AMICUS AI
Citation Codes
Neutral Citations
1986 INSC 92
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 5 of the Act
  • Section 5 of Uttar Pradesh Act, 27 of 1976
  • Uttar Pradesh Motor Vehicles Special Provisions Act, 1976
  • Section 76 of the Act 56 of 1969
  • Section 1(3) of the Act
  • Section 10(1)(c) of U.P Act 9 of 1955
  • Section 10(1)(c) of Uttar Pradesh Road Transport Services (Development) Act, 9 of 1955
  • Section 5 of the 1976 Act
  • Chapter IV-A of the Motor Vehicles Act, 1939 as amended in its application to Uttar Pradesh (Principal Act)
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Neutral Citations
1986 INSC 92
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Section 5 of the Act
  • Section 5 of Uttar Pradesh Act, 27 of 1976
  • Uttar Pradesh Motor Vehicles Special Provisions Act, 1976
  • Section 76 of the Act 56 of 1969
  • Section 1(3) of the Act
  • Section 10(1)(c) of U.P Act 9 of 1955
  • Section 10(1)(c) of Uttar Pradesh Road Transport Services (Development) Act, 9 of 1955
  • Section 5 of the 1976 Act
  • Chapter IV-A of the Motor Vehicles Act, 1939 as amended in its application to Uttar Pradesh (Principal Act)
Smart Summary

Factual and Procedural Background

The petitioners, private stage-carriage operators in Uttar Pradesh, possessed permits covering routes that partially overlapped with routes nationalised in the 1950s. The nationalisation schemes expressly excluded private operators from any portion of those routes. Although Section 10(1)(c) of the Uttar Pradesh Road Transport Services (Development) Act, 1955 temporarily allowed them to operate, that State Act was repealed with effect from 1 April 1971 by Central Act 56 of 1969. Because the saved permissions were inconsistent with Chapter IV-A of the Motor Vehicles Act, 1939, the operators’ rights to ply on common sectors ceased on the repeal date.

Despite the statutory bar, an unauthorised “practice” evolved in which private operators were informally allowed to run over the overlapping sectors provided they neither picked up nor set down passengers there. In 1976 the State enacted the Uttar Pradesh Motor Vehicles Special Provisions Act, 1976 (Act 27 of 1976), whose Section 5 created a formal mechanism to obtain “authorisations” for such overlapping operation.

The petitioners applied for renewals or fresh authorisations under Section 5, contending that possession of permits on 1 July 1976 (the commencement date of Act 27 of 1976) qualified them. Their applications were rejected, prompting the present writ petitions and special-leave petitions.

Legal Issues Presented

  1. Whether holders of stage-carriage permits who operated on overlapping sectors of fully nationalised routes are entitled to obtain or renew authorisations under Section 5 of the U.P. Motor Vehicles Special Provisions Act, 1976, solely because they held permits on 1 July 1976.
  2. Whether the prior, unauthorised “practice” of allowing private buses to traverse overlapping sectors (without boarding or alighting passengers) or interim court orders can confer any legal right surviving the repeal of the 1955 State Act.

Arguments of the Parties

Petitioners' Arguments

  • Invoking Section 1(3) of the 1976 Act, the petitioners asserted that any permit in force on 1 July 1976 brought the operator within the ambit of Section 5, entitling them to an authorisation for the overlapping sectors.
  • They complained that transport authorities, relying on observations in Hindustan Transport Co. v. State of U.P., had wrongly insisted that permits must have existed on the original dates of the nationalisation notifications, thereby rejecting their renewal applications.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hindustan Transport Co. v. State of U.P., 1984 Supp SCC 22; AIR 1984 SC 953 Interpreted Section 5 of the 1976 Act to require that an operator possess a permit on the date of the notification to qualify for authorisation. The Court accepted this interpretation and noted that the petitioners lacked such qualifying permits.
Adarsh Travels v. State of U.P., (1985) 4 SCC 557 Held that a private operator cannot ply on any portion of a route fully nationalised under Chapter IV-A, even if no passengers are boarded or alighted on the overlapping sector. Treated as declaratory of the law ab initio; used to demonstrate that the petitioners’ earlier operations were unauthorised and could not ground any right under Section 5.

Court's Reasoning and Analysis

The Court observed that the permissive clause of the 1955 State Act became ineffective upon its repeal on 1 April 1971, because the saved permissions were inconsistent with Chapter IV-A of the Motor Vehicles Act, 1939. Consequently, from that date no statutory basis existed for private operators to ply on any part of a fully nationalised route.

The subsequent informal “practice” of allowing such operation was characterised as “wholly unauthorised and without any legal sanction.” Thus, any operations carried out under that practice—or even under interim court orders—did not create vested rights.

Section 5 of the 1976 Act was held to be confined to operators who satisfied the dual conditions identified in Hindustan Transport Co.: (a) possession of a valid permit on the notification date, and (b) the absence of statutory inconsistency with Chapter IV-A. Because the petitioners’ permits had already lost efficacy after 1 April 1971, they failed the first condition.

Reaffirming the Constitution Bench ruling in Adarsh Travels, the Court declared that private operators are absolutely barred from overlapping sectors of fully nationalised routes, irrespective of whether passengers are picked up or set down. That ruling, being declaratory, nullified any contrary administrative practice ab initio.

On these grounds, the Court concluded that the petitioners had no entitlement to authorisations under the 1976 Act.

Holding and Implications

Petitions Dismissed.

