1996 (9) TMI 607 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of Renewal of Permits under the New Act.
2. Requirement for Fresh Permits under the New Act.
3. Effect of Saving Provisions in Section 217 of the New Act.
4. Rights of State Transport Undertakings (STUs) and Private Operators under the Nationalized Scheme.
5. Application of Section 6 of the General Clauses Act (GC Act).

Summary:

1. Validity of Renewal of Permits under the New Act:
The appellant's renewal of the permit granted under the Repealed Act was challenged. The appellant argued that the renewal under the Repealed Act is valid under the new Motor Vehicles Act, 1988, as per Section 217(2)(a) of the Act, which saves the operation of permits granted under the Repealed Act. The court concluded that the renewal of a permit under the Repealed Act is not automatically valid under the new Act unless it complies with the new Act's provisions.

2. Requirement for Fresh Permits under the New Act:
The court held that renewal of a stage carriage permit must be preceded by a grant of a permit under Section 72 of the new Act, following the procedure in Sections 70 and 71. Permits granted under the Repealed Act must be renewed under the new Act before their expiry. If no application for renewal was pending as of July 1, 1989, fresh applications must be filed under the new Act.

3. Effect of Saving Provisions in Section 217 of the New Act:
Section 217(2)(a) saves acts done under the Repealed Act, provided they are consistent with the new Act. Section 217(2)(b) allows permits issued under the Repealed Act to continue for the same period and under the same conditions as if the new Act had not been passed. The court clarified that the saving provisions do not extend to acts inconsistent with the new Act.

4. Rights of State Transport Undertakings (STUs) and Private Operators under the Nationalized Scheme:
The court emphasized that the schemes approved under Chapter IVA of the Repealed Act are self-contained and continue under the new Act until modified or canceled. Private operators whose permits were saved under the scheme must apply for fresh permits under Section 72 and renewals under Section 81 of the new Act. STUs have exclusive rights to operate in notified areas/routes under the scheme, and private operators' rights are limited to those saved under the scheme.

5. Application of Section 6 of the General Clauses Act (GC Act):
The court discussed the application of Section 6 of the GC Act, which saves rights accrued under the Repealed Act unless inconsistent with the new Act. It concluded that the right to renewal is not a vested right but a privilege subject to the new Act's conditions. The court held that actions consistent with the new Act are saved, and inconsistent actions are obliterated.

Conclusion:
The court upheld the High Court's view that the renewal of permits under the Repealed Act is not automatically valid under the new Act. Private operators must apply for fresh permits under the new Act, and renewals must comply with the new Act's provisions. The saving provisions in Section 217 do not extend to inconsistent acts, and the rights of STUs and private operators are governed by the scheme under the new Act. The appeals and writ petitions were disposed of accordingly.