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2003 Supreme(Mad) 1916

High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE D. MURUGESAN
The Drivers Conductors Bus Service (P) Ltd. - Appellant
Versus
The Regional Transport Authority & Others - Respondents
W.P.No.29810 of 2003
Decided On : 01 December 2003

Advocates Appeared:For the Petitioner:M.Palani, Advocate. For the Respondents:R1 S.V.Durai Solaimalai, Government Advocate, R2 M.Krishnappan, R3 Mr.M.S.Krishnan for M/s Sarvabhauman Associates R4 & 5 N.Muralikumaran for M/s McGan Law Firm, R6 to R9 V.Subramanian, Advocates.

Notice is contemplated only to the transferor and transferee.

Headnote:Motor Vehicles Act, 1988 (as amended)-Section 82(1)-Transfer of permit-Issuance of notice-Applicants in joint application are only entitled for issuance of notice of transfer-Instantly, legal representative of the erstwhile managing director holding 50% of the total shares entitled to be heard in the matter of transfer of permit.

Judgment :-

The Drivers Conductors Bus Service (P) Limited, Erode is a registered company under the Indian Companies Act. The said company was formed in the year 1967 with the object of operating stage carriage services in Erode town. There were four Directors when the company was incorporated. The deponent of the affidavit filed in support of the writ petition by name Mr.S.Rasool (hereinafter called as the "deponent"), was one of the Directors on its formation. One Mr.S.Ramasamy was the Managing Director. One Mr.S.R.Subramaniam was one among the four Directors. At the time of formation of the company, it had a permit to ply on the route from Erode bus stand to Bhavani bus stand in respect of the vehicle bearing Registration No.TN-57-C-9000. Sometime during the year 1990, the then Managing Director namely, Mr.S.Ramasamy resigned and on his resignation, his share was purchased by the son of the deponent as well the son of Mr.S.R.Subramaniam. The said S.R.Subramaniam was elected as Managing Director. Mr.S.R.Subramaniam died on 11.12.2000. It is the claim of the deponent that after the demise of the said S.R.Subramaniam, he became the Managing Director. The wife and son of the deceased Subramaniam became the Directors. Two more Directors were also appointed to the company and in all, there were six Directors including the deponent as Managing Director.

2. Since the company faced financial crisis and was not in a position to operate the vehicle, majority of the Board of Directors decided to transfer the permit in favour of one M.Thangamani, the second respondent. Based upon the decision of the majority of the Board of Directors, the company filed a joint application for transfer of permit with the first respondent, the Regional Transport Authority, Erode on 25.6.2003. A notice of hearing dated 18.8.2003, fixing the date of hearing on 25.8.2003, was issued by the first respondent. The said notice was issued both to the transferor and transferee namely, the company and the second respondent as well the third respondent by name Mrs.S.Eswari on the ground that the said Eswari is one of the objectors also claiming right to the permit through her deceased father viz., S.R.Subramaniam. Though notice issued to the third respondent was opposed by the petitioner in the meeting held on 25.8.2003 on the ground that the third respondent did not have locus standi to object to the transfer of permit, as in the matter of transfer of permit, the lis was only between the transferor, transferee and the transport Authority, the same was not accepted by the Transport Authority. He further adjourned the hearing to 13.10.2003 by issuing notice of hearing dated 5.9.2003 to the third respondent also. In the circumstances, the petitioner has approached this Court for a Writ of Prohibition, prohibiting the first respondent from hearing the third respondent in the matter of transfer of permit in pursuant to the hearing notice made under Memo No.41512/A2/03 dated 5.9.2003.

3. This Court while admitting the writ petition on 23.10.2003 had also granted interim injunction restraining the Regional Transport Authority from hearing the third respondent in the matter of transfer of permit in respect of the stage carriage in question. The third respondent has filed W.V.M.P.No.2158 of 2003 for a direction to vacate the order of interim injunction. This Court, by order dated 7.11.2003 directed that until further orders, the first respondent shall not effect any transfer of permit.

4. One Mrs.S.Parvatham and Mr.S.Panneerselvam, admittedly, the Directors of the company have also filed W.P.M.P.No.39169 of 2003 to implead them as the respondents in the writ petition on the ground that they opposed the transfer of permit in the meeting of the Board of Directors. They have also filed W.V.M.P.No.2164 of 2003 to vacate the interim injunction granted on 23.10.2003. Similarly, one Mr.M.S.Ramalingam claiming to be the Managing Director of the writ petitioner company and three Dir





































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