High CourtDivision BenchAppeals allowed

Ashutosh Swain v. State Transport Authority

Case / Petition Number:C.A. Nos. 2498-2500 of 1978
Neutral Citation:1985 SCR 3

Case Details & Bench

Court
High Court
Hon'ble Judges
  • D. A. Desai
  • Amarendra Nath Sen
Judgment Date
1985-03-01
Court Decision / Holding
Appeals allowed. The judgment of the High Court is quashed and set aside, and the State Transport Authority's grant of all-India tourist permits to the appellants is restored.
Final Disposition
Appeals allowed

Parties to the Case

Appellants / Petitioners

  • Ashutosh Swain and others

Respondents

  • State Transport Authority, Orissa
  • and Others

Legal Representation & Advocates

Counsels for Petitioners

  • • Shanti Bhushan
  • • P. V. Misra

Counsels for Respondents

  • • L. N. Sinha
  • • R. K. Mehta
  • • A. P. Mohanty

Case Synopsis & Summary

This Supreme Court decision concerns three writ petitions challenging the grant of all-India tourist permits by the State Transport Authority, Orissa. Following an advertisement in 1974, the STA granted all-India tourist permits to some applicants, while others were rejected; the High Court of Orissa quashed these grants. The core legal issue was whether a pre-existing contract carriage permit was a prerequisite to obtain an all-India tourist permit. The Court explains that all-India permits, created by Section 63(7) of the Motor Vehicles Act, 1939 with Amending Act 56 of 1969 (effective Oct 1, 1970), enable the holder to ply a vehicle throughout India and are, in substance, contract carriage permits with a wider radius. The Court holds that an applicant for an all-India tourist permit need not hold a pre-existing contract carriage permit, and that the endorsing-only rules under the 1967 Orissa Rules were not applicable to these proceedings since the all-India scheme operates independently under the statute. The decision emphasizes that the all-India permit is granted by the State Transport Authority under Section 63(7) and processed under Sections 49-61, with no mandatory prerequisite endorsement. Consequently, the appeals are allowed, the High Court’s judgment is set aside, and the STA’s grant of permits is restored.

Provisions of Law Cited

Motor Vehicles Act, 1939 – sections 49, 50, 51, 57, 58, 59, 60, 61, 63(7), 64Section 63(7) – empowerment to grant all-India tourist permitsSection 63 – general framework for permitsSections 49, 50, 51, 57, 58, 59, 60, 61, 64 – procedure and conditions for permitsSection 2(33) – definition of 'transport vehicle'Section 2(25) – definition of 'Public service vehicle'Section 2(29A) – definition of 'tourist vehicle'Orissa Tourist Vehicles Rules, 1967 – Rule 3(2), Rule 3(3), Rule 3(4)Amending Act 56 of 1969 – introduction of all-India tourist permit concept

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that the High Court erred in holding that a pre-existing contract carriage permit was a prerequisite for applying for an all-India tourist permit. They emphasized that sub-section (7) of Section 63 and the 1974 STA advertisement create a distinct all-India permit regime that does not require endorsement by other authorities. The 1967 Rules on endorsements were not applicable to all-India permits, as all-India permits were introduced later and designed to facilitate tourism by removing barriers to cross-state operation. The form issued allowed fresh applicants to seek a contract carriage permit with an all-India operation, or for existing permit holders to seek expansion; blanks in forms were not a bar to eligibility. The appellants contended that the advertisements and the statutory scheme underpin a grant of all-India permits through the STA under Section 63(7), independent of pre-existing permits.

Contentions of Respondents

The respondents defended the High Court’s view by arguing that all-India tourist permits are contract carriage permits requiring alignment with Sections 49-61 and endorsements under traditional rules. They asserted that the changes in law (Section 63(7) and 1969 amendments) should be read with the existing endorsement framework, and that the 1967 Rules and schedule forms reflected the older practice of enlarging operation through endorsements rather than granting a stand-alone all-India permit. They maintained that procedural requirements, including the need for a contract carriage permit or its equivalent, could not be bypassed and that the High Court correctly applied the relevant rules to the endorsement process.

