SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2015 Supreme(Del) 1181

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN, J.
Uber India Technology Private Limited & Ors. - Petitioners
Versus
Government of NCT of Delhi & Anr. - Respondents
W.P.(C) 6004/2015 & CM APPL. 10895/2015
Decided on : 8-7-2015

Advocate Appeared:
Mr. Rajiv Nayar, Mr. Ajay Bhargava, Mr. Mohit Abraham, Mr. Arvind Kumar Ray, Advocates
Mr. Naushad Ahmed Khan, Mr. Jaspal Singh, S.I. Udai Singh, Mr. A.N. Haksar, Mr. Udyan Jain, Mr. Sonal Jain, Ms. Sarvodaya Lakshmi, Ms. Heena Sharma, Advocates

The main legal point established in the judgment is that a total prohibition or a blanket ban on the right to carry on any trade, business, or profession should be imposed in the rarest of rare or exceptional circumstances, and restrictions must not be arbitrary or of excessive nature.

Headnote:

Radio Taxi Scheme - License Application - Modified Radio Taxi Scheme, 2006, Section 74 of the Motor Vehicles Act, 1988 - The court discussed the Modified Radio Taxi Scheme, 2006 and Section 74 of the Motor Vehicles Act, 1988. It emphasized that a total prohibition or a blanket ban on the right to carry on any trade, business, or profession should be imposed in the rarest of rare or exceptional circumstances. The court also highlighted the importance of allowing trade, business, or profession subject to reasonable restrictions and the need for restrictions to not be arbitrary or excessive.

Fact of the Case:

The petition challenged the rejection of a license application under the Modified Radio Taxi Scheme, 2006 and sought to restrain the respondents from obstructing the petitioner and its AITP vehicle operators from conducting their business and providing services under the name 'Uber'.

Finding of the Court:

The court found that the rejection of the license application based on the failure to submit a sworn affidavit was not valid and set aside the impugned orders. It also emphasized the importance of allowing trade, business, or profession subject to reasonable restrictions and the need for restrictions to not be arbitrary or excessive.

Issues: The issues included the validity of the rejection of the license application, the locus standi of the petitioners, and the compliance with the Radio Taxi Scheme 2006 and Section 74 of the Motor Vehicles Act, 1988.

Ratio Decidendi: The court held that a total prohibition or a blanket ban on the right to carry on any trade, business, or profession should be imposed in the rarest of rare or exceptional circumstances. It also emphasized the importance of allowing trade, business, or profession subject to reasonable restrictions and the need for restrictions to not be arbitrary or excessive.

Final Decision: The impugned orders were set aside, and any vehicles that may have been impounded were to be released. The respondents were given the opportunity to communicate the requirements to be satisfied for the grant of a license within a specified time frame.

Judgment

Manmohan, J.

1. Present writ petition has been filed challenging the order dated 3rd June, 2015 passed by the respondent no. 1 rejecting petitioner no. 1’s application for licence under Modified Radio Taxi Scheme, 2006 as well as seeking an order restraining respondents from obstructing the petitioner and its AITP vehicle operators from conducting their business and providing services under the name ‘Uber’.

2. At the outset, Mr. Rajiv Nayar, learned senior counsel for petitioners states that at this stage he is not pressing prayer (b) of the petition seeking an order restraining the respondents from obstructing the petitioners and its AITP vehicle operators from conducting their business and providing services under the name ‘Uber’.

3. The statement made by Mr. Rajiv Nayar is accepted by this Court and prayer (b) of the present writ petition is dismissed as withdrawn at this stage with liberty to agitate the same in a subsequent proceeding in accordance with law, if petitioners so desire.

4. Mr. Rajiv Nayar refers to the judgment and order dated 11th June, 2015 passed by a Coordinate Bench of this Court in Apra Cabs India Pvt. Ltd. & Ors. Vs. Government of NCT of Delhi & Ors., W.P.(C) 5965/2015 whereby a similar impugned order was set aside.

5. Since considerable emphasis was laid on the aforesaid judgment in Apra Cabs India Pvt. Ltd. & Ors. (supra), the relevant portion of the same is reproduced hereinbelow:-

“5. The brief background to the petition is that a Public Notice was issued on 8th December, 2014 by the Transport Department of the Government of NCT of Delhi (GNCTD) that other than the licensed cab services, taxi service providers Using web based technology are prohibited from providing such services till they get a licence from the Transport Department. That General Notice was challenged by ANI Technologies Private Limited (ANI), which runs “OLA Cabs” principally on the ground that the said ban order was passed without affording it an opportunity of being heard. Upholding that plea, the Court on 23rd December, 2014, passed an order in WP (C) No.9290/2014 filed by ANI and directed that its petition be considered as a representation by the appropriate authority and a final decision taken thereon within a period of ten days. Pursuant thereto an order was passed on 1st January, 2015, which, as already noted, is sought to be separately challenged by ANI.

6. As far as Petitioner Nos.1 and 2, i.e. APRA Cabs India Private Limited (APRA) and Serendipity Info Labs Pvt. Ltd. (Serendipity), are concerned they are aggrieved by the communications dated 3rd June, 2015 issued to each of them. The said notices refer to the applications filed on 24th & 7th January, 2015 respectively by APRA and Serendipity. The notice to APRA states that it is an associate of OLA Cabs and its application has been rejected by the competent authority since “you have failed to submit the sworn affidavit declaring therein that company named M/s. OLA CABS is complying with the ban order imposed upon it, in letter & spirit, in pursuance of letter of even numbers dated 24/03/2015 already issued to you.”

7. As far as Serendipity is concerned, the notice dated 3rd June 2015 states that it is a subsidiary of Taxi for Sure Cabs (TFS) and its application has been rejected by the competent authority “since you have failed to submit the sworn affidavit declaring therein that company named M/s. Taxi For Sure Cab (TFS) is complying with the ban order imposed upon it in letter & spirit, in pursuance of letter of even numbers dated 17/04/2015 already issued to you.”

xxxx xxxx xxxx xxxx

10. As already noted the order dated 8th December 2014, has already been set aside by this Court since it was a general ban order passed without affording the parties affected an opportunity of being heard. Therefore, this cannot be a valid ground to reject the application made Petitioner Nos.1 and 2 for grant of licence. In any event neither notice dated 24th March, 2015 issued















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top