section 62 of  the Act repeatedly in respect of the routes. the  disad- vantages surffeted by the persons belonging to the Scheduled Castes,  Scheduled Tribes and the economically  weaker  sec- tions of the community by the procedure adopted by the State Transport  Authority are obvious. If stage carriage  permits are to be issued then in compliance with sub-section (1A) of section 47 of the Act certain percentage of the said permits would 187 have  to be reserved for the persons belonging to  Scheduled Castes, Scheduled Tribes and if the Government so desires to the  economically weaker sections of the community.  If  the issue  of such permits is postponed for any reason and  only temporary  permits are issued then the persons belonging  to Scheduled  Castes, Scheduled Tribes and the weaker  sections would  not be able to enjoy the benefit of the  reservation. It  is unfortunate that even though Parliament  had  enacted the  amendments nearly nine years ago the benefit  of  those provisions has not been availed of by those for whose  bene- fit  they were enacted. We are informed that  the  appellant and  some others belonging to Scheduled Castes or  Scheduled Tribes  have made applications for grant of regular  permits and  those applications have remained undisposed of  on  ac- count of the litigiousness of others.     The  action  taken by the State Transport  Authority  in issuing  temporary permits repeatedly for a long  number  of years  is clearly in violation of the letter and  spirit  of section 62 of the Act under which such temporary permits are issued. Section 62 of the Act reads thus:               "62.  Temporary   permits--(1)   A    Regional               Transport Authority may without following  the               procedure  laid  down  in  section  57,  grant               permits, to be effective for a limited  period               not  in  any case to exceed  four  months,  to               authorise  the  use  of  a  transport  vehicle               temporarily--                     (a) for the conveyance of passengers  on               special  occasions such as to and  from  fairs               and religious gatherings, or               (b)  for the purposes of a seasonal  business,               or               (c) to meet a particular temporary need, or                     (d)  pending decision on an  application               for the renewal of a permit and may attach  to               any such permit any condition it thinks fit.                         Provided  that  a  temporary  permit               under  this  section  shall, in  no  case,  be               granted in respect of any route or area speci-               fied in an application for the grant of a  new               permit  under section 46 or section 54  during               the pendency of the application:               Provided further that a temporary permit under               this               188               section  shall,  in no case, be  granted  more               than  once  in respect of any  route  or  area               specified in an application for the renewal of

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             a permit during the pendency of such  applica-               tion for renewal.                        (2).  Notwithstanding  anything  con-               tained  in subsection (1), a temporary  permit               may  be granted thereunder in respect  of  any               route or area where--                        (i)  no permit could be issued  under               section  48  or section 51 or  section  54  in               respect of that route of area by reason of  an               order of a court or, other competent authority               restraining  the  issue  of the  same,  for  a               period not exceeding the period for which  the               issue of the permit has been so restrained; or                        (ii) as a result of the suspension by               a  court or other competent authority  of  the               permit of any vehicle in respect of that route               or area, there is no transport vehicle of  the               same class with a valid permit, in respect  of               that  route or area, or there is  no  adequate               number  of  such vehicles in respect  of  that               route or area, for a period not exceeding  the               period of such suspension;                        Provided that the number of transport               vehicles  in  respect of which  the  temporary               permit  is  so granted shall’ not  exceed  the               number  of  vehicles in respect of  which  the               issue  of a permit has been restrained  or  as               the case may be, the permit has been  suspend-               ed."     Under  section  62  of the Act it is  permissible  to  a Regional  Transport Authority to issue temporary permits  to be effective for a limited period not exceeding four  months without  following the procedure laid down in section 57  of the  Act. Such temporary permits can be issued only for  the conveyance of passengers on special occasions such as to and from fairs and religious gatherings or for the purposes of a seasonal business or to meet a particular temporary need  or pending  decision  on an application for the  renewal  of  a permit.  The  regional Transport Authority  cannot  grant  a temporary permit for a route or area specified in an  appli- cation for grant of a new permit under section 46 or section 54  of the Act during the pendency of the application.  That section  further  provides that a  temporary  permit  issued under  that  section shall in no case be granted  more  that once in respect of any 189 route or area specified in an application for the renewal of a permit during the pendency of such application for  renew- al.  A  temporary  permit can thus be granted  only  if  the permit is required for the purposes or reasons mentioned  in clauses  (a)  to (d) of section 62(1) of the Act  which  are mentioned above or in the circumstances referred to in  sub- section (2) thereof. This is clear from the decision of this Court  in  Andhra Pradesh State Road  Transport  Corporation v.K.  Venkataramireddy and others, [1971] 3 S.C.R.  803.  In that decision this court held that a temporary permit  could be  issued  only for the purposes or  reasons  mentioned  in clauses  (a)  to (d) of section 62 of the Act  as  it  stood then. Subsequent to the amendment of section 62 of the Act a temporary permit can also be issued under the  circumstances mentioned in sub-section (2) of section 62 of the Act. There cannot  be  also a renewal or revalidation  of  a  temporary permit as held by this CoUrt in Gandhara Transport Co.  Ltd. v.  The  State of Punjab and others, [1963] Supp.  1  S.C.R. 800.  The revalidation or renewal of a temporary  permit  or

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extension  of  the period for which a  temporary  permit  is issued  is not contemplated by law. The issue  of  temporary permits by the State Transport Authority in the instant case continuously  for a number of years is clearly in  violation of  the statute. The Regional Transport Authority  which  is charged  with  the  duty of issuing  permits  for  transport vehicles under the Act in the public interest should wherev- er  it finds that the need for issuing such  stage  carriage permit is established take immediate steps to invite  appli- cations  from persons who are willing to run the stage  car- riage on the route or in the area in question and proceed to grant the permit in favour of a deserving applicant. If  any person on his own makes application for the grant of a stage carriage  permit,  the Regional Transport  Authority  should consider such application in accordance with law and proceed to grant a permit if it finds that it is necessary to do so. It may also be noted that if a regular permit is issued,  it would be in force for a period not less than three years and not more than five years as may be determined by the Region- al  Transport Authority and such permit is capable of  being renewed  under section 58 of the Act. But, if  the  Regional Transport  Authority  proceeds to issue a  temporary  permit then  at the end of every four months it will have to  spend time  over the consideration of fresh applications  for  the issue  of  such permits and it is needless to say  that  the necessity  for making applications at the end of every  four months  would  entail many  undesirable  consequences  which should be avoided. With these observations we dispose of the appeal. M.L.A.                                       Appeal disposed of. 190