E. S. Venkataramiah, J. - (1.) In these appeals by special leave filed against the common judgment dated March 23, 1982 of the Allahabad High Court, the validity of two Notifications issued by the Government of Uttar Pradesh under Section 43-A of the Motor Vehicles Act 1939 (Act IV of 1939) (hereinafter referred to as 'the Act') as in force in the State of Uttar Pradesh arises for consideration. The two impugned Notifications are reproduced below: I. "Notification No. 68 T/XXX-4-15-KM/79 Dated:Lucknow:January 10, 1981 Whereas, the Government of Uttar Pradesh is of opinion that it is in the public interest to grant stage carriage permits (except in respect of routes or areas for which schemes have been published under S. 68-C of the Motor Vehicles Act, 1939) to all eligible applicants: Now, therefore, in exercise of the powers under Section 43-A of the Motor Vehicles Act, 1939, the Governor of Uttar Pradesh is pleased to direct that the stage carriage permits (except in respect of routes or areas for which schemes have been published under Section 68-C of the Motor Vehicles Act, 1939) shall be granted according to the provisions of the Act to all eligible applicants and there shall be no upper limit to the number of stage carriages for which permitsmway be granted. By Order Karnail Singh, Sachiv. II. Notification No. 241 T/XXX-4-15-P/79 Dated:January 23, 1981 The Governor being satisfied that it is expedient in the public interest so to do, is pleased to direct in exercise of the powers under Section 43-A of the Motor Vehicles Act, 1939 (Act No. 4 of 1939) that while considering applications for stage carriage permits, the State Transport Authority or a Regional Authority: (i) shall have regard only to matters referred to in Clauses, (a), (b), (d) and (f) of sub-section (1) of Section 47 of the said Act and shall also take into consideration representations made by the local authority or police authority within whose jurisdiction any part of the proposed route or area lies, and (ii) shall be deemed to have made sufficient compliance of the provisions of Sec. 57 of the said Act, if it intimates the particular of the applications to such local authority and police authority for making representations, if any, within a period of fifteen days from the date of despatch of the intimation with the stipulation that if no representation is received within the prescribed period of time, it shall be presumed that they have no representation to make, and has considered any representation made by such local authority and police authority. By Order Karnail Singh, Sachiv."
(2.) The appellants who are stage carriage operators challenged the validity of the above Notifications in the writ petitions filed by them under Article 226 of the Constitution before the High Court inter alia on the ground that they were ultra vires the provisions of the Act under which they had been issued. The High Court dismissed the writ petitions after negativing the contentions of the appellants. Aggrieved by the decision of the High Court the appellants have preferred these appeals by special leave as stated above.
(3.) It is necessary at this stage to give a re'sume' of the relevant statutory provisions to understand the rival contentions of the parties. On finding that the Motor Vehicles Act, 1914 which was brought into force at an early stage of development of motor transport was inadequate to meet the new situation created by the growth of motor transport by the year 1939, the Central Legislature passed the Act for the purpose of regulating motor traffic in the interests alike of the safety and convenience of the public and of the development of a co-ordinated system of transport. The Act underwent major alterations in 1956 and 1969. Broadly the Act provided inter alia for registration of motor vehicles, licensing of drivers and conductors, grant of permits to ply public service vehicles and public carriers, operation of road transport service by State transport undertaking in any area or on any route to the exclusion, complete or partial of other persons, construction, equipment and maintenance of motor vehicles, control of traffic, insurance of motor vehicles against third party risks and offences, penalties and procedure. The State Governments were entrusted with the duty of framing rules on various matters connected with the topics dealt with by the Act. The subject of regulation of motor vehicles being within the scope of Entry 35-mechanically propelled vehicles including the principles on which taxes on such vehicles are to be levied - in List III of the Seventh Schedule to the Constitution, various amendments were made from time to time by several State Legislatures with the assent of the President of India either adding to or modifying the provisions of the Act. Chapter IV of the Act which includes Section 42 to Section 68 contains provisions pertaining to the control of motor vehicles. Section 42 of the Act provides that no owner of a transport vehicle shall use or permit the use of the vehicle in any public place whether or not such vehicle is actually carrying any passenger or goods save in accordance with the conditions of a permit granted or countersigned by a Regional or State Transport Authority or the Commission authorising the use of the vehicle in that place in the manner in which the vehicle is being used. A 'transport vehicle is defined in S. 2 (33) of the Act as a public service vehicle or a goods vehicle. A 'public service vehicle is defined in Section 2 (25) of the Act as any motor vehicle used or adapted to be used for the carriage of passengers for hire or reward, and includes a motor cab, contract carriage and stage carriage. Section 2 (29) of the Act states that a 'stage carriage means a motor vehicle carrying or adapted to carry more than six persons excluding the driver which carries passengers or hire or reward at separate fares paid by or for individual passengers, either for the whole journey or for stages, of the journey. Section 45 (1) of the Act prescribes that every application for a permit shall be made to the Regional Transport Authority of the region in which it is proposed to use the vehicle or vehicles. When the vehicle is to be used in two or more regions, the applications for permits may be made as provided in the provisos to S. 45 (1) or S. 45 (2) of the Act, as the case may be. The constitution of the Regional Transport Authorities and the State Transport Authorities, is dealt with by S. 44 of the Act. A State Transport Authority or a Regional Transport Authority shall consist of a Chairman who has bad judicial experience or experience as an appellate or revisional authority under any law relating to land revenue and in the case of a State Transport Authority, such other officials and non-officials, not being less than two, and, in the case of Regional Transport Authority such other persons (whether officials or not) not being less than two, as the State Government may think fit to appoint. An application for a stage carriage permit shall have to contain the particulars mentioned in See. 46 of the Act. Prior to its amendment in 1978, Section 47 as amended by Act 100 of 1956 read as follows: "47. Procedure of Regional Transport Authority in considering application for Stage carriage permits.-- (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 advantages 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: Provided that other conditions being equal, an application for a stage carriage Permit from a co-operative society registered or deemed to have been registered under any, enactment in force for the time being shall, as far as may be, be given preference, over applications from individual owners. (2) A Regional Transport Authority shall refuse to grant a stage carriage permit if it appears from any time-table furnished that the provisions of this Act relating to the speed at which vehicles may be driven are likely to be contravened: Provided that before such refusal an opportunity shall be given to the applicant to amend the time-table so as to conform to the said provisions. (3) A Regional Transport Authority may, having regard to the matters mentioned 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 on any specified area or on any specified route within the region.";