U P STATE ROAD TRANSPORT CORPORATION Vs. STATE TRANSPORT TRIBUNAL U P LUCKNOW

JUDGEMENT

(1.) A learned single Judge of this Court has referred the following question to this Bench:

(2.) THE facts giving rise to this reference are necessary to be noted. Respondents Nos. 3 to 14 are private operators, they held stage carriage permits for providing road transport service on the route Muzaffarnagar-Saharanpur via Bamanheri-Deoband and Galgalheri. On the expiry of the period of their permits they made applications for renewal of their permits but the Regional Transport Authority rejected their application on the ground that a portion of the route lying between Muzaffarnagar- Bamanheri and Saharanpur-Galgalheri formed part of notified routes Muzaffarnagar-BareloBasera and Saharanpur-Hardwar via Chutmalpur and Galgalheri. Respondents Nos. 3 to 14 filed appeal against the order of the Regional Transport Authority. The State Transport Appellate Tribunal set aside the order of the Regional Transport Authority and renewed their permits with corridor restrictions for the overlapping portions of the notified routes. The corridor restrictions laid down a condition in the renewed permit to the effect that while plying their stage carriages on the Muzaffarnagar-Saharanpur route via Bamanheri and Galgalheri, respondents Nos. 3 to 14 shall not pick up or set down passengers on the notified portion of the route, namely, Muzaflarnagar-Bamanheri and Saharanpur-Golgolheri route. The U. P. State Road Transport Corporation (hereinafter referred to as the Corporation) filed writ petition in this Court challenging the orders of the State Transport Appellate Tribunal.

(3.) CHAPTER IV-A of the Motor Vehicles Act contains provisions for notifying a route or area and for cancellation or modification of existing permits. Section 68-C empowers the State Transport Undertaking to prepare and publish a scheme for providing road transport service for any area or route to the exclusion complete or partial, of other persons. The scheme becomes approved scheme after it is published under Section 68-D (3) and the area or the route to which it relates is called the notified area or notified route. Section 68-F (2) enumerates the consequences which follow the approval of a scheme and the Regional Transport Authority is directed to take steps for giving effect to the scheme in respect of the notified area or route. Clauses (a), (b) and (c) of Section 68-F (2) require the Regional Transport Authority to reject any application made for the grant and renewal of permit of private operator if it relates to a notified route or area and cancel or modify the permits of existing operators so as to curtail the area or the route covered by the permit in so far as the permit may relate to any overlapping portion of the notified area or route. Section 68-F (2) contemplates that the integrity of an approved scheme for providing road transport service by the State Transport Undertaking to the complete exclusion of private operators must be maintained and for that purpose no permit should be renewed and existing permits should be cancelled or, if necessary, the area of a route covered by the permit should be curtailed or modified. Section 68-F of the provisions contained in Chapter IV-A do not permit transport authorities constituted under the Act, to renew or grant any stage carriage permits to a private operator for providing road transport services on any notified route or portion thereof it the scheme is for exclusive operation of the services of the State Transport Undertaking on the notified route or portions thereof. Section 68-C contemplates two kinds of schemes, one providing total monopoly in favour of the State Transport Undertaking to the complete exclusion of private operators while the other class of scheme may provide for partial exclusion of private operators. If the scheme makes provision for exclusive operation of the State Road Transport Undertaking, no private operator is entitled to obtain permit or to provide road transport service on the notified route or portion thereof. But if the scheme makes provision for partial exclusion the private operators are not completely excluded, they may obtain permit to provide road transport service on the notified route or portion thereof in accordance with the terms and conditions laid down in the scheme.