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TMI Blog2004 (4) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos. 1 to 3 represent the Government of the National Capital Territory of Delhi and Respondent No. 4 is a statutory corporation set up under Section 3 of the Road Transport Corporation Act, 1950. Respondent No. 4, Delhi Transport Corporation (DTC), was continuously making losses and found itself unable to handle the volume of work required for providing efficient transport facilities for the public in Delhi. The work of transport was opened up to private operators like the appellants, who were granted stage carriage permits under the provisions of the Motor Vehicles Act, 1988 read with the Rules made thereunder (hereinafter referred to, respectively, as 'the Act' and 'the Rules'). Under the new policy, which was adopted in or about 1991-92, about 3000 private buses were permitted to operate within the territory of Delhi. These private operators were granted permits to run buses under the provisions of the Act. The permit conditions were notified under a Scheme for grant of State Carriage Permits to private bus operators in Delhi by the State Transport Authority. The Scheme was framed for augmentation of the public transport in Delhi. The Scheme was formulated and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities. A copy of this scheme is marked as Annexure 3 to the aforesaid affidavit. Apart from indicating the fare structure, the scheme also says, "there shall be a provision for free passes for freedom fighters only. There may be a provision of monthly/quarterly passes valid in all the private buses on a particular route." The relevant permit conditions indicated in this scheme are as follows: "13. The permit holder shall ensure that concessional passes issued to various sections authorised for these buses shall be honoured. 17. Permit holder shall ensure that the bus stops to pick up and allow the passengers to get off at the authorised DTC bus stops and no passenger is allowed to board or to get down at a non-prescribed bus stop. The operators will have to pay service charges for using DTC bus stops & bus terminals as determined by STA in consultation with the DTC from time to time. "25. The State Transport Authority, may after giving notice of not less than one month: (a) Vary the conditions of permit. (b) Attach to the permit further conditions." Sometime in the year 1997, both the DTC and the private operators appealed to the State Tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 kilometers Rs. 4.00 From 8 kilometers upto 12 kilometers ₹ 6.00 Above 12 kilometers ₹ 8.00 For the 'LTD', 'Green Line' and 'Railway Spl.' Buses the fare structure shall be ten rupees instead of six rupees. 2. For concessional bus passes the following rates shall be applicable. Type of pass New Rate General Destination ₹ 200/- General All-Route ₹ 400/- General All route (Ltd) ₹ 450/- In the case of 'General Destination Pass' the route shall be specified in the pass itself and one change of bus shall be allowed rates of all other passes including 'student', 'Re- settlement Colony', 'Press' and 'Old age' shall remain the same. 3 (a) The Private Stage Carriage with the upward revision of fares shall pay with effect from 16th October, 1999. (i) ₹ 2500/- per month as bus queue shelters to DTC (ii) ₹ 5000/- per month for using the bus terminal to DTC. (b) All DTC passes shall be applicable to all private Stage Carriages." Being aggrieved by the notification, the appellants filed a writ petition before the High Court of Delhi which came to be dismissed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of Section 96 empowers the State Government to make rules to ensure that stage carriages halt only at designated places. Clause (xxii) of sub-section (2) of Section 96 empowers the State Government to prescribe rules with regard to the construction or use of any duly notified stand or halting place and the fees, if any, which may be charged for the use of such facilities. Correspondingly, we have Rules 75 and 76. No transport vehicle can be plied without a permit under Section 66 of the Act. Section 69 provides for making of applications for permits to the Regional Transport Authority. Such permits in respect of stage carriages are issued under Section 70 after following the procedure prescribed in Sections 71 and 72. Section 72(2) of the Act empowers the Regional Transport Authority to grant a stage carriage permit subject to any rule that may be made under the Act and by attaching to the permit any one or more of the conditions enumerated in Clauses (i) to (xxiv). Clauses (xx), (xxii) and (xxiv) of Section 72(2) are relevant for our purposes and read as under: "(xx) that any specified bus station or shelter maintained by Government or a local authority shall be used an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum and minimum in respect thereof) for stage carriages, contract carriages and goods carriages: (ii) (iii) " It was the case of the respondents before the High Court, and it is their case before us, that the notification has been issued by the State Government in exercise of its power under Section 67(1)(d) read with sub- clause (i). In other words, it is contended that the notification is one which fixes the fares and freights of the stage carriages, having regard to the desirability of preventing uneconomic competition among holders of permits. The submission is that DTC had already invested capital in construction of bus shelters and terminals; if