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Extracted Judgment Text

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A B ##### c D E F G #### u .... I ASHUTOSH SWAIN ETC. ETC. _v •_ STATE TRANSPORT AUTHORITY & ORS. _March_ _J,_ _1985_ (D. A. DESAI AND AMARENDRA NATH SEN, _11.J_ _All-India. Ptrmlt.J, concept_ _of-Whether_ _the holder_ _of_ _an existing_ _contract carrlilge permit alone_ _Is_ _eligible to mllke an_ _appfl1at/on for_ _entlorse-_ _ment of his existing permit enabling the permit holder_ _to_ _p/7_ _a tourist rehlcle_ _on all-India operation and not new applicants for the co11trtUl·c•rriare 1ermlt.J_ _-Orlssa Tourist Vdi</<1_ _Ru/•,_ _1967, Rule 3 (2),_ (3) _and_ (-t) _appllcabillty_ _•f_ _-Motor_ _Vehlcle.1_ _A61,_ _19J9 section_ _63_ (7) _as_ _Introduced b7 amendlnz Act_ _S6_ _af_ _1969 with_ _effect from_ _1st October,_ _1970 read with sections 1_ (2$), _2_ _(29-A),_ _2_ _(33),_ _49,_ _50, 51,_ _57, 58,_ _S9,_ _60,_ _61_ _and 63_ (7), _scope of_ In response to an advertisement Oated 25th June, _1914_ issued by the State Transport Aotbority, Orissa inviting as:iptications in the prescribed forms, from the operators for all-India Tourist Permit. a number of intending operators including the appellants submitted their applications and at the meeting held on February 2, _191S,_ the State Transport Authority granted to the appellants all-India Tourist Permits for omnibus with passenger capacity not exceeding 29. Some of the applicants who failed to obtain a permit filed three appeals being M. V. Appeals Nos. _15,_ 16 and 17 a11 or. 1975 to the State Transport Appellate Tribunal under !ICC. 64 (2) of the Motor Vehicles Act, 1939. The Appellate Tribunal di!!!mi!!ISC(I a11 the appeals and confirmed the order made by the State Tran!port Authority granting all-India tourist permits to the appellants. Three uosuccessful appHcants for permit filed three writ petitions styled as C.J.C. No. 381, 182 and 881, al1 of 1976 questionina- the correctness of the order a:ranting the permit and dismissal of their appeals in the High Court of Orissa. A Division Bench of the High Court, by a common judgment, a II owed all the three writ petition• quashing and setting aside the order of the State Transport Authority. Cor.scquentJy, these appellants surrendered their permits. Hence these three appeala by special leave. During the pendcncy of the11e appeals, the appellants were granted temporary all·India tourist permits in compliance with tha interim orders ma,'e by the Court, Allowing tho appeals, the Covrt 2 SUPRBMJ! COURT REPORTS (1985) 3 S.C.R. A HELD : 1.1 It was not necessary that the applicants for an all-India tourist permit must have a pre-existing contract carriage permit which could could be endorsed so as to convert it into all·lndia tourist permit. [1 IB-C] ###, B ##### c 0 E F G H 1.2 By introducing sub.section 7 in section 63 of the Motor Vehicles Act the concept of all-India permit to be granted by a State Transport Authority of a State within tbC limits of the qaota prescribed by the Central Government which would enable the holder of the permit to operate in the whole of India, was introduced, for the first time with effect from Ist October, 1970. The underlying object for creating this new class of permit was to promote tourism and to remove the barrier caused by the earlier f.ystem under which if a tourist vehicle is hired by a tourist party for n1oving from State to State, the vehicle cannot be taken to another State from the place of commencement of journey unless a valid contract carriage permit of that State is obtained or the existing permit is counter-signed. (60°H, 7A·B] 1.3 An application for an all-India tourist permit bas to be processed in accordance with the provisions of sections _49,_ _SO,_ $1; 57, _38, 59,_ 60, 61 and 63 (7). An all-India tourist permit is primarily a contract carriage permit but while the ordinary contract carriage permit can be granted by the Regional Transport Authority, for operation within local jurisdiction, or when counter-signed by Regional Transport Authority of adjacent area in more than one such jurisdiction but not at any rate outside the State and not in any case on an all-India basis. To this e'liteot, an ordinary contract carriage permit differs from an all-India tourist permit but an all-India tourist permit is none-the-less a contract carriage permit. Sub~section (7) of section 63 on the other hand confers power on the State Transport Authority to grant an all· India tourist permit which in effect is a contract carriage permit but which permits plying of tourist vehicle throughout India. Even for obtaining such a permit; section _51_ will apply with this modifica .. tion that the application for aJl .. India tourist permit has to be made to State Transport Auth Jrity of the State in which their permit is sought. This scheme of Jaw nowhere expressly or by necessary implicat.