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2025 Supreme(P&H) 58

IN THE HIGH COURT OF PUNJAB AND HARYANA
Harsimran Singh Sethi, J.
New Patiala Bus Services (Regd) Sirhind - Appellant
Vs.
State of Punjab & Ors. - Respondent
CWP No. 15562 of 2023
Decided On : 11-03-2025

Advocates:
Advocate Appeared:
For the Parties : Mr. Rohit Sud Adv., Ms. Ramandeep Singh Adv., Mr. A.M. Punchhi Adv., Mr. T.P.S. Walia DAG, Punjab, Mr. Vaibhav Sehgal Adv.

The authority must balance permits between existing operators and new entrants to promote fair competition and public interest, ensuring applications comply with authorization and tax regulations.

Headnote:(A) Punjab Motor Vehicles Act, 1988 - Evaluation of applications for bus permits - The authority must ensure that permits serve public interest by allowing both existing operators and new entrants, upholding the principle of fair competition in the transport industry. (Paras 16 and 17)

(B) Validity of applications - Authority must consider the authorization of individuals filing applications and tax compliance for eligibility in permit issuance. (Paras 19 and 20)

Facts of the case:
The petitioners challenged the State Transport Appellate Tribunal's order cancelling a permit granted to an existing operator, based on allegations of tax default and unauthorized application. (Paras 3 and 10)

Findings of Court:
Cancellation of the permit in favor of the petitioner was unjustified; existing operators are permitted to continue operations. (Paras 21 and 24)

Issues: Whether the competent authority's bifurcation of permits between existing operators and new entrants was valid, and if the applications were made by authorized individuals in line with tax compliance. (Paras 10 and 15)

Ratio Decidendi: The tribunal must ensure permits are allocated to maintain competition and opportunity for new entrants, and failure to evaluate authorizations and tax compliance would render the decisions invalid. (Paras 17 and 20)

Result: Petitions disposed of; cancellation of permit in favor of New Patiala Bus Service set aside.

Table of Content
1. challenge to transport permit allocation (Para 1 , 2 , 3 , 4 , 5)
2. appeals against tribunal's decisions (Para 6 , 7 , 8 , 10)
3. operational status of permits (Para 9 , 11 , 12)
4. arguments on permit evaluation and malafide (Para 15 , 16 , 17 , 18)
5. authority letter and tax payment issues (Para 19 , 20 , 21)
6. final decision on permit allocation (Para 22 , 23)
7. conclusion and orders (Para 25 , 26 , 27)

JUDGMENT :

Mr. Harsimran Singh Sethi, J.

1. Present are the bunch of three writ petitions of which details are mentioned in the heading, involve common question of law in the context of common set of facts and thus they are being decided by a common order.

2. In the present bunch of petitions, the challenge is to the order passed by the State Transport Appellate Tribunal dated 07.07.2023.

3. Further, the challenge in the aforementioned order is by M/s Banda Bahadur Highways Pvt. Ltd., whose claim was considered for allotment of permit by the authorities but was not found meritorious enough to be granted the same which decision of the authorities has been upheld by the Tribunal. Certain facts may be noticed so that, the adjudication is done in a smooth manner

4. The respondent-State issued a public notice on 19.10.2021 inviting applications for allotment of permits for operating the buses. The issue in the present petition relates to the route mentioned in the Public Notice at Serial No.144 i.e. Ghaggar Bridge-Ludhiana via Rajpura, Sirhind, Gobindgarh, Khanna, Doraha and Sahnewal. On the said route, four regular stage carrier permits were to be granted to operate six return trips.

5. On the invitation of the applications for the aforementioned route, six applicants raised their claim for the grant of permit including the petitioners namely New Patiala Bus Service as well as M/s Banda Bahadur Highways Pvt. Ltd. After receiving the applications, the Regional Transport Authority (RTA) in its meeting held on 15.12.2021 decided that out of four permits to be issued, two permits will be given to the State Transport Undertaking and remaining two will be given to the private operators. While deciding the entitlement/claim, qua two permits which were to be given to the private operators, the said competent authority decided that one permit should be given to the existing operator and one should be given to the fresh(new entrant). By applying the said formula, after evaluating the claim of the respective claimants, the permits were allotted to one Sukhjinder Kaur as a new entrant and M/s New Patiala Bus Service was granted the permit under the existing operators.

6. Feeling aggrieved against the said decision by RTA, an appeal No.333 of 2022 was preferred by existing operator namely M/s Banda Bahadur Highways Pvt. Ltd. raising certain objections to the method of evaluation of the candidates was done qua the two permits to be filled from the private operators and one Subhash Kumar, who was also an new entrant but was not found entitled for the permit, also filed an appeal No.39 of 2023 before the Tribunal stating that he was better suited for the grant of permit.

7. Both the appeals came up for consideration before the State Transport Appellate Tribunal and were decided by two separate orders dated 07.07.2023. The appeal filed by one new entrant Subhash Kumar was accepted and the objection raised by him is that the benefit of permit in favour of New Patiala Bus Service has wrongly been given as, the said operator was not only tax defaulter but the application dated 18.11.2021 had been made by a person not authorised i.e application was filed by one Mr. Parminder Singh on behalf of company and permit authority letter is sanctioned in favour of Mr. Gurinder Singh who was not signatory to the application and self declaration which is not applicable in the eyes of law.

8. After accepting these two contentions, the permit in favour of the existing operator New Patiala Bus Service was cancelled by the Tribunal and the same was allotted

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