Madras High Court
S. RAMACHANDRA AYYAR,RAMAKRISHNAN
N.Sambandam - Appellant
Versus
S.Khadar Sheriff - Respondent
Decided On : 08/18/1968
MOTOR VEHICLES ACT - S. 64 - APPEAL - REFUSAL OF PERMIT - RIGHT OF APPEAL - GROUNDS OF REFUSAL - ADMINISTRATIVE ORDER - S. 47(3) - POWER OF APPELLATE TRIBUNAL - ERROR IN ALLOTMENT OF MARKS - INTERFERENCE UNDER ART. 226 OF THE CONSTITUTION.
Fact of the Case:
The Regional Transport Authority (RTA) initially decided to increase the number of stage carriages on a particular route by one, invited applications, and allotted marks to the applicants. However, the RTA later decided not to issue any additional permits, citing that the existing service was adequate. Several operators filed appeals against this decision, including Khader Sheriff, who had a predominant influence over the route and had earlier persuaded the RTA not to issue any permits. The State Transport Appellate Tribunal (STAT) overruled Khader Sheriff's preliminary objection to the maintainability of the appeals and proceeded to consider the merits of the applicants, ultimately granting the permit to Sambandam.
Finding of the Court:
1. The RTA's decision not to issue any additional permits was not in accordance with the law as it disregarded the earlier decision to issue one additional permit and the procedure for considering applications under S. 57 of the Motor Vehicles Act. 2. An appeal lies against an order of the RTA refusing to grant a permit, even if the refusal is based on administrative grounds such as limiting the number of stage carriages under S. 47(3) of the Act. 3. The STAT has the jurisdiction to entertain an appeal against an order of the RTA refusing to grant a permit and can dispose of the matter itself, including considering the merits of the various applications. 4. The allotment of marks to the applicants by the STAT is a matter entirely for the Tribunal, and any error in that respect cannot be corrected by the court in proceedings under Art. 226 of the Constitution.
Issues: 1. Whether an appeal lies against an order of the RTA refusing to grant a permit, even if the refusal is based on administrative grounds such as limiting the number of stage carriages under S. 47(3) of the Act. 2. Whether the STAT has the jurisdiction to entertain an appeal against an order of the RTA refusing to grant a permit and can dispose of the matter itself, including considering the merits of the various applications. 3. Whether the allotment of marks to the applicants by the STAT is a matter entirely for the Tribunal, and any error in that respect can be corrected by the court in proceedings under Art. 226 of the Constitution.
Ratio Decidendi: 1. The right of appeal under S. 64 of the Motor Vehicles Act is not limited to cases where a permit has been granted to someone else. It also extends to cases where the RTA has refused to grant a permit to anyone, as such an order is in substance a rejection of the applications for permits. 2. The STAT, as a quasi-judicial appellate authority, has the power to entertain an appeal against an order of the RTA refusing to grant a permit and can dispose of the matter itself, including considering the merits of the various applications. This power is not affected by the fact that the RTA's decision to limit the number of stage carriages is an administrative order under S. 47(3) of the Act. 3. The allotment of marks to the applicants by the STAT is a matter entirely for the Tribunal, and any error in that respect cannot be corrected by the court in proceedings under Art. 226 of the Constitution.
Final Decision: The appeals were allowed, and the writ petitions were dismissed with costs.
S. R. AYYAR, C. J. : These appeals have been filed against the judgment of Srinivasan, J., issuing a writ of certiorari and quashing the order of the State Transport Appellate Tribunal, Madras, dated 29th April 1959, granting a stage carriage permit to Sambandam, the appellant herein. The route in question is between Vellore and Arcot, and it has been conceded throughout that the traffic over the route has been at all times very heavy and wayside passengers suffered greater difficulties than those at the termini to get accommodation in the existing bus service Previous to the grant of the permit now in question, the entire stage carriage service over the route was in the hands of Khader Sheriff, the first respondent in the first of the appeals mentioned above. He was running seven buses, and on 26th May 1958, he was even able to secure from the Regional Transport Authority, Vellore, permission to increase the seating capacity of his buses and to run additional trips the number of trips per day having been increased from 56 to 70. Even before the increase of trips granted, there was a general direction issued by the Government to increase the existing number of stage carriages over the route by 25 per cent. But the demand over the route in question being greater, the Regional Transport Authority proposed to put four additional buses on it and he invited representations to the proposal. Khader Sheriff, naturally, objected to the addition of buses, and, on 4th July 1957, the authority decided to solve the problem by permitting additional trips to the existing operator (which was given effect to as we said, on 26th May 1958) and by deciding to increase the number of buses on the route by one. The relevant portion of the order on that occasion runs thus :
"Arcot being a big business centre with close proximity to the district headquarters the traffic demand on this route is very heavy. The wayside passengers between Vellore and Arcot find it difficult to get the required accommodation in the existing buses. A careful study of the increased population of this area, the progressive implementation of local development plans and the all round demand for travel facilities reveals that the present requirements of traffic needs warrant the introduction of one additional bus on this route. Hence the introduction of one additional bus is approved, in addition to the grant of additional singles for the existing buses on Vellore Arcot route."
Applications were then called for in respect of one permit thus decided to be granted. Forty persons applied, and Khader Sheriff was one amongst them. It was during that time that a part of the previous decision, namely, that of granting additional trips to the existing operator, was implemented. The applications filed by the several operators were considered at a meeting of the Regional Transport Authority on 26th June 1958. Marks were allotted to the various applicants in accordance with G. O. No. 1298, dated 28th April 1958. Khader Sheriff obtained five marks and another operator (Uthandi Mudaliar) obtained an equal number of marks. There were several others who secured marks somewhere near. Khader Sheriff, with his predominating influence over the route, evidently felt his chances of securing the additional permit to be a bit remote. He, therefore took up the stand that, as the route was well served by him, there was no need to increase the number of buses even by one bus. The Regional Transport Authority, in a laconic order, after referring to that contention, said -
"The argument is accepted as applicable to the present position on the route in question. It would appear that there is no immediate need to increase the number of buses plying on the short route. Vellore to Arcot, and further action is dropped in respect of this subject for the present, and all the applications are therefore rejected."
A singular feature of this order is that the Regional Transport Authority, who himself decided e
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