Judgment

HIDAYATULLAH, J. : The judgment in Civil Appeal No. 534 of 1961 will dispose of Civil Appeals Nos. 535 to 539 of 1961. In these appeals, private operators of omnibuses challenge the orders of the Appeal Board of the State Transport Authority, by which it set aside the renewal of the permits on certain routes granted by the South Bihar Regional Transport Authority, Patna. The appellants held previously stage carriage permits over certain routes, which were due to expire in December, 1958 or in January, 1959. They had applied for renewal of their permits under S. 58 (2) of the Motor Vehicles Act. Under a scheme framed and notified on July 8, 1957, vide Notification No. P-2-203/57T/4794, the route, Gaya to Khijirsarai, was notified under S. 68D of the Motor Vehicles Act. The Rajya Transport, Bihar, was exclusively allowed to operate on that route. In Civil Appeals Nos. 535 to 538 of 1961, the Rajya Transport, Bihar, filed objections against the renewal of the permits. In Civil Appeals Nos. 534 and 539 of 1961, no objections were filed. The route, Gaya to Khijirsarai, which may be called conveniently route AB formed part of routes, on which the appellants were operating, and in respect of which they had asked for renewal of their permits. The South Bihar Regional Transport Authority, however, renewed the permits of the appellants, holding that route AB was different from the routes, for which renewal was demanded.

2. Against the orders of the Regional Transport Authority, appeals were filed by the Rajya Transport, Bihar in all the cases, that is to say, in those cases in which the Rajya Transport, Bihar, had objected, and those in which it had not objected. While these appeals were pending, the State of Bihar, acting under S. 3 of the Road Transport Corporations Act, 1950 (64 of 1950) notified on April 20, 1959 as follows :

"No. R. T. Cor. 1/59-3090 - In exercise of the powers conferred by section 3 of the Road Transport Corporation Act, 1950 (LXIV of 1950), the Governor of Bihar is pleased to establish with effect from the 1st May, 1959 a Road Transport Corporation, for the State of Bihar, to be called the Bihar State Road Transport Corporation.

2. The said Corporation shall with effect from the said date, exercise all the powers and perform all the functions which are at present being exercised and performed by the Rajya Transport, Bihar.

By order of the Governor of Bihar.

K. B. Sharma, Dy. Secy."

3. At the hearing of the appeals, the Government Advocate, Mr. Lal Narain Sinha, appeared for the Road Transport Corporation. Objection was taken to the competency of the appeals on two grounds. In those cases in which the Rajya Transport, Bihar, had not objected to the renewal of the permits before the Regional Transport Authority, it was contended that it had no locus standi to file appeals. In those cases in which it had so objected, the ground was that the Road Transport Corporation could not, in law, represent ,the Rajya Transport, Bihar, in the appeals filed by the latter. On merits, it was contended that the order of the Regional Transport Authority that route AB , though part of the routes for which renewal was asked, was a different route, and the State corporation had an exclusive right to ply omnibuses on route AB , did not affect the rights of the appellants to ply their omnibuses on routes, which were entirely different.

4. The Government Advocate contended that, on the analogy of the principle underlying O. 22, R. 10 of the Civil Procedure Code, the Road Transport Corporation on which devolved the powers and functions of the Rajya Transport, Bihar, could prosecute the appeals. He also contended, in the alternative, that he was representing also the Rajya Transport, Bihar, and that the appeals were not defective. The Board accepted the argument of the Government Advocate, and set aside the orders of renewal passed by the Regional Transport Authority. The appellants then filed petitions under Arts. 226 and 227 of the