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Ram Swarup v. State Transport Appellate Tribunal Utter Pradesh, Lucknow And Another
Structured Summary of the Opinion
Factual and Procedural Background
This petition under Article 226 of the Constitution was referred to a Division Bench. The undisputed material facts are:
- The petitioners (Ram Swarup and six others) held stage carriage permits for the Meerut–Rohta–Bhnauli–Baraut route under the Motor Vehicles Act, 1939.
- On a proposal by these operators, the Regional Transport Authority (RTA), with approval of the State Transport Authority, decided to modify the route to include Barnawa (described as the modified route: Meerut–Rohta–Barnasa–Binauli–Baraut).
- The RTA invited applications for the modified route; the petitioners applied for variation of their permits accordingly.
- Meerut Sardhana Passenger Transport Association objected; the RTA held that objection time-barred and granted the variations.
- Raghunandan Prasad, a member of that association (but who had not filed any objection in his personal capacity before the RTA), filed an appeal to the State Transport Appellate Tribunal against the grant of variation.
- The petitioner argued that Raghunandan Prasad lacked the locus to appeal because he had not filed an objection before the RTA; the Appellate Tribunal, relying on a Rajasthan High Court decision, held the appeal competent under Section 64(b) of the Motor Vehicles Act.
- The petitioner challenged that Tribunal order before the High Court under Article 226, seeking to quash the Tribunal's decision as the appeal was said to be incompetent.
- A Division Bench reference arose because of a contention related to Sub-section (8) of Section 57 (whether an application to vary a permit is to be treated as an application for grant of a new permit), and an earlier Division Bench decision in Bhan Singh v. Regional Transport Authority, Meerut (AIR 1967 All 163) was said to bear on that question.
Legal Issues Presented
- Whether a person other than the permit-holder (i.e., a third party who did not file an objection before the Regional Transport Authority) can prefer an appeal under Section 64(b) of the Motor Vehicles Act against an order varying the conditions of another person's permit.
- Whether, by virtue of Sub-section (8) of Section 57 (which provides that an application to vary the conditions of a permit shall be treated as an application for grant of a new permit), an application for variation is to be treated as an application for grant so as to render appeals available under Section 64(f) (this issue was noted though not pressed on behalf of the respondent-appellant).
Arguments of the Parties
Raghunandan Prasad's Arguments
- The appeal before the State Transport Appellate Tribunal was maintainable under Section 64(b) of the Motor Vehicles Act.
- He did not argue before the court that the appeal was maintainable under Section 64(f) on the basis of Sub-section (8) of Section 57; that line of argument was expressly not advanced on his behalf.
Petitioners' Arguments
- The petitioners contended that Section 64(b) is not applicable in the circumstances and that Raghunandan Prasad had no right of appeal because he had not been a party who had his permit varied nor had he filed an objection before the RTA.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Bhan Singh v. Regional Transport Authority, Meerut (cited: AIR 1967 All 163; also cited AIR 1967 All 336) | A Single Judge construed the phrase "the permit" in Clause (b) of Section 64 as referring to the permit mentioned in Clause (a), concluding that Clause (b) permits only the person whose permit conditions have been varied to appeal (i.e., not a third party). | The Court adhered to the Single Judge's interpretation and relied on it to conclude that a third party could not appeal under Section 64(b). The Division Bench decision (AIR 1967 All 163) was also relied upon in concluding that Section 57(8) does not convert an application to vary into an application for grant for purposes of appeal rights. |
| Kali Mudaliar v. Vedachala (AIR 1952 Mad 545) | Discussed whether a timetable is a condition of a permit and whether a third party could appeal under Clause (b); the Single Judge held the appeal competent under Section 64(b), but the Division Bench expressed doubt and concluded Clause (b) did not permit an appeal by a third party against variation of another's permit. | The Court treated the Madras Division Bench as supporting the position that Clause (b) does not confer rights of appeal on third parties and cited it as authority aligned with the view restricting Clause (b) to permit-holders. |
| Jairamdas v. Regional Transport Authority (AIR 1957 Raj 312) | A Full Bench of the Rajasthan High Court held that where variation of one permit may adversely affect another permit-holder, such affected third parties are entitled to appeal under Section 64(b). | The Court identified this as the sole contrary decision among the High Courts and expressly disagreed with the Rajasthan Full Bench's broader construction of Clause (b), preferring the other High Courts' interpretations. |
