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1988 Supreme(Online)(AP) 1

ANDHRA PRADESH HIGH COURT
, J
Chavali Shivaji and Others v. Govt. of A.P. and Others
W. P. No. 12465 of 1986



The A.P. State Road Transport Corporation has the authority to withdraw draft schemes published under the Motor Vehicles Act, affirming the need for adaptability in administrative functions.

Headnote:(A) Motor Vehicles Act, 1939 - Sections 68C, 68D, 68E, and 21 of the General Clauses Act - Validity of draft schemes - The Supreme Court reaffirmed that the A.P. State Road Transport Corporation (APSRTC) has the authority to withdraw draft schemes under Chapter IV - A. The court held that the situations can change, justifying withdrawal. The petitioners' argument that the STU lacked the power to withdraw schemes was rejected; the court emphasized that administrative bodies can remove obsolete regulations. (Paras 1-6, 12, 13)

(B) Constitutional Context - Natural justice and expectations - The argument for personal notice to permit-holders was dismissed as the cancellation of permits followed the withdrawal of draft schemes, not individual decisions. (Paras 10-11)

(C) Rationality of Discretion - The court observed no capricious or arbitrary exercise of power by STU in withdrawing outdated schemes, thus promoting public interest. (Paras 8, 12)

Table of Content
1. withdrawal of outdated draft schemes. (Para 1)
2. interplay of stu powers with public interest. (Para 2 , 6)
3. authority to withdraw schemes and administrative discretion. (Para 3 , 4 , 5)
4. legal expectations and natural justice concerns addressed. (Para 7 , 10 , 11 , 12)

1. In the years 1977 and 1978, the A.P. State Road Transport Corporation (for short - 'APSRTC') published draft proposals under S.68C of the Motor Vehicles Act, 1939 , proposing the Nationalisation of almost all the routes of Nellore and Prakasam Districts. Although the draft scheme were published more than nine years back, they not finally disposed of by the State Government under S.68D of the Motor Vehicles Act hereinafter referred to as 'the Act'). As a result, these draft proposals have been continuing to remain as draft proposals only. While they remain as draft proposals, objections and representations have been filed by the Public and the existing transport operators. But the Government did not consider those objections and as a result, they neither notified nor approved the draft proposals to the above deplorable situation, the directions issued by this court to call for fresh representations made no difference. In a batch of writ petitions, which were disposed of by the Supreme Court on 11-10-1985, the pucca permit holders had complained to the Supreme Court that these draft proposals have grown stale and irrelevant by the lapse of time and that they should be quashed. The Supreme Court, by its order dated 11-10-1985, had dismissed that batch of writ petitions observing that, by reason of the withdrawal of the draft schemes on 7th August, 1985, no relief in those writ petitions could be granted by the Supreme Court. Accordingly those writ petitions have been dismissed on the ground that they have became infructuous. In Civil Appeal Nos. 4230 and 4231 of 1985, the Supreme Court, has quashed draft scheme No. 402 of 1977, by its order dated. 20th September, 1985, on the ground that it has become invalid by lapse of time. While doing so, the Supreme Court observed in the above Civil Appeals that the Transport Undertaking of the State of Andhra Pradesh will have to be at liberty to publish if it is so advised, a fresh draft scheme under S.68C of the Act. The off shoot of all these events is the withdrawal of all the draft schemes relating to Nellore and Prakasam districts by the A.P.S.R.T.C. by a notification dated 7-8-1986. On 22nd August, 1986, the APSRTC published fresh draft schemes relating to these two districts which were prepared on 14th August, 1986. As a consequence, the existing draft schemes of Nellore and Praksam Districts have been superseded and fresh draft schemes have been published by the APSRTC. In this batch of writ petitions, it is the validity of the notification of the APSRTC dated 7th August, 1986, withdrawing the old draft schemes and also the validity of the new draft schemes dated 14th August, 1986, published by the, APSRTC on 22nd August, 1986 that is challenged.

2. It is not really necessary to reiterate what has been said so often in these courts about Chapter IV - A of the Act, which is enacted by the Parliament in order to explore the operation of Chapter IV of the Act under which the private operators are free to obtain transport permits on a footing of equality with all others including the State Transport Undertaking (for short 'STU'). The purpose of Chapter IV - A is to enable the STU to run on a monopoly basis the transport vehicles on the routes which have been notified by them and approved by the State Government. S.68C says, "Where any State Transport Undertaking is of opinion that for the purpose of providing an efficient, adequate, economical and properly co - ordinated road transport service, it is necessary in the public interest that road transport services in general or any particular class of such service in relation to any area or route or portion thereof should be run and operated by the S


















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