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Gopalakrishna Motor Transport Co. Ltd. v. Secretary, Regional Transport Authority

Andhra Pradesh High Court
Apr 6, 1956
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Summary of the Opinion (Writ Appeals Nos. 31 & 32 of 1956)

Factual and Procedural Background

The appellants are Gopalakrishna Motor Transport Company Limited, Vijayawada, represented by the Official Liquidators. The company owned a stage carriage (registration MDK 1456) with a permit under the Motor Vehicles Act to ply on the Vijayawada–Bander route.

On 18-2-1955 the Regional Transport Officer checked the bus and found it overloaded by four adult passengers. The appellants initially denied the offence when called upon to show cause, but later admitted the over-loading. The Regional Transport Authority suspended the permit for one month. The appellants appealed to the Central Road Traffic Board (Appellate Tribunal), which found the offence established (RTO had seized the trip-sheet and the conductor had signed it). The appellants then sought revision to the Government, raising for the first time the contention that the check did not conform to Government instructions. The Government held that, since over-loading was established, the suspension was correct.

The appellants filed a petition under Article 226 of the Constitution to quash the orders of the Tribunal and the Government; Krishna Rao J. dismissed that petition. The present judgment is an appeal against Krishna Rao J.'s order (Writ Appeal No. 31 of 1956). A second related appeal (Writ Appeal No. 32 of 1956) was also heard and dismissed for the same reasons.

Legal Issues Presented

  1. Whether, under the Motor Vehicles Act and the Rules framed thereunder, the owner of a vehicle can be made liable (by suspension or cancellation of a permit) for a condition of the permit being contravened by a conductor — i.e., whether a form of constructive or vicarious liability is applicable for the administrative sanction of suspension/cancellation of a permit.
  2. Whether the Regional Transport Authority should have exercised its discretion to suspend the permit when the conductor had allegedly acted contrary to express directions given by the appellants (the liquidators), including whether such instructions to conductors could preclude suspension.
  3. Whether non-compliance with administrative directions issued by the Government (G.O. No. 2771 dated 31-7-1952 under Section 43-A of the Act prescribing the manner of checking for over-loading) vitiates the suspension imposed following a check not strictly in conformity with those directions.

Arguments of the Parties

Appellants' Arguments

  • The Motor Vehicles Act and the Rules exclude constructive liability; the owner should not be punished (by suspension of permit) for the transgression committed by the conductor.
  • The conductor in this case had overloaded the bus contrary to express directions given by the liquidators (owners' agents), so the Regional Transport Authority should have refrained from suspending the permit in the exercise of their discretion.
  • The check that led to suspension was not carried out in strict conformity with Government instructions (G.O. No. 2771/31-7-1952 under Section 43-A), and therefore the order of suspension is illegal.

Respondent / Government / Transport Authority Positions (as set out in the opinion)

  • The Appellate Tribunal and the Government proceeded on the basis that the over-loading was established by the check (the trip-sheet was seized and the conductor had signed it) and therefore suspension of the permit was correct.
  • The Government relied on the established fact of over-loading to uphold the suspension, and earlier to the Tribunal the constitutionality/constitution of the Regional Transport Authority was questioned but the offence itself was not denied.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court considered the statutory framework and applied it to the facts before it, addressing in turn the three points raised by learned counsel for the appellants.

On the distinction between criminal and administrative liability:

  • The court noted that the Act contains specific provisions that impose liability on persons other than the immediate offender in the context of criminal offences (for example, provisions that create presumptions or make liable the person who causes or allows use in contravention of Section 42), and where the Legislature intended constructive liability, it has done so expressly.
  • However, the court explained that administrative sanctions (such as suspension or cancellation of permits under Section 60) are governed by a different consideration: the power to suspend depends on the contravention of permit conditions, not on which person actually contravened them.

On statutory provisions relied upon: The court examined Sections 42, 48, 59(3), 60(1), 72 (subsections), 112 and 123(1) of the Act as they bear on owner liability, conditions attached to permits and the authority's power to suspend/cancel a permit. The opinion sets out that:

  • Section 48( d )(iv) allows attachment of a condition specifying maximum passengers.
  • Section 60 permits cancellation or suspension of a permit for breach of permit conditions.
  • Certain sections (notably parts of Section 72 and Section 123) expressly provide for liability of a person who causes or allows contraventions in the criminal context, showing the Legislature's manner of creating vicarious/constructive criminal liability where intended.

