IMPORTANT POINT
The Transport Commissioner of the State of Haryana has financial interest within the meaning of Section 68(2) of Motor Vehicles Act, 1988 in the Government undertaking known as Haryana Roadways which renders him ineligible for appointment as Chairman of the Regional Transport Authority.

Headnote:Motor Vehicles Act, 1988-Section 68(2)-Notification appointing Transport Commissioner, Haryana as Chairman of the Regional Transport Authorities-Challenged on the ground that Transport Commissioner of State of Haryana has financial interest within the meaning of Section 68(2) of M.V. Act, 1988 in the Government undertaking known as Haryana Roadways so as to render him ineligible for appointment as Chairman of the Regional Transport Authority-Whether correct? (Yes)-Result-Notification dated 20-2-2001 quashed qua appointment of Transport Commissioner-Appeal allowed.
       Held (as to meaning of undertaking ) : Even applying the dictionary meaning of the word "undertaking", an entity such as the Haryana Roadways, which is engaged in the business of providing transport service to the people must be held be an "undertaking". The use of the words "any undertaking" also makes it abundantly clear that the undertaking may be either a private undertaking or a Government or public sector undertaking including a statutory corporation. We have, therefore, no hesitation in holding that a State undertaking such as Haryana Roadways is within the contemplation of sub-section (2) of Section 68 of the Act. (Para 12)
       Held (as to meaning of financial interest ) : Looking to the scheme of the Act it cannot be disputed that the Regional Transport Authorities exercise powers and perform functions which are conferred upon them by or under Chapter V of the Act. The power includes the power to grant stage carriage permits, attach conditions thereto, to determine the duration of permits and their renewal, to transfer permits, the cancellation and suspension of permits, grant of temporary permits etc. Having regard to the fact that the State undertaking competes with private operators in the business of providing transport service, the Legislature advisedly has barred the appointment of any person as a member of the Regional Transport Authority who has any financial interest, whether as proprietor, employee or otherwise in any transport undertaking, which must necessarily include a Government undertaking. This is considered necessary with a view to ensure the impartial functioning of the Regional Transport Authority which is envisaged by the Act. (Para 14)
       Held further : Having regard to the language of Section 68 we are of the considered view that the fact that the Transport Commissioner has no personal financial interest in the State undertaking, is of no consequence. Section 68(2) in express terms refers to a person having "any financial interest as proprietor, employee or otherwise in any transport undertaking. The words employed are of the widest amplitude and expressly include an "employee" of an undertaking. If a very narrow meaning is given to the expression "any financial interest" as contended by the respondents, the word "employee will be rendered redundant, because in all cases it may be argued that an employee has no personal financial interest in the undertaking and his interest, whatever it may be, financial or otherwise, is his official interest and duty to protect the interest of his employer, including his financial interest. The wide sweep of the language employed in Section 68(2) particularly the use of the word "any" before "financial interest" leads us to hold that the financial interest of the person concerned need not be direct personal financial interest, but includes the financial interest which he may have even as an employee of the undertaking. The third proviso of sub-section (2) of Section 68 affirms this conclusion. The express language of the said proviso clearly debars "an official connected directly with the management or operation of a transport undertaking" from being appointed as a member, or continuing as a member, of the Regional Transport Authority. Therefore, Section 68(2) read with third proviso makes it explicit that an official of the State Transport Undertaking who is directly connected with the management or operation of the transport undertaking is debarred from being appointed a member of Regional Transport Authority. So far as the Transport Commissioner is concerned he is undoubtedly such an official, and moreover in the discharge of his official duties he shoulders financial responsibility and is accountable to the State Government in that regard. The conclusion is, therefore, irresistible that he is a person who has financial interest in the transport undertaking within the meaning of that expression in Section 68(2) of the Act. The same can be said of the Traffic Manager who functions under the General Manager of the Haryana Roadways. (Paras 18 & 19)
       Held finally : The appellants had originally challenged the Notification dated March 27, 1998, whereunder the Transport Commissioner was appointed as Chairman of the Regional Transport Authorities. However, during the pendency of the writ petition since that Notification was superseded by another Notification dated 31.12.1998 appointing the Secretary, Regional Transport Authority of the concerned region as Chairman of the Regional Transport Authority, and the Traffic Manager concerned of the office of the General Manager, Haryana Roadways concerned located at District Headquarters as member, the appellant amended the writ petitions and challenged the later Notification. During the pendency of this appeal the position as it existed when the writ petition was filed, has been restored so far as the appointment of Chairman of the Regional Transport Authority is concerned, in as much as the Transport Commissioner has again been appointed as Chairman of the Regional Transport Authority by the Notification dated February 20, 2001. Since we have found that the Transport Commissioner is an official of the Haryana Roadways and has a financial interest in that undertaking within the meaning of that expression in Section 68(2) of the Act, the Notification in so far it relates to the appointment of Transport Commissioner as Chairman, Regional Transport Authority must be quashed. We may however record that counsel for the appellant did not challenge before us the appointment of the District Transport Officer to act as Member Secretary of the Regional Transport Authority. In the result, this appeal is allowed, the impugned judgment and order of the High Court set aside and the Notification dated February 20, 2001 quashed in so far as it relates to the appointment of the Transport Commissioner as Chairman of the Regional Transport Authorities. There will be no order as to costs. (Paras 20 & 21)

