- (1.) SUB-SECTION (1) of Section 44, in chapter IV of the Motor Vehicles Act (hereinafter referred to as the Act), dealing with the constitution of transport Authorities, reads as hereinbelow quoted : "section 44 (1): The State government shall, by notification in the Official Gazette, constitute for the State, a State Transport authority to exercise and discharge the powers and functions specified in sub-section (3), and shall in like manner constitute Regional transport Authorities to exercise and discharge throughout such areas (in this Chapter referred to as regions) as may be specified in the notification, in respect of each regional Transport Authority, the powers and functions conferred by or under this Chapter on such Au thorities ; provided that in Part C States the State Government may abstain from constituting any Regional transport Authority ; provided further that the area specified as the region of a regional Transport Authority shall in no case be less than an entire district, or the whole area of a presidency town. " Section 45 of the Act, dealing with 'general provisions as to applications for permits," reads as follows : "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: provided that if it is proposed to use the vehicle or vehicles in two or more regions lying within the same State, the applicaion shall be made to the Regional Transport authority of the region in which the major portion of the proposed route or area lies, and in case the portion of the proposed route or area in each of the regions is approximately equal, to the Regional transport Authority of the region in which it is proposed to keep the vehicle or vehicles. Provided further that if it is proposed to use the vehicle or vehicles in two or more regions lying in different States, the application shall be made to the Regional transport Authority of the region in which the applicant resides or has his principal place of business. " Sections 46 to 48, in Chapter IV, respectively deal with applications for stage carriage permits, procedure in considering applications for stage carriage permit, the power to restrict the number of stage carriages and imposition of conditions on such permits. Sections 49 to 51, Sections 52 to 53, and sections 54 a 56 deal respectively with similar matters concerning contract carriage permit, private carrier's permit and public carrier's permit. Section 57, inter alia, contains provisions for grant of permits by the Regional Transport authority. I need remind myself of the provisions contained in sub-sections (2) to (7) of section 57, which deal with the procedure for grant or refusal of stage carriage permits, namely, (2) "an application for a stage carriage permit or a public carder'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 Auhority 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 representations in connection 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 representations 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 on 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 sub-section (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. (4) No representation in connection with -an application referred to in sub-section (3) shall be considered by the Regional transport Authority unless it is made in writing before the appointed date and unless a copy thereof is furnished simultaneously to the applicant by the person making such representation. (5) When any representation such as is referred to in sub-section (3) is made, the Regional transport Authority shall dispose of the application at a public hearing at which the applicant and the person making the representation shall have an opportunity of being heard either in person or by a duly authorised representative. (6) When any representation has been made by the persons or authorities referred to in section 50 to the effect that the number of contract carriages for which permits have already been granted in any region or any area within a region is sufficient for or in excess of the needs of the region or of such area, whether such representation is made in connection with a particular application for the grant of a contract carriage permit or otherwise, the Regional Transport authority may take any such steps as it considers appropriate for the hearing of the representation in the presence of any persons likely to to be affected thereby. (7) When a Regiosal Transport authority refuses an application for a permit of any kind, it shall give to the applicant in writing its reasons for the refusal. " i need not concern myself with the other provisions in the said Chapter, dealing inter alia, with duration and renewal of permits, general conditions of permit, general forms of permits cancellation and suspension of permits transfer of permits, temporary permits, inter-State Transport Commission, appeals, Revisions and the like.
(2.) THE scheme of Chapter IV is such that it makes Regional Transport authorities masters in the matter of grant of carriage permit in their respective regions, The powers of regional Transport Authorities are, however, subordinate to the provisions of chapter IVA of the Act, which make special "provisions relating to State transport Undertakings with the object of nationalising transport services, carrying passengers or goods or both, by road in motor vehicles, for hire or reward. Clause (b) of Section 68a, in chapter IVA, defines a "state transport Undertaking" as follows : (b) "state Transport undertaking" means any undertaking providing road transport service, where such undertaking is carried on by,- (i) the Central Government or a State Government; (ii) any Road Transport corporation established under Section 3 of the Road Transport Corpora tions Act, 1950 ; (iii) the Delhi Road Transport authority established under section 3 of the Delhi Road Transport authority Act, 1950 ; (iv) any municipality or any corporation or company owned or controlled by the State government. " It is not disputed that the respondent No. 2, The North Bengal State transport Corporation, is such an undertaking. Section 68c, in Chapter iva, reads as follows : "where any State Transport undertaking is of opinion that for the purpose of providing an efficient, adequate, economical and properly co-ordinated road transport service, it is necessary in the public interest that road transport services in general or any particular class of such service in relation to any area or route or portion thereof should be run and operated by the State Transport Undertaking, whether to the exclusion, complete or partial, of other persons, or othewise, the State Transport undertaking may prepare a scheme giving particulars of the nature of the services proposed to be rendered, the area or route proposed to be covered and such other particulars respecting thereto as may be prescribed, and shall cause every such scheme to be published in the Official Gazette and also in such other manner as the State government may direct. " Section 68d provides for objections to such schemes by persons affected, consideration of objections and approval, modification and publication of schemes. Section 68f further provides as follows: " (1) Where, in pursuance of an approved scheme, any State transport undertaking applies in the manner specified in Chapter IV for a stage carriage permit or a public carrier's permit or a contract carriage permit in respect of a notifified area or notified route, the regional Transport Authority shall issue such permit to the State transport Undertaking, notwithstanding anything to the contrary contained in Chapter IV. (2) For the purpose of giving effect to the approved scheme in respect of a notified area or notified route, the Regional Transport authority may, by order,- (a) refuse to entertain any application for the renewal of any other permit; (b) cancel any existing permit ; (c) modify the terms of any existing permit so as to- (i) render the permit ineffective beyond a specified date; (ii) reduce the number of vehicles authrised to be used under the permit; (iii) curtail the area or route covered by the permit in so far as such permit relates to the notified area or notified route. (3) For the removal of doubts, it is hereby declared that no appeal shall lie against any action taken, (or order passed, by the Regional transport Authority under subsection (1) or sub-section (2 ). " The provisions of Chapter IVA have overriding effect, as will appear from Section 68b, which I quote hereinbelow: 68b. The provisions of this chapter and the rules and orders made thereunder shall have effect notwithstanding anything inconsistant therewith contained in chapter IV of this Act or in any other law for the time being in force or in any instrument having effect by virtue of any such law. "
(3.) KEEPING in view the above provisions of law I need consider the points raised in this Rule.;