Core statutory interpretation applied:

  • The court held that because an owner takes a permit subject to its conditions, the power to cancel or suspend under Section 60 arises from the contravention of a permit condition itself; it does not depend on whether the contravention was committed by the owner personally or by the owner's agent (such as a conductor), with or without the owner's knowledge or contrary to his instructions.
  • The court rejected an argument that one should read into Section 60 protections analogous to limits on criminal liability; those protections apply to criminal prosecution and must be expressly stated if the Legislature intended them for administrative sanctions.

On the exercise of discretion by the Transport Authority:

  • Section 60 confers discretion on the Transport Authority; it does not mandate automatic suspension for every contravention. The Authority must exercise discretion having regard to the facts of each case and may, in some circumstances, excuse a transgression (for example, by issuing a warning).
  • The court observed that the present case could be one where another tribunal might have issued a warning instead of suspension — appellants (as Official Liquidators) had given instructions not to overload and had likely punished the conductor — but that the court could not say the Transport Authority had acted without jurisdiction, unreasonably, mala fide or capriciously in imposing suspension.
  • The manner in which the Authority exercised discretion is ordinarily left to the Authority and will be interfered with by the court only if there is mala fides, caprice, consideration of extraneous matters, or a failure to discharge the statutory duty.

On Government Order No. 2771 (31-7-1952) issued under Section 43-A):

  • The G.O. prescribes procedural directions for checks to detect offences like over-loading: making entries in trip-sheets and records, obtaining names/addresses of passengers, obtaining signatures of conductor/driver/checking inspector, and performing checks while the bus is in motion rather than at halts.
  • The court characterized such instruments as administrative directions issued under Section 43-A and acknowledged that where couched in mandatory terms they impose duties on officers (and non-compliance could attract departmental/disciplinary consequences for the officers concerned).
  • Critically, the court held that these administrative instructions do not override the discretionary power of the Transport Authority under Section 60: non-compliance with the G.O. does not, by itself, nullify the Authority's fact-finding or its power to suspend a permit when other material establishes contravention.
  • The court further explained that the G.O. does not create a rule of evidence making a properly conducted check conclusively determinative of over-loading nor does non-compliance render it impossible to establish over-loading by other unimpeachable evidence. Furthermore, even if checks strictly follow the G.O., parties could still contest collusion or stage-managed checks.
  • Because the appellants had admitted the fact of over-loading before the Regional Transport Authority, issues about evidentiary sufficiency did not arise in this case.

Holding and Implications

Holding: The court confirmed the order of Krishna Rao J. dismissing the appellants' petition under Article 226, and dismissed Writ Appeal No. 31 of 1956 with costs (advocates' fee Rs. 100). For the reasons given in Writ Appeal No. 31, Writ Appeal No. 32 of 1956 was also dismissed with costs (advocates' fee Rs. 100). The appeals were therefore dismissed.

Implications (direct effect and legal conclusions applied):

  • Direct procedural effect: The suspension of the permit (imposed by the Regional Transport Authority) was upheld as valid, and the appellants' petitions to quash the Tribunal and Government orders were dismissed; costs were awarded against the appellants.
  • Legal conclusions applied by the court (as articulated in the opinion):
    • An administrative sanction under Section 60 (suspension or cancellation of a permit) may be imposed when a condition of the permit is contravened, regardless of whether the contravention was committed by the owner personally or by the owner's agent (such as a conductor), with or without the owner's knowledge or consent.
    • The Transport Authority must exercise discretion under Section 60; the court will not interfere with a discretionary administrative decision unless it is exercised mala fide, capriciously, without jurisdiction, or on extraneous considerations.
    • Administrative directions issued by the Government under Section 43-A (such as G.O. No. 2771/31-7-1952 prescribing checking procedures) do not override the Authority's statutory power under Section 60; non-compliance with those administrative directions does not automatically invalidate a suspension where over-loading is otherwise established.
  • No question of conclusive evidentiary effect arising from the G.O. was accepted by the court; compliance with the G.O. does not make a check absolutely conclusive, nor does non-compliance preclude proof of over-loading by other reliable material. In the present case, because the appellants admitted over-loading, evidentiary challenges were unnecessary.

