RAJASTHAN HIGH COURT
Jagdish Sharan Verma, Kishore Singh Lodha, JJ.
Kan Singh & Ors. - Appellant
Versus
State Transport Appellate Tribunal & Others - Respondent
D.B. Special Appeal Nos. 889, 961 to 964, 964, 966, 967, 975, 976, 1135, 1152, and 1153 of 1986.
Decided On : 8-12-1986
MOTOR VEHICLES ACT - SECTION 47(1-H) - SECTION 58(2) - PREFERENCE TO STATE TRANSPORT UNDERTAKING - CONDITION - INTERPRETATION.
Fact of the Case:
The petitioners challenged the grant of stage carriage permits to the State Transport Undertaking (STU) for operating in inter-State routes, arguing that the STU should not be granted a permit unless it fulfilled the condition laid down in the proviso to Sub-section (1-H) of Section 47 of the Motor Vehicles Act.
Finding of the Court:
The Court held that the condition in the proviso to Sub-section (1-H) of Section 47 required the STU to satisfy the authority that it would be able to operate in the inter-State route without detriment to its responsibility for providing efficient and adequate road transport service in any notified area or notified route where it was already operating the service.
Issues: 1. Whether the STU should be granted a permit for operating in inter-State routes without fulfilling the condition laid down in the proviso to Sub-section (1-H) of Section 47 of the Motor Vehicles Act? 2. What is the meaning and scope of the condition laid down in the proviso to Sub-section (1-H) of Section 47?
Ratio Decidendi: 1. The Court interpreted the condition in the proviso to Sub-section (1-H) of Section 47 as requiring the STU to show that the operation in the inter-State route would be without adversely affecting its existing services, particularly in any notified area or notified route covered by the approved schemes published under Sub-section (3) of Section 68D. 2. The Court held that the STU was required to satisfy the authority of its ability to operate in the inter-State route without detriment to its responsibility for providing efficient and adequate existing services.
Final Decision: The Court dismissed all the appeals, holding that the STU had fulfilled the condition laid down in the proviso to Sub-section (1-H) of Section 47 and was entitled to be given preference over the petitioners in the grant of stage carriage permits for operating in the inter-State routes.
47. Procedure of Regional Transport Authority in considering application for stage carriage permit:
(1-H) Not with standing anything contained in this section, an application for stage carriage permit from a State Transport under taking for operating in and inter-State route shall be given preference over all other applications:
Provided that the authority shall not grant a permit under this subsection unless it is satisfied that the State Transport Undertaking would be able to operate in the inter-State route without detriment to its responsibility for providing efficient and adequate road transport service in any notified area or notified route as is referred to subsection (3) of Section 68D where the undertaking operates the service.
Explanation-For the purposes of this sub-section, 'inter-State route' means any route lying contiguously in two or more States.
The new proviso inserted in its application to the State of Rajasthan by Rajasthan Amendment in subsection (2) of Section 58 after the second proviso in as under:
'Provided further that other conditions being equal, an application for a stage carriage permit by a State Transport Undertaking, as defined in Section 58A, shall be given preference over applications from individual owners and co-operative societies.'
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