The judgment established the distinction between compounding of offences and levying spot fines under the Motor Vehicles Act, emphasizing the intention of the Government Order to alleviate hardship faced by vehicle owners.

M. Jaichandren, J.

1. The petitioner in the above writ petition in an operator of contract carriages covered by All India permits issued by the State Transport Authority, State of Karnataka. Since the permits issued in favour of the petitioner cover the State of Karnataka, Tamil Nadu, Kerala and Pondicheny, the petitioner has been paying the Motor Vehicle Taxes to the Primary State of Karnataka as well as to the other States covered by the permit. The Government of Tamil Nadu had issued a notification in notification No. II (2)/HO/109/2000, dated 11-1-2000, published in the Tamil Nadu Government Gazette, dated 2-2-2000. According to the said notification, the officials of the Transport Department, not below the rank of Motor Vehicle Inspector (Non-Technical) in the Check Posts of the Transport Department were empowered to levy fine, on the spot, against the vehicles coming from other States, for certain offences notified therein. However, the Transport Commission had suggested that such powers should also be vested with the officials of the Transport Department in the hinterland to check tax evasion, unauthorised entries and other cognisable offences. The Government of Tamil Nadu had accepted the said suggestion of the Transport Commissioner and it had published G.O. Ms. No. 1243, Home (Transport VII) Department, dated 14-12-2001, directing that all the Officers of the Transport Department not below the rank of Motor Vehicle Inspectors Grade II, shall exercise the powers of compounding of offences in the places other than the Check Post in respect of vehicles from other States.

2. The Government in G.O. Ms. No. 1243, Home (Transport VII) Department, dated 14-12-2001, has been issued in exercise of the powers conferred by Sub-section (1) of Section 200 of the Motor Vehicles Act, 1988. Though the original Gazette Notification referred to the power to levy spot fine against the vehicles coming from other States for certain offences notified therein, Ms. No. 1243, Home (Transport VII) Department, dated 14-12-2001, issued Under Section 200 of the Motor Vehicles Act, 1988, referred only to compounding of offences against vehicles from other States. It specifically provides that offences punishable under the provisions specified therein may, either before or after the Institution of prosecution, be compounded by such officers or such authorities as the Government may specify. In such cases, no further proceedings shall be taken against the person charged. The offences and violations covered by Section 200 of the Motor Vehicles Act, 1988, relates to cognisable offences concerned with the safety of the vehicles and they did not cover alleged violations of the conditions contained in the permits.

3. The said Section specifically provides for compounding of offences by the person charged and it does not provide for levying of spot fine. The Officers, who are subordinates to the respondents in the above writ petition, are stopping the vehicles belonging to the petitioner alleging vague and baseless violations of the conditions contained in the permits. Further, they are collecting spot fines ranging from Rs. 100/- to Rs. 500/-. The Checking Officers can only issue check reports and forward them to the Primary Authority for initiating action for suspension or cancellation of permits for the alleged violations of conditions of permits. The necessary action can be initiated against the permit holders after giving them an opportunity to submit their explanation and by following the procedures prescribed by law. The respondents and their subordinates are issuing the Check Reports on a daily basis alleging violations, like, carrying unaccompanied luggage, non-maintenance of trip sheets, collecting individual fares etc. The amounts collected are always referred to as spot fine referring to G.O. Ms. No. 1243, Home (Transport VII) Department, dated 14-12-2001, as though it is the source of their Power, G.O. Ms. No. 1243, Home (Transport VII) Dep