19 November 1986
Supreme Court
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ISHWAR SINGH BAGGA & ORS. ETC. Vs STATE OF RAJASTHAN ETC.

Bench: VENKATARAMIAH,E.S. (J)
Case number: Writ Petition (Civil) 237 of 1986


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PETITIONER: ISHWAR SINGH BAGGA & ORS. ETC.

       Vs.

RESPONDENT: STATE OF RAJASTHAN ETC.

DATE OF JUDGMENT19/11/1986

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

CITATION:  1987 AIR  628            1987 SCR  (1) 300  1987 SCC  (1) 101        JT 1986   892  1986 SCALE  (2)881

ACT:     Motor  Vehicles Act, 1939 Section 129A--Validity of  the Notification No. 7-1(6) H/unit X-75 Home (Courts x)  Depart- ment  Government  of Rajasthan,  empowering  Deputy  General Manager  (Traffic),  Assistant Depot  Managers  and  Traffic Inspectors in addition to the Police to exercise the  powers under  section 129A of the Act in respect of all stage  car- riages  and contract carriages on the Notified routes  under section 68-D(3)-- Words and phrases, ’other Person’, meaning of--Whether includes officers of the Corporation.

HEADNOTE:     The  State  of  Rajasthan  issued  a  Notification   No. 7.1(6)H/Unit-x-75  Home  (Court  x)  dated  15.7.1975  under section  129A  of the Motor Vehicles  Act,  1939  empowering certain  officers  of  the Rajasthan  State  Road  Transport Corporation  to exercise in respect of all  stage  carriages and contract carriages on the Notified Routes under  section 68-D(3)  of the Act, the powers that can be exercised  under section  129A  of  the Act by the police  officers  who  are empowered in that behalf.     The  writ petitioners and the appellants are holders  of contract carriage permits carrying on business in the  State of  Rajasthan  and other adjoining States.  Under  the  said permits  they  are entitled to run  the  contract  carriages throughout Rajasthan, except on the notified routes. Some of them  also own motor vehicles which are covered  by  permits issued  under section 63(7) of the Act having the  privilege of carrying on passengers on contract throughout India.     The  petitioners/appellants contended (i) that  the  ap- pointment  of the officers of the Corporation who are  their rivals in motor transport business, as officers entitled  to exercise powers conferred under section 129A of the Act  was violative of Article 19(1)(g) of the Constitution; and  (ii) that  the  said  officers who are very  much  interested  in seeing  that  the Corporation earns much profit,  have  been overzealous in exercising their powers conferred on them and by seizing and detaining the motor vehicles belonging to the petitioners/appellants have acted contrary to law. Allowing the petitions and appeals, the Court, 301

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   HELD:  1.1   The Deputy General Manager  (Traffic),  the Assistant  Depot Managers and the Traffic Inspectors of  the Corporation  could  not have been authorised  by  the  State Government to discharge the powers under section 129A of the Motor Vehicles Act, 1939. [315 E]     1.2  Ordinarily, whenever a statute empowers  the  State Government  to  appoint  persons to administer  any  of  the provisions of the statute, the persons who may be  appointed by  the  State Government under such provision can  only  be persons  appointed  in connection with the  affairs  of  the State.  In other words they should be employees or  officers of the State Government, who are subject to the  administra- tive  and disciplinary control of the State  Government  di- rectly.     1.3  The expression ’other person’ mentioned in  section 129A  of the Act which has to be read ejusdem  generis  with the words ’any police officer’ which precede that expression in  section 129A of the Act can only refer to an officer  of the  Government  and not to any officer or employee  of  any statutory  corporation or to any other private person.  [314 G]     1.4  A reading of section 129A and section 133A  of  the Motor  Vehicles  Act, 1939 together shows  that  the  ’other person’  referred to in section 129A of the Act, who may  be empowered  to  discharge the powers under that  section  can only  mean an officer of the Government, such as  the  Motor Vehicles Officer appointed under section 133A of the Act  or of any other department. It could never have been the inten- tion of the Central Legislature, while enacting section 129A and  section  133A of the Act that  the  powers  exercisable under section 129A of the Act could be conferred on  persons who  were  not officers of the Government.  If  the  Central Legislature intended that such powers could be entrusted  to private  persons or employees of any  statutory  Corporation the  section would have expressly provided in  that  regard. [313 H--314 B]     1.5  Under  the Rajasthan State Road  established  under section  3  of the Road Transport Corporation  Act  LXIV  of 1950,  the officers and servants of the Corporation are  not holders of civil posts under the State Government, so as  to fall  within the term ’other persons’. Further, there is  no provision in the Corporations Act, authorising the  Corpora- tion  to permit any of its officers to exercise  the  powers under  Section  129A of the Motor Vehicles Act or  to  spend money  on the safe custody of the vehicles which are  seized and  detained under section 129A of the Motor Vehicles  Act. [310 C-D, 311 H-312 A]     From the reading of the provisions of the Motor Vehicles Act  and  of  the Corporations Act it is  evident  that  the Corporation is just another operator of motor vehicles which is entitled to run motor vehicles in accordance with law 302 after  obtaining permits. When the Corporation  applies  for permits  under Chapter IV of the Act it has to compete  with other  applicants to obtain permits in accordance  with  the provisions  of  that  Chapter. When an  approved  scheme  is brought  into operation under Chapter IV-A of the Act it  is no doubt entitled to get permits to the exclusion,  complete or partial of other operators. It is also true that when the approved  scheme provides that other operators are  excluded completely or partially no private operator can operate  his motor  vehicles along the notified route or in the  notified area  in  question except in accordance  with  the  approved scheme. Barring what is stated above and some other liabili- ties from which the Corporation is expressly exempted  under

