1952 (3) TMI 31 - SC - Indian Laws

The Motor Vehicles Act contains a complete and precise scheme for regulating the issue of permits, providing what matters are to be taken into consideration as relevant and prescribing appeals and revisions from subordinate bodies to higher authorities, and the issue or refusal of permits is solely within the discretion of the transport authorities; it is not a matter of right. Held, that under the Motor Vehicles Act, the issue of a permit for a bus was not dependent on the ownership of the bus but on other considerations also, and as the Central Traffic Board had issued an order granting permits to one of the claimants after considering all circumstances the High Court acted erroneously in interfering with the Order of Traffic Board on an application under Art. 226 and in any event the order of the High Court issuing a direction to the Regional Transport Authority to grant permits to the other party was clearly in excess of its powers and jurisdiction.

Summary

Issues Involved:
1. Validity of the transfer and issuance of bus permits.
2. Jurisdiction and discretion of transport authorities.
3. High Court's jurisdiction under Article 226 of the Constitution.

Detailed Analysis:

1. Validity of the Transfer and Issuance of Bus Permits:
The dispute centered around the issuance of five permanent bus permits for the route between Kumbakonam and Karaikal. Initially, the 'C' permits for the buses were in the name of Balasubramania Pillai, who agreed to sell the buses to Messrs. Raman and Raman Ltd. A joint application for the transfer of ownership and permits was made, but Balasubramania Pillai later repudiated the application, alleging fraud. Consequently, the transfer was refused, and temporary permits were issued to Veerappa Pillai, who later sought permanent permits based on a decree from the Sub-Court in his favor. The Central Road Traffic Board initially refused the transfer but later allowed the transfer of ownership without the permits. The High Court reversed the Sub-Court's decree, favoring Messrs. Raman and Raman Ltd. Despite this, the Regional Transport Authority continued to issue temporary permits to Veerappa Pillai, and the Government eventually directed the issuance of permanent permits to him.

2. Jurisdiction and Discretion of Transport Authorities:
The Regional Transport Authority and the Central Road Traffic Board exercised discretion in issuing permits, considering factors like possession and the operational status of the buses. The Government, while issuing permanent permits to Veerappa Pillai, cited the undesirability of running buses on temporary permits indefinitely, indicating a policy decision. The Central Road Traffic Board and the Government reviewed and upheld the decisions based on procedural compliance and the operational history of the buses under Veerappa Pillai's management.

3. High Court's Jurisdiction under Article 226 of the Constitution:
The High Court, under Article 226, quashed the orders of the transport authorities and directed the issuance of permits to Messrs. Raman and Raman Ltd. The Supreme Court held that the High Court overstepped its jurisdiction by converting itself into an appellate body, examining the correctness of the transport authorities' decisions. The Supreme Court emphasized that the Motor Vehicles Act is a self-contained code with specific provisions for appeals and revisions, and the High Court should not substitute its discretion for that of the transport authorities. The Supreme Court also noted that the High Court's direction to grant permits to Messrs. Raman and Raman Ltd. exceeded its powers and jurisdiction.

Conclusion:
The Supreme Court allowed the appeal, setting aside the High Court's order. It held that the transport authorities' discretion was exercised appropriately, considering all relevant factors, and the High Court's intervention was unwarranted. The parties were ordered to bear their own costs.