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PETITIONER: S. SRIKANTIAH  & ORS.

       Vs.

RESPONDENT: THE REGIONAL TRANSPORT AUTHORITY,ANANTAPUR & ORS.

DATE OF JUDGMENT07/05/1971

BENCH: REDDY, P. JAGANMOHAN BENCH: REDDY, P. JAGANMOHAN SIKRI, S.M. (CJ) MITTER, G.K. VAIDYIALINGAM, C.A. DUA, I.D.

CITATION:  1971 AIR 1705            1971 SCR  816

ACT: Madras Motor Vehicles (Taxation of Passengers and Goods) Act 16  of 1952 and The Motor Vehicles (Taxation  of  Passengers Goods)  Andhra  Pradesh  (Amendment)  Act  1959-Notification issued  under s. 43 of Act authorising enhancement of  fares by operators-No consequential amendment made in permits held by  operators-Once  Notification is issued  under  s.43  the conditions of permits stand statutorily amended by virtue of s. 59 (3) (c).

HEADNOTE: The Madras Motor Vehicles (Taxation of Passengers and Goods) Act  1952  became  applicable to the  State  of  Andhra  and subsequently   to   Andhra  Pradesh  when   the   respective reorganisation  of States took place in 1953 and  1956.   In 1959 the Andhra Pradesh legislature enacted the Motor  Vehi- cles  (Taxation  of  Passengers and  Goods)  Andhra  Pradesh (Amendment) Act with a view to augmenting the revenue of the State.  By this Act the rates in respect of state  carriages as well as goods vehicles were increased.  The Act came into force  with  effect from 8th May 1959.  On 7th May  1959  by G.O. Ms. No. 1077 the State Transport Authority was directed by  the  Government to fix maximum fares  inclusive  of  the leviable  tax tinder the Act for the state carriages in  the State of Andhra Pradesh.  The 1959 amendment was struck down by the High Court.  The legislature thereafter passed Act 34 of 1961 by validating the levy under the Act which had  been struck  down by the High Court and also for imposition of  a surcharge.  The operators again questioned the Amendment Act of 1961 on the ground that they had not collected the  fares on  the  enhanced  rates fixed by  the  Transport  Authority because  by  the  conditions  of  their  permit  they   were precluded from collecting the fares at a rate higher than  7 1/2  pies  or 4 NP per passenger per mile.  In view  of  the fact  that the Regional Transport Authorities had not  taken action  to  modify that condition suitably  they  could  not collect  this  amount and therefore were not liable  to  pay surcharge  at enhanced rates.  The High Court held that  the directions issued by the Government in G.O. Ms. No. 1077  of 7th  May  1959  pursuant to  which  the  Regional  Transport

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Authority by its proceedings dated 12th May 1959 called upon the Regional Transport Officers to notify the operators  and which  the  said officers had notified authorising  them  to collect the enhanced fares was sufficient authorisation  for them to collect the enhanced fares as if the fare tables had been  amended.  The operators appealed to this  Court.   The constitutionality  of  the surcharge having been  upheld  by this  Court in Nazeeria Motor Service etc. etc. v. State  of Andhra Pradesh & Anr., [1970] 2 S.C.R. 52, the only question that  survived for consideration was whether there  was  any impediment  preventing  the operators  from  collecting  the enhanced  fares without the conditions of the  permit  being amended. HELD:  in view of the directions given by the Government  in its   notification  under  s.  43  the  Regional   Transport Authority  called  upon the Regional Transport  Officers  to notify the operators to collect the enhanced 817 fares  and accordingly the officers concerned in  compliance with  these  directions notified the  operators.   Once  the provisions  of section 43(1)(i) and 44(4) are complied  with section  59(3) (c) comes into play and it has the effect  of incorporating  the maximum fares as notified  including  the tax leviable, as a condition of the permit.  This being  the legal position there was no justification for the contention that  the collection by the operators of the enhanced  fares without  the table of fares being amended would  entail  the cancellation of the permits. [820G-H] Madhya Pradesh Transport Co. Private Ltd. v. State of Madhya Pradesh, A.I.R. (Vol. 49) 1962 M.P. 108, distinguished.