~on suggests that an applicant for an all~India totirist permit must of necessity or as a prerequisite have a contract carriage permit which alone can be endorsed for the purpose of a11-Iadia operation. Sub-section (7) of section 63 if read thus would render nugatory the affirmative provision that on a proper application being made and legally processed, the State Transport Authority can grant an all .. Jodia tourist permit. [6D1 7E-H, SC-D] 1.4 The fact that an application for an all-India tourist permit bas to be made under section 49 which prescribes procedure for obtaining a contract carriage permit, because in substance an all-India tourist permit is none-the-less a contract carriage permit but with a much wider area of operation, however, does not permit an inference that before obtaiaing an all·lndia tourist permit, the intending operator must obtain a contract carrjage permit from the Regional Traasport Authority and then get it endorsed from the State Transport Authority to make it valid for the whole or any part of India, Sub.section (7) of section 63 does not spea~ of any ASHUTOSH SWAIN·- STATE TPT. AUTHORITY _(Desai,_ J.) 3 endorsement on permit, though endorsement may be another mode or _A_ enlarging the atca or operation. It speaks of granting a permit valid for the whole or any part' of India when granted by a St8te Transport Authority in -exercise of. the power conferred by sub-section (7) of section 63 without any further endorsement of any other authority. [aE-H] _.>,-_ ' 2. Sub-Rules (2), (3) and (4) of Rule 3 of the Orissa T0urist Vehi· cles Rules, 1967 had absolutely no application to the proceedings of the State Transport Authority held for consideration of applications for allIndia Tourist Permit and granting them to the appellants. Those Rules were enacted in the Year 1967 in exercise of the power conferred by section 68 of the Motor Vehicles Act, 1939.and were brought into operation on 19/20 June, 1967. These rules were made at a time when the only way to enlarge the area or operation in respect of a permit was by· endorsement by various authorities on tho original permit granted by a Transpor't Authority. AIJ.Jndia tourist permit was not conceptualised by the time 19d7 Rules were framed. Therefore, the rules at the relevant time catered to a situ· ation when the area of operation specified in a contract carriage permit could be enlarged by endorsement by authority other than tho grantor only. [9F-H; IOA] 3. The applications of the appellants with all relevant information were complete and the blanks in their application forms were irrelevant. In the advertisement issued by the State Transport Authority on JUne 24, 1_974 inviting applications for permits in respect of omnibus authorising it to ply as an all-India tourist vehicle in the prescribed forms, two prescribed forms were anneXed. The first form was meant 'for those who had no existing contract carriage permit and were applying straightaway for the first time for an all-India tourist permit. The form itself shows that the application had to be made to the State Transport Authority for a contract carriage permit"with an all·India operation. There was another form which catered to the needs of the holder of the existing contract carriage pormits who wanted the area of operation to be enlarged by converting an ordinary contract carriage permit into all.Jndia tourist permit. For a fresh appli· cant like the appe11ants who had no existing contract carriage permit, therefore, the blanks could not have been filled in. f!OF·H; I IA] CtVIL APPELLATE JURISDICTION: Civil Appenls Nos. 2498-2500 of 1978. From the Judgment and Order dated 15th November, 1978 of the High Court of Orissa at Cuttack in O.T C. No. 381: 182 and 881 of 1976. _Shanti Bhushan_ and _P ._ . V. _Misra_ for the appellants. _L. N. Sinha,_ _R. K. Mehta_ and _A. P. Mohanty,_ for the Respondents. B ## _c_ D E G B ##### c D E F G . .. ' SUPREME COURT REPORTS (1985) 3 S.C .R The Judgment of the Court was delivered by ###### ' DESAI, J. These three appeals are directed against the common judgment rendered by the High Court of Orissa at Cuttack in three writ petitions styled as C.J.C. No. 381, 182 and 881, all of 1976 moved by the appellants in these appeals. A common question of law permeates these three appeals and therefore, factual matrix will be extracted from C. A. No. 2499/78 filed by one Mr. Ashutosh Swain as representative of the facts necessary for disposal of these appeals.