07 October 1983
Supreme Court
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SHIV CHAND AMOLAK CHAND Vs REGIONAL TRANSPORT AUTHORITY & ANR.

Bench: BHAGWATI,P.N.
Case number: Appeal Civil 3787 of 1983


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PETITIONER: SHIV CHAND AMOLAK CHAND

       Vs.

RESPONDENT: REGIONAL TRANSPORT AUTHORITY & ANR.

DATE OF JUDGMENT07/10/1983

BENCH: BHAGWATI, P.N. BENCH: BHAGWATI, P.N. MISRA, R.B. (J)

CITATION:  1984 AIR    9            1984 SCR  (1) 288  1983 SCC  (4) 433        1983 SCALE  (2)611  CITATOR INFO :  R          1984 SC 790  (16)  RF         1986 SC1980  (18,19,27)

ACT:      Motor Vehicles  Act, 1939-Section 47(3) and 57(8) scope of-Whether Section  47(3) of the Act will be applicable when an application is made by a holder of a permit for extension of the route specified in the permit.

HEADNOTE:      The appellants  held stage  carriage permit  granted to them by  the Regional  Transport  Authority  for  the  route Dabra-Karera Via  Lodi Mato-extended  upto Gwalior. On 22-6- 1978, this  route for  which the  permit  was  held  by  the appellants was  modified, at  their own request, by deleting the portion  of the  route from  Karera to  Shivpuri.  By  a notification dated 4-8-1978 certain routes were nationalised under Scheme No. 11-M which came into effect from 25-9-1978, including deletion of the portion of the route from Shivpuri to Satanwara,  with the  result the permit of the appellants remained operative  only for  the remaining  portion of  the route namely,  Satanwara-Gwalior Via  Dabra. Effective  from 19-12-1978, the State Government issued another Notification making  modifications  in  the  route  schemes.  Since  this modification permitted  plying of stage carriages by private operators  even   on  a  portion  of  a  nationalised  route connecting a  district headquarters and not more than 20 KMs in  length,  the  appellants  made  an  application  to  the Regional Transport  Authority-for restoring  the portion  of the route  from Shivpuri  to Satanwara  on the  ground  that Shivpuri was  a district  headquarter and the portion of the route from  Shivpuri and Satanwara was less than 20 KMs. The Regional Transport  Authority rejected  the said application on the ground that the Notification dated 18-12-1978 did not have any  retrospective effect and therefore, the appellants were not entitled to automatic restoration of the portion of the route from Shivpuri to Satanwara.      The appellants  thereupon filed  an application  in the prescribed form  for extension  of the  route  specified  in their  permit   from  Satanwara   to  Shivpuri.   The   said application was rejected after hearing the objections on two grounds, namely  (i) the  specific order  of the State Govt.