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the  Act, the Corporation is subject to all the  obligations and  responsibilities  which are imposed  on  other  private operators by the Act. It is subject to the powers of  super- vision  and control of the transport authorities  under  the Act  and  to the rules governing the proper  maintenance  of transport  vehicles. The Corporation is also subject to  the jurisdiction  of  the  Motor Vehicles  Department  which  is established under section 133-A of the Act and its  vehicles are  liable  to  be inspected and checked  by  the  officers appointed under that section in the interests of the travel- ling public. It is thus clear that the Corporation is one of the many operators of the motor vehicles in the State though the  fleet of the motor vehicles owned by it and the  magni- tude  of the operations carried on by it may be very  large. [312 C-F]     1.6 Further every permit issued under Chapter IV of  the Act  contains  a number of conditions  which  are  specified therein.  The contravention of either section 22 or  section 42(1)  of the Act or any of the conditions mentioned in  the permit  would  entitle and officer empowered  under  section 129A of the Act to seize and detain the vehicle in  question and also to provide for the temporary safe custody. A report or complaint, as the case may be, also may be filed by.  him before the Magistrate for taking action against the owner of the  vehicle for violation of any of the provisions  of  the Act  referred to above. It is thus seen that the powers  are of  a  drastic nature and have the effect of  depriving  the owner  of a motor vehicle of his property,  which  sometimes may  be of the value of Rs.2 to 3 lakhs. They also have  the effect  of  depriving the passengers who are  travelling  in that vehicle of a transport service right in the middle of a route and may expose them to ’hunger and thirst’. Since  the Corporation is only entitled to a preference in the grant of permits  as respects the Notified routes or in any  NOtified area.  The  police officers who are  empowered  to  exercise certain powers under the Motor VehiCles Act should  exercise these  powers  in  respect of motor vehicles  owned  by  the private operators and also in respect of the motor  vehicles owned by the State Road Transport Corporation. Such a  power cannot  be  granted to the officers of  the  Corporation  by resorting  to the term ’other person’ in the Motor  Vehicles Act. [309 F-310 A, 312 G, 311 H] 303     Having regard to the nature of the power, the expression ’other  person’ in section 129 also will have to  be  inter- preted  as meaning any other person appointed in  connection with the affairs of the State Government and not any private person or officer of a Corporation. [315 C]     Krishna  Bus  Service Pvt. Ltd. v. State  of  Haryana  & Ors., [1985] 3 S.C.C. 711, followed.     Transport Commissioner, Andhra Pradesh v. Sardar Ali Bus Owner, [1983] S.C.R. 729, referred to. OBSERVATION:     1.  The  police officers and the officers of  the  Motor Vehicles  Department are expected to discharge their  duties properly  and diligently and if they discharge their  duties in accordance with law with the amount of diligence which is required of them, there should no difficulty in plugging any kind  of unauthorised running of stage carriage or  contract carriages on the notified routes. Negligence on the part  of the Transport Authorities, the Motor Vehicles Department and the  police officers in exercising their powers of  supervi- sion,  inspection and control in respect of the motor  vehi- cles of the Corporation leads to grave public suffering  and sometimes to disasters. They should not take it for  granted

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that the motor vehicles of the Corporation do not need to be checked  or inspected only because it is established by  the State  Government.  Omission on their  part  in  discharging these duties amounts to dereliction of public duty. [315  G- H, 312 G-H]     2.  Prima facie, the Corporation is not entitled  to  be paid compensation under section 357 of the Code of  Criminal Procedure, 1973. It can be paid such compensation only  when it  is  open to the Corporation to file a suit  and  recover damages  in  law for such unauthorised  operation  of  stage carriages.  Section 357 of the Code of  Criminal  Procedure, 1973 provides for payment of compensation out of the fine to certain  persons. The orders directing payment of  compensa- tion  to the Corporation may have been passed  under  clause (b)  of that section which provides that the fine  recovered may be applied in the payment to any person of  compensation for any loss or injury caused by the offence, when compensa- tion  is, in the opinion of the Court, recoverable  by  such person  in a Civil Court. Magistrates should hereafter  pass such orders only after heating all the parties. [316 D-F]

