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2023 Supreme(P&H) 3101

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RAJ MOHAN SINGH, J.
Indian Canadian Transport Company – Petitioner
Versus
State of Punjab & Ors. – Respondents
CWP NO. 10721 of 2022 (O&M)
Decided On : 07-02-2023

Advocates Appeared:
For the Petitioner:Mr. Puneet Bali, Sr. Advocate with Mr. Vibhav Jain, Advocate and Mr. Uday Agnihotri, Advocate.
For the Respondents: Mr. Navdeep Chhabra, Sr. DAG, Punjab.

Headnote:(A) Constitution of India - Article 226/227 - Motor Vehicles Act, 1988 - Section 86 - Writ petition for quashing ex-parte cancellation of permits for contract carriage tourist buses - The petitioner was denied due process as the permits were revoked without sufficient evidence, violating principles of natural justice and statutory provisions concerning tourist vehicle operation. (Paras 1-32)

(B) Permits - The Central Government's 2021 Rules allow individual passenger transport and do not prohibit operators from picking up passengers along their route under prior contracts. These reforms seek to liberalize tourism transport and enhance passenger convenience. (Paras 10, 19, 25, 26)

Facts of the case:
The petitioner sought to quash the orders cancelling its permits under the Motor Vehicles Act, 1988 for allegedly using contract carriages as stage carriages. The entire process of cancellation was done ex-parte without consideration of the petitioner's response or supporting documents.

Findings of Court:
The court held that the cancellation of the permits was illegal and ordered the restoration of the permits to the petitioner, affirming that the operation of the vehicles did not constitute a violation of the permit terms as it adhered to the requirements of the 2021 Rules.

Issues: Primarily addressed were the legality of the ex-parte cancellation of permits and whether picking up passengers en-route constituted operating as a stage carriage.

Ratio Decidendi: The court reasoned that the 2021 Rules allowed for the transport of individual passengers who were included in prior contracts and clarified that the nature of operation did not constitute a stage carriage if all passengers were contracted as a group.

Result: Writ petition allowed, and permits restored.

Table of Content
1. writ petition for certiorari filed against cancellation of permits. (Para 1 , 2)
2. definitions of contract carriage vs. stage carriage. (Para 3 , 7 , 8 , 9)
3. motor vehicles act and rules governing tourist transport permits. (Para 4 , 5 , 6 , 10)
4. 2021 rules allow individual passengers; not limited to specified circuit. (Para 12 , 13 , 14 , 15 , 16)
5. petitioner's appeal dismissed for alleged misuse of permits. (Para 17 , 18)
6. comparison of 1993 and 2021 rules on tourism operations. (Para 19 , 20)
7. arguments presented by the state counsel opposing petition. (Para 21 , 22)
8. petitioner argues for validity of permits under the new rules. (Para 23 , 24 , 25)
9. clarification on evidence against the petitioner and contract conditions. (Para 27 , 28 , 29)
10. court's discretion regarding allegations of forgery irrelevant in this context. (Para 30 , 31)
11. court's final decision to restore permits. (Para 32)

JUDGMENT

Mr. Raj Mohan Singh, J.

The petitioner has preferred this writ petition under Article 226/227 of the Constitution of India for the issuance of an appropriate writ in the nature of certiorari, quashing the order dated 27.04.2022 (Annexure P-17) passed by the respondent No.2 (State Transport Appellate Tribunal), whereby the appeal filed by the petitioner against the order dated 07.01.2022 (Annexure P-11) passed by the respondent No.3 (State Transport Authority) has been dismissed. The petitioner has also prayed for the issuance of an appropriate writ for the quashing of the order dated 07.01.2022 passed by the respondent No.3, vide which three permits bearing Nos.PB/1/ AITP/TVP/2019/2128, PB2020-AITP-0938A and PB2020-AITP- 0937A of the Contract Carriage Buses of the petitioner- Company have been cancelled ex-parte under section 86 of the MOTOR VEHICLES ACT , 1988 in complete disregard of the provisions of the MOTOR VEHICLES ACT , 1988 and Rules framed thereunder and in transgression of All India Tourist Vehicles (Authorization or Permit) Rules, 2021.

2. The petitioner is a company incorporated under the Companies Act and is engaged in the business of plying contract carriage tourist buses for tourists and NRIs at Amritsar- Indira Gandhi International Airport, New Delhi route on the basis of permit as well as authorization granted to the petitioner under the MOTOR VEHICLES ACT , 1988 and Rules framed thereunder. For the aforesaid purpose, the petitioner has entered into a licence agreement dated 28.02.2020 with the Delhi International Airport Limited (DIAL), under which the petitioner has been granted a licence to set up and manage a bus picking counter for the entire licence terms at Indira Gandhi International Airport, New Delhi.

3. The relevant statute governing the dispute is the MOTOR VEHICLES ACT , 1988 along with the Rules framed thereunder and also the Rules passed by the Central Government from time to time. The Central Government brought into operation the motor vehicles (All India Permit for Tourist Transport Operators) Rules 1993 (hereinafter referred to as 1993 Rules), exercising the powers under Sub Section (14) read with Section (9) of section 88 of the MOTOR VEHICLES ACT , 1988. This was aimed to get over the persistent problem faced by the tourists and NRIs, especially keeping in mind that under the existing scenario, the tourist vehicles, to which, All India Permits were granted under Rule 88 of 1989 Rules, could not carry individual passenger as the vehicle had to be engaged as a whole by one hirer/customer. Sub Sections (9) and (14) of section 88 of the MOTOR VEHICLES ACT , 1988 are reproduced here as under:-

    "(9) Notwithstanding anything contained in sub-section (1) but subject to any rules that may be made by the Central Government under sub-section (14), any State Transport Authority may, for the purpose of promoting tourism, grant permits in respect of tourist vehicles valid for the whole of India, or in such contiguous States not being less than three in number including the State

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