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Curtailing the Satanwara-Shivpuri portion of the applicants’ permit, while  approving Scheme  11-M cannot  be treated  as having been  amended by the General Amendment to the Scheme, and (ii)  no extension of the route could be granted without following the  procedure laid  down in  Section 47(3) of the Act. This  order of  the Regional  Transport  Authority  was challenged by the appellants in a writ petition filed in the High Court  of Madhya  Pradesh. The  High Court rejected the petition holding  that by  reason of the express language of Sub-Section (8)  of Section 57, an application for extension of the  route specified in an existing permit was tantamount to an application for grant of a new permit and hence 289 it was  subject to  the provisions  of Section  47(3) and it could not  be considered  without  following  the  procedure prescribed  by   Section  47(3).   Hence  the  appeal  after obtaining special leave of the Court.      Allowing the appeal, the Court      HELD: 1.1  The application  made by  the appellants for extension of  the  route  specified  in  their  permit  from Satanwara to  Shivpuri could  be considered  by the Regional Transport  Authority   without   following   the   procedure prescribed under Sub-Section (3) of Section 47. [297 E-H]      1.2 However,  under the  terms of  Sub-Section  (8)  of Section 57  this application of the appellants was liable to be treated  as an application for the grant of a new permit, since in  effect and  substance, it  was an  application for varying the  condition of  the permit by extending the route from Shivpuri  to Satanwara.  But the  question is  for what purpose ? [297 G-H]      2.1 Having  regard to  the  several  decisions  of  the Supreme Court and particularly the decision in Mohd. Ibrahim v. State  Transport Appellate,  Tribunal, Madras,  [1971]  1 S.C.R. 474,  the law is well settled that an application for grant of  a new permit cannot be entertained by the Regional Transport Authority  under Section  48, unless  the limit of the number  of stage-carriages  for  which  permits  may  be granted is  first determined  under section 47(3). There are two independent  steps required  to be  taken in  connection with  the   grant  of   a  permit,   the  first   being  the determination by  the  Regional  Transport  Authority  under Section 47(3)  of the  number of  stage-carriages for  which permits may be granted and the second being that "thereafter applications for  stage carriage permits can be entertained" and, therefore, it would mean that before an application for grant of  a  permit  can  be  entertained  by  the  Regional Transport Authority,  there should  be a determination under Section 47(3).  Therefore, if an application for varying the condition of a permit by extension of the route specified in the permit were equated wholly with an application for grant of a  new permit  and the permit for the extended route were to be  regarded as a new permit, the procedure prescribed in Section 47(3)  would have  to be  followed and the number of stage carriages  for which  permits may  be granted  on  the extended route  would  have  to  be  determined  before  the application could  be entertained  by the Regional Transport Authority.                                           [298 C-E; 299 E-F]      2.2 But, the prescription in Sub Section (8) of Section 57 that an application for varying the condition of a permit by extension of the route shall be treated as an application for grant  of a new permit has not the effect of equating of such an  application with  an application for grant of a new permit for  all purposes  so as to attract the applicability of Sub Section (3) of Section 47. [299 F-G]

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    3.1 Section 57 deals with the procedure in applying for and granting  permits and  Sub Sections (3) to (7) lays down the procedure  which must  be followed  in  considering  and deciding, inter-alia,  an application  for grant of a stage- carriage permit.  Sub Section  (8) follows upon Sub Sections (3) to (7) 290 and is  a part  of the  same Section  which has  a  definite object and Scheme of providing the procedure for considering and granting  an application and therefore, when it provides that an  application to  vary the  conditions of a permit by the inclusion  of new  route or  routes or  new area  or  by increasing the  number of  trips above the specified maximum or by  altering the  route covered by it shall be treated as an application  for grant of a new stage carriage permit, it is obviously intended to incorporate and make applicable the procedure set  out in  the preceding Sub Sections (3) to (7) to such an application. The context in which Sub-Section (8) occurs and  its juxtaposition with Sub Section (3) to (7) in Section 58  clearly indicate  that what is sought to be made applicable to  an application referred to in Sub Section (8) by treating  it as  an application for grant of a new permit is the  procedure set  out in  Sub Section  (3)  to  (7)  of Section 58 and nothing more.                                           [299 G-H; 300 A-C]      3.2 The  requirement spelt  out in  Sub Section  (3) of Section 47  that the  number of  stage carriages  for  which permits may be granted on any particular route must be first determined before  an  application  for  grant  of  a  stage carriage permit can be entertained by the Regional Transport Authority under  Section 48,  is obviously not a part of the procedure for  considering an  application for  grant  of  a permit; it  is a  condition precedent  before an application for grant  of a  permit can  be considered and granted. This condition cannot  be  said  to  have  been  incorporated  by reference  under   Sub  Section   (8)  of   Section  57.  An application to vary the conditions of a permit as set out in Sub Section  (8) of  Section 57 is undoubtedly to be treated as an  application for  grant of  a new  permit, but that is only for  the purpose  of applying  the procedure set out in Sub Sections  (3) to  (7)  of  Section  57.  It  is  not  an application for  a new  permit and  if it  is  granted,  the permit for  the extended  route does not become a new permit in the  hands of  the applicant. It is the same permit which now after  granting of  the application  covers the extended route. [300 C-F]      3.3 Where  a totally new route is sought to be included by an  application to vary the conditions of a permit or the alteration of  the route sought by such an application is of such a drastic character that it becomes substantially a new route, the  application, though  in form  an application  to vary the  conditions of  the permit,  would  in  effect  and substance, be  an application  for grant of a new permit and in such  a case,  a view  may conceivably be taken with some degree of  plausibility that  the number  of stage-carriages for which  permits may  be granted  on such new route should first be  determined under  Sub Section  (3) of  Section  47 before the  application to vary the conditions of the permit can be entertained. [300 F-H]      An applicant  for a  permit on  a route  which  is  not merely technically,  but in  truth and  reality a  different route,  distinct   from  the  original  route,  may  not  be permitted to  defeat the  provision, enacted  in Sub Section (3) of  Section 47,  by labelling his application as one for varying the conditions of the permit and in such a case, the