JUDGMENT:     ORIGINAL/APPELLATE  JURISDICTION: Writ Petition No.  237 of 1986 Etc. (Under Article 32 of the Constitution of India) WITH Civil Appeal Nos. 423536 & 4243/86 304     R.B. Datar, Mrs. Binu Tamta, Mrs. Rani Chhabra and  B.S. Chauhan, for the Petitioners/Appellants.     L.M.  Singhvi, T.S. Krishnamurthy lyer, S.K. Jain,  A.M. Singhvi, C. Mukhopadhyay, B.D. Sharma and S. Atreya for  the Respondents. The Judgment of the Court was delivered by     VENKATARAMIAH, J. The petitioners in the Writ  Petitions and appellants in the Civil Appeals are holders of  contract carriage  permits issued under the provisions of  the  Motor Vehicles  Act,  1939 (hereinafter referred to as  ’the  Act) carrying  on  business in the State of Rajasthan  and  other adjoining  States. Under the said permits they are  entitled to run the contract carriages throughout Rajasthan except on the  notified routes. Some of them also own  motor  vehicles which  are covered by permits issued under section 63(7)  of the  Act  having  the privilege of  carrying  passengers  on contract throughout India. In these Writ Petitions and Civil Appeals  they have questioned the validity of the  Notifica- tion dated 15.7.1975 issued by the State of Rajasthan  under section 129-A of the Act empowering certain officers of  the Rajasthan  State  Road  Transport  Corporation  (hereinafter referred  to as ’the Corporation) to exercise in respect  of all  stage carriages and contract carriages on the  notified routes  under section 68-D(3) of the Act the power that  can be  exercised  under  section 129-A of  the  Act  by  police of.ricers who are empowered in that behalf. The Notification reads as follows:               "RAJASTHAN RAJPATRA"               Dated 7.8.1975                            HOME (Cr. X) DEPARTMENT NOTIFICA-               TION               Jaipur, July 15, 1975                         O.O.420.  In exercise of  the  power               conferred  by  section  129-’A  of  the  Motor               Vehicles  Act, 1939 (Central Act IV  of  1939)

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             the State Government hereby further authorises               the  following persons to exercise the  powers               and  to  take  or cause to be  taken  all  the               proper steps within their respective jurisdic-               tions under the said scheme in respect of  all               the  stage  carriages and  contract  carriages               plying  on or in any notified route or in  any               notified  area  under-section 68-D(3)  of  the               said Act or in any portion thereof, namely:               305               S.No.  Persons authorised      Jurisdiction               1.    Deputy General         1. All Rajasthan                     Manager (Traffic)               2.     Assistant  Depot        2.  Within  the               jurisdiction                     Managers               of their  respec-               tive                                            depot.               3.     Traffic  Inspectors     3.  Within  the               jurisdiction                                            of their  respec-               tive                                            routes               No. F. 1 (6)H / Unit-X-75               by order of Governor                                   Sd/- Raj Singh                            Commissioner for Home/Secy.                                 to the Government     The petitioners/appellants contend that the officers  of the Corporation named in the Notification who are very  much interested in seeing that the Corporation earns much  profit have been over-zealous in exercising the powers conferred on them under section 129-A Of the Act and seizing and  detain- ing  the motor vehicles belonging to the  petitioners/appel- lants contrary to law. The principal contention urged by the petitioners/appellants is that it was not open to the  State Government  to appoint persons who are not officers  of  the Government  as  persons  who could exercise  the  powers  of seizure and detention of property of citizens under  section 129-A  of the Act. Relying on the Judgment of this Court  in Krishna  Bus  Service Pvt. Ltd. Vs. State  of’  Haryana  and Others,  [1985] 3 S.C.C. 711, it is contended that  the  ap- pointment  of the officers of the Corporation who are  their rivals  in motor transport business as officers entitled  to exercise powers conferred under section 129-A of the Act was violative of Article 19(1)(g) of the Constitution of India.     These  Writ Petitions/Civil Appeals are opposed  by  the State Government and the Corporation. It is contended by the respondents that the impugned notification is issued only to protect  the  interests of the Corporation and in  order  to prevent  the running of motor vehicles either as stage  car- riages or contract carriages along the routes over which the Corporation  is  exclusively entitled to operate  its  stage carriages under permits issued under Chapter IVA of the Act. They  also contend that the appointment of the  officers  of the  Corporation under section 129-A of the Act is not  out- side the scope of that section. In the course of the hearing it  was  submitted that the said powers would  not  be  used against motor vehicles covered by permits issued 306 under section 63(7) of the Act although it is alleged  that- even such vehicles had been seized and detained in the  past by the officers of the Corporation. Section 129-A of the Act with which we are concerned in this case reads as follows:               "129-A. Power to detain vehicles used  without