· State Transport Authority, Orissa issued an advertisement dated June 24, 1974 inviting applications in the prescribed form for endorsement in the permit of the motor cabs or omnibuses enabling the· holders of the permit to ply the vehicle as a tou1ist vehicle with all-India operation. In other words, applications were invited from the operators for all-India tourist permit. The last date for recei· ving the applications was July 13, 1974 In response to the adver· tisement number of intending operators including the appellants in these appeals submitted their applications for grant of all-India tourist permit to the concerned authority within time. The State Transport Authority processed these applications and disposed of the applications at its meeting held on Feb. 2, !975. The appellants herein were granted all-India tourist permits for omnibus with' passenger capacity not exceeding 29. Some of the applicants who failed to obtain a permit filed three appeals being M. V. Appeals Nos. 15, 16 and 17, all of 1975 to the State Transport Appellate Tribunal(' Appellate Tribunal' for short) under Sec. 64 (2) of the Motor Vehicles Act, 1939 I Act for short). The Appellate Tribunal dismissed all the appeals and confirmed the order made by the State Transport Authority granting all-India tourist permits to the appellants .. Thtee writ petitions came to be filed by three unsuccessful applida~ts for permit questioning the correctnes' of the order gran· ting the permit and dismissal of their appeals A Division Bench of the High Court by a common judgment allowed all the three writ petitions quashing and setting aside the order of the State Transport Appellate Tribunal as well as the State Transport Authority. Consequently, these appellants surrendered their permits. Hence these three appeals by •pecial leave. During th~ pendency of these appeals, appellants were granted temporary all-India tourist p'ermits in compliance with the interim orders made by this Court. _!·_ l ~.· ~, \ ##### • The scheme of the Motor Vehicles Act forbids 'an owner .of a transport vehicle to use or permit the use of a vehicle in any· public place (whether or not such vehicle is actually carrying any 'passeng~r or goods) save in accordance with the conditions of a permit granted or countersigned by ·the authority therein mentioned. aut.ltorising,,t6e use of the vehicle in the place and in the manner ·in which the vehicle is to be used. The expression 'transport vehicle; is defined in Sec. 2 (33) of the Act to mean 'a public service vehicle or ~ g~ods vehicle'. 'Public service vehicle' is defined in Sec. 2 (25) . of the Act to mean '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'. - Thus the scheme of the Act envisages three kinds of permits in respect of a public · t ervice vehicle, namely, permit for the use of motor cab or a permit to' ilse an omnibus for contract carriage or a permit to use .the .same as· a stage carriage. Sec. 46 provides for application to be. '·made f~r stage carriage permit. The holder of a stage carriage permit 'can use the vehicle to carry passengers for hire or reward at separate fares paid by or for individual passengers; either for the who.le journey or for stages of the journey. The second kind of perrnii in respect of a public senice vehicle is the one contemplated by Sec. 49 and styled as 'contract carriage permit.' A vehicle In respect of which there is a contract carriage permit can be used for carrying passengers for hire or reward under a contract· express or implied for the use of the vehicle as a whole at or for a fixed or agreed rate Ai!HllTOSH SWAIN _v._ STAtB TPT. AUTHORITY _(Dasai,_ J.) _5_ Mr. Shanti Bhushan, learned counsel who led o.n. behalf of '· A the appellants urged that the High Court erred in holding that only the holder of an existing contract carriage permit alone was eligible to make an application for endorsement of his existing per~it enabling the permit holder to ply a tourist vehicle on all-India operation, and consequently quashing the all-India tourist permits granted to the appellants on the sole ground that the appellants did B not have or hold existing contract carriage permit. ·It was next contended that the High Court was further in error in holding that ###### th.e applications made by the appellants were incomplete as some of, . the columns were found blank. It was further submitted that the High Court was in error in relying upon sub-rule~ (2); (3) and t4) of Rule 3 of the Orissa Tourist Vehicles Rules, 1967 (1967 Rules .. C for short) because the concept of all-India tourist permit 'received for the first time a legal format on the introduction of sub-s. (7) in Sec. 63 of the Act by Amending Act 56 of· 1969 which c~me . into force on October I, 1970; E F G ; H ###### sbi>illlME ooutrr alli>oars h98SJ 3 S.C.R. A B ###### c D E F G H of sum-(i) on a time basis whether or not with reference to any route or distance, or (ii) from one point to another, and in either case without stopping to pick up, or set down along the line of route passengers not included in the contract, and includes a motor cab notwithstanding that the passengers may pay separate fare8. By the Amending Act _56_ of 1969, a concept of a tourist permit for a tourist vehicle was introduced in the Act. 