| V. G. K. Bus Service v. Kerala State Transport Appellate Tribunal (AIR 1960 Ker 18) | A Single Judge followed the Madras view and was unable to accept the Rajasthan Full Bench; observed that Section 64(f) gives a right of appeal to certain persons and it is not for the court to question legislative choices. | The Court cited this decision in support of the interpretation that Clause (b) does not permit a third-party appeal and that Section 64(f) exists to provide a remedy to particular competitors where intended by the legislature. |
| Nandlal Thana Ram v. Ghani Khan (AIR 1961 Pat 313) | The Patna Division Bench held that "the permit" in Clause (b) refers to that mentioned in Clause (a) and confined Clause (b) to persons aggrieved by revocation/suspension/variation of permits granted to them, rejecting a right for third parties to appeal under Clause (b). | The Court relied upon this decision as one of several High Court authorities supporting the view that Section 64(b) is confined to the permit-holder. |
| Jasram v. State Transport Authority (AIR 1961 Madh Pra 81) | The Madhya Pradesh High Court held only the permit-holder aggrieved by variation can appeal under Section 64(b) and noted Section 64(f) supplies a specific remedy to other aggrieved transport providers. | The Court cited this case to support its conclusion that Clause (b) is limited to permit-holders and that Clause (f) provides the route for other operators to challenge variations where applicable. |
| Janardhana Rao v. Deputy Transport Commissioner (AIR 1965 Andh Pra 115) | A Single Judge held an operator was not competent under Section 64(b) or Section 64(f) to appeal against variation of timings prescribed for another operator, agreeing with the Madras view and rejecting the Rajasthan decision. | The Court relied on this authority as further support for confining Clause (b) to permit-holders and for cautioning against construing Clause (b) so broadly as to permit speculative appeals by unrelated third parties. |
Court's Reasoning and Analysis
The Court's analysis proceeded in a stepwise, text-focused manner:
- Interpretation of Clause (b) of Section 64: The Court examined the language of Clause (b) and related clauses, noting that Clause (b) identifies three situations in which a right of appeal is conferred: (i) revocation of the permit, (ii) suspension of the permit, and (iii) variation of the conditions of the permit. The Court reasoned that in the first two situations the aggrieved person is necessarily the permit-holder; therefore the third must be construed in the same way as referring to the permit-holder. The Court found it illogical to read the clause as referring to the permit-holder in two situations but to any other person in the third.
- Precedent and comparative authority: The Court surveyed decisions of multiple High Courts (Madras, Kerala, Patna, Madhya Pradesh, Andhra Pradesh) which had placed a similar construction on Clause (b) — restricting appeals under Section 64(b) to permit-holders. The Rajasthan Full Bench decision in Jairamdas was identified as the single well-considered contrary view. After considering the authorities, the Court expressed respectful disagreement with the Rajasthan Full Bench and accepted the majority approach of the other High Courts.
- Legislative history and statutory purpose: The Court reviewed the historical position under the Act — originally the Regional Transport Authority could vary permit conditions suo motu (powers cited) exercised in the public interest without opportunity for other operators to object, with appeals confined to permit-holders. The 1956 amendment (introduction of Clause (8) of Section 57) permitted a permit-holder to apply for variation and provided that such an application shall be treated as an application for grant of a new permit in relation to procedure. However, the Court observed that Section 64(b) was not amended to extend appeal rights to persons other than the permit-holder. That legislative choice, the Court reasoned, supports the view that Clause (b) did not intend to grant third parties an unfettered right of appeal.
- On Section 57(8) and Section 64(f): Although the appellant (Raghunandan Prasad) did not press an argument that the appeal was maintainable under Section 64(f) based on Section 57(8), the Court addressed the point and agreed with an earlier Division Bench (Bhan Singh) that the fiction created by Section 57(8) extends only to the procedural aspects prescribed by Section 48 and does not operate to alter the substantive right of appeal under Section 64(f). In other words, treating an application for variation as an application for grant is a procedural fiction and does not automatically convert a variation application into a new-permit application for all purposes, particularly for conferring a broader right of appeal.
- Practical and policy considerations: The Court echoed concerns expressed in other decisions that construing Clause (b) so broadly as to grant third-party appeals would invite "fanciful and speculative appeals" by unrelated third parties and would render statutory remedies redundant where the legislature had expressly provided for appeals by other operators under Clause (f) in specified circumstances.