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             certificate  of  registration  or  permit--Any               police  officer authorized in this  behalf  or               other person authorized in this behalf by  the               State  Government  may, if he  has  reason  to               believe  that a motor’ vehicle has been or  is               being used in contravention of the  provisions               of  section 22 or without the permit  required               by subsection (1) of section 42 or in  contra-               vention of any condition of such permit relat-               ing to the route on which or the area in which               or  the purpose for which the vehicle  may  be               used,  seize and detain the vehicle,  and  for               this  purpose  take or cause to be  taken  any               steps he may consider proper for the temporary               safe custody of the vehicle.                          Provided that where any such  offi-               cer  or  person has reason to believe  that  a               motor vehicle has been or is being used  with-               out the permit required by sub-section (1)  of               section  42,  he may, instead of  seizing  the               vehicle, seize the certificate of registration               of the vehicle and shall issue an acknowledge-               ment in respect thereof.                          Provided further that where a motor               vehicle  has  been seized and  detained  under               this  section for contravention of the  provi-               sions of section 22, such vehicle shall not be               released  to  the owner unless  and  until  he               produces  a valid-certificate of  registration               under this Act in respect of that vehicle.     Section 129-A was introduced into the Act by section  20 of  the  Motor  Vehicles (Amendment) Act, 1942  (Act  20  of 1942).  Section  133-A was introduced by section 21  of  the very  Amending Act. Originally section 133-A contained  only the  first three sub-sections. Sub-sections (4) and  (5)  to section  133-A  were added later. Now  section  133-A  reads thus:               "133-A.   Appointment   of   motor    vehicles               officer--(  1 ) The State Government may,  for               the purpose of carrying into effect the provi-               sions of this Act, establish a Motor  Vehicles               Department  and  appoint as  officers  thereof               such persons as it thinks fit.                         (2)  Every  such  officer  shall  be               deemed  to  be  a public  servant  within  the               meaning of the Indian Penal Code (45 of 1860).               307                     (3) The State Government may make  rules               to  regulate the discharge by officers of  the               Motor  Vehicles Department of their  functions               and in particular and without prejudice to the               generality of the foregoing power to prescribe               the  uniform to be worn by them, the  authori-               ties  to which they shall be subordinate,  the               duties  to  be performed by them,  the  powers               (including  the powers exercisable  by  police               officers  under this Act) to be  exercised  by               them,  and the conditions governing the  exer-               cise of such powers.                      (4) In addition to the powers that  may               be  conferred  on any officer  ’of  the  Motor               Vehicles Department under subsection (3), such               officer  as  may  be empowered  by  the  State               Government in this behalf shall also have  the               power to (--)

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                    (a)  make such examination and  inquiry               as he thinks fit in order to ascertain whether               the provisions of this Act and the rules  made               thereunder are being observed;                      (b) with such assistance, if any, as he               thinks  fit,  enter, inspect  and  search  any               premises  which  is  in the  occupation  of  a               person  who,  he has reason  to  believe,  has               committed  an  offence under this  Act  or  in               which a motor vehicle in respect of which such               offence has been committed is kept:               Provided that---                      (i)  any such search without a  warrant               shall  be made only by an officer of the  rank               of a gazetted officer;                      (ii)  where the offence  is  punishable               with  fine only the search shall not  be  made               after sunset and before sunrise;                      (iii) where the search is made  without               a  warrant,  the  gazetted  officer  concerned               shall  record in writing the grounds  for  not               obtaining a warrant and report to his  immedi-               ate superior that such search has been made;                      (c) examine any person and require  the               production  of any register or other  document               maintained in pursuance of this Act, and  take               on  the. spot or otherwise statements  of  any               person  which  he may consider  necessary  for               carrying out the purposes of this Act;               308                         (d)  seize  or take  copies  of  any               registers or documents or portions thereof  as               he  may  consider relevant in  respect  of  an               offence under this Act which he has reason  to               believe has been committed;                         (e)  launch prosecutions in  respect               of  any offence under this Act and to  take  a               bond  for ensuring the attendance of  the  of-               fender before any court;               (f)  exercise  such  other powers  as  may  be               prescribed:                          Provided  that no person  shall  be               compelled under this sub-section to answer any               question  or  make any  statement  tending  to               incriminate himself.                         (5)  The provisions of the  Code  of               Criminal procedure 1973 (2 of 1974) shall,  so               far as may be, apply to any search or  seizure               under this section as they apply to any search               or seizure under the authority of any  warrant               issued under section 94 of that Code."     In Transport Commissioner, Andhra Pradesh v. Sardar Ali, Bus  Owner,   [1983]  S.C.R.  729,  this  Court  has   while upholding  the constitutionality of section in 129-A of  the Act  explained  its scope, manner and the  different  powers which  are  exercisable by an officer empowered  under  that section  to exercise the powers mentioned therein.  In  that case  the  appellant was the Transport Commissioner  of  the State  of  Andhra Pradesh and not the Andhra  Pradesh  State Road  Transport  Corporation. Any police  officer  or  other person authorized by the State Government under section 129A of  the Act may seize and detain a motor vehicle if  he  has reason  to  believe that the motor vehicle has  been  or  is being used in contravention of the provisions of section  22 of the Act, or without the permit required by subsection (1)