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procedure set  out in Section 47 (3) may have to be complied with before  the Regional  Transport Authority  can consider and grant the application. [300 H; 301 A] 291      But where an application merely seeks a short extension of the  route specified  in the  permit, as  in the  present case, it  would not  be appropriate  to say  that it  is  an application for  grant of  a new  permit, though technically the extended  route may  not be  regarded as the same as the original route  and where  such is the case, it would not be necessary to  comply with  the  procedure  set  out  in  Sub Section (3) of Section 47 of the Motor Vehicles Act. [301 B- C]

JUDGMENT:      CIVIL APPELLATE  JURISDICTION: Civil Appeal No. 3787 of 1983.      Appeal by  Special leave  from the  Judgment and  Order dated the  19th March, 1971 of the Madhya Pradesh High Court in Misc. Petition No. 565 of 1980.      S.Q. Hassan, S.K. Mehta, P.N. Puri and M.K. Dua for the Appellant.      Rameshwar Nath for the Respondent.      The Judgment of the Court was delivered by      BHAGWATI, J.  This appeal  by special  leave  raises  a short but  interesting  question  of  law  relating  to  the interpretation of  certain provisions  of the Motor Vehicles Act 1939  (hereinafter referred to as the Act). The question is  whether  section  47  sub-section  (3)  of  the  Act  is attracted when  an application  is made  by the  holder of a permit for  extension of  the route for which the permit has been granted to him. In order to appreciate the question, it is necessary to state a few facts giving rise to the appeal.      The appellants  are  a  partnership  firm  and  at  all material times  they held a stage carriage permit granted to them by  the Regional  Transport  Authority  for  the  route Dabra-Karera via Lodi Mata extended upto Gwalior. It appears that on  22nd June  1978 this route for which the permit was held by  the appellants  was modified  at the request of the appellants and  the portion  of the  route  from  Karera  to Shivpuri was deleted. Thereafter by a Notification dated 4th August 1978  certain routes  were nationalised  under Scheme No. 11-M  which  came  into  force  with  effect  from  25th September 1978  and under  clause 7  (b) of this Scheme, the portion of  the route from Shivpuri to Satanwara was deleted and the permit of the appellants remained operative only for the remaining  portion  of  the  route,  namely,  Satanwara- Gwalior via Dabra. This state of affairs conti- 292 nued from  25th September 1978 until 18th December 1978 when the State Government by a Notification issued in exercise of the powers  conferred under  sub-section (2) of section 68 F of the  Act made  the following modifications in the various schemes approved  by it  under section 68 D sub-section (2), including Scheme No. 11-M:           "Notwithstanding  anything   contained   in   this      Scheme, the  private operators  may be permitted to ply      stage carriages  for hire  or  reward  subject  to  the      following conditions, namely:      (1)  Whereas the  notified route  connects  a  district           Head-quarter, the  portion thereof  covered by the           permit shall not exceed 20 kilometers and in other           cases it shall not exceed 10 kilometers.