JUDGMENT: CIVIL  APPELLATE  JURISDICTION : Civil Appeal  No.  1332  of 1968. Appeal from the judgment and order dated February 3, 1964 of the  Andhra Pradesh High Court in Writ Petition No.  201  of 1963. K.   Mangachari, K. R. Chaudhuri and K. Rajendra  Chaudhury, for the appellants. P. Ram Reddy and G. S. Rama Rao, for the respondent. The Judgment of the Court was delivered by P.   Jaganmohan  Reddy,  This  Appeal is  by  a  Certificate against the Judgment of the Andhra Pradesh High Court  giver in  a batch  of Writ Petitions of which the  Writ  Petition giving  rise to this Appeal was one.  The High  Court  while dismissing  the  Writ Petitions gave certain  directions  to which we will refer later. A few facts may be stated to appreciate the matters in issue in  this  appeal.  The Madras Motor  Vehicles  (Taxation  of Passengers   and  Goods)  Act  (Act  XVI  of  1952)   became applicable  to the State of Andhra and subsequently  to  the Andhra Pradesh when the respective reorganisation of  States took  place  in 1953 and 1956.  In 1959 the  Andhra  Pradesh legislature   enacted  the  Motor  Vehicles   (Taxation   of Passengers and Goods) Andhra Pradesh (Amendment) Act with  a view to augment the revenue of the State.  By this amendment Act  the  rates  had  been increased  in  respect  of  State carriages  as well as in respect of goods vehicles.   It  is not  necessary to notice what those rates are except to  say that under sub-section (2) of Section 1 of the Madras  Motor Vehicle  (Taxation of Passengers and Goods)  Andhra  Pradesh (Amendment) Act 1959, the Govt. of Andhra Pradesh  appointed the  8th  May 1959 as the date on which the State  Act  came

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into force.  On 7th May 1959 by G.O. Ms. No. 1077 the  State Transport Authority was directed by the Govt. to fix maximum fares inclusive of the leviable tax under the Act for the 52-1 S. C. India a/71 818 state  carriages  in  the  State  of  Andhra  Pradesh  which immediately  before the 1st November 1956 were comprised  in the  State of Andhra.  The Andhra Pradesh  Amendment  having come  into  force  it  was challenged in  a  batch  of  Writ Petitions  in  the High Court of Andhra  Pradesh and  that Court  had  struck down the Act as  being  unconstitutional. The  legislature  thereafter  passed  Act  34  of  1961  by- validating  the levy under the Act which was struck down  by the High Court and also for imposition of surcharge from the different  dates from the date on which it came  into  force namely  from  the 3rd November 1961.   The  operators  again questioned the Amendment Act of 1961 on the ground that they had  not collected the fares on the enhanced rates fixed  by the  Transport Authority because by the conditions of  their permit  they were precluded from collecting the fares  at  a rate higher than 7-1/2 pies or 4 NP per passenger per  mile. In view of the fact that the Regional Transport  Authorities had not taken action to modify that condition suitably  they could not collect this amount and therefore were not  liable to pay surcharge at the enhanced rates.  This contention was negatived  by the High Court which while rejecting the  Writ Petitions  on  that  ground nonetheless  directed  that  the Respondents  will not be entitled to payment or collect  the enhanced  surcharge from the operators for the month of  May 1959  which  the Counsel for the Government  had  stated  on instruction that the Govt. will not collect. The point which is urged before us, as was urged in the High Court is whether the enhanced surcharge became operative and payable immediately on the coming into force of the 1961 Act or  was it necessary to amend the conditions of  the  permit dealing with the fares leviable by the operators before  the Government  could collect the enhanced surcharge from  them. The  learned Advocate for the Appellants argues  relying  on Madhya Pradesh Transport Co. Private Ltd. v. State of Madhya Pradesh(1)  that  unless the table of fares  is  altered  in accordance with the procedure laid down fares which includes taxes  cannot be lawfully collected and therefore  they  are not  law  bound to pay the enhanced  surcharge.   This  very contention   was  raised  before  the  High   Court,   which disagreeing  with the Madhya Pradesh case cited  above  held that  the  directions issued by the Govt. in G.O.  Ms.   No. 1077  of  7th  May  1959  persuant  to  which  the  Regional Transport  Authority by its proceedings dated 12th May  1959 called  upon the Regional Transport Officers to  notify  the operators   and  which  the  said  officers  had   notified. authorising   them  to  collect  the  enhanced   fares   was sufficient  authorisation for them to collect  the  enhanced fares as if the fare tables had been amended. (1)  A.I.R. (Vol. 49) 1962-M.  P. 108. 819 It  may  be  mentioned that  the  constitutionality  of  the enhanced  surcharge  was upheld by this  Court  in  Nazeeria Motor  Service etc.. etc. v. State of Andhra Pradesh &  Anr. (1) and therefore the only question that servives is whether there  is  an impediment to the operators to  collect  fares without  the conditions of the permit being amended.   There is of course the other basic question whether the payment of the  enhanced tax is dependent on the  operators  collecting the  enhanced  fares.   In any case  it  is  unnecessary  to consider  this question in the view we have taken  that  the