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of section 42 of the Act, or in contravention of any  condi- tions  of such permit relating to the route on which or  the area  in which or the purpose for which the vehicle  may  be used.  He is also to take or cause to be taken any steps  he may  consider proper for the temporary safe custody  of  the vehicle.  In the first proviso to section 129-A of  the  Act such  authorised officer may instead of seizing the  vehicle seize  the certificate of registration of vehicle and  issue an  acknowledgement in respect thereof. It further  provides that  where  the motor vehicle has been seized  or  detained under  the said section for contravention of the  provisions of section 22 of the Act, such vehicle shall not be released to  the owner unless and until he produces a valid  certifi- cate  of  registration  under that Act in  respect  of  that vehicle. The said powers can be exercised in respect of  any motor vehicle such as an omnibus, a car, an auto- 309 rickshaw,  a  tractor,  a lorry etc.  etc.,  the  expression ’motor  vehicle’  having  been defined by the  Act  in  sub- section (18) of section 2 of the Act thus:               "2(18). ’motor vehicle’ means any mechanically               propelled  vehicle adapted for use upon  roads               whether the power of propulsion is transmitted               thereto  from an external or  internal  source               and  includes a chassis to which ’a  body  has               not been attached and a trailer, but does  not               include a vehicle running upon fixed rails  or               a  vehicle of a special type adapted  for  use               only  in  a factory or in any  other  enclosed               premises."     Section  22 of the Act requires every person to get  his motor vehicle registered under the Act. It provides that  no person shall drive any motor vehicle and that no owner of  a motor vehicle shall cause or permit the vehicle to be driven in any public place or in any other place for the purpose of carrying  passengers or goods unless the vehicle  is  regis- tered  in  accordance with Chapter III of the  Act  and  the certificate  of  registration of the vehicle  has  not  been suspended  or cancelled and the vehicle carries a  registra- tion mark displayed in the prescribed manner. Section 42  of the  Act provides that no owner of a ’transport vehicle’  as defined  in sub-section (33) of section 2 of the  Act  shall use  or  permit the use of the vehicle in any  public  place whether or not such vehicle is actually carrying any passen- ger  or  goods save in accordance with the conditions  of  a permit  granted  or  countersigned by a  Regional  or  State Transport Authority or the Commission authorising the use of the vehicle in that place in the manner in which the vehicle is being used. A ’transport vehicle’ means a public  service vehicle  or a goods vehicle. The different kinds of  permits that may be issued in respect of motor vehicles are set  out in  Chapter  IV  of the Act. They may  be  stage  carriages, contract  carriages, or public carriers. The other  kind  of transport  vehicle is that in respect of which a  permit  is issued  under  section 63(7) of the Act  which  confers  the privilege  on  the holder of the permit to use  the  vehicle throughout  the  territories of India. Every  permit  issued under Chapter IV of the Act contains a number of  conditions which  are  specified therein. The contravention  of  either section 22 or section 42(1) of the Act or any of the  condi- tions  mentioned  in  the permit would  entitle  an  officer empowered under section 129-A of the Act to seize and detain the  vehicle in question and also-to provide for its  tempo- rary safe custody. A report or complaint, as the case maybe, also  may be filed by him before the Magistrate  for  taking

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action against the owner of the vehicle for violation of any of  the provisions of the Act referred to above. It is  thus seen  that the powers are of a drastic nature and  have  the effect  of  depriving the owner of a motor  vehicle  of  his property,  which sometimes may be of the value of Rs.2 to  3 lakhs. They also have the effect of depriving the passengers who  are travelling in that vehicle of a  transport  service right in the 310 middle of a route and may expose them to ’hunger and thirst’ as  it  was widely advertised in a Pamphlet  issued  by  the Corporation itself. It is against the above background  that we have to consider whether it was open to the State Govern- ment  in this case to authorise some of the officers of  the Corporation  to exercise the powers under section  129-A  of the Act.     Section 129-A of the Act enables the State Government to appoint  "any police officer... or other person" under  sec- tion  129-A  of  the Act to exercise  the  powers  mentioned therein.  In so far as the appointment of a  police  officer for the said purpose, there is no room for any doubt because the section expressly mentions that a police officer can  be authorised under it to exercise the powers mentioned  there- in.  The  short question which arises for  consideration  is whether  the expression "other person" mentioned in  section 129-A  of the Act can include persons other than  Government officers,  such  as  the officers of  the  Corporation.  The Corporation is established under the Road Transport Corpora- tions Act, 1950 (Act 64 of 1950) hereinafter referred to  as ’the Corporations Act’). The Corporations Act was enacted to provide for the incorporation and regulation of road  trans- port corporations. Under section 3 of the Corporations  Act, every  State  Government is authorised to establish  a  Road Transport Corporation. The corporation, in question, is  one established  under  that  section. It is  a  body  corporate having  perpetual succession and a common seal. The  manage- ment  of the Corporation vests in a Board of  Directors  who are  appointed  for a prescribed period. It  consists  of  a Chairman and other Directors, being not less than 5 and  not more  than 17, who may be officials of the State  Government or private persons as the State Government may think fit  to appoint.  The  capital of the Corporation  consists  of  any amount  contributed by the Central Government or  the  State Government. The Corporation may, whether or not any  capital is  provided by the State Government or the Central  Govern- ment,  be  authorised to raise by the issue of  shares  such capital  as  may be authorised in this behalf by  the  State Government. The authorised share capital of the  Corporation may  be  divided  into such number of shares  as  the  State Government  may  determine and the number  of  shares  which shall  be subscribed by the State Government or the  Central Government   and  other  persons  (including persons   whose undertakings  have  been  acquired by  the  Corporation)  is liable to be determined by the State Government in consulta- tion with the Central Government. The allotment of shares to other  parties mentioned in subsection (3) of section 23  of the  Corporations  Act shall be made by the  Corporation  in such  manner as may be prescribed. Dividends may be paid  on the  shares issued by it as per law. The Corporation may  at any  time, with the previous approval of the  State  Govern- ment, redeem the shares issued to the other parties in  such manner  as  may be prescribed. The Corporation is  under  an obligation to obey the directions which may be issued by the State Government. If the State Government is of the  opinion that the Corporation is

