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Issues Involved:
1. Validity of Rule 155A of the Motor Vehicles Rules. 2. Whether Rule 155A conflicts with Section 47 of the Motor Vehicles Act. 3. The impact of Rule 155A on the competitive landscape between private operators and State Transport Undertakings. 4. The interpretation of the proviso to Section 47(1) of the Motor Vehicles Act. 5. The role of public interest in the grant of permits. Detailed Analysis: 1. Validity of Rule 155A of the Motor Vehicles Rules: The core issue revolves around the validity of Rule 155A, which assigns five marks to State Transport Undertakings (STUs) in the permit-granting process. The appellants, private stage carriage operators, claim that Rule 155A is contrary to public interest and the proviso to Section 47(1) of the Motor Vehicles Act. The rule is argued to be biased, favoring STUs solely due to their ownership by the State, thus compromising fair competition. 2. Whether Rule 155A Conflicts with Section 47 of the Motor Vehicles Act: Section 47(1) of the Act mandates that the interest of the public generally should be the decisive factor in awarding permits. The proviso to Section 47(1) states that, other conditions being equal, preference should be given to STUs. The appellants argue that Rule 155A, by granting five marks to STUs, goes beyond this proviso, thus violating the principle of fair competition. The court, however, finds that Rule 155A does not conflict with Section 47(1) as it aims to balance the competitive landscape by recognizing the inherent advantages of STUs in serving public interest. 3. The Impact of Rule 155A on the Competitive Landscape: The appellants contend that Rule 155A unfairly tilts the balance in favor of STUs, making it impossible for private operators to compete effectively. The court acknowledges the unique advantages of STUs, such as larger resources, better coordination, and a focus on public service rather than profit. These factors justify the additional marks awarded to STUs. The court emphasizes that the marking system guides but does not govern the final decision, leaving room for the Transport Authority to exercise discretion based on the overall public interest. 4. The Interpretation of the Proviso to Section 47(1): The proviso to Section 47(1) allows for preference to STUs when other conditions are equal. The appellants argue that Rule 155A extends this preference beyond the legislative intent. The court clarifies that the proviso does not prohibit additional considerations in favor of STUs. The rule-making authority has the discretion to frame rules that promote public interest, and Rule 155A is seen as an extension of the proviso, aligning with the broader objectives of the Act. 5. The Role of Public Interest in the Grant of Permits: Public interest is the paramount consideration in the grant of permits under Section 47(1). The court underscores that STUs, by their nature, are more aligned with public interest due to their accountability, resources, and focus on service over profit. The marking system, including Rule 155A, is designed to reflect these advantages, ensuring that the best service provider is chosen in the interest of the public. Conclusion: The court concludes that Rule 155A is valid and does not conflict with Section 47(1) of the Motor Vehicles Act. The rule appropriately reflects the advantages of STUs in serving public interest, and the marking system guides but does not dictate the final decision, allowing for discretion by the Transport Authority. The appeals are dismissed, affirming the preference for STUs in the permit-granting process when justified by public interest.
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