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contention  urged  by the Appellant is  unsustainable.   The relevant  provisions  of  the  Motor  Vehicles  Act  clearly support  the  view  taken  by the High  Court  that  once  a Notification is issued by the Government in exercise of  the powers  under Section 43(1)(i) the conditions of the  permit stand statutorily amended by virtue of Section 59(3)(c). The  provisions  of Section 43, 44, 48 and 59  before  their amendment  in 1969, in so far as they are applicable to  the matter under consideration are as follows.               43(i)  A State Government...... may from  time               to  time  by  Notification  in  the   official               Gazette   issue   directions  to   the   State               Transport Authority-               (i)   regarding   the  fixing  of  fares   and               freights   for   stage   carriages,   contract               carriages and public carriers;               44(3)  A State Transport Authority shall  give               effect to any directions issued under  Section               43 and subject to such directions and save  as               otherwise provided by or under this Act  shall               exercise  and discharge throughout  the  State               the following powers and functions namely:               (a) .        .      .      .     .               (b) .         .       .     .     .               (c)  .      .       .     .     .               (d) .   .     .       .     .     .               (4)   For   the  purpose  of  exercising   and               discharging the powers and functions specified               in   sub-section   (3),  a   State   Transport               Authority  may, subject to such conditions  as               may  be  prescribed, issue directions  to  any               Regional Transport Authority and the  Regional               Transport Authority shall in the discharge  of               its  functions under this Act give  effect  to               and be guided by such directions.               48(3) The Regional Transport Authority, if  it               decides to grant a stage carriage permit,  may               grant the permit for               (1)   [1970] 2 S. C.  R. 52               820               a  service  of stage carriage of  a  specified               description  or  for one  or  more  particular               stage carriages, and may, subject to any rules               that may be made under this Act, attach to the               permit  any  one  or  more  of  the  following               conditions namely: -               (i) to (Xi) .    .    .     .               (xii) that   fares   shall   be   charged   in               accordance with the approved fare table;                59(3)  The following shall be  conditions  of               every permit:-               (c)   that  any  prohibition  or   restriction               imposed  and any maximum or minimum  fares  or               freights  fixed  by  notification  made  under               Section 43 are observed in connection with any               vehicle  or  vehicles  to  which  the   permit               relates :               The  Government  has persuant  to  Section  43               issued the following notification :               "In exercise of the powers conferred by clause               (i)  of sub-section (1) of Section 43  of  the               Motor  Vehicles Act, 1939 (Central Act, IV  of               1939) and in supersession of the Notification               of the Government of A.P. in Public Works  and               Transport Department No. 1’184 dated the  11th

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             August 1956, published at page 2026 of part  I               of  the A. P. Gazette dated the 6th  September               1956,  the Governor of Andhra  Pradesh  hereby               directs   the  State  Transport  to  fix   the               following  maximum fares inclusive of the  tax               leviable  under  the  Madras  Motor   Vehicles               (Taxation  of Passengers and Goods) Act,  1952               (Madras  Act XVI of 1952) for stage  carriages               in  the  territories of the  State  of  Andhra               Pradesh  which  immediately  before  the   1st               November, 1956 were comprised in the State  of               Andhra............... " In  view  of the directions given by the Government  in  the above  notification the Regional Transport Authority  called upon the Regional Transport Officers to notify the operators to  collect the enhanced fares and accordingly the  officers concerned in compliance with those directions notified,, the operators.   Once  the provisions of  Section  43(1)(i)  and 44(4) are complied with Section 59(3)(c) comes into play and it  has  the effect of incorporating the  maximum  fares  as notified  including the tax leviable, as a condition of  the permit.  This being the legal position we do not think there is any justification for the contention that the  collection by the operators of the enhanced fares without the table  of fares  being  amended would entail the cancellation  of  the permits. The  decision of the madhya Pradesh case is clearly  distin- guishable  as it does not appear that any  notification  was issued  under Section 43 as was done in this case nor do  we find  that  the  provisions of Section  59(3)(c)  have  been referred  to or considered.  At page 111, Dixit C.J.,  noted the  submissions of the Additional Government  pleader  that instructions  would  be  issued to  all  Regional  Transport Authorities  for a revision of fare tables under Section  43 of  the Motor Vehicles Act so as to enable the operators  to recover  the tax amount from the passengers as  extra  fare, which he observed was a step in the right direction.   These observations  show  that  there was  no  notification  under Section  43  nor  any instructions  given  to  the  Regional Transport Officers by the Regional Transport Authority.   In the  circumstance  that  case is not an  authority  for  the proposition  contended  by  the  learned  Advocate  for  the Appellant.   In our view there is no validity in  the  stand taken  by  the  operators and consequently  this  appeal  is dismissed with costs, Appeal dismissed.  G. C. 822