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  • provision of Rule 145 of Madhya Pradesh Motor Vehicles Rules, 1994
  • provision with the provision of section 70 of the M.V Act, 1988,
  • Rule 72(3) of the M.P Motor Vehicle Rules, 1994.
  • Rule 145 of the M.P Motor Vehicles Rules, 1994,
  • Rule 145 of the M.P Motor Vehicle Rules, 1994.
  • provisions of section 2(38) of the M.V Act.
  • provisions of section 70 of the M.V Act
  • section 2(38) of the M.V Act,
  • provisions of section 2(38)
  • section 70 of the M.V Act,
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provision of Rule 145 of Madhya Pradesh Motor Vehicles Rules, 1994
  • provision with the provision of section 70 of the M.V Act, 1988,
  • Rule 72(3) of the M.P Motor Vehicle Rules, 1994.
  • Rule 145 of the M.P Motor Vehicles Rules, 1994,
  • Rule 145 of the M.P Motor Vehicle Rules, 1994.
  • provisions of section 2(38) of the M.V Act.
  • provisions of section 70 of the M.V Act
  • section 2(38) of the M.V Act,
  • provisions of section 2(38)
  • section 70 of the M.V Act,
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The petitioner, Prem Narain, a small bus operator, applied for a stage carriage permit by an application (Annexure P/1) seeking permission for:

  • Ashoknagar to Kadwaya via Sarashkhedi, Isagarh, Gahora and Manethi for 2 R.T. daily; and
  • Ashoknagar to Isagarh for 1 R.T. daily.

The petitioner furnished certificates, documents and an authenticated route map in compliance with Rule 72(3) of the M.P. Motor Vehicles Rules, 1994, and deposited Rs. 500 under Rule 145. The application was notified on the office notice board and the M.P. State Road Transport Corporation filed formal objections. The Regional Transport Authority granted a stage carriage permit by order dated 27-08-1997 for five years (up to 02-09-2002), and the petitioner began operations on 03-09-1997.

Respondents 3 and 4 (who had not filed objections earlier) filed joint Revision No. 1021/97 before the State Transport Appellate Tribunal (S.T.A.T.) seeking revision and a stay. The S.T.A.T., after hearing parties, allowed the revision on 03-10-1997 on the ground that the routes for which the permit was granted had three terminii and, according to the tribunal, that was impermissible under section 2(38) of the Motor Vehicles Act. The petitioner challenged the S.T.A.T.'s order by filing the present writ petition under Articles 226 and 227 of the Constitution.

Legal Issues Presented

  1. Whether a single application under section 70 of the Motor Vehicles Act for a stage carriage permit may relate to one or more routes (i.e., whether one application can be made for multiple routes).
  2. Whether the fee prescribed under Rule 145 of the M.P. Motor Vehicles Rules, 1994 must be paid separately for each route or permit, or whether the fee in respect of a single application (even if it covers multiple routes) is the prescribed amount (Rs. 500 as mentioned in the opinion).
  3. Whether the S.T.A.T. was correct in setting aside the R.T.A.'s grant of permit on the sole ground that the permit involved three terminii and therefore contravened the definition of "route" in section 2(38) of the Motor Vehicles Act.

Arguments of the Parties

Petitioner's Arguments (Prem Narain)

  • Section 70 of the Motor Vehicles Act permits an application to specify "the route or routes or the area or areas to which the application relates," meaning one application may cover one or more routes.
  • Form 48 (proforma of permit) in the Rules contemplates permitting stage carriages for more than one route, supporting interpretation of section 70.
  • The petitioner complied with Rule 72(3) and deposited the fee under Rule 145 (Rs. 500); the fee is payable for the application and, read with section 70, applies to a single application even if it covers multiple routes.
  • The S.T.A.T. erred in allowing the revision on the basis that the permit had three terminii.

Respondents' Arguments (Respondents 3 and 4)

  • The petitioner did not comply with Rule 145 because a separate amount had to be deposited for each permit and the petitioner deposited only one amount.
  • Reliance was placed on two Division Bench decisions reported in 1964 MPLJ 347 (Azad Hind Motor Transport Co-op. Society v. R.T.A., Indore) and 1964 MPLJ 754 (Shiv Chand v. State Transport Appellate Authority) to support the contention that separate applications/fees were required.
  • The S.T.A.T. committed an error in not considering other points raised; specifically, frequency (as shown in Annexure R/7) was not in the public interest and other objections were not decided.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
1964 MPLJ 754, Shiv Chand v. State Transport Appellate Authority The Division Bench observed that separate applications and separate fees had to be made/paid for separate permits in the facts of that case; it stated that "a separate application had to be made for each permit and a separate fee as prescribed had to be paid therefor." The court in the present opinion distinguished the facts: in Shiv Chand the matter concerned two single-trip permits where one applicant had made only one application for two permits and paid fee for one, whereas other applicants made separate, stamped applications. The present court held those facts are different and therefore the precedent does not support respondents' contention that a single application for multiple routes is invalid.
1964 MPLJ 347, Azad Hind Motor Transport Co-op. Society v. Regional Transport Authority, Indore The Division Bench held that the rule making deposit of fee mandatory meant the requisite fee must accompany the application; depositing fee later (during appeal) would not cure the initial defect and without the fee the application is incomplete/invalid. The present court distinguished these facts as well: here the petitioner had filed one application and deposited the requisite fee with it. Thus Azad Hind did not assist respondents' argument that the petitioner's application was invalid for lack of fee.

