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Smart Summary

Factual and Procedural Background

The petition was brought by Chandi Prosad Mahajan under Article 226 of the Constitution of India challenging orders of the Appellate Board of the State Transport Authority, Shillong dated 5th, 6th and 7th December 1949 and the subsequent cancellation (communicated 9th January 1950) of a temporary permit. Relevant facts: the Regional Transport Authority (RTA), Assam, published a notification dated 28-9-48 inviting applications for temporary permits for permits expiring 31-12-48; the prescribed form expressly referred to Section 62 of the Motor Vehicles Act (i.e., temporary permits) and made no reference to Section 58 (three-year permits). The petitioner held four permits (two stage carriages and two public carriers) expiring 31-12-48 and applied in the prescribed form for four permits but prayed in the body of the applications for three-year grants. The RTA issued four temporary permits for three months under Section 62. After expiry, the petitioner applied for renewal; the RTA refused to renew three of the four permits, granting a further three-month temporary permit for one stage carriage. The petitioner appealed to the Appellate Board; the Board remanded, the RTA again declined renewal by order dated 26-10-49, and subsequent appeals were dismissed by the Appellate Board on 5th, 6th and 7th December 1949. The Board also cancelled the last remaining temporary permit (valid until 31-3-50) by communication dated 9-1-50. The petition seeks writs of certiorari and mandamus directing issuance/renewal of the four permits.

Legal Issues Presented

  1. Whether the petitioner’s vehicles were owned on behalf of the Central Government such that no permit was necessary (i.e., whether ownership for Government dispensed with permits under the Motor Vehicles Act).
  2. Whether the petitioner’s applications, submitted in a form referring to Section 62 but containing a prayer for three-year permits, should be treated as applications under Section 58 (three-year permits) instead of Section 62 (temporary permits).
  3. Whether, assuming the applications were under Section 62, the conditions in clauses (a), (b) or (c) of Section 62 applied (i.e., whether temporary permits were lawfully issued).
  4. Whether the Regional Transport Authority was bound to follow the procedure of Section 57 (applicable to Section 58) when applications were presented in the prescribed form referring only to Section 62.
  5. Whether the Appellate Board had jurisdiction to cancel a permit which it had not itself issued or whether it lacked original jurisdiction to cancel the permit.
  6. Whether cancellation or refusal to renew was ultra vires because (i) no reasons were assigned, (ii) no opportunity was given to the petitioner to explain, or (iii) the RTA and Appellate Board acted from prejudice or fraud on the statute.
  7. Whether the grant of additional permits to other applicants in preference to the petitioner violated the proviso to Section 58(2) and prejudiced the petitioner.

Arguments of the Parties

Petitioner's Arguments (as presented in the opinion)

  • The vehicles were owned by the petitioner on behalf of the Central Government; hence no permits were necessary and refusal to renew was ultra vires (Ground A).
  • Even if permits were necessary, the applications were intended to be under Section 58 and therefore should be treated as three-year permits notwithstanding the form’s reference to Section 62 (Ground B).
  • There was no representation against the applications, so non-renewal could not arise (Ground C).
  • The Appellate Board lacked jurisdiction to cancel a permit because it had no original jurisdiction and there was no appeal against the order of renewal of the relevant permit (Ground D).
  • None of the statutory conditions for cancellation applied; no opportunity was afforded to the petitioner to explain and no reasons were assigned; the cancellation was ultra vires and illegal (Ground E).
  • The RTA granted multiple additional permits to new applicants in preference to the petitioner in breach of the proviso to Section 58(2), causing prejudice to the petitioner (Ground F).
  • The orders of the RTA and the Appellate Board assigned no reasons and were motivated by prejudice and constituted a fraud on the statute (Ground G).

Respondent / Regional Transport Authority (as recorded)

The opinion does not set out a detailed, itemized account of the respondents’ counter-arguments in the same structured manner as the petitioner’s grounds. The court’s narration focuses on the RTA's actions (publishing the Section 62 form, issuing temporary permits, and refusing renewal) and the Appellate Board's decisions rather than a written adversarial brief from the respondents.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sri Rama Vilas Service Ltd. v. The Road Traffic Board, Madras, AIR 1948 Mad 400 Interpretation of clause (c) of Section 62 of the Motor Vehicles Act and whether allowing temporary permits to meet a need connected to Government provision of services was permissible. The Court considered the Madras decision (Gentle C.J.) and expressly disagreed with its reasoning that a State Government could not be treated the same as a private enterprise for the purposes of cl. (c). The present Court held that inability of Government to provide immediate transport can create a "particular temporary need" under cl. (c) and the Madras view was not accepted here.
Moti Lal v. Government of the State of Uttar Pradesh, AIR 1951 All 257 Referenced concerning related authority; the opinion notes the case but states the interpretation of clause (c) was not involved there. The Court observed that in Moti Lal the interpretation of cl. (c) was not engaged; consequently the decision did not advance the issue in dispute here and no further reliance was placed on it for interpreting cl. (c). The Court did not need to consider certain constitutional timing questions in light of this.