This summary is confined to the matters explicitly stated in the provided opinion. No external or inferred facts or precedents have been added.

Show all summary ...

Judgement

SUBBA RAO, C.J. :- Writ Appeal No. 31 of 1956 : This is an appeal against the order of Krishna Rao J., dismissing the petition filed by the appellants under Art. 226 of the Constitution of India.

2. The appellants are Sri Gopalakrishna Motor Transport Company Limited, Vijayawada, represented by the Official Liquidators. The company owns a stage carriage MDK 1456, and has a permit issued under the Motor Vehicles Act (hereinafter referred to as the Act) to ply the same on Vijayawada - Bander route. On 18-2-1955, the Regional Transport Officer checked the bus and found that it was over-loaded by four adult passengers.

Though, when called upon to show cause why the permit should not be suspended they denied the offence, they, later on, admitted the over-loading. On that admission, the permit was suspended for one month by the Regional Transport Authority. The appellants preferred an appeal against the order to the Central Road Traffic Board, Andhra. Before the Appellate Tribunal also, the offence was not denied but the constitution of the Regional Transport Authority was questioned.

The appellate Tribunal also found that the Regional Transport Officer checked the vehicle and seized the trip-sheet and that the conductor also signed the trip-sheet. In the circumstances, the Tribunal held that the offence had been established. The appellants preferred a revision to the Government. Before the Government, for the first time, a new contention was raised to the effect that the check was not in conformity with the instructions issued by the Government.

But the Government held that, as over-loading was established, the suspension was correct. The appellants then filed a petition under Art. 226 of the Constitution of India to quash the orders of the Tribunals and the Government. That application came before Krishna Rao J., The only point pressed before him was that the suspension was illegal as the instructions issued by the Government for checking the bus were not strictly followed. The learned Judge held that, as over-loading constituted breach of one of the conditions of the permit, the Regional Transport Authority was justified in suspending the permit. Hence the appeal.

3. Learned Counsel raised before us three points :

1. That under the Motor Vehicles Act and the Rules framed thereunder, there cannot be constructive liability and for the transgression of the conditions laid down in the permit by a conductor, the owner cannot be punished.

2. In the present case, the conductor had overloaded the bus contrary to the express directions given by the liquidators and, therefore, the Regional Transport Authority should not have in the exercise of their discretion suspended the permit.

3. As the check of the bus was made not in strict compliance with the instructions given by the Government, the order of suspension passed on that check was illegal.

The first two points were not raised either before Two Tribunals or before the Government. The third question was not raised before the Tribunals but pressed before the Government.

4. In the present case, a writ can be issued only if there is an error on the face of the record, for it is not suggested that the Tribunal acted without jurisdiction or with mala fides. There cannot be obviously an error on the face of the record in regard to questions which were never raised before the Tribunals. But, as these questions are raised in other writs and as we have heard the arguments of the learned counsel, we shall proceed to express our views on the same.

5. Learned Counsel for the appellants relied upon the following provisions of the Act in support of his contention that, under the Act, vicarious liability is excluded and, therefore, the permit issued to the owner cannot be suspended for the offence committed by the conductor.

Section 60 (1) :

The transport authority which granted a permit may cancel the permit or may suspend it for such period as it thinks fit (a) on the breach of any condition specified in sub-section (3) of Section 59 or of any condition contained in the permit.

Section 42 (1) :

No owner of a transport vehicle shall use, or permit the use of, the vehicle in any public place, save in accordance with the conditions of a permit granted or countersigned by a Regional or Provincial Transport Authority authorising the use of the vehicle in that place in the manner in which the vehicle is being used.

Section 72 (2) :

Except as may be otherwise prescribed, no person shall drive or cause or allow to be driven in any public place any motor vehicle which is not fitted with pneumatic tyres.

Section 72 (3) :

No person shall drive or cause or allow to be driven in any public place any motor vehicle or trailer.