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311 unable  to perform its duties or has persistently  made  de- fault  in the performance of the duties imposed on it by  or under the provisions of the Corporations Act or has exceeded or  abused  its powers, the State Government may,  with  the previous approval of the Central Government, by notification in the Official Gazette, supersede the Corporation for  such period as may be specified in the notification. Thus, it  is seen that the Corporation is not a department of the Govern- ment  but  it is an independent body  corporate  established under  the statute. Section 14 of the Corporations Act  pro- vides that every Corporation shall have a Managing Director, a Chief Accounts Officer and a Financial Adviser,  appointed by the State Government. It further provides that a Corpora- tion  may  appoint a Secretary and such other  officers  and employees  as it considers necessary for the efficient  per- formance of its functions. The conditions of appointment and service and scales of pay of the officers and employees of a Corporation are dealt with by sub-section (3) of section  14 of the Corporations Act. It provides that the conditions  of appointment  and service and the scales of pay of the  offi- cers and employees of the Corporation shall (a) as  respects the  Managing Director, the Chief Accounts Officer  and  the Financial  Adviser,  or, as the case may be, the  Chief  Ac- counts  Officer-cum-Financial  Adviser, be such, as  may  be prescribed and as respects the other officers and  employees be  such as may be subject to the provisions of section  34, be  determined  by regulations made under  the  Corporations Act.  Section 15 of the Corporations Act provides  that  the Managing Director shall be the executive head of the  Corpo- ration and all other officers and employees of the  Corpora- tion shall be subordinate to him. It is, thus, seen that the officers and servants of the Corporation are not holders  of civil posts under the State Government, but they are employ- ees of the Corporation. The functions of the Corporation are set  out in section 19 of the Corporations Act.  Subject  to the other provisions of the Corporations Act, A  Corporation shall  have power to operate road transport services in  the State  and  in any extended area, to provide  any  ancillary service, to provide for its employees suitable conditions of service  including fair wages,. establishment  of  provident fund,  living accommodation, places for rest and  recreation and other amenities, to authorise the issue of passes to its employees  and other persons either free of cost or at  con- cessional rates and on such conditions as it may deem fit to impose, to acquire and held such property, both movable  and immovable  as  the Corporation may deem  necessary  for  the purpose of any of the said activities, and to lease, sell or otherwise transfer any property held by it etc. etc. It  may also with the prior approval of the State Government do  all other things to facilitate the proper carrying of the  busi- ness of the Corporation.     There is no provision in the Corporations Act  authoris- ing  the Corporation to permit any of its officers to  exer- cise the powers under section 129-A of 312 the  Act or to spend money on the safe custody  of  vehicles which  are  seized and detained under section 129-A  of  the Act. The Corporation no doubt is entitled to draw up schemes under  section 68-C of the Act and to run motor vehicles  in accordance with the said scheme after it is approved by  the State  Government  to the exclusion complete or  partial  of other  operators on any notified route or in notified  area. Section  68-B  of the Act provides that  the  provisions  of Chapter IVA of the Act and the rules and orders made  there-

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under shall have effect notwithstanding anything  inconsist- ent  therewith  contained in Chapter IV of the  Act  or  any other  law for the time being in force or in any  instrument having effect by virtue of any such law. From the reading of the  provisions of the Act and of the Corporation Act it  is evident  that  the Corporation is just another  operator  of motor  vehicles which is entitled to run motor  vehicles  in accordance with law after obtaining permits. When the Corpo- ration  applies for permits under Chapter IV of the  Act  it has  to compete with other applicants to obtain  permits  in accordance  with  the provisions of that  Chapter.  When  an approved scheme is brought into operation under Chapter IV-A of  the  Act it is no doubt entitled to get permits  to  the exclusion,  complete or partial, of other operators.  It  is also true that when the approved scheme provides that  other operators  are excluded completely or partially  no  private operator  can operate his motor vehicles along the  notified route or in the notified area in question except in  accord- ance with the approved scheme. Barring what is stated  above and  some  other liabilities from which the  Corporation  is expressly exempted under the Act, the Corporation is subject to  all the obligations and responsibilities which  are  im- posed  on other private operators by the Act. It is  subject to  the powers of supervision and control of  the  transport authorities  under  the Act and to the rules  governing  the proper maintenance of transport vehicles. The Corporation is also  subject  to  the jurisdiction of  the  Motor  Vehicles Department  which is established under section 133-A of  the Act and its vehicles are liable to be inspected and  checked by  the officers appointed under that section in the  inter- ests  of  the travelling public. It is thus clear  that  the Corporation is one of the many operators of the motor  vehi- cles  in  the State though the fleet of the  motor  vehicles owned  by it and the magnitude of the operations carried  on by it may be very large. The police officers who are  empow- ered  to exercise certain powers under the Act should  exer- cise those powers in respect of motor vehicles owned by  the private operators and also in respect of the motor  vehicles owned  by  the COrporation. Negligence on the  part  of  the Transport Authorities, the Motor Vehicles Department and the police  officers in exercising their powers of  supervision, inspection  and control in respect of the motor vehicles  of the  Corporation leads to grave public suffering  and  some- times to disasters. They should not take it for granted that the  motor  vehicles of the Corporation do not  need  to  be checked  or inspected only because it is established by  the State  Government.  Omission on their  part  in  discharging these duties amounts to dereliction of public duty. 313     Section 129-A and section 133-A of the Act, as mentioned earlier,  were  introduced into the Act by Act 20  of  1942. Clauses  20  and  21 of the Notes on Clauses  found  in  the Statement of Objects and Reasons attached to the Bill relat- ing to the Amending Act of 1942 read thus:               "Clause   20--Although the plying of  vehicles               without registration or of transport  vehicles               without  a permit is punishable, there  is  no               provision  for stopping them from  plying  and               thus  continuing  their  offence.  The  clause               provides for the grant of power for authorised               officers  to detain vehicles so as to  prevent               their  being used without being registered  or               without  a permit or in violation  of  certain               conditions of the permit.               Clause  21 --The powers under Chapters VI  and