Court's Reasoning and Analysis

The Court examined each of the petitioner's principal contentions and applied statutory interpretation and fact-finding based on the record:

  1. Ownership on behalf of Government (Ground A): The Court held the petitioner was not shown to be the owner on behalf of the Central Government. The April 1, 1938 agreement authorizing the petitioner to establish conveyance facilities did not indicate ownership of the vehicles on behalf of the Government; the petitioner had himself applied for permits, which was inconsistent with claiming exemption from permit requirements.
  2. Character of the application — Section 62 versus Section 58 (Ground B): The Court found that the prescribed application form and the RTA's notification invited applications for temporary permits under Section 62. The petitioner’s concession (through his counsel Mr. Medhi) that applications were made under S.62 and the explicit reference in the form to S.62 confirmed the position. A mere prayer in the body of the form for three-year permits did not convert the application into one under S.58. The Court emphasized that a petitioner seeking the Court's extraordinary jurisdiction under Article 226 must show he had taken an unequivocal position; here, no application was made under S.58.
  3. Procedural consequences and proper remedy: The Court held that if the legal requirements for S.62 were not met, the RTA's temporary-permit order could be set aside, but it was not permissible to substitute by judicial decision an order that could only be made under S.58 (which requires compliance with S.57). The petitioner, if he wanted a three-year permit, should have refrained from applying under the temporary-permit form and instead applied properly under S.58.
  4. Applicability of clause (c) of Section 62 (temporary permits to meet a particular temporary need): The Court disagreed with the Madras High Court's disapproving approach and concluded clause (c) is general in terms and may apply where there is a particular temporary need created by the inability of Government (or an individual) to provide immediate transport. The Court found no reason to restrict clause (c) to existing needs only; it can encompass a particular need expected to arise because Government is not able to provide immediate services (for example, where nationalisation or a scheme to provide public transport is pending).
  5. RTA acting on Government instructions: The Court rejected a rigid dichotomy between the RTA acting under Government "instructions" and the RTA acting in discharge of statutory duties. It recognized situations where the RTA may formulate a scheme for nationalisation/semi-nationalisation and present it to Government for approval; cooperation between statutory authorities and Government in such matters is not improper and does not necessarily imply the RTA was merely taking orders in a manner that would invalidate its statutory exercise of power.
  6. Cancellation by the Appellate Board: The Court observed that it might be open to question whether the Appellate Board, not having issued the permit originally, had power to cancel it. However, that issue was unnecessary to decide because the temporary permit (granted for three months) was valid only up to 31-3-50 and had expired long before the hearing of the petition; therefore, no writ relief could be granted in respect of that permit.
  7. Relief and conclusion: Because the petitioner's applications were properly treated as applications for temporary permits under S.62, and because the temporary permit had expired, the Court dismissed the petition. The Rule (presumably a Rule nisi issued on the petition) was discharged and the petition was dismissed with costs (hearing fee fixed at Rs. 51).

Holding and Implications

HOLDING: Petition dismissed.

Consequences and immediate effect:

  • The petition for writs of certiorari and mandamus was dismissed; the court discharged the Rule and fixed a hearing fee of Rs. 51.
  • The Court held that the petitioner's applications were properly treated as applications under Section 62 of the Motor Vehicles Act (temporary permits) rather than Section 58 (three-year permits), and the RTA was entitled to issue temporary permits and to adjudicate renewals accordingly.
  • Because the temporary permit in question had expired (was valid only up to 31-3-50), the Court found no writ remedy could be granted in respect of that permit.

Broader implications: The opinion addresses statutory interpretation of clause (c) of Section 62 and authorizes reading that clause to include temporary needs created by a Government's inability to provide immediate transport (including in contexts of nationalisation). The opinion does not articulate or declare the setting of a binding, novel precedent beyond the resolution of the parties' dispute; it also expressly refrains from advising what the RTA should do if the petitioner applies properly under Section 58.

Final dispositive line in the opinion: "Petition dismissed." (Deka, J. agreed.)

    Chandi Prosad v. The Regional Transport Authority, Gauhati And Others Opposite Party.

