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2026 Supreme(Mad) 297

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.B.BALAJI, J.
N. Natarajan – Appellant
Versus
The Regional Transport Authority, Dharmapuri District – Respondent
C.R.P. Nos. 150, 151 of 2022, C.M.P. Nos. 825, 826 of 2022, 7898 of 2024
Decided On : 06-02-2026

Advocates Appeared:
For the Appellant : M. Palani
For the Respondents: V. Ramesh, K. Kathiresan

Court established that operators holding valid permits can seek variations under Section 6(2) of the Tamil Nadu Act, which allows them to adjust frequencies on existing routes despite distance limitations.

Headnote:(A) Motor Vehicles Act, 1988 - Sections 57(8) and 80(3) - Tamil Nadu Motor Vehicles (Special Provisions) Act, 1992 - Section 6(2) and Rule 4(4) - Variation of conditions of permit - Petitioners holding valid permits sought additional singles on their existing routes - Denial based on claims of saturation and distance restrictions - Court found provisions of the Act and rules applicable allow for variations that do not exceed 24 kilometers - Confirmed that Section 6(2) provides an exception to general rules concerning distance - (Paras 10, 11, 21, 22, 23)

(B) Administrative Discretion - Authority must exercise powers based on statutory provisions laid down, without erroneously applying precedent - The court stated that the authority mistakenly applied a distance cap to a request for merely increasing frequency rather than extending a route. (Paras 20, 23)

Facts of the case:
The petitioners are bus operators seeking to challenge the denial of their application for additional trips on existing routes, claiming that the earlier decisions by authorities were flawed in applying legal constraints.

Findings of Court:
The petitioners were found entitled to seek variations to their permits, and authority was directed to approve their applications within four weeks.

Issues: Whether previous judgments restrict the petitioners from seeking variations to their existing permits.

Ratio Decidendi: The court emphasized that the act allows certain operators to vary conditions of their permits, clearly indicating that the limitation of 24 kilometers does not apply in the situation where trips, not routes, are being added.

Result: Civil Revision Petitions are allowed.

Table of Content
1. petitioners are bus operators challenging denial of variance. (Para 1 , 2 , 3)
2. petitioners argue rights under act 41; respondents counter variance requests. (Para 4 , 5 , 6 , 7 , 8 , 9)
3. court considers two key points of law regarding previous judgments. (Para 10 , 11 , 12 , 17)
4. legislation aims to clarify impact of previous supreme court ruling. (Para 13 , 14 , 15 , 16)
5. court finds authority could grant variance under special legislation. (Para 18 , 19 , 20 , 21 , 22 , 23)
6. revision petitions allowed; order set aside; approvals directed. (Para 24)

ORDER :

1. The revision petitioners are bus service operators, who seek to set aside the order of the State Transport Appellate Tribunal, Chennai, in M.V.App.Nos.23 & 24 of 2020, respectively, confirming the order of the Regional Transport Authority, Dharmapuri, dated 27.02.2020.

2. I have heard Mr.M.Palani, learned counsel for the revision petitioners and Mr.V.Ramesh, learned Government Advocate for the respondents 1 and 2 and Mr.K.Kathiresan, learned counsel for the 3rd respondent in both the revision petitions.

3. Mr.M.Palani, learned counsel for the petitioners would state that the petitioners admittedly hold valid permits to ply between Dharmapuri and Attipalli (CRP.No.150 of 2022) and Salem and Krishnagiri (CRP.No.151 of 2022). The petitioners have applied for additional singles in the existing route, which has been denied by the Regional Transport Authority, by proceedings held on 19-12-1989, citing the reasons that the route is already over-saturated. The petitioners have applied for additional singles in the existing route, which has been denied by the Regional Transport Authority by proceedings held on 19-12-1989, citing Rule 4(4) of the Motor Vehicles (Special Provisions) Rules, 1995, which provides for variation of conditions of permit, which is to be sought for by way of an application in the prescribed form to the Regional State Transport Authority or the State Transport Authority, accompanied by a prescribed fee. Sub-Rules 2 and 3 deal with the manner in which such application has to be dealt with by the State Transport Authority or the Regional Transport Authority as the case may be. Sub-rule 4 empowers the authority, after recording reasons, to either grant or refuse variation, sought for. The first proviso deals with the variation being limited to a distance not exceeding 24 kilometers.

4. The learned counsel for the revision petitioners would therefore state that in the case of the petitioners, the proviso limiting the distance to 24 kilometers will not even apply in the first place, as according to learned counsel, Section 6 (2) of Act 41 of 1992 permits the transport authority to enable a small operator to seek for varying conditions of a permit for stage carriage, so as to enable the applicant to operate on the entire route or any portion of the route covered by such approved scheme.

5. Relying on the above provision, Mr.M.Palani, learned counsel contends that admittedly, when the petitioners are having valid permits, they are well within the right to seek variance and it is not a case falling under Section 6 (4), which deals with only new permits not being granted to any person, on any route already covered by an approved scheme. In support of the submissions, Mr.M.Palani has relied on the decisions of this Court rendered in the context of Tamil Nadu Act 41 of 1992, which supports the petitioners case, reported in M/s. Easy Ride Transports vs. The Regional Transport Authority, Tiruppur in CRP (NPD) No. 3134 of 2023 and K. Vaiapuri vs. The Regional Transport Authority, Namakkal District, 2012 (5) CTC 729 and Kirloskar Ferrous Industries Limited vs. Union of India and others, 2025 (1) SCC 695.

6. The learned counsel for the petitioners therefore state that the authorities, as well as the Tribunal have committed an error in falling back on the ratio laid down by the Constitution Bench, without noticing that the said decision was only answering

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