Holding and Implications
Core Ruling: The appeal filed by Raghunandan Prasad under Section 64(b) was held to be incompetent and the order of the State Transport Appellate Tribunal dated 30-4-1963 was quashed.
Consequences and implications:
- The Appellate Tribunal was directed to dismiss the appeal as not maintainable.
- Each party was ordered to bear their own costs.
- The Court clarified that, on a reasonable interpretation of Section 64(b), the right of appeal thereunder is confined to a permit-holder aggrieved by revocation, suspension, or variation of his own permit; a third party ordinarily cannot appeal under Section 64(b) against variation of another person's permit.
- The Court further stated that Sub-section (8) of Section 57 — which treats an application for variation as an application for grant for procedural purposes — does not have the effect of converting an application to vary the conditions of a permit into an application for grant for the purpose of conferring a right of appeal under Section 64(f). The "fiction" is limited to procedural aspects and does not enlarge substantive appeal rights unless the statute so provides.
- No broader new rule beyond the points above was proclaimed; the decision aligns the Court with the majority of High Court authorities (and rejects the Rajasthan Full Bench view) on the scope of Section 64(b).
1. This petition under Article 226 of the Constitution has been referred to a Division Bench by Hon'ble Asthana, J. The material undisputed facts may be stated thus: The petitioner. Ram Swarup, and six others were holding stage carriage permits on Meerut-Rohta-Bhnauli-Baraut route under the Motor Vehicles Act, 1939. On a proposal of these operators, the Regional Transport Authority decided, with the approval of the State Transport Authority, to take the route viz., Barnawa and the modified route was Meerut Rohta Barnasa Binauli Baraut. Thereupon the Regional Transport Authority invited applications for the modified route and the petitioner, Ram Swamp, and others made applications for variation in their permits in accordance with the modified route. Meerut Sardhana Passenger Transport Assocation objected to the variation in the permits of the petitioner and others, but the Regional Transport Authority held the objection as time-barred and granted variation in the permits of the petitioner and others.
Raghunandan Prasad, who is a member of the Meerut Sardhana Passenger Transport Association but who had not filed any objection in his personal capacity, filed an appeal to the State Transport Appellate Tribunal against the grant of variation in the permits of the petitioner and others. The petitioner contended that no such appeal lay at the instance of Raghunandan Prasad since he had filed no objection before the Regional Transport Authority. The Appellate Tribunal, however, relying upon a decision of the Rajasthan High Court held that the appeal was competent under Section 64 (b) of the Motor Vehicles Act. The petitioner then presented this petition under Article 226 of the Constitution contending that the appeal filed by Raghundan Prasad is incompetent and praying that the order of the State Transport Appellate Tribunal be quashed. Asthana J. who heard the petition, felt that since under Sub-section (8) of Section 57 of the Motor Vehicles Act an application to vary the conditions of a permit has to be treated as an application for grant of a new permit, the variation in the permits of the petitioner and others could be appealable under Section 64 (f) of the Act, but a Division Bench of this High Court having taken the view, in Bhan Singh v. Regional Transport Authority, Meerut, AIR 1967 All 163, that an application to vary the conditions of a permit cannot be deemed to be an application for grant of a permit, his Lordship considered that the decision required reconsideration and referred the case to a larger Bench.
2. It was not argued before us on behalf of Raghunandan Prasad that the appeal under consideration was competent under Section 64 (f) on the ground that, in view of Sub-section (8) of Section 57, the applications of the petitioner and others for variation of the permits ought to be regarded as applications for new permits for the modified route. The only point pressed before us on his behalf was that the appeal is maintainable under Section 64 (b) of the Act. On behalf of the petitioner on the other hand it was urged that Section 64 (b) is not applicable in the circumstances of the case.
4. In Bhan Singh v. Regional Transport Authority, Meerut, AIR 1967 All 336 a Single Judge of this High Court held that the words "the permit" and the definite article "the" before the word "permit" in Clause (b) connote that reference is to the permit mentioned in Clause (a) and, accordingly, "the permit" in Clause (b) does not mean any permit but the permit granted to the person who is aggrieved; on this interpretation, it was held that, under Clause (b), only the person the conditions of whose permit have been varied can file an appeal and not a third person. According to this decision, Raghunandan Prasad would have no right of appeal against the order varying the conditions of the permits of the petitioner and others.
