SUPREME COURT OF INDIA
S.M. SIKRI AND K.S. HEGDE, JJ.
K. M. Viswanatha Pillai, Appellant
Versus
K. M. Shanmugham Pillai, Respondent.
Civil Appeal No. 1453 of 1966,
D/25-11-1968.
Advocates appeared
Mr. A. K. Sen, Senior Advocate, (Mr. R. M. Mehta, Advocate, and Mr. J. B. Dadachanji, Advocate of M/s. J. B. Dadachanji and Co., with him), for Appellant; Mr. R. Gopalakrishnan, Advocate for Respondent.
Motor Vehicles Act, 1939 - Section 2 – Both parties is members of Joint Hindu Family - Partition - Contract carriage - Defendant was carrying on business on his behalf as a benamidar. He accordingly prayed for a declaration that five buses along with stage carriage permits belonged to him and that he was entitled to run same in terms of power of attorney which was irrevocable. Defendant had joined with plaintiff earlier in filing a joint application for transfer of permits before Regional Transport Authority - High Court held that plaintiff and defendant practised a fraud upon authorities, conjointly, in contravention of express provision of Motor Vehicles Act - Held, No owner of a transport vehicle shall use or permit use of vehicle in any public place, save in accordance with conditions of a permit granted or countersigned by a Regional or State Transport Authority or Commission authorising use of vehicle in that place in manner in which vehicle is being used - Nothing in Act which expressly or by implication bars benami transactions or persons owning buses benami and applying for permits on that basis - Appeal allowed.
Judgment
SIKRI, J:- This appeal by certificate granted by the High Court of Madras is directed against its judgment and decree modifying the decree passed by the District Judge.
2. The relevant fact for the determination of the points raised before us are as follows: The plaintiff, K. M. Viswanatha Pillai, appellant before us and hereinafter referred to as the plaintiff and K. M. Shanmugham Pillai, respondent before us and hereinafter referred to as the defendant, were originally members of a Joint Hindu Family. On June 29, 1953, the six brothers who constituted the Joint Hindu Family entered into a partition of the properties belonging to the Joint Family, evidenced by a registered document Ex. A-35. A motor bus MDH 662 fell to the share of the plaintiff. At the time of parition the permit was not in the name of the defendant and some proceedings for the transfer of the permit to his name were pending. Accordingly it was provided in the partition deed as follows:
"As soon as its route permit and registration etc. are transferred in the name of Shanmugham Pillai, he shall have the same transferred in the name of the 4th individual of us, Viswanatha Pillai."
3. In September 1953, the permit was transferred in the name of the defendant. In April 1954, the plaintiff purchased two more vehicles namely, M. D. O. 1106 and M. D. H. 730, but the permits were obtained in the name of the defendant in whose name the vehicles were also actually acquired. As the defendant was going to Kuala Lumpur on business he executed a general power of attorney, Ex.A-55, in favour of the plaintiff. In this power of attorney the defendant admitted that the three buses above mentioned belonged to the plantiff and were plying in his name as requested by the plaintiff. Two more buses seem to have been acquired since then.
4. The plaintiff s case in brief was that the defendant was carrying on business on his behalf as a benamidar. He accordingly prayed for a declaration that the five buses along with the stage carriage permits belonged to him and that he was entitled to run the same in terms of the power of attorney which was irrevocable. The defendant had joined with the plaintiff earlier in filing a joint application for transfer of permits before the Regional Transport Authority. The defendant, however, withdrew his consent and the application was rejected. The plaintiff, accordingly, seeks a mandatory injunction directing the defendant to execute necessary documents required to effectuate the transfer of the permits.
5. The suit was decreed entirely by the Trial Court, but the District Judge confirmed the decree only with reference to four of the buses. With reference to Bus No. MDU 4069 the decree was set aside.
6. The High Court held that the plaintiff and the defendant practised a fraud upon the authorities, conjointly, in contravention of the express provision of the Motor Vehicles Act. The benamidar of the vehicles, representing himself to be the owner, falsely obtained the permits in his name, and allowed the true owner, who had no permit, to conduct, the actual business; there cannot be a more flagrant violation of the basic requirements of the Act, or of its scheme." The High Court, accordingly, felt that they could not possibly grant mandatory injunction compelling the defendant to co-operate in any further application for transfer, since that would, in effect, give recognition to the fraudulent contrivance and effectuate rights on the very basis of that contrivance. The High Court also agreed with the District Judge that the plaintiff could not get a declaration as far as bus No. MDU 4069, was concerned.
7. The learned counsel for the appellant, Mr. A. K. Sen urges before us that no provision of the Motor Vehicles Act, 1939 (IV of 1939) hereinafter referred to as the Act has been contravened and that it is not necessary under the Act that a permit should be obtained only by the real owner of the bus.
8. The relevant statutory provisions may now be no
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