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             VII  with  which  police  officers  have  been               invested  cannot be exercised by  officers  of               other  departments of the  Provincial  Govern-               ment.  It is desirable that when  special  de-               partments are set up for the purpose of admin-               istering  the Act, the officers of  these  de-               partments should have the powers entrusted  to               police officers by the Act."     Clause 20 relates to section 129-A of the Act and clause 21  relates  to section 133-A of the Act. It is  clear  from clause  20  that  by enacting section 129A of  the  Act  the Central  Legislature intended to authorise certain  officers to detain vehicles so as to prevent being used without being registered  or without a permit or for violation of  certain conditions of the permit. Clause 21 of the Notes on  Clauses explains  the  reason for establishing  the  Motor  Vehicles Department  in a State. Sub-section (3) of section 133-A  of the Act provides that the State Government may make rules to regulate the discharge by the officers of the Motor Vehicles Department of their functions and in particular and  without prejudice  to the generality of the foregoing power to  pre- scribe  the uniforms to be worn by them, the authorities  to which they shall be subordinate, the duties to be  performed by  them,  the powers (including the powers  exercisable  by police  officers under the Act) to be exercised by them  and the  conditions governing the exercise of such powers.  Sub- section (4) of section 133-A authorises inter alia the State Government  to  empower the officers of the  Motor  Vehicles Department to exercise powers of search without a warrant in certain cases, to examine any person and require the produc- tion of any register or other document maintained in  pursu- ance  of the Act, and take on the spot or  otherwise  state- ments  of any person which they may consider  necessary  for carrying out the purposes of the Act, to launch prosecutions in  respect of any offence under the Act and to take a  bond for  ensuring  the  attendance of the  offender  before  any court. A reading of section 314 129-A  and section 133-A of the Act together shows that  the "other person" referred to in section 129-A of the Act,  who may be empowered to discharge the powers under that  section can  only  mean an officer of the Government,  such  as  the Motor Vehicles Officer appointed under section 133-A of  the Act or of any other department. It could never have been the intention of the Central Legislature, while enacting section 129-A and section 133-A of the Act that the powers exercisa- ble  under  section 129-A of the Act could be  conferred  on persons  who  were not officers of the  Government.  If  the Central  Legislature  intended  that such  powers  could  be entrusted  to private persons or employees of any  statutory Corporation  the  section would have expressly  provided  in that  regard.  Ordinarily, whenever a statute  empowers  the State Government to appoint persons to administer any of the provisions of the statute, the persons who may be  appointed by  the  State Government under such provision can  only  be persons  appointed  in connection with the  affairs  of  the State.  In other words they should be or employees  officers of the State Government, who are subject to the  administra- tive  and disciplinary control of the State  Government  di- rectly.  The  powers  of search, seizure  and  detention  of vehicles  belonging  to  private parties  and  of  launching prosecutions  are incidental to the soveriegn powers of  the State  and  they cannot ordinarily be entrusted  to  private persons  unless the statute concerned makes  express  provi- sions in that regard. It is a different matter if a  private

