R.K. Agrawal, ACJ.

This writ appeal has been filed against the interlocutory order dated 14th March, 2013 passed by the learned single Judge in M.P.No.1 of 2013 in W.P.No.6202 of 2013, whereby the learned single Judge has passed an order of interim injunction, as prayed for, till 12th April, 2013. The impugned order passed by the learned single Judge is reproduced below:-

“Order: These petitions coming on for orders upon perusing the petitions and the respective affidavits filed in support thereof and upon hearing the arguments of Mr.Somayajee, Advocate General, Assisted by V.R.Kamalanathan, Advocate on behalf of the petitioner in both the petitions and Mr.Kanagaraj, counsel taking notice on behalf of the first respondent in both the petitions, the Court made the following order:-

Mr.Kanagaraj, learned counsel takes notice on behalf of the first respondent.

Notice through Court as well as privately returnable by 12.04.2013 to the respondents R2 to R4.

There shall be an order of interim injunction as prayed for till 12.04.2013.

Sd/-

14.03.2013”

2. The Government of Tamil Nadu, represented by its Principal Secretary and Chairman for all State Transport Undertakings, Transport Department, Fort.St.George, Chennai, have approached this Court, invoking the extra-ordinary jurisdiction under Article 226 of the Constitution of India, seeking to issue an order or direction in the nature of a Writ of Declaration declaring that the Diesel price hike by the appellant (first respondent in the writ petition) in respect of bulk supply of diesel to the Tamil Nadu State Transport Corporation upto Rs.11.81per litre and private bunk upto Rs.0.55 paise per litre as wholly arbitrary, illegal, unjust, unconstitutional and violative of Articles 14 and 21 of the Constitution of India, and consequently direct the respondents to withdraw the dual pricing policy of High Speed Diesel or in the alternative, accord exemption to the Tamil Nadu State Transport Corporations from the category of bulk consumers, and treat them as retail consumers for the purpose of diesel pricing.

3. Facts of the Case

Briefly stated the facts giving rise to the present appeal are as follows:-

(i) The Government of Tamil Nadu owns eight State Transport Corporations, which operate about 20,500 bus services, for the use of the travelling public, across 22 Regions in the State. The fleet of buses carry about two crore passengers every day. The bus services are mostly availed by the middle class and the poor people, who are unable to own vehicle of their own. Transport is a basic infrastructural facility of any economy, and the availability of a proper, well-connected transport system plays a pivotal role in the economic, social and cultural upliftment of the people. The Tamil Nadu State Transport Corporations do not seek to make any profit from providing such essential services to the poor and middle class people of the State.

(ii) Out of the total of 20,500 bus services, which are being provided by the State Transport Corporations, nearly 18,361 services are loss making services. Nonetheless, the State Transport Undertakings continue to operate on a vast number of loss making routes, because of the obligation given to provide transport facilities to the people in remote areas and villages. These Transport Undertakings, being an essential limb of the State, are not profit making enterprises. It has been incurring losses continuously, and for the year 2011-2013 alone, it has incurred a loss of Rs.1791 crores with a cash loss of Rs.1392 crores. According to the writ petitioner, the loss incurred from April 2012 to January 2013 is approximately Rs.756 crores with a cash loss of Rs.397 crores. The Share Capital of the State Transport Undertakings as on 31.03.2012 is Rs.1671crores.

(iii) The principal reason for the consistent and accumulated losses is mainly due to the provision for transport facilities to the people at affordable rates and nearly 35% of the total loss i