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2018 Supreme(Gau) 892

IN THE HIGH COURT OF GAUHATI
Achintya Malla Bujor Barua, J.
Nagaon Jila Bus Paribahan Santha and Others - Appellants
Vs.
State of Assam and Another - Respondents
Writ Petition (Civil) No. 1395 of 2018
Decided On : 27-09-2018

Advocates Appeared:
S. Kataki, Adv.

The main legal point established in the judgment is the requirement for strict adherence to the prescribed procedures under Rule 63 of the Central Motor Vehicle Rules, 1989 and Section 19 of the Road Transport Corporation Act of 1950 for the grant of Letter of Authority to operate authorized testing stations.

Headnote:

ASTC - Grant of Letter of Authority - Central Motor Vehicle Rules, 1989, Section 56 of the Motor Vehicles Act, 1988 - Rule 63 of the Central Motor Vehicle Rules, 1989

Fact of the Case:

The petitioner, an association of bus operators, challenged a communication and a notification issued by the Government of Assam regarding the grant of Letter of Authority to the Assam State Transport Corporation (ASTC) for operating authorized testing stations for issuing certificate of fitness of transport vehicles. The petitioner argued that the communication and notification were issued in deviation of the prescribed procedure under Rule 63 of the Central Motor Vehicle Rules, 1989 and by an authority not prescribed under the said Rule.

Finding of the Court:

The court found that the communication and notification were not a result of a process under Rule 63 of the Rules of 1989, but rather a result of a process under Section 19 of the Road Transport Corporation Act of 1950. However, the court concluded that the procedure adopted in arriving at the communication/notification did not strictly follow either Section 19 or Rule 63, and therefore set aside the communication and notification. The court allowed the ASTC to make an appropriate application under Section 19 and, upon approval, to apply for a Letter of Authority in Form 39, following the procedure under Rule 63.

Issues: Deviation from prescribed procedure under Rule 63 of the Central Motor Vehicle Rules, 1989 and authority issuing the communication and notification.

Ratio Decidendi: The court held that the communication and notification were not a result of a process under Rule 63 of the Rules of 1989, but rather a result of a process under Section 19 of the Act of 1950. However, the procedure adopted did not strictly follow either Section 19 or Rule 63, leading to the setting aside of the communication and notification.

Final Decision: The writ petition was allowed to the extent that the communication and notification were set aside, and the ASTC was allowed to make an appropriate application under Section 19 and, upon approval, to apply for a Letter of Authority in Form 39, following the procedure under Rule 63.

JUDGMENT :

Achintya Malla Bujor Barua, J.

Heard Mr. S Kataki, learned counsel for the petitioners. Also heard Mr. J Roy, learned counsel for the respondent, Assam State Transport Corporation (for short, ASTC) and Mr. Y Dolloi, learned Standing counsel for the Transport Department of the Government of Assam.

2. The petitioner, which is an association of different bus operators is aggrieved by the communication dated 20.11.2017 of the Secretary to the Government of Assam in the Transport Department addressed to the Managing Director of ASTC by which it was informed that the Government had agreed to the proposal for grant of Letter of Authority to the ASTC for a period of 5(five) years under Rule 63 of the Central Motor Vehicle Rules, 1989 for operating authorized testing stations for issuing certificate of fitness of transport vehicles under Section 56 of the Motor Vehicles Act of 1988. Subsequent to such communication, another Notification dated 11.01.2018 was issued under the signature of the Commissioner and Secretary to the Government of Assam in the Transport Department by which it was provided that the Governor of Assam is pleased to accord approval to the ASTC for opening of fitness test centers of commercial vehicle/any other vehicle under Rule 63 of the Central Motor Vehicle Rules, 1989 (for short, Rules of 1989) and Section 56 of the Motor Vehicle Act, 1988 (for short, the Act of 1988). By the said Notification, it was also provided that the ASTC will charge Rs. 300/- for light motor vehicles and Rs. 500 for heavy vehicles.

3. The communication of 20.11.2017 and the notification dated 11.01.2018 have been assailed in this writ petition on the ground that the same were issued in deviation of the prescribed procedure to be followed under Rule 63 of the Rules of 1989 and further that the communication and the notification were issued by an authority, who is not the prescribed authority under the said Rule.

4. Mr. J Roy, learned counsel for the respondent, ASTC, takes a stand that the ASTC being a State Transport Corporation is governed by the provisions of the Road Transport Corporation Act of 1950 (for short, the Act of 1950), and, therefore, it being so, in order to venture into any other additional business, the ASTC is required to obtain approval of the appropriate authority in the State Government as required under Section 19 of the Act of 1950. According to Mr. Roy, the communication dated 20.11.2017 and the Notification dated 11.01.2018 are a culmination of a proceeding initiated in favour of the ASTC under Section 19 of the Act of 1950 and that the communication and the notification are not a result of a process under Rule 63 of the Rules of 1989.

5. In order to substantiate his assertion, Mr. Roy, learned counsel refers to the provisions of Section 19(2)(m) and 19(3)(i) of the Act of 1950 and contends that for conducting any activity, the ASTC is required to obtain the approval of the appropriate authority in the State Government. Accordingly the ASTC as required under Section 19 made an application before the authorities in the State Government in the Transport Department for grant of an approval under Section 19.

6. In order to arrive at a conclusion as to whether the communication of 20.11.2017 and the Notification of 11.01.2018 were the culmination of a process under Section 19 of the Act of 1950 or it was a culmination of a process of Rule 63 of the Rules of 1989, the records pertaining to the issue are verified. From the records, it is taken note that the Commissioner of Transport, Government of Assam had made a communication to the Commissioner and Secretary to the Government of Assam in the Transport Department dated 20.03.2017 in which, in the first three paragraphs it was stated that the ASTC desires to undertake the activity of issuing vehicle fitness certificate and for the purpose they are willing to do the work at a minimum of Rs. 300/- for the light motor vehicle and Rs. 500/- from the heavy vehicle. The

































































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