Court's Reasoning and Analysis

The court proceeded by first examining the statutory provisions central to the dispute. It reproduced and interpreted section 70 of the Motor Vehicles Act (the provision prescribing particulars for an application for a stage carriage permit), highlighting the phrase "the route or routes or the area or areas to which the application relates." The court read the plain language literally and concluded that this wording permits a single application for a permit to relate to one or more routes. The court emphasized the principle of statutory interpretation that the language of a statute must be read as it stands, without addition or subtraction.

Turning to Rule 145 of the M.P. Motor Vehicles Rules, 1994, the court noted that the Rule prescribes a fee of Rs. 500 "In respect of an application for grant or renewal of stage carriage/reserve stage carriage permit." Reading Rule 145 together with section 70, the court concluded that the fee specified is for a single application, and since section 70 permits one application to be for multiple routes, the requirement to pay separate fee for each route (as contended by respondents) was incorrect.

The court addressed the precedents relied upon by respondents. It analyzed the facts of Shiv Chand and Azad Hind and found both distinguishable on material facts: in Shiv Chand the dispute arose from applications for two single-trip permits where one party had made only one application for two permits and paid fee for only one — a fact pattern different from the present case where a single application covered multiple routes as permitted by section 70. In Azad Hind the question concerned the mandatory accompaniment of fee with the initial application and whether later payment cured the defect; here, the petitioner had deposited the fee at the time of application, so that precedent did not assist respondents.

On the S.T.A.T.'s ground for allowing the revision (that the permit involved "three terminee" in contravention of section 2(38) which defines "route" as "a line of travel ... between one terminus and another"), the court examined the application (Annexure P/1) and the permit and found that the petitioner had complied with the requirement that a route (with its two terminii) be stated in the application and permit. The court concluded that the S.T.A.T.'s observation — that a permit containing three terminii could not be granted — was against the provision of law and erroneous on the facts of the case. Consequently, the tribunal's order based on that sole ground was unsustainable.

The court also considered the contention that S.T.A.T. decided only one point and overlooked others (e.g., frequency/public interest). The opinion records that the S.T.A.T. had in fact dealt with the objection relating to Rule 145 (para 5), Rule 72(3) (para 6) and the argument relating to frequency (para 7), and therefore the contention that other arguments were not considered was without substance.

Holding and Implications

Holding: The writ petition is allowed and the impugned order (Annexure P/9) passed by the S.T.A.T. is quashed.

Implications and direct effect:

  • The S.T.A.T.'s order reversing the R.T.A.'s grant of permit (on the sole ground that the permit involved three terminii contrary to section 2(38)) has been set aside.
  • The court's decision upholds the interpretation that, under section 70 of the Motor Vehicles Act, a single application may relate to one or more routes and that Rule 145's prescribed fee (Rs. 500 as cited in the opinion) applies to a single application as so permitted.
  • No broader or novel precedent beyond the application of the statutes to the facts was announced; the opinion distinguished earlier Division Bench decisions on their facts rather than overruling them. The decision therefore resolves the parties' dispute and directly affects the validity of the S.T.A.T.'s impugned order in this case.

Writ petition allowed. Impugned order quashed.

Writ petition allowed.

    Prem Narain Ramlal Sharma v. State Transport Appellate Tribunal, M.P And Others

    1. This petition under Articles 226 and 227 of the Constitution has been preferred by the petitioner Prem Narain for quashing the impugned order (Annex. P/9). He claimed that he was a small bus operator and was operating buses under the permit granted by the authorities concerned. He had applied for a Stage Carriage permit on the routes (1) Ashoknagar to Kadwaya via Sarashkhedi, Isagarh, Gahora and Manethi for 2 R.T daily and (2) Ashoknagar to Isagarh for one R.T daily vide Annexure P/1. He had furnished all the certificates, documents and authenticated route map in compliance of Rule 72(3) of the M.P Motor Vehicle Rules, 1994. He had deposited Rs. 500/- under Rule 145 of the M.P Motor Vehicle Rules, 1994. The substance of the application (Annexure P/1) was notified on office notice board for inviting objections. M.P State Road Transport Corporation filed formal objections. He was granted stage carriage permit vide order dated 27-8-1997 (Vide Annexure P/2) for a period of five years i.e upto 2-9-2002 (Annex. P/3). He started the operation under the said permit from 3-9-97. The respondents 3 and 4, who never filed any objection, filed a joint revision no. 1021/97 before the S.T.A.T against the said order (Annex. P/2) and prayed for stay. The petitioner filed reply to the stay application vide Annex. P/8. The Revision petition was allowed by the S.T.A.T after hearing the parties on 3-10-97 (Annex. P/3) holding that the routes for which permit was granted had three terminal and according to the definition given under section 2(38) of the M.V Act, no permit could be granted which had three terminee. This order has been challenged by the petitioner.

