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TMI Blog1955 (9) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... he sake of brevity, as R. T. A. ) granted a stage carriage permit on the route between Narsapur and Juvvulapalem to one K. Kesavarao who was select frond among 33 applicants for the reasons that his father was the first bus operator in the district and he has sufficient property to buy a bus and (b) the claims of the Ors. are inferior. Seven of the disappointed applicants for the permit including one K. Subbaraju applied to the Central Road Traffic Board, Madras (hereinafter referred to as C. R. T. B.) which passed an order on 31-3-1951 setting aside the order of the R. T. A., granting the permit to K. Kesavarao and directing the permit to be given to K. Subbaraju. The reason given by the C. R. T. B. for its order was as follows: In ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 22-1-1952, reaffirming its original decision granting the permit to K. Kesavarao. This second order of the Government gave the following reasons: The Motor Vehicles Act and Rules do not prohibit the grant of permit to new entrants. The C. R. T. B's Order does not indicate how or why Sri Kesavarao would not be able to run the service as efficiently as the Respondent Sri Subbaraju. On the other hand, the Regional Transport Authority which is the local authority was satisfied that Sri Kesavarao has sufficient means to run the service. While it is true that one or two bus owners who have satisfactory records should be enabled to become in due course fleet owners of three buses to have an economic unit, on that ground alone the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which are state property, it is necessary to control and regulate the business of carrying passengers for- hire in motor vehicles plying on hires. A limit has to be imposed on the number and capacity of motor transports running along Particular routes, and this is achieved by the system of permits or licences, a system Which would be valid and proper under Article 19(6) of the Constitution. When a number of persons apply for a Stage of carriage permit, which only one or a few of them can have, the authority empowered to grant the .permit must, of necessity, exercise a measure of discretion in the selection anti elimination of applicants. The Act therefore vests the power of selection in the first instance in the E. T. A., subject' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llotted one or two more buses, he would be able to run the service efficiently by having a workshop for effecting repairs and by being in a position to substitute buses in case there is a breakdown of the stage carriage on the way. From the point of view of effective service ; to the public which alone is the criterion in matter of this kind, a fleet owner may be preferable to .f stray operators owning a single bus. On the other hand the view of the R. T. A. and the Government was that the above rule would operate as a hard-- ship on new entrants and would tend to create a monopoly which might not be in the interests of the public. It is also possible that new entrants and single bus owners might devote greater attention to the service t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and quash the order of the Government as being in excess of its powers. it cannot be said in the present case that the order of the Government is based on considerations not germane to a decision of the question brought up before it or extraneous or irrelevant thereto. Nor could it be said that the Government has used its powers so as to enable it to select recipients of governmental favour in the field of road transport. On the face of the order it appears that the Government had examined the proceedings of the subordinate transport authorities and found that the order of the C.R.T.B., was improper and that of. the R.T.A. should be upheld. The Government has given some reasons for its conclusion that the order of the C.R.T.B., was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the C.R.T.B. If we were quashing the order of the Government we would hold that the benefit obtained by Kesavarao as a result of the orders staying the operation of the order of the C.R.T.B., was not a benefit justly or properly obtained by him, and that that circumstance would be no reason for confirming him in the enjoyment of that benefit. 8. It follows that the appeal should be allowed, the order of Balakrishna Ayyar J. should be set aside, and the Writ Petition No. 273 of 52 dismissed. In view of the doubts honestly entertained by the parties with reference to the policy of the Government in granting stage carriage permits, we direct that their should be no orders as to costs either before Balakrishna Ayyar J., or before u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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