'Tourist vehicle' is defined in Sec. 2 (29A) to mean 'a contract carriage constructed or adapted and' equipped and maintained in accordance with such specification as the State Government may, by notification in the Official Gazette, specify in that behalf'. By the same Amending Act, sub.s. (7) of Sec. 63 was introduced enabling State Transport Authority of any State to grant permits valid for the whole or any part of India, in respect of such number of tourist vehicles as the Central Government may, in respect of that State, specify in this behalf, and such applicalions have to be dealt with according to the provisions of Sections 49, 50, 51, 57, 58, _59,_ 59-A, 60, 61 and 64. Section 44 confers power on the State Government to set up such transport authorities in the State being State Transport Authority and Regional Transport Authority. The State Transport Authority will have its jurisdiction over the whole State and the State will be divided into various regions in respect of which a Regional Transport Authority, will be specified. Any one desiring to obtain either a stage carriage permit or a contract carriage permit has to apply to the Regional Transport Authority in whose jurisdiction the vehicle is sought to be operated. Sec. 63 provides that permit granted by the- Regional Transport Authority of any region, shall not be valid in any other region unless the permit has been counter-signed by the Regional Transport Authority of that region and a permit granted in one ### • State shall not be valid in any other State unless c:ounter-signed by the State Transport Authority of that other State or by the Regional Transport Authority concerned. This scheme of law would manifestly reveal that a permit without the necessary countersignatures as hcreinabove indicated, enabling the permit-holder to have the whole of India as its area of operation was unknown to the Act. By introduction of sub-sec. (7) in Sec. 63, the concept of a permit to be granted by a State Transport Authority of a State within the limits of the quota prescribed by the Central Government which would enable the holde• of the permit to operate in the whole of India, was introduced. For the sake of brevity, this pe•mit is described as all-India tourist permit. AsHtiTOSH SWAIN _v._ STATE **ri>r.** AUTiiOlUTY _(Desai,_ _**J.)**_ . 7 Sub-sec. (7) of Sec. 63 provides that for obtaining such a permit as envisaged therein which . enables the holder of such a permit to ply vehicle as a tourist vehicle in the whole of India has to make an application to the State Transport Authority constituted for the State under Sec. 44. The underlying object for creating this new class of permit was to promote tourism. If a tourist vehicle is hired by a tourist party for moving from State to State, the vehfole cannot be taken to another State from the place of commencement of journey unless a valid contract carriage permit of that State is obtained or the existing permit is counter-signed. This would impede tourism causing inconvenience to the tourists. To remove this barrier, Parliament introduced sub-sec. (7) in Sec. 63 envisaging a new kind of permit to be granted by the State Transport Authority of the State within the prescribed quota which would enable the holder of the permit to ply the tourist vehicle in the whole or any part of India. The impediment in the free flow of tourist traffic was sought to be suitably removed by this provision. Sub-sec. (7) of Sec. 63 further provided that an application for · such a permit has to be made to the State Transport Authority from whom the permit is sought to be obtained. The State Transport Authority has to process the application in the manner prescribed in the sections set out in sub-s.(7), which amongst others includes Sec. 49. Sec. 49 provides for making an application for a contract carriage permit. Therefore, an all-India tourist permit is primarily a contract carriage permit but while the ordinary contract carriage permit can be granted by the Regional Transport Authority, for operation within local jurisdiction, or when countersigned by Regional Transport Authority of adjacent area in more than that one such ### jurisdiction but not at any rate outside the State and not in any . . . case on an all-India basis. To this extent, an ordinary contract c~rriage permit differs from an all.India tourist permit but an all-India tourist permit is none-the-less a contract carriage permit. Sec. _50_ prescribes the procedure for processing an application for contract carriage permit. Sec. 51 confers power on the Regional Transport Anthority . to grant contract carriage permit. Sub-s. (7) of Sec. 63 on the other hand confers power on the State Transport Authority to grant an all· India tourist permit which in effect is a contract carriage. permit bnt which permits plying of tourist vehicle throughout India. Even for obtaining such a permit, Sec. 51 will apply with this modification that the application for all-India tourist permit has to be made to State Transport Authority of the State in which the permit is sought. Such an application may be further **B** ###### c **D** E **F** **G** ##### " **H** **A** **B** ##### **c** **D** F G 8 SU~REME COURt Ri!l'ORTS (19851 3 s.c.ll. processed according to the provision contained in Sec. 57 which prescribes procedure for applying and granting permit. Sec. 58 prescribes duration of a permit and renewal of it. Sec. 59 sets out general conditions attaching to all permits. Sec. 59-A prescribes general form of permits. Sec. 60 confers power on the authority granting tho permit to cancel or suspend permits. Sec. 61 makes