the private operators are permitted to use these facilities without compensation to the DTC, the DTC would be put in a situation of uneconomic competition, that DTC being a statutory corporation, and aware of its social responsibility, had issued a large number of concessional passes to students, war widows and their dependents, freedom fighters, disabled persons and such others, which caused a heavy economic burden to DTC; the private operators are not by law obliged to discharge this social responsibility, as a result of w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DTC and the revision is reflected in the notification dated 31st December, 1999. As a result of the said notification, the permit conditions stood revised. Clause 3 of the impugned notification revises permit conditions and consequently the private stage carriage operators have to pay with effect from 16th October, 1999, ₹ 2,500/- per month as charges for using bus queue shelters to DTC and ₹ 5,000/- per month for using the bus terminal to DTC. As already noticed, Section 72(2) of the Act gives power to the Regional Transport Authority to attach conditions to stage carriage permits which are required to be followed by the stage carriage operators. The condition in clause (xx) would require that any specified bus station or shelter maintained by Government or a local authority shall be used and that any specified rent or fee shall be paid therefor. A stage carriage operator has no liberty in the manner of halting of the motor vehicle in public places by reason of the directions made under Rule 75. Consequently, the stage carriage operator is required to stop the bus only at such places as directed by the conditions of the permit. It so happens that, in the case of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e permit holder shall ensure that concessional passes issued to various sections authorised for these buses shall be honoured." The contention of the respondents that by reason of the aforesaid condition of permit the concessional passes issued by the DTC would automatically become enforceable and binding upon private operators who were issued stage carriage permits, does not appear to be sustainable. In Anjum M.H. Ghaswala a Constitution Bench of this Court reaffirmed the general rule that when a statute vests certain power in an authority to be exercised in a particular manner then the said authority has to exercise it only in the manner provided in the statute itself. (See also in this connection Dhanajaya Reddy v. State of Karnataka ) The statute in question requires the authority to act in accordance with the rules for variation of the conditions attached to the permit. In our view, it is not permissible to the State Government to purport to alter these conditions by issuing a notification under Section 67(1)(d) read with sub-clause (i) thereof. The contention of the respondents is that the power to enforce the binding nature of the concessional passes issued by the DTC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure has gone to about 68 per cent in November, 1999. While it may be possible to say that granting of concessional passes to war widows and their dependants, disabled persons, freedom fighters and such categories may be in discharge of "social obligations", it would not hold true with regard to a large number of other holders of concessional passes. In the writ petition before the High Court, the appellants pointed out that 'destination passes', 'general passes' and 'all route' passes are nothing but smart exercises designed to catch captive commuters. These passes are really intended to collect advance fares which would save commuters the trouble of frequently going to the office of the operator for paying for their passes by offering a marginal concession. In other words, a large amount of the fare gets collected, much in advance, and what the DTC has to forego is only a small amount designed to cut down the collection cost, get money in advance and catch captive commuters. We, therefore, agree with the contention of the appellants that such concessional passes are nothing but advance tickets with marginal concessions giving services to the capti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee Gajanana Motor Transport Co. Ltd. v. The State of Karnataka and Ors. , arising under Section 43 of the Motor Vehicles Act, 1939, to the effect that when the State has exercised its power under Section 43 (corresponding to the present Section 67 of the 1988 Act), then the conditions of the permit automatically get altered. There is no doubt as to this proposition, but the rub is that the notification must have been validly issued in exercise of the said power. Paragraph 3(b) of the impugned notification, however, travels much beyond the legitimate scope of the power under Section 67(1)(d) read with sub-clause (i). We are of the view that the impugned notification, insofar the condition in Paragraph 3(b) is concerned, is wholly ultra vires the powers of the State Government under Section 67 of the Act, illegal and liable to be quashed and set aside. Learned counsel for the appellants stated that they too are conscious of the "social obligations", and since the number of concessional passes issued to disabled persons, freedom fighters and war widows and their dependants is small, without prejudice to their legal contentions, they are willing to honour such concessional p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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