Section 72 (4) :

Where the driver or person in charge of a motor vehicle or trailer driven in contravention of sub-section 2 or clause (a) of sub-section 3 is not the owner, a Court may presume that the offence was committed with the knowledge of or under the orders of the owner of the motor vehicle or trailer.

Section 112 :

Whoever contravenes any provision of this Act or of any rule made thereunder shall, if no other penalty is provided for the offence, be punishable with fine which may extend to twenty rupees, or, if having been previously convicted of any offence under this Act he is again convicted of an offence under this Act, with fine which may extend to one hundred rupees.

Section 123 (1) :

Whoever drives a motor vehicle or causes or allows a motor vehicle to be used or lets out a motor vehicle for use in contravention of the provisions of sub-section (1) of Section 42 shall be punishable for a first offence with fine which may extend to five hundred rupees and for a subsequent offence if committed within three years of the commission of a previous similar offence with a fine which shall not be less than one hundred rupees and may extend to one thousand rupees."

6. Relying upon these provisions, learned Counsel argues that, wherever the Legislature intended to make a person other than the person who actually contravened the rules liable, they have expressly stated so. Section 42 prohibits the owner of a transport vehicle to use it or permit another to use it in any public place except in accordance with the conditions of the permit.

Section 72 (2) prohibits a person not only from driving but also from causing or allowing a motor vehicle which is not fitted with pneumatic tyres to be driven in a public place. Section 72 (3) also enjoins on a person a duty not only not to drive but also not to allow or cause another to drive a motor vehicle in a public place with a weight over the prescribed limits and sub-section 4 allows a Court to presume that the offence mentioned in that section was committed with the knowledge of the owner.

Section 123 makes not only the driver but also the person, who causes or allows the motor vehicle to be used in contravention of the provisions of sub-section 1 of Section 42, liable for punishment. If is true that certain provisions expressly recognise vicarious liability. But the Act makes a distinction between criminal offences and administrative punishments for the breach of the rules. In the case of criminal offences, unless the statute expressly imposes a constructive liability, only the person who commits the offence, can be prosecuted.

The aforesaid provisions, therefore, expressly made not only the driver, who plied the bus in contravention of specific rules but also the person, who caused or allowed that contravention to be made, liable for the offence. It does not follow from the aforesaid provisions that, even in regard to the provisions designed for administrative control, the same principle should be invoked. If the Legislature intended to exclude constructive liability even within the region of administrative control, they should have expressly stated so. At this stage, the provisions relevant to the suspension or cancellation of a permit may be read :

Section 48 :

A Regional Transport Authority may, after consideration of the matters set forth in sub-section (1) of Section 47

xx xx

(d) attach to a stage carriage permit any prescribed condition or any one or more of the following conditions namely :

xx xx

(iv) that not more than a specified number of passengers and not more than a specified amount of luggage shall be carried on any specified vehicle at any one time. Section 60 :

The transport authority, which granted a permit may cancel the permit or may suspend it for such period as it thinks fit.

(a) on the breach of any condition specified in sub-section 3 of Section 59 or of any condition contained in the permit.

7. Government in exercise of powers conferred upon it under the Act framed detailed rules for administrative control. It is not disputed that one of the conditions of the permit is that the vehicle in question should not carry more than a specified number of passengers. Under the express terms of Section 60, if the said condition is contravened, the Transport Authority may cancel the permit or may suspend it.

The liability to suspend the permit does not depend upon the person who contravenes the condition but only on the contravention of the condition. The owner takes the permit subject to the condition and it is his duty to see that the condition is not contravened. If the condition is contravened, the permit is cancelled or suspended as the case may be and it is immaterial whether the agent of the owner does it of his accord or with the permission of the owner.

The owner, who has taken the permit subject to a condition, cannot complain if the permit is suspended for breaking the condition. The condition is certainly essential for the control of motor vehicles in public interests. We cannot read into Section 60, on the analogy of the limits of criminal liability imposed by statutes or implied by courts, words or conditions which are not there. We, therefore, hold that a permit can be cancelled even though a condition of the permit is broken by the conductor or other agent of the owner with or without his knowledge or even contrary to his instructions.

