2001 (5) TMI 973 - SC - Indian Laws

Summary

Issues Involved:
1. Validity of the draft scheme under Section 68-C of the Motor Vehicles Act, 1939.
2. Impact of the delay in disposing of objections on the scheme.
3. Applicability of the Motor Vehicles Act, 1988 to the pending scheme.
4. Scope of the Supreme Court's decision in Ram Krishna Verma's case.
5. Right to hearing of objections for routes other than Saharanpur-Delhi.
6. Public interest and status quo of bus operations on the routes.

Summary:

1. Validity of the Draft Scheme:
A draft scheme u/s 68-C of the Motor Vehicles Act, 1939 to nationalize the Saharanpur-Shahdra-Delhi route was published on 29.9.1959. The Allahabad High Court upheld the scheme for 50 operators but quashed it for another 50 operators, who were to be granted a hearing. This decision was upheld by the Supreme Court in Jeewan Nath Wahal Vs. State Transport Appellate Tribunal.

2. Impact of Delay:
The scheme faced prolonged litigation, and in Shri Chand vs. Government of U.P., the Supreme Court quashed the scheme due to a 26-year delay, violating Articles 14 and 19(1)(g) of the Constitution. The Government was directed to frame a new scheme if necessary.

3. Applicability of the Motor Vehicles Act, 1988:
A new draft scheme was published on 13.2.1986, including 39 routes. The Motor Vehicles Act, 1988, effective from 1.7.1989, required pending schemes to be disposed of u/s 100 of the 1988 Act. The competent authority deemed the scheme lapsed u/s 100(4) of the 1988 Act, but the Supreme Court in Ram Krishna Verma & Ors. vs. State of U.P. & Ors. confined the decision to the Saharanpur-Delhi route only.

4. Scope of Supreme Court's Decision in Ram Krishna Verma's Case:
The Supreme Court held that the fresh draft scheme dated 13.2.1986 should be construed only in relation to the 50 existing operators as per Jeewan Nath Wahal's case. The 50 operators forfeited their right to a hearing due to abuse of the court process. The competent authority was directed to approve and publish the scheme within 30 days.

5. Right to Hearing of Objections for Other Routes:
The competent authority abruptly closed the hearing and approved the scheme, including all 39 routes. The Allahabad High Court dismissed petitions challenging this, but the Supreme Court found that the High Court erred in holding that Ram Krishna Verma's case approved the entire draft scheme. The decision was confined to the Saharanpur-Delhi route, and objections for the other 38 routes were not addressed.

6. Public Interest and Status Quo:
The Supreme Court acknowledged the substantial investment by the State Road Transport Corporation in operating buses on all 39 routes since 1993. To balance public interest and statutory rights, the Court directed that objections for the 38 routes be heard without disturbing the status quo of bus operations.

Conclusion:
The appeals were allowed for the 38 routes, and the High Court's judgment was set aside. The competent authority was directed to hear and dispose of objections for these routes within four weeks. The approved scheme for the Saharanpur-Delhi route remained unaffected. The appeals and intervention applications were disposed of accordingly.