    2. The contention of the learned counsel for the petitioner is that under section 70 of the M.V Act, an application for stage carriage permit can be made giving the particulars mentioned therein. The learned counsel drew my attention to clause (a), which provides:

    “the route or routes or the area or areas to which the application relates;”

    He, therefore, contended that an application could be given for one route or more than one. In support of his contention, he also referred to form 48 column 6 i.e the proforma of permit given in the Rules and contended that it also provides that a permit in respect of a stage carriage could be granted for more than one routes. It cannot be denied that there are always two terminee in a single route. The Tribunal committed grave error in allowing the revision petition. It set aside the order of the S.T.A.T on the ground that in the present case there were three terminee.

    3. The learned counsel for the respondents 3 and 4 vehemently argued that the petitioner did not comply with the provision of Rule 145 of Madhya Pradesh Motor Vehicles Rules, 1994 inasmuch as separate amount had to be deposited for each permit and he had deposited only one amount. In support of his contention, he relied upon 1964 MPLJ 347, Azad Hind Motor Transport Co. Op. Society v. R.T.A), and 1964 MPLJ 754, Shiv Ckand v. State T.A.A He urged that the Tribunal committed an error in this regard ignoring the decision of the Division Bench of this Court. He also urged that the S.T.A.T decided only one point and did not decide the other points raised. It was not considered that the frequency as is evident from Annexure R/7 filed by the respondents was not in public interest.

    4. The main arguments advanced by the learned counsel for the parties show that the important question that needs consideration is as to whether one application could be given for two routes and whether the petitioner was required to pay different amounts for different permits. In order to consider the arguments advanced by the learned counsel for the parties, we have to look to the provisions of section 70 of the M.V Act which makes a provision for application for stage carriage permit. The section relevant for our purpose runs as follows:

    “70. Application for stage carriage permit. — (1) An application for a permit in respect of a stage carriage (in this chapter referred to as a stage carriage permit) or as a reserve stage carriage shall, as far as may be, contain the following particulars, namely:

    (a) the route or routes or the area or areas to which the application relates;

    (b) xxxxxxxxxx

    (c) xxxxxxxxxx

    (2) xxxxxxxxxx”

    The plain reading of the above provision shows that the words underlined by me above are very important. It clearly goes to show that an application for a permit can be moved for the route or routes. In other words, a single application for a single permit can be moved for one or more routes. It is settled law that while interpreting the statute or a document, nothing can be added or substracted. The language has to be read as it stands. To my mind the words used in section 70 above do not admit of any other interpretation except that one application can be moved for a permit with respect to single route or more routes or the area or areas to which the application related. In this view of the matter, the contention of the learned counsel for the respondents that a separate application ought to have been given for separate routes does not appear to be correct. The contention of the learned counsel, as pointed out earlier, is that the petitioner ought to have deposited separate amount. If we now see Rule 145 of the M.P Motor Vehicles Rules, 1994, we find that it makes a provision for fee. At serial No. 1 in column No. 2, the provision made is “In respect of an application for grant or renewal of stage carriage/reserve stage carriage permit — 500/-. It clearly, therefore, means that the fee prescribed for an application for grant of renewal of stage carriage permit is Rs. 500/- when we read this provision with the provision of section 70 of the M.V Act, 1988, it becomes crystal clear that the fee provided in this rule is for a single application and section 70 enables the applicant to move a single application for route or routes. In this view of the matter, the contention of the learned counsel for the respondents that separate fee ought to have been for separate route is wholly incorrect. The learned counsel for the respondents has laid much emphasis upon the decision of the Division Bench reported in 1964 MPLJ 754, Shiv Chand v. State Transport Appellate Authority. It appears to me that the learned Sr. Counsel, Shri J.P Gupta, appearing for the respondents, completely ignored the facts of this case. A careful perusal of the facts show that in that case the Regional Transport Authority invited application for two stage carriage single trip permits for a certain route. Several applicants had applied for permits. The petitioner made two applications, each duly stamped for the two permits, whereas Madhya Bharat Roadways made only one application for the two permits and paid the prescribed fee in the shape of stamps for only one permit. The R.T.A Gwalior selected the petitioner and the M.P.S Road Transport Corporation as suitable operators and granted to each a single trip permit for the route. The petitioner appealed to the S.T.A.A and the appeal was dismissed. The M.P.S.R.T.C too appealed and the same was also dismissed by the same order. The petitioner feeling aggrieved thereby filed a writ petition in the High Court under Articles 226 and 227 of the Constitution and raised three submissions. We are not concerned with all the three submissions made therein. The relevant submission put forward in that case was that:

    “The application was otherwise not valid because only one application was made for both permits and the fee prescribed was paid for only one permit.”