All writ petitions and special-leave petitions were rejected. The immediate consequence is that the petitioners cannot secure or renew authorisations under Section 5 of the 1976 Act and must cease operating on the overlapping sectors of fully nationalised routes. The judgment reinforces the absolute exclusivity granted to State transport undertakings under Chapter IV-A and clarifies that informal administrative practices cannot override statutory prohibitions.

To access the original judgment, please Sign In or Subscribe.

    Sumer Chand Sharma And Another v. State Of U.P And Another

    O. Chinnappa Reddy, J.— The petitioners in these writ petitions and special leave petitions held permits to ply stage carriages over various routes in Uttar Pradesh, sectors of which routes were parts of routes which were nationalised in the fifties. The nationalisation schemes made no provision for any private operator plying any stage carriage over any part of the nationalised routes. Operation of stage carriages by private operators was totally excluded. The result was that from the respective dates of nationalisation, it was not permissible to permit any private operator to ply a stage carriage on any sector of the nationalised route. However, by virtue of Section 10(1)(c) of Uttar Pradesh Road Transport Services (Development) Act, 9 of 1955, these several petitioners were allowed to ply their stage carriages on the whole of their routes including the common sectors. The Uttar Pradesh Road Transport Services (Development) Act, 1955 was repealed by Central Act 56 of 1969. Act 56 of 1969 came into effect from April 1, 1971. Section 76 of the Act 56 of 1969 (which was inserted into the Motor Vehicles Act, 1939 as Section 135) saved permissions or exemptions granted as well as things done or actions taken under the repealed enactment so far as they were not inconsistent with the provisions of the Act. The permission granted under Section 10(1)(c) of U.P Act 9 of 1955 was patently inconsistent with the provisions of Chapter IV-A of the Motor Vehicles Act, 1939 and the permission, therefore, ceased to be effective from April 1, 1971, the date of repeal of the 1955 Act. Therefore, it was no longer permissible for the private operators to ply their vehicles on the common sectors from April 1, 1971 onwards. Despite the statutory prohibition against any private operator plying a stage carriage on any part of the nationalised route in the absence of a provision in the scheme of nationalisation, it appears that a practice grew up (we have borrowed the word “practice” from one of the judgments of Allahabad High Court which was cited before us), in Uttar Pradesh, of permitting private operators to ply their stage carriages over common sectors of nationalised routes provided they did not set down or pick up passengers at any point on the common sectors. The “practice” was wholly unauthorised and without any legal sanctions whatsoever. However in 1976, the Uttar Pradesh legislature enacted the Uttar Pradesh Motor Vehicles Special Provisions Act, 1976 to provide for the grant of authorisation to holders of stage carriage permits to ply their stage carriages over common sectors. This was provided by Section 5 of the Act. Section 5 was interpreted by the court in Hindustan Transport Co. v. State of U.P 1984 Supp SCC 22, AIR 1984 SC 953 to mean that the operator seeking an authorisation should hold a permit on the date of notification. Section 1(3) of the Act makes the provisions of the Act applicable “only in relation to schemes approved or purporting to be approved, areas and routes notified or purporting to be notified under Chapter IV-A of the Motor Vehicles Act, 1939 as amended in its application to Uttar Pradesh (hereinafter referred to a Principal Act) and to permits issued under Principal Act before the commencement of this Act”. Basing their submissions on Section 1(3) of 1976 Act, Shri S.N Kacker and Shri K.K Venugopal, learned counsel for petitioners urged that the petitioners were entitled to obtain authorisations from the competent authorities under Section 5 of the Act, if they had permits to ply stage carriages on the routes having common sectors on July 1, 1976 the date of commencement of Act 27 of 1976. They complained that on the basis of the observations of this Court in Hindustan Transport Co. v. State of U.P 1984 Supp SCC 22, AIR 1984 SC 953 their applications for renewal of their authorisations had been wrongly rejected on the ground that they did not possess permits on the dates of the nationalisation notifications. We do not see any force in the submission of the learned counsel. As pointed out by us, on the repeal of Act 9 of 1955 it was no longer permissible for the transport authorities to permit the private operators to ply their stage carriages over the common sectors, in the case of areas and routes which were nationalised to the complete exclusion of private operator. If by reason of the unauthorised and unlawful practice which had grown up in Uttar Pradesh, private operators had been allowed to ply vehicles over common sectors, despite statutory prohibition, that would surely not entitle the operators to obtain authorisations under Section 5 of the 1976 Act. Whatever doubts there might have been earlier, it is now settled by the decision of Constitution Bench in Adarsh Travels v. State of U.P (1985) 4 SCC 557 that where a route is nationalised under Chapter IV-A of the Motor Vehicles Act to the total exclusion of private operators, a private operator with a permit to ply a stage carriage over another route which has a common overlapping sector with the nationalised route cannot be permitted to ply his vehicle over that part of the overlapping common sector, even if he did not pick up or set down passengers on that part of the route. The law as declared by the Court in Adarsh Travels Bus Service v. State of U.P (1985) 4 SCC 557 must be considered to have always been the law under the Motor Vehicles Act. The plying of stage carriages by the private operators before the commencement of 1976 Act pursuant to the alleged practice which has grown up in Uttar Pradesh or under interim orders of a court must be considered to be unauthorised so as to disentitle the private operator from seeking the benefit of Section 5 of Uttar Pradesh Act, 27 of 1976. The writ petitions and special leave petitions are, therefore, dismissed.

    Use AI to get other relevant cases.

    Comments

    Sumer Chand Sharma And Another v. State Of U.P And Another
    (Apr 24, 1986)