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1975 Supreme(SC) 402

SUPREME COURT OF INDIA
V.R. KRISHNA IYER AND A.C. GUPTA, JJ.
P. Kumaraswamy, Appellant
Versus
State Transport Appellate Tribunal, Madras and another, Respondents.
Civil Appeal No. 1266 of 1975
Decided on 8-10-1975.
Advocates appeared
Mr. K. S. Ramamurthi, Sr. Advocate (Mr. A. T. M. Sampath, Advocate, for Mr. E. C. Agarwala, Advocate with him), for Appellant; Mr. B. Sen, Sr. Advocate, (Mr. Vineet Kumar Advocate with him), for Respondent No. 2.

Advocates:
A.T.M.SAMPATH, B.SEN, E.C.AGARWAL, K.S.Ramamurthy, VINIT KUMAR

Headnote:

Motor Vehicles Act - Section 47 (1) and 68-A - Interest of the public - Travelling public is highlighted - Many applicants for one Permit for a "short route" pressed their claims before the Regional Transport Authority evaluated the relevant merits and awarded the permit to Applicant No. 6, who is the appellant before us - On appeal Applicant No. 3, who is respondent No. 2 before us, succeeded - Writ petition was filed without success and the disappointed appellant has come to Court by special leave - System of marks, under Rules framed under Act by Government, prescribes various qualifications for applicants for permits for passenger transport under the Motor Vehicles Act. Rule 155-A crystallises considerations and describes them as guiding principles for grant of stage carriage permits - Rule itself emphasizes what is obvious, paramount consideration of the interest of the public enshrined in Section 47 (1), must be given full weight while awarding permits – Held, client had been plying the bus on the route on an earlier occasion till the High Court dismissed the writ petition. If there had been any period when both operators had plying their buses on the route during the course of this litigation, especially at the time the writ petition was pending in the High Court, it will be open to the Appellate Tribunal to allow the appellant before us (Appellant No. 6) also to ply his bus on the same route. With these directions, we allow the appeal and direct the Appellate Tribunal to dispose of the Motor Vehicles Appeal - Appeal allowed

JUDGMENT

KRISHNA IYER, J. :— A single fundamental flaw in the order of the Appellate Tribunal (under the Motor Vehicles Act, 1939), constrains us to allow this appeal challenging the High Courts refusal to interfere with the grant of the permit in favour of Respondent No. 2.

2. Many applicants for one Permit for a "short route" pressed their claims before the Regional Transport Authority which evaluated the relevant merits and awarded the permit to Applicant No. 6, who is the appellant before us. On appeal, Applicant No. 3, who is respondent No. 2 before us, succeeded. Whereupon, a writ petition was filed without success and the disappointed appellant has come to this Court by special leave.

3. The system of marks, under the Rules framed under the Act by the Tamil Nadu Government, prescribes the various qualifications for applicants for permits for passenger transport under the Motor Vehicles Act. Rule 155-A crystallises these considerations and describes them as guiding principles for grant of stage carriage permits. The rule itself emphasizes what is obvious, that the paramount consideration of the interest of the public, as enshrined in Section 47 (1), must be given full weight while awarding permits. That means to say that the various factors set out in rule 155-A are subject to Section 47 (1). This is clarified by sub-rule (4) of Rule 155-A, which runs thus:

"After marks have been awarded under sub-rule (3), the applicants shall be ranked according to the total marks obtained by them and the application shall be disposed of in accordance with the provisions of sub-section (1) of Section 47".

4. There is no doubt that bus transport is calculated to benefit the public and it is in the fitness of things that the interest of the travelling public is highlighted while evaluating the relevant worth of the various claimants.

5. There are two circumstances which require to be stressed because they have been overlooked by the appellate tribunal in its disposal of the comparative merits of the rival claimants. Sub-rule (5) (i) of Rule 155-A states that preference shall, other things being equal, be given in the disposal of applications in respect of short routes.... to persons who have not held any permit for a stage carriage. Among the considerations which must weigh with the authorities entrusted with the power to grant permits, is business or technical experience in the field or motor vehicles operation. Rule 155-A in Item (D), sub-rule (3) specifically states "two marks shall be awarded to the applicants who have business or technical experience in the road transport service as defined in clause (a) of Section 68-A of any class of transport vehicles for a period of ten years or more."

6. Having regard to the marking system as adumbrated in Rule 155-A, a broad sheet was apparently prepared and the appellant before us (Appellant No. 6) secured 4 marks as against the second respondent (Applicant No. 3) who got 3.10 marks. Ordinarily, therefore, the applicant who got higher marks should have won the battle. Moreover, in a short route, as in this case, the rule comptemplates preference being given to a new entrant, of course, other things being equal. In this case, therefore, the appellant before us, being admittedly a new entrant, was entitled to preference, the route being a short one, other things being equal. The short question that, therefore, fell before the Appellate Authority was as to whether other things were equal. This aspect attracted the attention of the Appellate Authority, but its consideration unfortunately was unsatisfactory. The Appellate Tribunal observed that though the Applicant No. 6 had secured higher marks than Applicant No. 3 : "I am inclined, having regard to the public interest in the matter of passenger transport service, to agree with the appellants contention that the respondents experience as lorry operator cannot be equated with the appellants experience in bus operation." This view, according to him, is t







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