    The Court observed in para 5:

    “It is obvious, and is not disputed either, that a separate application had to be made for each permit and a separate fee as prescribed had to be paid therefor.”

    The submission made was that as the fee required for two permits had not been paid, there was no valid application at all and in support of this submission the other case relied upon by the learned counsel for the respondents i.e 1964 MPLJ 347, Azad Hind Motor Transport Co-op. Society v. Regional Transport Authority, Indore was pressed into service. The learned Judges distinguished that case. It was observed in 1964 MPLJ 754 that:

    “It was open to the transport authorities to allow the applicant to amend the application so as to make an application for one of the two permits and, notwithstanding the absence of a formal order to that effect, they should be regarded as having treated the application as substantially made for one of the two permits.”

    Thus the facts of this case are distinctly different from the facts of the case in hand. In the present case, the petitioner had moved an application for single permit with respect to two routes as permissible under section 70 of the M.V Act, as shown above. This authority, therefore, does not support the learned counsel at all. The learned counsel strenuously argued that this Court cannot go against the law laid down in this authority and in case this Court disagrees, a reference may be made to a Larger Bench. As said above, there is no question of any difference of opinion with respect to law laid down in this case because as pointed out, the facts are entirely different. Three applications were invited for two stage carriage single permit and the petitioner made two applications whereas the Roadways made only one application for two permits. It is not the case here. Thus, there is no question of any disagreement with the law laid down by the Division Bench. As far as 1964 MPLJ 347 is concerned, I may mention that the facts of this case are also entirely different. There the question involved was as to whether under the Rule of deposit of fee was mandatory and the Division Bench of this Court held that the applicant must deposit requisite fee along with application and the deposit during pendency of an appeal filed by him, would not cure the initial defect in the application. It was held specifically that “the rule makes it mandatory that the requisite fee should accompany the application and without the fee, any application made would be incomplete, defective and invalid”. Here in the case in hand, the petitioner had applied by moving one application and had deposited the requisite fee. In this view, this case too does not help the learned counsel. Thus, the contention of the learned counsel for the respondents that the petitioner ought to have moved a separate application and paid a separate fee with respect to individual route is wholly incorrect and cannot be accepted. I, therefore, repel it.

    5. The S.T.A.T passed the order reversing the order passed by the R.T.A on a single ground as mentioned in para 8 of its judgment. It has been observed that in the present case, the permission was not granted in accordance with the provisions of section 2(38) of the M.V Act. Hence the permit in which there were three terminee, could not be granted. This is the sole ground on which the revision petition was allowed. In this connection, we have to go through the provisions of section 2(38) which defines ‘route’. It runs as follows:

    ““route” means a line of travel which specified the highway which may be traversed by a motor vehicle between one terminus and another.”

    A route has two terminee, it must be stated not only in the application but also in the permit. If we peruse the application (Annex. P/1), we find that the petitioner has complied with this provision. In this way, the observation of the S.T.A.T on the basis of which the revision was allowed appears to be against the provision of law and wholly erroneous. The order passed on this basis must, therefore, be quashed.

    6. Before parting with the matter, I may also mention the argument of the learned counsel for the respondents that the S.T.A.T decided only one point and other points were not decided. He referred to the fact that it was not taken into consideration that the frequency was not in the public interest. A perusal of the order passed by the learned S.T.A.T shows that in para 5, it has dealt with the objection relating to Rule 145 of the Rules, as referred to above and it did not agree with the present respondents. In para 6, the other objection pertaining to Rule 72(3) was considered. This objection has not been raised before me. Again in para 7, the S.T.A.T has discussed the argument relating to frequency. It cannot, therefore, be said that the other arguments have not been taken into consideration by the S.T.A.T I, therefore, find no substance in this contention of the respondents as well.

    7. In view of what has been stated above, the impugned order, which has been passed by the S.T.A.T against the provision of law has to be quashed and the petition is to be allowed. Consequently, the writ petition is allowed. The impugned order (Annex/P/9) is hereby quashed.

    Writ petition allowed.

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    Prem Narain Ramlal Sharma v. State Transport Appellate Tribunal, M.P And Others
    (Mar 11, 1998)