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2023 Supreme(Kar) 1210

IN THE HIGH COURT OF KARNATAKA
Pradeep Singh Yerur, J.
Mohammed Irshad – Appellant
Versus
Regional Transport Authority – Respondent
Writ Petition No. 9802 of 2021 (MV)
Decided On : 22-08-2023

Advocates appeared:
B.R.Sundararaja Gupta, Advocate, Ramesh Jois, Advocate, Hareesh Bhandary T., Advocate, M.V.Nagesh, Advocate, M.E.Nagesh, Advocate

Headnote:(A) Road Transport Corporation Act, 1950 - Motor Vehicles Act, 1988 - Sections 3, 66, 69, 72, 81, and 87 - Exclusivity of operation and jurisdiction of RTA - Writ petitions filed questioning the tribunal's orders allowing permit holders to renew permits, where the tribunal set aside RTA’s renewal order but granted liberty to reapply - Court finds tribunal erred in reserving liberty as it contravened legal provisions guaranteeing renewals must be processed by the original authority - No jurisdiction permitted for RTA to renew permits contrary to the Act or schemes established for the Corporation's exclusive benefits. (Paras 4 and 12-21)

(B) Permits - Renewal versus new permits - Court reiterates that a renewal application is equivalent to a fresh application and must comply with statutory requirements - Jurisdictional issues with RTA must adhere to the stipulations set forth under the relevant rules. (Paras 12 and 19)

Facts of the case:
The petitions challenged the validity of permits renewed by the RTA for private operators against the Corporation's claims of exclusivity under established routes. The tribunal allowed private operators to renew permits, which the Corporation contended contravened jurisdictional regulations.

Findings of Court:
The Court dismissed the petitions by the Corporation and overturned the tribunal's decision, affirming RTA’s right to renew the permits based on compliance with the KMV Rules.

Issues: The main issues included whether the RTA had the jurisdiction to renew permits against statutory regional restrictions and if the tribunal's liberty granted was legally justified.

Ratio Decidendi: The court upheld that applications for renewal must adhere to the authority that originally granted them, negating the tribunal's decision to permit reapplication which might undermine the legislative intent.

Result: Petitions dismissed; permit holders' renewal upheld.

Table of Content
1. overview of involved parties (Para 1 , 2)
2. legal framework of the transport authority (Para 3)
3. arguments presented by the corporation (Para 4)
4. arguments presented by the permit holders (Para 5)
5. summary of the hearing context (Para 6)
6. details on application and tribunal review (Para 7 , 8 , 9)
7. provisions regarding permits in the m.v. act (Para 10)
8. observation on previous cases and their implications (Para 12)
9. key legal ruling on the permit holder's rights (Para 13)
10. legal reasoning about the renewal process (Para 14 , 15 , 16 , 17)
11. summary of the court's binding interpretations (Para 18 , 19)
12. final judgment conclusions (Para 20 , 21)
13. order and directives from the court (Para 22)

JUDGMENT

1. In these writ petitions, one set of petitions are filed by the Karnataka State Road Transport Corporation (for short, 'the Corporation') and the other set of petitions are filed by the holders of stage carriage permit (for short, 'the permit holders').

2. The Corporation and the permit holders have questioned the orders passed by the Karnataka State Transport Appellate Tribunal (for short, 'the tribunal') dtd. 19/3/2021, 7/4/2021 and 7/7/2021.

3. It is the case of the Corporation that it is the State Transport Undertaking established under Sec. 3 of the Road Transport Corporation Act, 1950. Chapter VI of the MOTOR VEHICLES ACT , 1988 (analogous to Chapter IV-A of the MOTOR VEHICLES ACT , 1939) deals with schemes and its effect. The State Government formulated and notified various schemes in the State of Karnataka to provide exclusive right of operation of transport service to the STU on the notified routes and/or areas within the State of Karnataka.

4. It is the contention of Sri Hareesh Bhandary T., learned counsel for the Corporation that as per law, no permit can be granted to a private operator on the notified route/s or area/s. He further contends that as many as 19 schemes are formulated in different regions/areas. Despite prohibition to grant permits to the private operators under various schemes, the Regional Transport Authority (for short 'the RTA') kept on issuing the permissions/permits to the private operators detrimental to the interest of the Corporation and the law prevailing under the scheme. He also contends that the restrictions were imposed under Sec. 104 of the MOTOR VEHICLES ACT , 1988 (for short 'the M.V.Act') in granting the permits in the notified area or the notified routes. The schemes formulated are for exclusive benefits of the Corporation.

4.1 Learned counsel contends that the Corporation preferred a revision petition under Sec. 90 of the M.V.Act before the tribunal against the decision of the RTA meetings held in granting the renewal of stage carriage permit to private stage carriage permit holders for various areas and the routes. It is further stated that original grant/renewal of permit was challenged by the Corporation in a revision petition before the tribunal and the tribunal has set-aside the grant of renewal of permit issued by the RTA. Against the said order of the tribunal, the writ petitions came to be filed in WP.Nos.26492-493/2018 and this Court remanded the said matter to the RTA to decide the same by considering the Joint Route Survey.

4.2 It is the further contention of learned counsel that there was no jurisdiction for the RTA concerned to consider the application of the respective permit holders to grant renewal of permit. However, the RTA proceeded to pass an order granting renewal of permit. Aggrieved by which, the Corporation preferred a revision petition. Though the tribunal was pleased to set-aside the grant of renewal of permit issued by the RTA, but erroneously passed an order reserving liberty to the permit holders to approach the jurisdictional RTA having territorial jurisdiction to seek for fresh permit/renewal of permit. Aggrieved by this liberty granted by the tribunal, the Corporation is before this Court.

4.3 Learned counsel further co

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