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    (2)  The private operators shall ply the stage carriage           over the  distance, other than the distance of the           notified route, which shall not be less than twice           the distance  of the notified route covered by the           permit;      (3)  The private  operators shall  not pick-up  or set-           down passengers on the notified route. Since this  modification permitted plying of stage carriages by private operators even on portion of a nationalised route connecting a district head-quarter and not more than 20 kms. in  length,  the  appellants  made  an  application  to  the Regional Transport  Authority for  restoring the  portion of the route  from Shivpuri  to Satanwara  on the  ground  that Shivpuri was  a district head-quarter and the portion of the route between  Shivpuri  and  Satanwara  was  less  than  20 kilometers. The  Regional Transport  Authority however  took the view  and in  our opinion rightly, that the modification made by  the State  Government in  Scheme No. 11-M under the Notification dated  18th December  1978  did  not  have  any retrospective effect  and the  appellants were therefore not entitled to  automatic restoration  of the  portion  of  the route from  Shivpuri to  Satanwara and  in  this  view,  the Regional Transport Authority rejected the application of the appellants.      The appellants thereupon filed a regular application in the prescribed  form for extension of the route specified in their permit 293 from Satanwara to Shivpuri. The application was published in the Gazette  on 11th  April 1980 and on coming to know about it, M.P.  State Road  Transport Corporation which is the 2nd respondent before  us filed its objections against the grant of  such   extension.  The  application  together  with  the objections was heard by the Regional Transport Authority and by an order dated 11th September 1980 the Regional Transport Authority rejected the application on two grounds. The first ground was  that "the specific order of the State Government curtailing the  Satanwara-Shivpuri  portion  of  applicant’s permit while  approving Scheme No. 11-M cannot be treated as having been  amended by  the general  amendment made  to the scheme" and  the other  was that  no extension  of the route could be  granted without  following the procedure laid down in Section 47 sub-section (3) of the Act.      This order made by the Regional Transport Authority was challenged by the appellants in a writ petition filed in the High Court  of Madhya  Pradesh. There  were two  grounds  of challenge urged  on behalf  of the  appellants in support of the writ  petition but  we are concerned in this appeal with only one  ground and  hence we  need not  refer to the other ground and  burden our  judgment with  a discussion  of that ground. The  ground which  was seriously  pressed before the High Court  and repeated  before us was that Section 47 sub- section (3)  has no  application where  what is sought by an applicant is  not the  grant of  a new permit on a specified route under  section 48 but merely an extension of the route under an existing permit under sub-section (8) of section 57 and the  order made  by  the  Regional  Transport  Authority rejecting the application of the appellants on the ground of non-compliance  with  sub-Section  (3)  of  section  47  was therefore plainly  wrong. The  appellants sought  to support this ground by relying on the decision of the Madhya Pradesh High Court  in Dewan Chand v. State Transport Authority. But the learned  Judge who heard the writ petition observed that the decision  in Dewan  Chand’s case (supra) was contrary to the view  taken by  this Court  in  R.  Obliswamy  Naidu  v.