5. A similar construction is placed upon Clause (b) by the High Courts of Madras, Kerala, Patna and Andhra Pradesh.
6. In the Madras case, Kali Mudaliar v. Vedachala, AIR 1952 Mad 545, the timetable of an operator was varied and another operator preferred an appeal, contending that such variation affected his business. A Single Judge, Subba Rao, J., held that the order was administrative and was not liable to be quashed by a writ of certiorari but observed that the appeal was otherwise competent under Section 64 (b). In the Letters Patent Appeal, a Division Bench was of the opinion that the time-table was not a condition of the permit and expressed considerable doubt as to the correctness of the conclusions of Subba Rao, J., so far as Clause (b) was concerned. Nevertheless, the learned Judges proceeded to state that even if the time-table could be said to be a condition attached to the permit, that clause did not confer a right on one person to appeal against an order varying the conditions of a permit granted to another person. They observed:
"The expression 'the permit' in that clause must obviously refer to the permit mentioned in Clause (a). That permit is a permit granted to any person by the Transport Authority. We think the proper construction of that clause is to confine its application to persons aggrieved by the revocation or suspension of the permits granted to them or again aggrieved by any variation of the conditions of such permits granted to them."
7. A Full Bench of the Rajasthan High Court, however, took a different view in Jairamdas v. Regional Transport Authority, AIR 1957 Raj 312. The learned Judges pointed out that the variation of the conditions of the permit of a person might affect the rights of every person who has been providing transport facilities in that or connected area and every such person would certainly be aggrieved by the variation and a right of appeal under Section 64 (b) cannot be denied to him. They appreciated that the clause is not intended to permit an appeal by an indeterminate and undeterminable body of persons such as the public at large or the inhabitants generally of the area concerned. The correct position, according to their Lordships, is thus:--
"Ordinarily and in the vast majority of cases it is only the permit-holder under this clause who would be competent to file an appeal against an order varying the conditions of his permit, because such variation would by and large adversely affect his interests only. But a class of cases also arises where such variation may or may not adversely affect the holder of the 'permit', a condition whereof is under variation but adversely affects another permit-holder in the same area or a neighbouring area and, if so, the applicability of Clause (b) cannot be legitimately denied in a case of this type or in such other similar cases and where such situation arises this clause cannot but be held also to permit an appeal by the party so affected."
8. Referring to the Madras case (Supra), their Lordships observed that it merely cast doubt on the conclusion of the learned Single Judge so far as Clause (b) was concerned and all that it decided positively was that a variation as to the timings of a bus was not a variation of any of the conditions of the permit.
9. In V. G. K. Bus Service v. Kerala State Transport Appellate Tribunal, AIR 1960 Ker 18, a Single Judge of the Kerala High Court followed the aforesaid decision of the Madras High Court, observing that the view expressed by the Appellate Judges that Clause (b) does not permit an appeal by a third party is unequivocal and in the nature of obiter dicta, The learned Judge was unable to agree with the view of the Full Bench of the Rajasthan High Court. His Lordship pointed out that Section 64 (f) gave a right of appeal to a person providing transport facilities on certain conditions in specified situations and observed that it was not for the Court to consider as to why the Legislature gave a right only to such person.
10. A Division Bench of the Patna High Court held in Nandlal Thana Ram v. Ghani Khan, AIR 1961 Pat 313 that the language of Section 64 (b) must be read in the colour and context of the language of Clause (a) and if these clauses are read together, the expression "the permit" in Clause (b) must refer to the permit mentioned in Clause (a) and it follows that the proper construction of Section 64 (b) is to confine its application to the persons aggrieved by the revocation of such permits granted to them. Their Lordships were of the opinion that Section 64 (b) does not confer a right on a third party to appeal against the order varying the conditions of the permit granted to another person. Their Lordships followed the decision in the Madras case and were unable to accept the decision in the Rajasthan case as correct.
11. The Madhya Pradesh High Court, in Jasram v. State Transport Authority, AIR 1961 Madh Pra 81, also held that only the permit-holder who is aggrieved by the variation of the conditions of his permit can appeal under Section 64 (b) and other persons providing transport facilities are disentitled to appeal thereunder; in coming to this conclusion, their Lordships relied upon the Madras case and the Kerala case but did not agree with the Rajasthan case. Their Lordships, however, observed that the right of appeal by persons providing transport facilities and aggrieved by a variation has been specifically provided in Section 64 (f) and the provisions of that clause would be otiose if Clause (b) be regarded as conferring an unfettered right of appeal to those persons. Thus, their Lordships held that other persons providing transport facilities over a route, which is included by variation under Sub-section (8) of Section 57 in another permit, can appeal under Clause (f).