JUDGMENT

Bisheshwar Prasad Singh, J.-The core question which arises for consideration in this appeal by special leave is whether the Transport Commissioner of the State of Haryana has any financial interest within the meaning of Section 68 (2) of the Motor Vehicles Act, 1988 in the Government Undertaking known as the Haryana Roadways so as to render him ineligible for appointment as Chairman of the Regional Transport Authority. The appellant had challenged by a writ petition the Notification dated March 27, 1998 whereunder the Transport Commissioner was appointed as Chairman of the Regional Transport Authority. Since the aforesaid Notification was superseded by a subsequent Notification of December 31, 1998 appointing the Secretary, Regional Transport Authority as Chairman and the Traffic Manager of the Haryana Roadways as a member of the authority, apart from a representative of the District Administration, the appellant amended the writ petition and challenged the Notification of December 31, 1998 also. The High Court of Punjab and Haryana dismissed the writ petition by its impugned judgment and order dated February 21, 2000. Later by a Notification dated February 20, 2001 in supersession of the earlier Notification, the Transport Commissioner of Haryana was again appointed as Chairman of the Regional Transport Authority and the District Transport Officer to act as Secretary, Regional Transport Authority of concerned region as member. Before us, the counsel has challenged only the appointment of the Transport Commissioner as Chairman of the Regional Transport Authority and not the appointment of the District Transport Officer who has been appointed to act as the Secretary of the Regional Transport Authority.

2. The appellant herein is a cooperative society duly registered under the Haryana Cooperative Societies Act. It deals in the business of passenger transport and for that purpose obtains stage carriage permits issued through the Regional Transport Authority, Hissar. Presently, it holds one permit to operate four return trips on Hansi - Bad Chhappar route which falls within the District of Hissar.

The case of the appellant pleaded in the writ petition was that the Haryana Roadways is a department of the State of Haryana. It also carries on business of providing passenger transport facility. It competes with private stage carriage operators and owns and operates a fleet of motor vehicles. The Haryana Roadways is also subject to the provisions of the Motor Vehicles Act (hereinafter referred to as "the Act") and the rules framed thereunder. Stage carriage permits are issued by the concerned Regional Transport Authority constituted under Section 68 of the Act.

3. It was contended that for about two decades the entire passenger transport service in the State of Haryana remained nationalized and stage carriage service was operated only by the State Transport Undertaking known as the Haryana Roadways. However, in the year 1993 by Notification issued under Section 100 of the Act, a provision was made for grant of stage carriage permits to private operators but confined to cooperative societies. Under the Notification, the routes falling within the districts with not more than 10 kilometers falling on the National or State Highways, were available for operation by cooperative societies. Accordingly, stage carriage permits are being granted to cooperative societies under Chapter V of the Act by the concerned Regional Transport Authorities of which the Transport Commissioner, Haryana was, and again is, the Chairman. By Notification dated March 27, 1998 the Government of Haryana in exercise of the powers conferred by Section 68 of the Act, in supersession of its earlier Notification dated December 30, 1996 constituted Regional Transport Authorities for each of the regions of Ambala, Hisar, Faridabad, Rohtak, Karnal and Rewari consisting of Transport Commissioner as Chairman and Secretary, Regional Transport Authority of the concer

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2002 Supreme(SC) 670

Cases Referred (2)