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2023 Supreme(Gau) 1462

IN THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
MANISH CHOUDHURY, J.
Pulen Dey, S/o. Gobinda Mohan Dey – Appellant
Versus
The State Of Assam And 7 Ors. – Respondents
WP(C)/167/2019
Decided on : 19-05-2023

Advocates:
Advocate Appeared:
For the Appellant : MR. P K GOSWAMI
For the Respondent: MR. Y. DOLEY(SC, TRANSPORT)

Headnote:(A) Road Transport Corporations Act, 1950 - Section 19(2)(m) - Motor Vehicles Act, 1988 - Sections 56, 59, and 60 - Challenge to Notification granting approval to Assam State Transport Corporation for operating Authorised Testing Stations. The Court held that the ASTC is entitled to operate such stations subject to prior approval of the State Government. Implementation of the previous judgment in W.P.[C] no. 1395/2018 was also clarified. The notification allowed service charges for vehicle tests, which was found improper. (Paras 11, 25, 32, 34)

Facts of the case:
The petitioners challenged the Notification dated 17.12.2018 that allowed the ASTC to operate Authorised Testing Stations in Assam while alleging violation of procedural rules related to such authorizations.

Findings of Court:
The Court upheld the legality of the notification permitting ASTC to venture into the operation of Authorized Testing Stations, but it quashed the part allowing service charges due to procedural inconsistencies.

Issues: Whether the ASTC is legally permitted to operate Authorised Testing Stations and the validity of prescribed service charges.

Ratio Decidendi: The Court ruled that the ASTC's operations comply with statutory requirements; independent assessments by the Registering Authority must follow when granting a Letter of Authority under Rule 63 of the CMV Rules.

Result: Writ petition partly allowed.

Table of Content
1. notification validity and astc's service domain. (Para 1 , 2 , 3 , 4)
2. petitioners argue against astc's authorized testing. (Para 5 , 6)
3. entitlement of astc to operate an authorized testing station. (Para 7 , 11)
4. procedure for approval under rtc act and mv act. (Para 10 , 12 , 14)
5. finality of legal findings related to astc's operations. (Para 18 , 19 , 28)
6. partial allowance of the writ petition. (Para 35 , 36)

JUDGMENT :

MANISH CHOUDHURY, J.

The two petitioners have instituted the writ petition to invoke the extra-ordinary jurisdiction of this Court under Article 226 of the Constitution of India for assailment of a Notification bearing no. TMV.263/2015/84 dated 17.12.2018 issued by the Transport Department, Government of Assam under the hand of the Secretary to the Government of Assam, Transport Department.

2. In the Notification dated 17.12.2018, it is mentioned that a proposal had been submitted by the Assam State Transport Corporation [hereinafter referred to as ‘the ASTC’ or ‘the respondent Corporation’, at places, for easy reference] to grant approval to it under Section 19 of the Road TRANSPORT CORPORATIONS ACT , 1950 to undertake the activity of operating Authorised Testing Stations in each of the districts of Assam with a copy of the Judgment and Order dated 27.09.2018 passed by this Court in the writ petition, W.P.[C] no. 1395/2018 [Nagaon Jila Bus Paribahan Santha and two others vs. The State of Assam and another]. It further mentions that upon careful perusal and examination of the proposal submitted by the ASTC; the Judgment and Order dated 27.09.2018 [supra]; the relevant provisions of Section 19 of the Road TRANSPORT CORPORATIONS ACT , 1950; Section 56 of the MOTOR VEHICLES ACT , 1988; and Rule 63 of the Central Motor Vehicles Rules, 1989, it has been found that the ASTC has possessed the required qualifications and is fit to comply with all the requirements, as prescribed under the relevant provisions of the MOTOR VEHICLES ACT , 1988 and Rule 63 of the Central Motor Vehicles Rules, 1989 for setting up Authorised Testing Stations. Observing so, the State Government in exercise of the powers conferred by Section 19 of the Road TRANSPORT CORPORATIONS ACT , 1950 has accorded approval to the ASTC to operate Authorized Testing Stations in each of the districts of Assam with the further direction to the ASTC to follow the procedure prescribed under Rule 63 of the Central Motor Vehicles Rules, 1989 and Section 56 of the MOTOR VEHICLES ACT , 1998. By the Notification dated 17.12.2018, the ASTC has been permitted to realize service charge @ Rs. 300/-in respect of Light Motor Vehicles [LMV] and @ Rs. 500/-in respect of Medium and Heavy Motor Vehicles [MMVs & HMVs] apart from the statutory fees prescribed by the Transport Department, Government of Assam, which should be deposited to the State Exchequer.

3. Before going further, it may be stated that the Road TRANSPORT CORPORATIONS ACT , 1950 [Act no. 64 of 1950] has been enacted by the Parliament to provide for incorporation and regulation of Road Transport Corporations. As per the definition provided by Section 2 [b] thereof, ‘Corporation’ means a Road Transport Corporation established under Section 3 of the Act. Section 3 contained in ‘Chapter II : Road Transport Corporation’ of the Road TRANSPORT CORPORATIONS ACT , 1950 has provided for establishment of Road Transport Corporations in the States. Sections 3 states that the State Government having regard to – [a] the advantages offered to the public, trade and industry by the development of road transport; [b] the desirability of co-ordinating any form of road transport with any other form of transport; [c] the desirability of extending and improving the facilities for road transport in any area and of providing an efficient and economical system of road transport service therein, may, by notification in the Official Gazette, establish a Road Transport Corporation for the whole or any part of the S

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