8. There is some force in the second contention. Section 60 (1) does not impose an automatic duty on the part of the Transport Authority to suspend or cancel a permit, if its condition is broken. It confers on them a duty to exercise discretion having regard to the facts of each case. Circumstances may be visualised when the Transport Authority may, in the exercise of discretion, excuse a transgression in a particular case if, in their opinion, there are valid reasons for doing so.

The present case may be one of such cases. The appellants are Official Liquidators of the Company in liquidation. They have given specific instructions to the bus conductors not to over-load buses and they were informed that they would be removed from service if the rules are contravened. It may be presumed that they had punished the conductor, who was responsible for the over-loading in the present case.

Perhaps, this is one of the cases where another Tribunal might have excused the present transgression of the rule with a warning not to repeat it. But when the authorities concerned suspended the permit, we cannot say that they had not discharged their duty or had acted without jurisdiction or unreasonably. The manner of the exercise of discretion should be left only to the Tribunals and this Court will only interfere if the discretion is exercised mala fide or capriciously or taking into consideration extraneous circumstances.

9. Lastly, learned Counsel relied upon G. O. No. 2771 dated 31-7-1952 issued by the Government of Andhra and argued that the said order was issued by the Government under Section 43-A of the Act prescribing the manner of checking a bus for over-loading. Under that G. O. the following directions are given :

1. The Police and Transport Authorities etc., empowered to check transport vehicles for detecting offences like overloading, charging of excess fares, etc., should invariably make entry in the trip-sheet and other records kept in the vehicles besides the entries recorded in the note book or diary of the checking officers.

2. They should try and obtain the names and addresses of a few responsible passengers travelling in the bus at the time of check so that they may be cited as witnesses if necessary.

3. They can also get the signature of the conductor, driver or checking inspector in their diary to substantiate the fact that the vehicle was checked; and

4. The checking for overloads should be done not at halts but at some other place on the route while the bus is in motion.

10. Government has power to frame rules and also to issue administrative directions of a general character under Section 43-A of the Act. Apart from Section 43-A, Government has no power to issue any administrative directions to the authorities. It is, therefore, clear that the G. O. was only issued under Section 43-A of the Act. In so far as the order was couched in mandatory terms, it is incumbent upon the officers concerned to comply with it.

But the question is what is the result of non-compliance with the directions given by the Government. The power to suspend a permit for breach of the conditions specified in the permit does not depend upon the instructions of the Government. It is conferred on the Transport Authority under Section 60 of the Act. It is the duty of the Transport Authority to decide on the facts of each case whether any condition of the permit is contravened.

Any instructions given under Section 43-A cannot override the discretionary power conferred upon the Transport Authority under Section 60. It is true that the Government order contains salutary instructions intended to serve a dual purpose, namely, preventing harassment of the conductors by police officers and at the same time providing a machinery for placing disinterested evidence before the Transport Authority.

The said instructions cannot and do not lay down a rule of evidence to the effect that, if the conditions are complied with, the check would be conclusive evidence of over-loading. It cannot be contended that, notwithstanding the check in strict conformity with the directions, the conductor or the owner cannot seek to establish that the check was a collusive one and that, as a matter of fact, there was no over-loading. There may be cases, though they may be rare, where the whole check may be stage-managed.

If that be so, it would be illogical to hold that, if the conditions were not complied with, it cannot be established aliunde by other unimpeachable evidence that there was over-loading as a matter of fact. In the present case, before the Regional Transport Authority, the appellants admitted the fact of over-loading and, in such cases, no question of proof would arise.

We, therefore, hold that the order of the Government contained only administrative instructions issued under Section 43-A. It is true that some of the administrative instructions impose a mandatory duty on the officers concerned and if they do not discharge their duty, Government may take disciplinary action against them. But, in our view, non-compliance with those directions cannot affect the finding the Authority arrived at on other material on the question of over-loading. We cannot, therefore, accept this contention either.

11. In the result, we confirm the order of the learned Judge and dismiss the appeal with costs. Advocates fee Rs. 100/-.

12. Writ Appeal No. 32 of 1956 : For the reasons mentioned in Writ Appeal No. 31 of 1956, this appeal also is dismissed with costs. Advocates fee Rs. 100/-.

Appeals dismissed.