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Regional  State   Transport  Appellate  Tribunal  and  Delhi Transport Undertaking  v. Zamindar  Motor Transport  Company and held  that by  reason of  the express  language of  sub- section (8) of section 57 an application for 294 extension of  the route  specified in an existing permit was tantamount to  an application  for grant of a new permit and hence it  was subject  to the  provisions of section 47 sub- section (3) and it could not be considered without following the procedure  prescribed by  sub-section (3) of section 47. The learned Judge on this view rejected the writ petition of the  appellants.  The  appellants  thereupon  preferred  the present appeal with special leave obtained from this Court.      The only  question which  arises for  consideration  in this appeal  is as  whether section  47 sub-section  (3)  is attracted when  an application  is made  by a  holder  of  a permit for  extension of  the route specified in the permit. The determination  of this  question  depends  upon  a  true interpretation of  some of  the relevant  provisions of  the Act. Section 2 is the definition section and clause (28A) of this section  defines route  to mean "a line of travel which specifies the  high-way which  may be  traversed by  a motor vehicle between one terminus and another". Chapter IV is the only material  chapter for  our purpose  and as  its heading shows, it  deals with control of transport vehicles. Section 42 provides  that no  owner of a transport vehicle shall use or permit the use of the vehicle in any public place 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. Section 43 confers certain powers on the State Government to issue  directions  to  the  State  Transport  Authority  and section 44  provides for the constitution of State Transport Authority and Regional Transport Authorities for each State. Section 45  specifies the  authority to which an application for  a   permit  must   be  made  and  what  particulars  an application for  a permit  shall contain  is  prescribed  in section 46.  Section  47  sub-section  (1)  lays  down  what matters  shall   be  taken  into  account  by  the  Regional Transport Authority  in considering  an  application  for  a stage carriage permit and various other provisions regarding reservation of  certain percentage of stage carriage permits for  Scheduled  Castes  and  Scheduled  Tribes  and  persons belonging to  economically weaker  sections of the community are made  in sub-section (1A) to sub-section (1H) of section 47. Then  follows sub-section  (3) of section 47 which is in the following terms:           "47  (3).  A  Regional  Transport  Authority  may,      having regard  to the  matters mentioned in sub-section      (1) limit the number of stage carriages generally or of      any specified 295      type for which stage carriage permits may be granted in      the region or in any specified area or on any specified      route within the region." Section 48  sub section  (1) provides  that, subject  to the provisions of  section 47,  a Regional  Transport  Authority may, on  an application made to it under section 46, grant a stage carriage  permit in accordance with the application or with such  modifications as  it deems fit or refuse to grant such a  permit, provided  that no  such permission  shall be granted in respect of any route or area not specified in the application. Sub-section  (3) of  section  48  empowers  the Regional Transport Authority while granting a stage carriage

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permit to  attach to  the permit  any one  or  more  of  the conditions  set   out  in   that  sub-section.  One  of  the conditions which  may be  attached to the permit is that set out in clause (xxi) and it reads as follows:           "48(xxi): that  the Regional  Transport  Authority      may, after giving notice of not less than one month-      (a) vary the conditions of the permit;      (b) attach to the permit further conditions;           Provided  that   the   conditions   specified   in      pursuance of  clause (i)  shall not  be varied so as to      alter the  distance covered  by the  original route  by      more than  24 kilometres, and any variation within such      limits shall  be made only after the Regional Transport      Authority is  satisfied that  such variation will serve      the public  convenience and that it is not expedient to      grant a  separate permit  in respect  of  the  original      route as so varied or any part thereof." Sections 49  to 51  deal with  an application  for grant  of contract carriage  permit while sections 52 and 53 deal with an application for grant of private carrier’s permit. We are not concerned  with these  provisions and  hence we need not refer to them. So also we are not concerned with sections 54 to 56  which deal  with  application  for  public  carrier’s permit. Section  57 is  however an  important section and in its  various  provisions  it  lays  down  the  procedure  in applying  for  and  granting  permits.  Sub-section  (2)  of section 57 296 prescribes the  time within which an application for a stage carriage permit  should be  made and sub-Sections (3) to (7) lay down  the  procedure  which  must  be  followed  by  the Regional  Transport   Authority  while   dealing   with   an application for a stage carriage permit made before it. Sub- section (8)  of section  57 is  the material provision which calls for interpretation and it runs as follows:           "57 (8):  An application to vary the conditions of      any permit,  other than  a  temporary  permit,  by  the      inclusion of  a new  route or  routes or a new area or,      in, the  case of a stage carriage permit, by increasing      the (number  of trips above the specified maximum or by      altering the  route covered  by it) or in the case of a      contract carriage  permit or a public carrier’s permit,      by increasing  the number  of vehicles  covered by  the      permit, shall  be treated  as an  application  for  the      grant of a new permit." The argument of the respondents on these provisions was, and this argument  found favour  with the  High Court,  that  an application for extension of the route specified in a permit is nothing  but an application to vary the conditions of the permit by  altering the  route  covered  by  it  and  it  is therefore required  by sub-section  (8) of  section 57 to be treated as  an application  for grant  of a  new permit  and hence, by  reason of  section  48,  the  grant  of  such  an application for  extension must be held to be subject to the provisions  of  section  47  sub-section  (3)  and  no  such extension can  be granted  without following  the  procedure prescribed by sub-section (3) of section 47. The validity of this argument  was assailed  before  us  on  behalf  of  the appellants and  it was  contended that the fulfilment of the condition set out in sub-section (3) of section 47 was not a part of  the procedure  for consideration  of an application for extension  of the  route specified  in a permit and when sub-section  (8)   of  section  57  provided  that  such  an application shall  be treated as an application for grant of a new  permit, what was sought to be incorporated was merely

