Daya Krishan Mahajan, J. - (1.) THIS petition is by two persons - -one is an owner of the rickshaw (Chaman Lal) and the other is a driver of the rickshaw (Tara Singh). They made applications for the grant of licences under Clause 2 of the Rickshaw Bye -laws, which were made by the Municipal Committee, Jullundur in exercise of the powers conferred on it by Sections 188 and 199 of the Punjab Municipal Act, 1911. The notification is dated the 17th of March, 1964, and was published in Part I -A, of the Punjab Government Gazette, dated the 27th of March, 1964. These bye -laws came into force on the 1st of July, 1964. The applications of the Petitioners were rejected under Clause 4. Clause 4 is in these terms: No fresh licence shall be issued after the enforcement of these bye -laws; provided that the existing licences may be renewed subject to the conditions mentioned in these bye -laws.
(2.) CLAUSE 5 fixes the maximum number of rickshaws which can be licensed within the limits of the municipality either for hire or for private use equivalent to the number of valid licences in operation in the municipality on the 31st day of March, 1964. The bye -laws contemplate that every year 10 per cent of the licences as prevalent on the 31st day of March, 1964, will be reduced. We are not here concerned with these provisions because the grievance of the Petitioners is that the Committee in law could not refuse to grant the Petitioners licences in case they satisfied the other requirements of the bye -laws. It is against this order that the present petition has been preferred under Articles 226 and 227 of the Constitution of India. The Learned Counsel for the Petitioners has raised the contention that Clause 4 is beyond the power of the Municipal Committee and is ultra wires Section 188 of the Punjab Municipal Act. The Learned Counsel for the Municipal Committee sought to justify the validity of the bye -laws by reference to Clauses (a), (b) and (p) of Section 188. These clauses so far as they are relevant for our purpose are set out below: 188. A Committee may, and shall, if so required by the State Government, by bye -law - - (a) render licences necessary for the proprietors or drivers of vehicles (other than motor vehicles), or animals kept or plying for hire within the limits of the municipality, and fix the fees payable for such licences and the conditions on which they are to be granted and may be revoked, and may by such conditions provide among other things for a minimum breadth for wheel tyres and for a minimum diameter of the wheels; (b) limit the rates which may be demanded for the hire of any carriage, cart, or other conveyance, or of animals hired to carry loads or persons, or for the services of persons hired to carry loads or to impel or carry such conveyances, and limit the loads which may be carried by any animal, or carriage, cart or other conveyance, plying for hire, within the limits of the municipality: ... ... ... (p) regulate or prohibit any description of traffic in the streets and provide for the reduction of noise caused thereby.
(3.) IT will be apparent from the plain reading of these Clauses that no power is given to the Municipal Committee by the statute to restrict the number of licences or to prohibit the grant thereof. It can only lay down the conditions for their grant. The Committee's power is to provide for the fees payable for such licences and the conditions on which the licences are to be granted, the conditions on which they may be revoked, and among other things provides for a minimum breadth for wheel tyres and for a minimum diameter of the wheels. The Committee can also limit the rates which may be demanded for hire of any carriage and the limit of the load to be carried. The Committee can also restrict the use of a vehicle on certain municipal roads, either wholly or during certain hours. If an owner of a vehicle complies with the requirements which are prerequisite to the grant of a licence, the Committee is bound to grant him the licence. The power to make bye -laws regarding licensing of motor vehicles is excluded, though there is the power under Clause (b) to fix the hire of such vehicles or the loads that such vehicles may carry. The provisions of Section 188 do not warrant the assumption which the Learned Counsel for the Municipal Committee wants us to make that the power to grant licences also implies the power to refuse licences. The power to refuse licenses can only be implied to the extent that a licence will only be granted if the conditions laid down under the validly framed bye -laws under Section 188 are complied with. In case there is non -compliance with the validly laid down conditions, a licence can be refused. If an Applicant for a licence of a vehicle complies with all those conditions, no option is left with the Municipal Committee, but to grant the licence.;