PATNA HIGH COURT
V.Ramaswami and Sarjoo Prasad JJ.
Mathura Prasad Prabhudeyal
Versus
State Of Bihar
Miscellaneous Judicial Case No. 63 of 1951 ;
Decided On : DECEMBER 09, 1952
MOTOR VEHICLES ACT, 1939 - SEC. 53, 57(7), 58 - RENEWAL OF PERMIT - REFUSAL - REASONS TO BE GIVEN - WRIT OF CERTIORARI - WHEN CAN BE ISSUED.
Fact of the Case:
Petitioner, a firm running a joint family business, applied for renewal of its private carrier permit under the Motor Vehicles Act, 1939. The Regional Transport Authority (RTA) rejected the application without assigning any reason. The State Transport Authority (STA) dismissed the petitioner's appeal. The petitioner filed a writ petition in the High Court seeking to quash the orders of the RTA and STA.
Finding of the Court:
The High Court held that the RTA acted without jurisdiction in refusing to renew the permit without giving any reasons. However, the court declined to interfere with the decision of the STA as it had considered the matter on merits and there was no illegality or irregularity in the exercise of its jurisdiction.
Issues: 1. Whether the RTA acted without jurisdiction in refusing to renew the permit without giving any reasons? 2. Whether the High Court can interfere with the decision of the STA under Article 226 of the Constitution?
Ratio Decidendi: 1. Section 57(7) of the Motor Vehicles Act, 1939 requires the RTA to give reasons in writing for refusing an application for a permit. The RTA's failure to do so rendered its order illegal and without jurisdiction. 2. The High Court can interfere with the decision of the STA under Article 226 of the Constitution only if the STA acted without jurisdiction, in violation of fundamental principles of justice, or in excess of its jurisdiction. In the present case, the STA had considered the matter on merits and there was no illegality or irregularity in the exercise of its jurisdiction. Therefore, the High Court declined to interfere.
Final Decision: The High Court discharged the rule obtained by the petitioner and dismissed the writ petition.
Sarjoo Prosad, J.
1. This application under Article 226 of the Constitution is directed against the State of Bihar, the Bihar State Transport authority, & the Chota Nagpur Regional Transport Authority (hereinafter called Regional Authority) all of whom are the respondents to this application.
2. The material facts are that the petitioner is a firm running a joint family business in foodgrains sugar, cement, cloth etc. For the purpose of carrying on business in the various commodities the petitioner obtained from the Regional Authority permit No. 21 (1) for a private carrier BRM 1341. The permit was granted by the Regional Authority on 18-12-1944, and the nature of the goods to be carried as specified in the permit was "transporting goods for their business". The permit appears to have been last renewed on 9-2-1948, for a period of three years and was due to expire on 18-12-1950. In the meantime the Regional Authority on 19-7-1950, required certain information from the petitioner which the latter supplied on 24-7-1950. In September 1950, the petitioner applied to the Regional Authority for renewal of the permit on deposit of the necessary fees. The authority again required certain information from the petitioner regarding his business & the income-tax paid by him, & by a letter D/- 25-9-1950, the petitioner supplied the information required. But the Regional Authority on 30-9-1950, rejected the petitioners application for renewal of his permit without assigning any reason whatsoever.
3. It appears from an extract copy of the proceedings of the meeting of the Regional Authority held on the date in question that the petitioners application for renewal of the permit was considered along with a number of other applications, and the only order passed in respect of BR1VI 1341 was "Heard. Rejected". The petitioner then on 4-10-1950 filed a petition for a copy of the order passed on his application for renewal but he failed to obtain the same; nor did the Regional Authority communicate to him writing its reasons for refusing to renew his permit. The petitioner then sent a letter on 10-10-1950 to the Authority aforesaid stating the above facts to which the latter vouchsafed a reply. In this reply it was observed that the renewal of the permit was refused because the Regional Authority did not consider the grant of the permit "essential". It further directed the petitioner to surrender his permit, both Parts A and B, for immediate cancellation. The petitioner then presented an appeal to the State Transport Authority. This appeal was eventually heard on 9-1-1951 and the State Authority rejected the appeal ob serving as follows:
"Admitted and heard. The Board does not see any strong ground to interfere with the orders of the R. T. A. Rejected."
4. On the above facts the petitioner has moved for a writ of certiorari for quashing the above orders. The main contention of the petitioner is that the Regional Authority in refusing to renew the permit acted in excess of the jurisdiction conferred on it by the law. To be able to appreciate the point, it is necessary to refer to some of the relevant provisions of Motor Vehicles Act, 1939 (Act 4 of 1939). Sec. 52 of the Act provides for an application for a private carriers permit and mentions the particulars which are to be specified in that application; namely, the type and carrying capacity of the vehicle; the nature of the goods which the applicant expects normally to carry in connection with his trade and business; the area for which the permit is required; and any other particular which may be prescribed. Sec. 53 lays down the procedure to be observed by the Regional Authority in considering an application for a private carriers permit. The Regional Authority, in deciding whether to grant or refuse such a permit, should have regard to two factors: (1) the condition of the roads to be used by the vehicle or vehicles in respect of which the application is made, and (2) the fact that the
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