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the procedure  set out  in sub-section (3) to (7) of Section 57 and  not  pre-condition  for  consideration  of  such  an application set out in sub-section (3) of Section (47). This contention, it  was submitted  on behalf  of the appellants, was supported  by Clause (xxi) of sub-section (3) of Section 48, because  if the  condition set  out in  that  clause  is attached to  a permit,  the Regional Transport Authority can suo motu  extend the  route specified  in the  permit upto a distance of 297 24 k.ms.  for serving  the public convenience, without being subject to  the provisions  of sub-section (3) of Section 47 and if  the Regional  Transport can  do so  suo motu without being required to follow the procedure of sub-section (3) of Section 47,  there is  no reason  why the Regional Transport Authority should  not be entitled to do so on an application for extension  made by  the holder of the permit. These were the rival  arguments urged  on behalf  of the parties and we shall now proceed to consider them.      The permit  held by the appellants in the present case, after the deletion of the portion of the route from Shivpuri to Satanwara was operative only for the remaining portion of the route namely, Satanwara-Gwalior via Dabra and in view of the modification made in Scheme No. 11-M by the notification issued by the State Government under section 68F sub-section (2) on  18th December,  1978,  the  appellants  applied  for extension  of  the  route  from  Satanwara  to  Shivpuri,  a distance less  than 20  kilometers. The  question it whether this  application   could  be  considered  by  the  Regional Transport Authority  without first determining under section 47 sub-section  (3) the  number of stage carriages for which permits may  be granted  for the  route  Shivpuri-Satanwara- Gwalior via Dabra, because if the extension applied for were granted, that  would be the route for which the permit would be operative.  Now, it  is clear  that it was a condition of the permit,  after the  deletion of the portion of the route from Shivpuri  to Satanwara,  that the  appellants shall use their vehicle  or vehicles  only  on  the  route  Satanwara- Gwalior via  Dabra. The  application of  the appellants  for extension of  this  route  by  including  the  portion  from Shivpuri  to   Satanwara  was,   therefore,  in  effect  and substance, an  application for varying this condition of the permit by extending the route and it clearly fell within the terms of  sub-section (8) of section 57. So far there was no dispute between the parties, but at this point the agreement between the parties ended and a controversy arose as to what was the  consequence and effect of the applicability of sub- section (8)  of section  57 to  this application made by the appellants. There  can be  little doubt  that under terms of sub-section (8)  of section  57,  this  application  of  the appellants was  liable to  be "treated as an application for the grant  of a  new permit".  But the question is: for what purpose and which of the provisions of the Act could be said to be  attracted  to  this  application  by  reason  of  the requirement that  it should be treated as an application for the grant  a new permit. The argument of the respondents was that no  application for  grant  of  a  new  permit  can  be entertained  by   the  Regional  Transport  Authority  under section 48, unless the number of stage carriages 298 for which permits may be granted for the particular route is first determined  by the  Regional Transport Authority under sub-section  (3)   of  section   47,  and,   therefore,  the consequence of  treating the  application of  the appellants for extension  of the route as an application for grant of a