12. In Janardhana Rao v. Deputy Transport Commissioner, AIR 1965 Andh Pra 115, a Single Judge of the Andhra Pradesh High Court was of the opinion that an operator was not competent either under Section 64 (b) or Section 64 (f) to prefer an appeal against the variation of the timings prescribed for another operator. The learned Judge expressed agreement with the decision of the Madras case and did not accept the decision of the Rajasthan case. His Lordship observed:--
"It does not appear reasonable to say that out of the three grounds for grievance mentioned in Clause (b), the first two will apply only to the permit-holder, but the third will apply not only to him but also to every outsider. Such a construction would permit fanciful and speculative appeals being preferred by rank strangers and officious busy bodies. But it is said that Section 64 (b) must be so construed as to confine its ambit within reasonable limits. This would be importing into the interpretation vague and uncertain factors and virtually attempting to legislate. And in the process, an otherwise simple position would be rendered needlessly complex."
13. It will thus be observed that it is only the Rajasthan High Court which has so far taken the view that a person other than a permit-holder can prefer an appeal against an order varying the conditions of the permit of another person. We, on our part, are unable to agree with the Rajasthan High Court. We respectfully consider that the view of the other High Courts discussed above is the correct view on a reasonable interpretation of Section 64 (b). Clause (b) confers a right of appeal in three situations: firstly, where the grievance is against the revocation of the permit, secondly, where the grievance is against the suspension of the permit, and thirdly, where the grievance is against any variation of the conditions of the permit. It cannot be disputed that in the first two situations, the person aggrieved is the permit-holder and none else: if the first two situations relate to the permit-holder, the third situation in the same clause must necessarily relate to the permit-holder; it does not stand to reason that the clause dealing with three situations refers to the permit-holder in two of them but to any one else in the third situation. We do not discountenance the possibility of a third party being aggrieved by the variation of the conditions of a permit, but it is not for us to consider why the Legislative policy has denied the right of appeal to such party.
It may be mentioned that Act, as originally enacted, provided for variation of the conditions of the permit of a permit-holder suo motu by the Regional Transport Authority (vide Section 48 (3) (xxi) (a), Section 51 (2) (viii) (a) and Section 56 (2) (viii) (a) ). This power to vary the conditions of a permit was obviously conferred upon the Regional Transport Authority to be exercised in the public interest and no opportunity was contemplated for other operators of transport facilities to object to such variation. Where the Authority made a variation in the conditions of the permit in exercise of these powers, the permit-holder alone could prefer an appeal. It was perhaps therefore, that Section 64 (b) did not provide for an appeal by parties other than the permit-holder. It was only by the amendment of 1956 that clause (8) of section 57 was introduced enabling a permit-holder to apply for variation of the conditions of his permit. Though this clause provides that the application to vary conditions of the permit shall be treated as an application for grant of a new permit, implying thereby that other persons providing passenger transport facilities could make representations against the variation applied for, no change, it is significant, was made in Section 64 (b) and the earlier position that the permit-holder alone could prefer an appeal was maintained. If a change was intended and persons other than the permit-holder were permitted to file appeals under Section 64 (b) against the variation of the conditions of the permit of a permit-holder, there should have been a provision as in Clause (f); otherwise the right of appeal would extend to all the sundry and this could not have been in contemplation of Section 64 (b). For these reasons, we adhere to the conclusion reached by a Single Judge of this High Court in AIR 1967 All 336.
14. We have stated earlier that the question whether an appeal is maintainable under Section 64 (f) has not been pressed before us. Nevertheless, we wish to state that we, with respect, agree with the decision of the Division Bench in AIR 1967 All 163 that Section 57 (8), which provides that an application for varying the conditions of permit shall be treated as an application for the grant of a new permit, does not have the effect of converting an application to vary the conditions of permit into an application for grant of a new permit. The fiction of law extends merely to the procedure prescribed by Section 48 and not also to the right of appeal provided in Section 64 (f).
15. In the result, the appeal filed by Raghunandan Prasad to the State Transport Appellate Tribunal is incompetent and the order passed by the Appellate Tribunal, dated 30-4-1963, is quashed. The Appellate Tribunal is hereby directed to dismiss the appeal as not maintainable. In the circumstances of the case, the parties shall bear their own costs.
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