the permit heritable on the death of the holder and Sec. 64 provides for appeals against the orders of the Regional Transport Authority and the State Transport Authority. An Application for an all-India tourist permit has to be processed in accordance with provisions contained in sections set ont herein above. A resume or **tho** rolcvant proYisions and a brief outline or the Scheme of th• Act sheds light on the concept of an all-India tourist permit. ·This scheme oflaw nowhere expressly or by necessary implicatioa su;gests that an applicant for an all-India tourist permit must or necessity or as a pre-requisite have a contract carriage permit which alone can be endorsed for the purpose of all-India operation. Sub-s. (7) _of_ Sec. ''- if read thus would render nugatory the affirmative provision that on a proper application being made and legally processed, the State Tranport Authority can grant an all-India touri1t permit. If sub·s. (7) of Sec. 63 is read as interpreted by the High Court, one will have to redraft the section to read that the holder of a contract carriage permit may apply for an all-India tourist permit. There is no warrant for reading the section like this. Undoubtedly, an application for an all-India tourist permit has to be made under Sec. 49 which prescribes procedure for obtaining a contract carriage permit This ought to be so because in substance an all-India tourist permit is none-the·less a contract carriai:e permit but with a much wider area of operation. That however, does not permit an inference that before obtaining an allIndia tourist permit, the intending operator must obtain a contract carriage permit from the Regional Transport Authority and then get it endorsed from the State Transport Authority to make it valid . for the whole or any part of India. Sub·s. (7) of Sec. 63 does not speak of any endorsement on permit. It speaks of granting a permit. Endorsement may be another mode of enlarging the area of operation, But that is not contemplated by sub·s. (7) of Sec·. 63. It speaks of granting a permit valid for the whole or any part of india when granted by a State Transport Authority in exercise of the power conferred by Sub.sec. (7) of Sec. 63 without any further endorsement of any other authority. Therefore, with respect, the High Court was not right in observing that 'it is clear from the #### .. A **B** ##### c **D** F **G** **H** ###### _·v_ **·r·** ~-·. < ASHUTOSH SWAIN _v._ STATE TPT. AUTHOTiTY _(Desai,_ _j.)_ - g aforesaid provision of the rules and Schedule I that an holder of a permit issued in the State in relation to a motor cab or nn omnibus is only competent to apply to the State Transport Authority for endorsement on that permit to the effect that the vehicle to which the permit relates is a tourist vehicle.' There is nothing in sub-s. (7) of Sec. 63 to warrant this construction. The High Court unfortunately did not. look at the substantive provision enacted in sub-·s.' (7) of Sec. 63, did not analyse it to ascertain its width and content but merely referred to rules which would be presently shown to be not applicable and reached the· conclusion on the meaning of sub-s. (7) of Sec. 63 without reference to it. The High Court referred to sub. els. (2J, (3) and (4) of Rule 3 of 1967 Rules. Rule 3 confers power ·On the State Transport Authority to endorse any porn1it' granted in the **State** in relation to any motor cab or omnibus to the effect that the vehicle to which the permit relates is an all-India tourist vehicle. Sub-rule (2l provides that 'any person who holds **a** permit issued in the State **in** **relation to a motor cab** **or** **an omnibus may apply in the. forms** specified in Schedule I, to the State Transport Authority for an endorsement on the permit to the effect that the vehicle to which the permit relates is a tourist ~ehicle> Sub-rule (3) provides that an application under sub-rule (2) shall be made in the manner provided therein and within tlie time limit prescribed therein. Sub.rule' ( 4) provides for the procedure before granting the necessary endor. sement. Having referred to these three sub-rules, the High Court held that there must be a pre-existing contract carriage permit . granted in the State which alone can be endorsed subsequently as an all-India tourist permit. These rules were enacted in the year 1967 and were put into operation on !9/20 June, 1967. They were enacted in exercise of the power conferred by Sec. 68 of the Motor Vehicles Act. Sec. 68 confers powers on a State Government to make rules for the purpose of giving effect to the provisions of Chapter IV. These rules were made at a time when the only way to enlarge the area of operation in respect. of a permit was endorsement by various authorities on the original permit granted by a Transport Authority. All-India tourist permit was not conceptualised by the time 1967 Rules were framed. All-India tourist permit as contemplated by sub-s. (7) of Sec. 63 was not on the statute book at the time when these rules were enacted. Therefore, the rules at the relevant time caters