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new permit  was that  no extension  could be  granted by the Regional  Transport  Authority  unless  the  requirement  of section 47  sub-section (3)  was first complied with and the number of  stage carriages  for which permits may be granted on the  extended route  was determined under that provision. But we do not think this argument is well-founded.      It is  undoubtedly  true  that  having  regard  to  the several  decisions  of  this  Court  and  particularly,  the decision in  Mohd.  Ibrahim  v.  State  Transport  Appellate Tribunal, Madras,  the law  must now  be taken  to be  well- settled that an application for grant of a new permit cannot be entertained  by the  Regional Transport  Authority  under section  48,  unless  the  limit  of  the  number  of  stage carriages  for   which  permits  may  be  granted  is  first determined under  section 47  sub-section (3). There are two independent steps  required to  be taken  in connection with the grant  of a permit, the first being the determination by the Regional  Transport  Authority  under  section  47  sub- section (3)  of the  number of  stage  carriages  for  which permits may be granted and the second being that "thereafter applications for  stage carriage permits can be entertained" and, therefore, it would mean that before an application for grant of  a  permit  can  be  entertained  by  the  Regional Transport Authority,  there would  be a  determination under section 47  subsection (3). Ray, J., as he then was speaking on behalf of the Court observed in Ibrahim’s case (supra):           "In our  opinion, the  provisions of  the  Act  in      regard to  stage carriage  permits have  the  following      consequences. If  the Regional Transport Authority were      to appoint  a date  for the receipt of applications for      the grant  of  stage  carriage  permits,  the  Regional      Transport Authority  should fix the limit of the number      of permits  which might  be granted and then notify the      same under  section 57 (2) of the Act. If, on the other      hand, applications  were sent  by persons  suo motu for      the grant  of permit  the applications would have to be      published and  the representations  would  have  to  be      asked for. The proviso of 299      section 57  (3) of the Act furnishes the answer that if      the  grant   of  any  permit  in  accordance  with  the      application would  have the  effect of  increasing  the      number of  permits beyond the limit fixed under section      47 (3)  of the  Act, the  Regional Transport  Authority      might  summarily   refuse   the   application   without      following the  procedure laid down in section 57 of the      Act. In  other cases,  the proper  stage for fixing the      limit under  section 47  (3) of  the Act would be after      applications are  received and before the same would be      published under  section 57  (3) of  the Act asking for      representations.  If  however  the  Regional  Transport      Authority would  not increase  or modify  the number of      permits  which   already  exist,   the  grant   of   an      application would  mean transgressing  the limit fixed,      and procedure  laid down  in section  57 (3) of the Act      need not  than be  followed. On  the other hand, if the      Regional Transport Authority on receipt of applications      would decide  upon the  limit of  permits and the grant      thereof would  be with-in the limit prescribed then the      procedure laid  down in section 57 (3) of the Act would      be followed." There can, therefore, be no doubt that if an application for varying the  condition of a permit by extension of the route specified  in   the  permit  were  equated  wholly  with  an application for grant of a new permit and the permit for the