    Thadani, C.J:— This is a petition by one Chandi Prosad Mahajan under the provisions of Article 226 of the Constitution of India in the matter of orders passed by the Appellate Board of the State Transport Authority, Shillong, dated 5th, 6th and 7th December, 1949.

    2. The facts material to the application are these. The Regional Transport Authority, Assam, caused a notification, dated 28-9-48, to be published in the Assam Gazette, by which it invited applications for temporary permits in respect of all permits which were to expire on 31-12-48. The applications were required to be made in the prescribed form which specifically refers to Section 62 of the Motor Vehicles Act of 1939 and makes no reference to S. 58. The petitioner held 2 permits in respect of stage carriages and 2 for public carriers, which were to expire on 31-12-48. Pursuant to the notification to which we have referred, the petitioner applied in the prescribed form for 4 permits — 2 for stage carriages and 2 for public carriers, praying, however, in the application that the permits be granted to him for 3 years. The Regional Transport Authority ignored this prayer and issued all the 4 permits to the petitioner for 3 months only u/Section 62 of the Motor Vehicles Act. After the expiry of the duration of the 4 permits, the petitioner applied for renewal of the permits, but the Regional Transport Authority refused to renew the permit for one stage carriage and 2 public carriers, but granted a temporary permit for one stage carriage for another 3 months. Against the order of the Regional Transport Authority refusing 3 permits out of 4, the petitioner preferred an appeal to the Appellate Board which remanded the case for re-consideration by the Regional Transport Authority, Gauhati, which declined to renew the permits by its order, dated 26-10-49. The petitioner once again filed appeals to the Appellate Board, but his appeals were dismissed on 5th, 6th and 7th December 1949. Not only were the appeals dismissed as regards the 3 permits, but on 9th January 1950, the Secretary to the Regional Transport Authority informed the petitioner that the Appellate Board had cancelled the only permit, namely, for a stage carriage, which had been temporarily granted to him. This permit which was cancelled by the Appellate Board was valid till 31st March, 1949. It is against the refusal to renew the 3 permits and the cancellation of the 4th permit that this petition has been brought.

    3. The petitioner prays for Writs of certiorari and mandamus upon the Regional Transport Authority, Gauhati, directing it to issue permits for the 2 stage carriages Nos. ASK 1121 and ASK 836 and 2 public carriers Nos. ASK 1281 and ASK 1254, on the following grounds:

    “(A) For that as the vehicles are owned by the petitioner on behalf of the Central Government, no permit is necessary for these vehicles as such, the refusal to renew the permits is ultra vires of the Regional Transport Authority, and the petrol rationing officer was, therefore, wrong to stop allotting petrol for these vehicles.

    (B) For that even if it be held that permits are necessary, they were renewed by the then Regional Transport Authority in January 1949 and, though the duration was mentioned as three months, it must be held as valid for at least, three years under the provisions of Section 58 of the Motor Vehicles Act. As such no question of renewal of the permits arises. The R.T.A in its sitting on 22-7-49 and 26-10-49 acted beyond their jurisdiction.

    (C) For that as there was no representation against the applications, no question of non-renewal of the permits arises.

    (D) For that the Appellate Board has no jurisdiction to cancel a permit. It has no original jurisdiction, and as there was no appeal against the order of renewal of the stage carriage permit No. 421/48, the appellate Board has no jurisdiction to cancel it.

    (E) For that none of the conditions required for cancellation of a permit, was present in this particular case and no opportunity was given to the Petitioner to submit his explanation, nor did the Appellate Board assign any reason for it. The order is, therefore definitely ultra vires and illegal.

    (F) For that the Regional Transport Authority granted as many as eleven additional stage carriage permits and seven additional public carrier permits. They gave as many as eleven new applicants additional stage carriage permits and as many as seven new applicants for public carriers in preference to the petitioner. This is in direct violation of the proviso of Section 58(2) of the Motor Vehicles Act, and has very seriously prejudiced the petitioner. The order of the petitioner, therefore, is illegal.

    (G) For that the Appellate Board assigned no reason for upholding the order of the Regional Transport Authority refusing the renewal of the permits. In fact, neither the Appellate Board nor the Regional Transport Authority had any reason for it except certain prejudice against the petitioner. The orders of the Regional Transport Authority and the Appellate Board, therefore, are not bona fide but a fraud on the Statute.”