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person  on his own files a complaint before  magistrate  and wishes  to establish a criminal charge. In such a  case  the private  person  would not be investigating into  the  crime with the aid of the powers of search, seizure or  detention. The Magistrate may, if he so desires, direct a police  offi- cer  to investigate into the allegations and report to  him. In order to illustrate the above point reference may be made to  section 43 of the Code of Criminal Procedure,  1973.  It provides  that any private person may arrest or cause to  be arrested any person who in his presence commits a  non-bail- able  and  cognizable offence, or any  proclaimed  offender, and, without unnecessary delay, shall make over or cause  to be made over any person so arrested to a police officer, or, in  the  absence of a police officer, take  such  person  or cause  him  to  be taken in custody to  the  nearest  police station.  We  are  of the view that  the  expression  "other person"  mentioned in section 129-A of the Act which has  to be read ejusdem generis with the words ’any police  officer’ which  precede that expression in section 129-A of  the  Act can  only refer to an officer of the Government and  not  to any  officer or employee of any statutory Corporation or  to any  other  private person. We have a similar  provision  in section  129 of the Act. That section  authorises  the-State Government to empower any police officer or other person  to exercise the powers under that section. Such police  officer or  other person may, if he has reason to believe  that  any identification  mark carried on a motor vehicle or  any  li- cence,  permit, certificate of registration, certificate  of insurance or other document produced to him by the driver or person in charge of a motor vehicle 315 is a false document within the meaning of section 464 of the Indian  Penal Code (45 of 1860), seize the mark or  document and call upon the driver or owner of the vehicle to  account for  his  possession of or the presence in the  vehicle  of. such  mark or document. That section also provides that  any police  officer  authorised in that behalf or  other  person authorised in that behalf by the State Government may, if he has reason to believe that the driver of a motor vehicle who is  charged  with any offence under the Act may  abscond  or otherwise avoid the service of a summons, seize any  licence held  by  such  driver and forward it to  the  Court  taking cognizance  of the offence and the said Court shall, on  the first  appearance of such driver before it, return  the  li- cence  to him in exchange for the  temporary  acknowledgment given  under  sub-section  (3) of section 129  of  the  Act. Having  regard  to the nature of the power,  the  expression "other  person" in section 129 ,also will have to be  inter- preted  as meaning any other person appointed in  connection with the affairs of the State Government and not any private person or officer of a Corporation.     It  may  be that the Corporation is established  by  the Government  with  the  capital contributed  by  the  Central Government  or the State Government and it may also be  that for the purposes of Part III of the Constitution the  Corpo- ration is treated as ’a State’. Nevertheless the officers of the Corporation cannot be treated as persons falling  within the meaning of the expression "other persons" in section 129 or section 129-A of the Act, even though some of them may be officers  deputed  by the State Government to  work  as  the officers  and  servants of the Corporation. In view  of  the foregoing we hold that the Deputy General Manager (Traffic), the  Assistant Depot Managers and the Traffic Inspectors  of the Corporation could not have been authorised by the  State Government  to discharge the powers under section  129-A  of

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the  Act.  The  impugned Notification has to  fail  on  this account only. We also hold that the reasons given in support of  the  decision in Krishna Bus Service  case  (supra)  are equally applicable to this case also.     It  was  argued that on account of unauthorised  use  of motor  vehicles as stage carriages or contract carriages  on the  notified  routes  over which the  Corporation  has  got exclusive right to operate its vehicles, the Corporation  is losing a large amount of revenue and therefore it was neces- sary to empower the officers of the Corporation to  exercise the powers under section 129-A of the Act. We do not find it as  a satisfactory ground to uphold the  impugned  Notifica- tion.  The  police officers and the officers  of  the  Motor Vehicles  Department are expected to discharge their  duties properly  and diligently and if they discharge their  duties in accordance with law with the amount of diligence which is required of them, there should be no difficulty in  plugging any  kind  of  unauthorised running of  stage  carriages  or contract  carriages on the notified routes. We have  to  im- press upon the police officers 316 of  the Motor Vehicles Department of the State of  Rajasthan not to allow the confidence vested in them to be eroded.  We hope  and trust that they would discharge the duties  to  be performed by them strictly and ensure that the provisions of the Act are obeyed by the motor vehicle operators.     In  view of the foregoing, the impugned Notification  is liable to be set aside and we accordingly quash it.     Before leaving this case we have to observe that in some of  the orders passed by certain magistrates in  respect  of persons accused of running motor vehicles unauthorisedly  on the notified routes it is seen that the fines levied  there- under have been ordered to be paid over to the  Corporation. We are told that the Corporation has realised several  lakhs of  rupees  under such orders. Section 357 of  the  Code  of Criminal  Procedure, 1973 provides for payment of  compensa- tion out of the fine to certain persons. The orders  direct- ing payment of compensation to the Corporation may have been passed under clause (b) of that section which provides  that the  fine  recovered may be applied in the  payment  to  any person of compensation for any loss or injury caused by  the offence, when compensation is, in the opinion of the  Court, recoverable by such person in a Civil Court, Prima facie, we feel  that  the Corporation is not entitled to be  paid  any compensation  under  section  357 of the  Code  of  Criminal Procedure, 1973. It can be paid such compensation only  when it  is  open to the Corporation to file a suit  and  recover damages  in  law for such unauthorised  operation  of  stage carriages.  The question whether such  unauthorised  running will  give rise to a claim for damages in a civil  court  is not free from doubt. We do not, however, express our opinion on  the above question. This is a matter in which the  State is also interested. We hope that the magistrates before whom such cases are filed hereafter will, before passing an order under section 357 of the Code of Criminal Procedure, 1973 in favour  of the Corporation, examine and decide the  question in accordance with law.     In  the. result these writ Petitions/Civil  Appeals  are allowed. There will, however, be no order as to costs. S.R.                                   Petitions  &  Appeals allowed. 317