IN THE HIGH COURT OF GAUHATI
Manojit Bhuyan, Soumitra Saikia, JJ.
Pulen Dey - Appellant
Versus
State Of Assam - Respondent
Writ Petition (Civil) No. 167 of 2019
Decided On : 02-02-2021
ASTC - Operation of Authorized Testing Station - The Motor Vehicles Act, 1988, The Road Transport Corporations Act, 1950, The Central Motor Vehicles Rules, 1989, The Assam Motor Vehicle Rules, 2003
Fact of the Case:
The case involved a dispute over whether the Assam State Transport Corporation (ASTC) could operate an authorized testing station under the relevant Act and Rules for issuing certificates of fitness to transport vehicles. The dispute arose from a communication and subsequent notification granting approval to ASTC for operating authorized testing stations.
Finding of the Court:
The court held that ASTC is empowered to operate an authorized testing station under section 19(2)(m) of the Transport Corporations Act, subject to prior approval of the State Government and entitlement to a letter of authority in accordance with Rule 63 of the Central Motor Vehicles Rules, 1989.
Issues: The key issues included the interpretation of the powers of ASTC under the relevant statutes, the legality of ASTC's involvement in operating an authorized testing station, and the potential conflict of interest.
Ratio Decidendi: The court interpreted section 19(2)(m) of the Transport Corporations Act to empower ASTC to operate an authorized testing station, and rejected the argument that ASTC's involvement would create a conflict of interest. The court also clarified that the rule of ejusdem generis did not apply to clause (m) of sub-section (2) of section 19.
Final Decision: The court held that ASTC is legally permitted to operate an authorized testing station, subject to prior approval and entitlement to a letter of authority in accordance with the law.
JUDGMENT
Manojit Bhuyan, J. - Difference of opinion, as recorded in WP(C) 167/2019, on the findings and decision in WP(C) 1395/2018, has given rise to the present reference before this Division Bench. Salient point for determination is as to whether, under the scheme of the relevant Act and Rules, the Assam State Transport Corporation (in short, ASTC) can venture into the activity of operating an "authorized testing station" and/or whether there is legal embargo for a ASTC to foray into the said activity for the purpose of issuance or renewal of a certificate of fitness to a transport vehicle. The statutes relevant to the case are (i) The Motor Vehicles Act, 1988; (ii) The Road Transport Corporations Act, 1950; (iii) The Central Motor Vehicles Rules, 1989, and (iv) The Assam Motor Vehicle Rules, 2003.
2. In the first case under reference i.e. WP(C) 1395/2018, the learned Single Judge delivered judgment on 27.09.2018. The said writ petition was instituted by different bus operator associations challenging a communication dated 20.11.2017, issued under the hand of the Secretary to the Government of Assam in the Transport Department, whereby the Managing Director of ASTC was informed of the Government's agreement to the proposal with regard to grant of Letter of Authority to the ASTC for a period of 5(five) years under Rule 63 of the Central Motor Vehicles Rules, 1989 (hereinafter called the 'Central Rules') for operating authorized testing stations for issuing certificate of fitness to transport vehicles under section 56 of the Motor Vehicles Act, 1988 (hereinafter called the 1988 Act'). Under challenge was also a subsequent Notification dated 11.01.2018, issued under the hand of the Commissioner and Secretary to the Government of Assam in the Transport Department, indicating grant of approval to ASTC by the Governor of Assam for opening of Fitness Test Centres of commercial vehicles/any other vehicles as specified under Rule 63 of the Central Rules and section 56 of the 1988 Act, subject to fulfilment of all the conditions as laid down in said section 56 and the Central Rules. It was also indicated that ASTC may take service charge of Rs.300/- for Light Motor Vehicles and Rs.500/- for Medium and Heavy Motor Vehicles, apart from the statutory fees as prescribed, which amount is to be deposited to the Government exchequer. The said WP(C) 1395/2018 was answered in the affirmative with observations and while doing so the learned Single Judge considered the provisions under section 19 of the Road Transport Corporations Act, 1950 (hereinafter called the 'Transport Corporations Act'), Rule 63 of the Central Rules, read with Form 39 and Form 40 thereunder and Rule 2(m) of the Assam Motor Vehicle Rules, 2003 (hereinafter called the 'Assam Rules'). Conclusion was reached that having regard to the definition of 'Registering authority' under the Assam Rules as well as the provisions under Rule 63 of the Central Rules, the authorities issuing the aforesaid two Notifications dated 20.11.2017 and 11.01.2018, not being the Registering Authority, therefore, was not competent to issue Letter of Authority. Further, having regard to the nature of the application made for grant of approval and the requirement of submitting proposal in Form 40 under the Central Rules, it was held that the communication dated 20.11.2017 as well as the Notification dated 11.01.2018 cannot be considered as a culmination of a process taken under section 19 of the Transport Corporations Act. While setting aside both the impugned communications, the learned Single Judge also held that with regard to the entitlement of the ASTC to venture into any activity, including the activity of operating an authorized testing station, there would be no bar on ASTC to make appropriate application under section 19 of the Transport Corporations Act. This observation was in the context of the conclusion arrived at in the preceding paragraphs of the judgment that as section 19(2)(m) of the T
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