to a situation when the area of operation A B ##### c D E F G ###### u ###### 1 () SUPREME COURT REPORTS f1985) 3 S.C.R. specified in a contract carriage permit could be enlarged by endorsement by authority other than the grantor. The concept of all-India tourist permit without any necessity of any endorsement by any authority save and except the grantor was then not known to law. In order te> avoid endorsements by various authorities so as to enlarge the area of operation of a contract carriage permit and with avowed object of facilitating unimpeded free flow of tourist traffic the concept of all-India tourist permit was introduced with effect ' from October 1, 1970. It also introduced a new type of vehicle specified as tourist vehicle. The aforementioned rules enacted in June 1967 when an all-India tourist permit not necessitating any endorsement save the grant of it by the State Transport Authority and the concept of a tourist vehicle were foreign to the Motor Vehicles Act cannot be held to apply unless a provision to that effect was made in the substantive enactment conferring power on the State Transport Authority to grant an all.India tourist permit which needs no endorsement for operation throughout India. One cannot read the concept of endorsement envisaged in the 1967 Rules in respect of a permit that can be granted as an all-India tourist permit under sub·s.(7) of Sec. 63 of the Act by insisting upon, as per the scheme of rules a pre-existing contract carriage permit which alone can be endorsed. Therefore the conclusion is inescapable that these rules were not at all attracted while considering the applications for all-India tourist permit made by the appellants under sub-s. (7) of Sec. 63. The High Court with respect fell into another error when it failed to take notice of the advertisement issued by the State Transport Authority on June 24, 1974 inviting applications for permits in respect of omnibus authorising it to ply as an all-India tourist vehicle in the prescribed form. Two prescribed forms were annexed to the advertisement. The High Court overlooked the first form and only took notice of the second form. The first form was meant for those who had no existing contract carriage permit and were applying straightway for the first time for an all-India tourist permit. The form itself shows that the application had to be made to the State Transport Authority for a contract carriage permit with an all-India operation. There was another form which catered to the needs of the holder of the existing contract ~arriage permits who wanted the area of operation to be enlarged by converting an ordinary contract carriage permit into all-India tourist permit. After referring to the second form, the High Court found fault with the applica **0** ASEIUToS11 SWAIN v. STATE **TPT.** AUTHORiTY _(Desai,_ **i.)** **11** tions made by the present appellants by observing that some of the columns were left blank. For a fresh applicant who had no existing contract carriage permit, the blanks could not have been filled in. This is another unfortUnate error in which the High Court fell while granting a writ of certiorari quashing the order under which permits were granted to the applicants. Having thus examined the various aspects which appealed to the High Court in reversing the decision granting all-India tourist permit to the appellants, we are of the opinion that none of them can be sustained. Fir;tly, it was not necessary that the applicants for an all-India tourist permit must have a pre-existing contract carriage permit which alone could be endorsed so as to convert it into an all-India tourist permit. Secondly, the applications of the appellants for all relevant information were complete and. the blanks were irrelevant and lastly sub-rules (2), (3) and (4) of Rule 3 had absolutely no application to the proceedings of the State Transport Authority held for consideration of applications . for all-India tourist permit and granting them to the appellants. These were the grounds on which the High Court reversed the decision of the State Transport Authority and the State Transport AppeUate Tribunal. But as these reasons are unsustainable, these appeals will have to be allowed. Accordingly these three appeals are allowed and the judgment of the High Court is quashed and set aside and the decision of the State Transport Authority granting all-India tourist permits to the appellants is restored. As the appellants surrendered' their all-India tourist permits, when they lost in the High Court and they plied their vehicles on temporary permits, it must be held that if the duration of the original permits has expired, they have to make a fresh appiication for all-India tourist permit but in that event they will be treated as appil· cations for renewal of all-India tourist permit as contemplated by Sec. 58_ of the Act and not as fresh applications under Sec. 63(7) read with Sec. 49. The appeals are accordingly allowed with no order as to costs. S.R. _Appeals allowed._ **A** **B** #### **c** **D** **E** **F** - G ~-