IMPORTANT POINT
The private bus operators are directed to continue to honour the concessional passes issued by DTC to disabled persons, freedom fighters, war widows, and their dependants.

Headnote:Road Transport Corporation Act, 1950-Sections 3, 66, 67, 69, 71, 72 and 96-Constitution of India-Articles 136 and 226-Scheme granting stage carriage permits to private operators-Appeal made to State Transport Authority for revision in fares-State Government allowing the appeal issued an order to the STA directing that along with upward revision of fare the private operators would be required to pay Bus Shelter charges to DTC and that passes issued by DTC would be applicable to all Private Stage Carriages-Order challenged by stage carriers-Notification issued challenged as ultra vires the powers of the State Government apart from being arbitrary and imposing unreasonable restrictions on fundamental right to trade and business-Whether conditions imposed while allowing increased fare were justified.
       Held : The condition imposed in Paragraph 3(b) of the impugned notification is ultra vires of the powers of the State Government and is, therefore, liable to be quashed and set aside. However, it appears to us that sudden discontinuation of the concessional passes would seriously affect the commuters, particularly students community, holding a large number of concessional passes issued by the DTC. We are, therefore, of the view that some locus poenitentia should be given to the respondents to make alternative arrangements by formulating an appropriate scheme in accordance with law which should take care of the student concessional passes. In the result, we make the following order:-
        (1) The provisions of the impugned notification dated 31st December, 1999, except paragraph 3(b), are held valid and intra vires;
        (2) The condition imposed under Paragraph 3(b) of the impugned notification is held ultra vires, illegal and unenforceable;
        (3) The appellants, as agreed, shall continue to honour the concessional passes issued by DTC to disabled persons, freedom fighters, war widows, and their dependants;
        (4) The respondents shall lawfully bring forth an appropriate scheme to provide relief to the students concessional pass holders to DTC, within a period of four months from today, i.e., on or before 30th August, 2004, failing which the condition imposed under Paragraph 3(b) of the impugned notification shall stand quashed and set aside with effect from 31st August, 2004. (Paras 35 and 36)

JUDGMENT

Srikrishna, J.-This appeal by special leave is directed against the judgment of the High Court of Delhi dated 19th October, 2000 dismissing the writ petition of the appellants under Article 226 of the Constitution of India challenging the notification dated 31st December, 1999 issued by the Lt. Governor of the National Capital Territory of Delhi.

2. Appellant Nos. 1 to 4 are transport operators who have been issued stage carriage permits by the State Transport Authority, Delhi under various schemes. Appellant No.5 is an association of bus operators in Delhi, whose members have been granted permits under various schemes for upliftment of different sections of society.

3. Respondent Nos.1 to 3 represent the Government of the National Capital Territory of Delhi and Respondent No.4 is a statutory corporation set up under Section 3 of the Road Transport Corporation Act, 1950.

4. Respondent No.4, Delhi Transport Corporation (DTC), was continuously making losses and found itself unable to handle the volume of work required for providing efficient transport facilities for the public in Delhi. The work of transport was opened up to private operators like the appellants, who were granted stage carriage permits under the provisions of the Motor Vehicles Act, 1988 read with the Rules made thereunder (hereinafter referred to, respectively, as the Act and the Rules ). Under the new policy, which was adopted in or about 1991-92, about 3000 private buses were permitted to operate within the territory of Delhi. These private operators were granted permits to run buses under the provisions of the Act.

5. The permit conditions were notified under a Scheme for grant of State Carriage Permits to private bus operators in Delhi by the State Transport Authority. The Scheme was framed for augmentation of the public transport in Delhi. The Scheme was formulated and publicised and also freely available to all persons intending to seek permits for operating stage carriages. Although, there was some dispute as to which were the exact permit conditions under which the stage carriages were operated, at our instance, the Secretary-cum-Commissioner of State Transport Authority, Department of Transport, Government of N.C.T. of Delhi has filed an affidavit dated 13th April, 2004 and also remained present before the Court and answered the queries put by the Court. On the material placed before us, we are satisfied that the said affidavit reflects the correct factual situation.

6. Sometime in the year 1992, when the scheme was first formulated, the permit condition stipulated in the scheme was as under:

"13. The permit holder shall ensure that concessional passes issued to various sections authorized for these buses shall be honoured."

7. In the year 1995, another scheme was launched by the S.T.A., Delhi for granting 392 stage carriage permits to the private operators. A copy of this scheme is produced and marked as Annexure -2 to the affidavit of Mr. Rajeev Talwar, Secretary-cum-Commissioner, S.T.A. Apart from indicating the fare structure, the scheme provided that "there shall be a provision for free passes for freedom fighters only. There may be a provision for monthly/quarterly passes valid in all the private buses on a particular route." The permits for stage carriage operations of private buses were, inter alia, made subject to the following conditions:

"13. The permit holder shall ensure that concessional passes issued to various sections authorised for these buses shall be honoured.

... ... ... ....

17. Permit holder shall ensure that the bus stops to pick up and allow the passengers to get off at the authorised DTC bus stops and no passengers is allowed to board or to get down at a non-prescribed bus stop. The operators will have to pay service charges @ Rs. 250/- per bus on monthly basis to the DTC for using DTC bus stops as determined by STA in consultation with the DTC.

"25. The State Transport Authority, may after giving notic

Click Here to Read the rest of this document

2004 Supreme(SC) 594

IMPORTANT POINT The private bus operators are directed to continue to honour the concessional passes issued by DTC to disabled persons, freedom fighters, war widows, and their dependants.

Cases Referred (4)

IMPORTANT POINT
The private bus operators are directed to continue to honour the concessional passes issued by DTC to disabled persons, freedom fighters, war widows, and their dependants.