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extended route  were to  be regarded  as a  new permit,  the procedure prescribed  in section  47 sub-section  (3)  would have to  be followed  and the  number of stage carriages for which permits  may be  granted on  the extended  route would have to  be  determined  before  the  application  could  be entertained by  the Regional  Transport Authority. But we do not think  that  the  prescription  in  sub-section  (8)  of section 57  that an application for varying the condition of a permit  by extension  of the  route shall be treated as an application for grant of a new permit has effect of equating such an  application with  an application for grant of a new permit for  all purposes  so as to attract the applicability of sub-section  (3) of section 47. Section 57 deals with the procedure in  applying for  and granting  permits  and  sub- section (3)  to (7)  lay down  the procedure  which must  be followed  in   considering  and  deciding,  inter  alia,  an application for  grant of  a  stage  carriage  permit.  Sub- section (8)  follows upon sub-section (3) to (7) and is part of the  same section  which has a definite object and scheme of providing  the procedure  for considering and granting an application and therefore, when it 300 provides that  an application  to vary  the conditions  of a permit by  the inclusion  of new route or routes or new area or by  increasing the  number of  trips above  the specified maximum or  by altering  the route  covered by  it shall  be treated as  an application for grant of a new stage carriage permit it  is obviously  intended to  incorporate  and  make applicable the  procedure set  out  in  the  preceding  sub- section (3)  to (7)  to such  an application. The context in which sub-section (8) occurs and its juxtaposition with sub- section (3)  to (7) in section 58 clearly indicate that what is sought  to be  made applicable to an application referred to in  sub-section (8)  by treating it as an application for grant of  a new  permit, is  the procedure  set out  in sub- section (3)  to (7)  of section  58 and  nothing  more.  The requirement spelt  out in sub-section (3) of section 47 that the number  of stage  carriages for  which  permits  may  be granted on  any particular  route must  be first  determined before an  application for  grant of a stage carriage permit can be entertained by the Regional Transport Authority under section 48,  is obviously  not a  part of  the procedure for considering an  application for  grant of  a permit; it is a condition precedent  before an  application for  grant of  a permit  can   be  considered  and  granted.  This  condition precedent cannot  be  said  to  have  been  incorporated  by reference  under   sub-section  (8)   of  section   57.   An application to vary the conditions of a permit as set out is undoubtedly to  be treated  as an application for grant of a new permit, but that is only for the purpose of applying the procedure set out in sub-section (3) to (7) of that section. It is  not an  application for  a new  permit and  if it  is granted, the permit for the extended route does not become a new permit  in the  hands of  the applicant.  It is the same permit which  now, after  the granting  of the  application, covers the  extended route.  It may  be possible to say that where a  totally new  route is  sought to  be included by an application to  vary the  conditions  of  a  permit  or  the alteration of  the route sought by such an application is of such a drastic character that it becomes substantially a new route, the  application, though  in form  an application  to vary the  conditions of  the permit,  would in  effect a and substance, be  an application  for grant of a new permit and in such  a case,  a view  may conceivably be taken with some degree of  plausibility that  the number  of stage carriages

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for which  permits may  be granted  on such new route should first be  determined under section 47 sub-section (3) before the application  to vary the conditions of the permit can be entertained. An  applicant for  a permit on a route which is not merely technically, but in truth and reality a different route,  distinct   from  the  original  route,  may  not  be permitted to defeat the provision enacted in section 47 sub- section (3) by 301 labelling his  application as one for varying the conditions of the  permit and  in such a case, the procedure set out in section 47  sub-section (3)  may have  to be  complied  with before the  Regional Transport  Authority can  consider  and grant the application. But where an application merely seeks a short extension of the route specified in the permit as in the present case, it would not be appropriate to say that it is  an  application  for  grant  of  a  new  permit,  though technically the  extended route  may not  be regarded as the same as  the original  route and  where such is the case, it would not  be necessary to comply with the procedure set out in sub-section (3) of Section 47.      We are,  therefore, of the view that the High Court was in error  in  holding  that  the  application  made  by  the appellants for  extension of  the route  specified in  their permit from Satanwara to Shivpuri could not be considered by the Regional  Transport Authority  with  out  following  the procedure prescribed under sub-section (3) of Section 47. We accordingly allow  the appeal, set aside the judgment of the High Court  as also the order made by the Regional Transport Authority and  remit the case back to the Regional Transport Authority for  considering the application of the appellants in accordance  with law  in the  light of  the  observations contained in  this judgment.  There will  be no  order as to costs of the appeal. S.R.                                         Appeal allowed. 302