Kuldip Singh, J. - (1.) The liberalization for private sector operations in the Road Transport field - under Section 80 and other provisions of the Motor Vehicles Act, 1988 has been challenged in these bunch-petitions under Article 32 of the Constitution, filed by the existing-operators, primarily on the ground that they have been adversely affected in the exercise of their rights under Articles 14 and 19 of the Constitution of India.
(2.) It is necessary to notice the statutory provisions operating in the field of motor transport business prior to and after the coming into force of the Motor Vehicles Act, 1988 (hereinafter called 'the Act'). The Motor Vehicles Act, 1939 (hereinafter called the old Act) was enacted and enforced with the object of having closer control to establish a coordinated system of transport. The subject of 'Mechanically Propelled Vehicles' being in List III of the VIIth Schedule to the Constitution, various amendments were made from time to time by several State Legislatures either adding to or modifying the provisions of the old Act. Chapter IV of the old Act consisted of Sections 42 to 68 providing control of transport vehicles". Sections 47 and 57, to the relevant-extent, are re-produced as under:- "47. Procedure of Regional Transport Authority in considering application for stage carriage permit- (1) A Regional Transport Authority shall, in considering an application for a stage carriage permit, have regard to the following matters, namely:- (a) the interest of the public generally; (b) the advantage to the public of the service to be provided, including the saving of time likely to be effected thereby and any ,convenience arising from journeys not being broken; (c) the adequacy of other passenger transport services operating or likely to operate in the near future, whether by road or other means, between the places to be served; (d) the benefit to any particular locality or localities likely to be afforded by the service; (e) the operation by the applicant of other transport services, including those in respect of which applications from him for permits are pending; (f) the condition of the roads included in the proposed route or area. and shall also take into consideration any representations made by persons already providing passenger transport facilities by any means along or near the proposed route or area, or by any association representing persons interested in the provision of road transport facilities recognised in this behalf by the State Government, or by any local authority or police authority within whose jurisdiction any part of the proposed route or area lies;............ (3) A Regional Transport Authority may, having regard to the matters msentioned in sub-section (1), limit the number of stage carriages generally or of any specified type for which stage carriage permits may be granted in the region or in any specified area or on any specified route within the region. 57. Procedure in applying for and granting permits.- (1) An application for a contract carriage permit or a private carrier's permit may be made at any time. (2) An application for a stage carriage permit or a public carrier's permit shall be made not less than six weeks before the date on which it is desired that the permit shall take effect, or, if the Regional Transport Authority appoints dates for the receipt of such applications, on such dates. (3) On receipt of an application for a stage carriage permit or a public carrier's permit, the Regional Transport Authority shall make the application available for inspection at the office of the Authority and shall publish the application or the substance thereof in the, prescribed manner together with a notice of the date before which representation in con nection therewith may be submitted and the date, not being less than thirty days from such publication, on which, and the time and place at which, the application and any representation received will be considered: Provided that, if the grant of any permit in accordance with the application or with modifications would have the effect of increasing the number of vehicles operating in the region, or in any area or any route within the region, under the class of permits to which the application relates, beyond the limit fixed in that behalf under sub-section (3) of Section 47 or subsection (2) of Section 55, as the case may be, the Regional Transport Authority may summarily refuse the application without following the procedure laid down in this sub-section.
(3.) The old Act was repealed by the Act which came into force on July 1, 1989. The Statement of Objects and Reasons appended to the Act is reproduced as under:- "The Motor Vehicles Act, 1939 (4 of 1939), consolidates and amends law relating to motor vehicles. This has been amended several times to keep it up to date. The need was, however, felt that this Act should now inter alia, take into account also changes in the road transport technology, pattern of passenger and freight movements, development of the road network in the country and particularly the improved techniques in the motor vehicles management. 2. Various Committees like National Transport Policy Committee, National Police Commission, Road Safety Committee, Low Powered Two-wheelers Committee, as also the Law Commission have gone into different aspects of road transport. They have recommended updating, simplification and rationalisation of this law. Several Members of Parliament have also urged for comprehensive review of the Motor Vehicles Act, 1939, to make it relevant to the modern day requirements. 3. A Working Group was, therefore, constituted in January, 1984 to review all the provisions of the Motor Vehicles Act, 1939 and to submit draft proposals for a comprehensive legislation to replace the existing Act. This Working Group took into account the suggestion and recommendations earlier made by various bodies and institutions like Central Institute of Road Transport Automotive Research Association of India, and other transport organisations including the manufacturers and. the general public. Besides, obtaining comments of State Governments on the recommendations of the Working Group, these were discussed in a specially convened meeting of Transport Ministers of all States and Union Territories. Some of the more important modifications so suggested related for taking care of- (a) and (b) ********** (c) the greater flow of passenger and freight with the least impediments so that islands of isolation are not created leading to regional or local imbalances; (d) .********** (e) simplification of procedure and policy liberalization for private sector operations in the road transport field; and (f) ********** The proposed legislation has been prepared in the light of the above background. Some of the more important provisions of the Bill provide for the following matters, namely:- (a) to (f) .********** (g) liberalised schemes for grant of stage carriage permits on non-nationalised routes, all-India tourist permits and also national permits for goods carriages ********** (h) to (1) ********** ;