    4. It is not correct to say, as has been stated in the first ground, that the vehicles are owned by the petitioner on behalf of the Central Government — a circumstance which, under the Motor Vehicles Act dispenses with the necessity of obtaining permits. In our view, the petitioner was an independent contractor who entered into an agreement with the Governor-General-in-Council on 1st April 1938, by which he was authorised to ‘establish facilities for the conveyance of goods, parcels, passengers, and their luggage between Barpeta Road Station on the then Eastern Bengal Railway and the town of Barpeta.’ We can see nothing even remotely in the agreement to suggest that the petitioner owned the vehicles on behalf of the Central Government. Indeed the petitioner himself does not appear to have regarded the agreement as enabling him to dispense with the necessity of applying for permits, for the plain reason that he did, in fact, apply for them.

    5. As regards the 2nd ground, the petitioner, has omitted to state that he had applied for temporary permits under the provisions of Section 62 of the Motor Vehicles Act. Mr. Medhi for the petitioner conceded that the applications which the petitioner made to the Regional Transport Authority were made under S. 62, but he contended that as in the body of the applications the petitioner had prayed for permits for 3 years, the applications must be regarded as having been made under Section 58 of the Motor Vehicles Act notwithstanding the fact that the application forms refer only to Section 62 of the Motor Vehicles Act.

    6. We are unable to accept this contention. No application was ever made by the petitioner u/Section 58 of the Motor Vehicles Act. We think it is only just that a citizen should not be permitted in this matter to invoke the special jurisdiction of this Court under the provisions of Article 226 of the Constitution of India unless he succeeds in showing that he had taken up an unequivocal position in the matter of the grant of permits under the Motor Vehicles Act. The Regional Transport Authority was entitled to regard the petitioner's applications for permits as applications for temporary permits, and to disregard the prayer as to 3 years. A Regional Transport Authority, acting under Section 62 of the Motor Vehicles Act is not bound to follow the procedure laid down in S. 57 of the said Act — a procedure which it is bound to follow in all applications made under S. 58 of the Act. The Regional Transport Authority invited applications for temporary permits only, and there was, therefore, no obligation upon it to treat any Application as an application u/Section 58 of the Motor Vehicles Act.

    7. Mr. Medhi for the petitioner contended that assuming the petitioner's application was an application made u/section 62 of the Motor Vehicles Act, none of the clauses (a), (b) and (c) of S. 62 have any application to the facts of the case. The Regional Transport Authority was, therefore, incompetent to issue temporary permits, and any permits issued by it must be regarded as valid for 3 years. This contention is based upon the assumption that when the legal requirements for the issue of temporary permits are not present, an application must be regarded as an application for permits of 3 years' duration, notwithstanding the fact that Section 58 of the Motor Vehicles Act does not, in terms, apply. The assumption is logically unsound. If clauses (a), (b) and (c) of S. 62 have no application, the order of the Regional Transport Authority granting temporary permits can be properly set aside, — not that another order which can be made under the Act should be substituted in its place, an order which is conditioned by the provisions of S. 57 of the Act. On this ground alone the petition is liable to be dismissed. We think, on the facts of this case, it was plainly the duty of the petitioner, if he did not want a temporary permit, to have refrained from applying for temporary permits in the prescribed form which expressly invites applications under the provisions of S. 62 of the Act only. It is open to the petitioner, if he so chooses, to apply again under the provisions of Section 58 of the Motor Vehicles Act. We express no opinion as to what the R.T.A should do in such a case.

    8. Moreover we are not satisfied that cl. (c) of Section 62 of the Motor Vehicles Act, has no application to the facts of the case before us. It is contended by Mr. Medhi that the reason which led the Regional Transport Authority to issue only temporary permits is to be found in the instructions of the State Government of Assam intimating to the Regional Transport Authority that nationalization of this particular route from the Barpeta Road Station to the Barpeta Town was in contemplation. According to Mr. Medhi, apart from the fact that the R.T.A was in error in heeding the instructions of the State Government, the contemplated nationalization of transport does not attract the provisions of cl. (c) of Section 62 of the Motor Vehicles Act. He has relied upon the decision of the Madras High Court in a case reported in — ‘Sri Rama Vilas Service Ltd. v. The Road Traffic Board, Madras’, AIR 1948 Mad 400 in which Gentle C.J expressed himself on the applicability of cl. (c) of Section 62 of the Motor Vehicles Act in these terms:

    “The sole authority for grant of such permits (temporary permits) is S. 62 and only when a circumstance, therein specified, exists and for no longer than four months. No attempt was made to justify the grant by virtue of cls. (a) and (b) of the section, but it was argued that cl. (c) has application. That clause enables a temporary permit to be granted ‘to meet a particular temporary need’. It was suggested that the ‘particular temporary need’ was the non-availability of the Government buses at the date when the appellant's three years' permits expired on 1-5-1947 and that need was met by granting a temporary permit for the appellant's buses to ply for hire during the period preceding the date when the Government hoped to obtain its vehicles and put them into use. Incidentally it was stated, during the course of argument, that the Government's buses had not materialized within four months of the grant of the temporary permits which have been renewed once and may be they will again be renewed. If some private enterprise, instead of the Government, had been making preparations to place buses on the road but the necessary vehicles were not expected to be ready when the appellant's three years' permits expired, it is beyond doubt that the same course would not have been taken by the Board nor, indeed, by the Government as occurred in the present instance. There was not a particular temporary need within the meaning of the Act which empowered the grant of temporary permits. The grant of temporary permits was misusing the provisions of the Act solely for the benefit of the Government and to prevent criticism and objection by the travelling public. The whole circumstance of the grant was improper in the extreme.”

    9. With all respect, we are unable to agree with the reasoning of the learned Chief Justice. It proceeds on the assumption that ‘if some private enterprise, instead of the Government, had been making preparations to place buses on the road but the necessary vehicles were not expected to be ready when the appellant's three years' permits expired, it is beyond doubt that the same course would not have been taken by the Board, not, indeed, by the Government, as occurred in the present instance.’ — an assumption for which we are unable to discover any justification. If no justification can be found for this assumption, it is reasonable to suppose that, in the absence of this assumption, a State Government can, quite properly, in the interests of the public, grant temporary permits for motor vehicles, pending the finalisation of a scheme for efficient transport — whether by an individual or corporation — within the meaning of cl. (c) of S. 62. Applying the same principle to Government, — and it is conceded that Governments are not debarred from nationalising transport — it seems to us that the inability of the Government to provide immediately transport for the convenience of the public, will create a particular temporary need within the meaning of cl. (c) to S. 62, and in order to meet that particular temporary need, the Regional Transport Authority is competent to authorise the use of a transport vehicle temporarily.

    10. Clause (c) of Section 62 of the Motor Vehicles Act, is not restricted to a particular temporary need of any particular individual; it is very general in terms. Mr. Medhi contended that the word ‘temporary’ referred to in cl. (c) of Section 62 of the Motor Vehicles Act, cannot properly be applied to a need which is to come into existence on a certain event happening, but must be capable of being referred to an existing need, and that the existing need to provide for transport from the Barpeta Road Station to Barpeta Town, is a permanent, and not a temporary need. We are unable to accept this contention. As we have stated, cl. (c) of S. 62 is quite general in terms and is not restricted to an existing particular need, but includes a particular temporary need created by the inability of Government or an individual to provide transport immediately.

    11. It was next contended by Mr. Medhi that the Regional Transport Authority under the Act was not to be guided by tile instructions or orders of the Government, but was to act in the performance of its statutory duties in accordance with the provisions of the Motor Vehicles Act. The argument is based upon the assumption that the R.T.A was acting only under the instructions or orders of the State Government, it is not difficult to conceive of a situation where a R.T.A, in the exercise of its statutory duties, works out a scheme of nationalisation or semi-nationalisation of the transport system in the State, and puts the scheme before the Government for consideration; the Government approving of the scheme as suggested by the R.T.A issues instructions accordingly; it cannot then be said that the R.T.A is taking orders from the Government in the matter of granting permits. It is not unreasonable to suppose that the statutory authorities appointed in pursuance of the Motor Vehicles Act are expected to act in co-operation, with Government and it is immaterial whether the suggestion comes from the Government or the Regional Transport Authority in the matter of nationalisation.

    12. Mr. Medhi has in this connection also referred us to a decision of the Allahabad High Court reported in — ‘Moti Lal v. Govt. of the State of Uttar Pradesh’, AIR 1951 All 257. It is plain from a perusal of that report that the interpretation of clause (c) of the Section 62 of the M.V Act, was not involved. In this view of the matter, it is unnecessary to consider the question as to whether or not the orders relating to the permits having been passed before the Constitution of India came into force can be challenged under one or more of the Articles of the Constitution.

    13. The only other point which remains for consideration is the contention of Mr. Medhi in the matter of the cancellation of the permit cancelled by the Appellate Board on 9-1-50. It may be that the Appellate Board not having issued the permit, would not have the power to cancel it. It is however, unnecessary to consider this aspect of the case, as we have come to the conclusion that the permit having been granted temporarily for 3 months, it was valid up to 31-3-50, and as the period expired long ago, no writ can be granted in respect of it. The result is that the petition is dismissed with rests. The Rule is discharged. Hearing fee is fixed at Rs. 51/-.

    Deka, J.:— I agree.

    14. Petition dismissed.

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    Chandi Prosad v. The Regional Transport Authority, Gauhati And Others Opposite Party.
    (Jul 9, 1951)