High Court of KeralaSingle JudgePartly allowed; quashing Clause (4) of Ext. P13...

C. Manoj Kumar v. Government of Kerala & Others

Case / Petition Number:WP(C).No.24320 of 2017
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
Judgment Date
2019-07-01
Court Decision / Holding
The writ petitions are partly allowed: Clause (4) of Ext. P13 (the modified scheme) is quashed, and the challenge to Ext. P12 (the amended rule) and the related notification is repelled. The decision is stated to be in terms of the law laid down in Saju Varkey’s case (2018 (4) KHC 617) and the Single Judge’s judgment in W.P.(C) No.11825 of 2017 and connected cases.
Final Disposition
Partly allowed; quashing Clause (4) of Ext. P13 scheme; repelling challenge to Ext. P12 notification and the amendment notified thereunder.

Parties to the Case

Appellants / Petitioners

  • C. Manoj Kumar

Respondents

  • Government of Kerala
  • Regional Transport Authority, Idukki
  • Secretary, Regional Transport Authority, Idukki
  • Kerala State Road Transport Corporation (KSRTC)

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri P. Deepak

Counsels for Respondents

  • • Sri P.C. Chacko, SC, KSRTC
  • • Sri Paul Abraham Vakkanal, Sr GP

Case Synopsis & Summary

The petitioner, C. Manoj Kumar, holder of a regular permit on the Adoor–Koottar route, challenges the Kerala Motor Vehicles (1st Amendment) Rules, 2017 (Ext. P3) and the Ext. P4 Gazette notification, contending that prescribing a maximum distance of 140 km for Ordinary Limited Stop Services (OLS) is ultra vires Sections 71, 80, 96 and 212 of the Motor Vehicles Act, 1988 and violative of Articles 14 and 19(1)(g) of the Constitution. Ext. P5 temporary permit and Ext. P9 G.O. are relied upon to show pre-existing rights to operate certain services; the petitioner seeks a writ of certiorari to quash Ext. P4. The court notes that the challenge to Exts. P3 and P4 has been discussed earlier in this Court in W.P.(C) No. 11825 of 2017 and related cases, and that the Division Bench in Kerala State Road Transport Corporation v. Saju Varkey (2018 (4) KHC 617) upheld that the scheme-modification process under Sections 99–102 of the MV Act requires transparency and fairness, and that private operators’ rights arising from Exts. P5/P9 are not wholly separable from Ext. P5. While the court acknowledges the State’s power to modify the scheme, it holds that the fixation of a 140 km distance for saved permits cannot stand. Consequently, the writ petitions are partly allowed: Clause (4) of Ext. P13 scheme is quashed, and the challenge to Ext. P12 notification and the amendment is repelled. The matter is disposed in light of the Saju Varkey line of authority and the natural justice principles invoked therein.

Provisions of Law Cited

Motor Vehicles Act, 1988 - Sections 87(1)(d)Motor Vehicles Act, 1988 - Sections 71, 80, 96, 212Motor Vehicles Act, 1988 - Sections 99, 100, 102Kerala Motor Vehicles Rules / KMV RulesRule 2(oa) of KMV RulesKerala Motor Vehicles (1st Amendment) Rules, 2017

Legal Doctrines & Maxims

  • Principles of natural justice
  • Transparency and fairness in scheme formulation
  • Pre-existing rights of private transport operators

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext. P3 (the Kerala MV Rules, 2017 amendment) prescribing a 140 km maximum distance for Ordinary Limited Stop Services is ultra vires and that Ext. P4 (23.03.2017 Gazette notification) is liable to be quashed. He argues that Ext. P5 scheme and Ext. P9 Government Order conferred private operators’ rights to operate certain services without distance restrictions, and that the State cannot alter the saved rights through the amended rules and scheme. The petitioner seeks protection of these existing rights and cancellation of the impugned amendments.

Contentions of Respondents

The respondents defend the amendments (Exts. P3 and P4) as valid exercises under MV Act provisions (Sections 99, 100, 102) and the associated KMV Rules to reform and regulate road transport services. They contend that pre-existing rights to operate under Ext. P5/P9 did not guarantee unlimited operation and that the statutory procedure ensures transparency and fairness; objections were considered as part of the modification process, and the State’s policy interest in efficient transport services justifies the amendments.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Kerala State Road Transport Corporation v. Saju Varkey and others2018 (4) KHC 617PositiveThe Division Bench’s judgment in the Saju Varkey case is cited as laying down the law on scheme formulation (Sections 99-102 MV Act) and fairness, which the present judgment follows.
W.P.(C) No.11825 of 2017W.P.(C) No.11825 of 2017PositiveThe Single Judge’s favorable decision to the petitioner in W.P.(C) No.11825 of 2017 is cited as supporting the petition’s position.
Kerala State Road Transport Corporation v. Saju Varkey and othersW.A.No.1098 of 2018PositiveThe Division Bench’s dismissal of KSRTC’s challenge in W.A.No.1098 of 2018 further supports the petition’s approach to the scheme reforms.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT** ## **THE HONOURABLE MR. JUSTICE ANIL K.NARENDRAN** **MONDAY, THE 01ST DAY OF JULY 2019 / 10TH ASHADHA, 1941 WP(C).No.24320 of 2017** ## **PETITIONER:** **C.MANOJ KUMAR, AGED 45 YEARS, S/O. CHANDRASEKHARAN NAIR, PUTHIYA VEEDU, VADACODE, KURA, KOTTARAKKARA. BY ADV. SRI.P.DEEPAK** ## **RESPONDENTS:** **1 GOVERNMENT OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF TRANSPORT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM - 695 001. 2 THE REGIONAL TRANSPORT AUTHORITY, IDUKKI - 685 603. 3 THE SECRETARY, REGIONAL TRANSPORT AUTHORITY, IDUKKI - 685 603. 4 THE KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS CHAIRMAN & MANAGING DIRECTOR, TRANSPORT BHAVAN, PATTOM, THIRUVANANTHAPURAM - 695 001. BY ADV. SRI.P.C.CHACKO, SC, KERALA STATE ROAD TRANSPORT CORPN. SRI. PAUL ABRAHAM VAKKANAL, SR GP.** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 WP(C)24320 OF 2017 ## **JUDGMENT** The petitioner is the holder of a regular permit on the route Adoor-Koottar, which was valid till 10.10.2011. The application for renewal of that permit is pending consideration. Ext.P1 is the temporary permit granted to the petitioner under Section 87(1)(d) of the Motor Vehicles Act, 1988 in respect of stage carriage bearing registration No.KL-24/D-3033, which was valid till 28.07.2017. The petitioner has filed this writ petition under Article 226 of the Constitution of India, seeking a declaration that the Kerala Motor Vehicles (1[st] Amendment) Rules, 2017, produced and marked as Ext.P3, to the extent it prescribes a maximum distance of 140 kilometers for Ordinary Limited Stop Service is ultra vires Sections 71, 80, 96 & 212 of the Motor Vehicles Act, 1988 apart from being in violation of Articles 14 and 19(1)(g) of the Constitution of India. The further relief sought for is a writ of certiorari to quash Ext.P4 notification dated 23.03.2017. 2. On 24.07.2017, when this writ petition came up for admission, this Court admitted the matter on file. The learned 3 WP(C)24320 OF 2017 Government Pleader took notice for respondents 1 to 3. The learned Standing Counsel took notice for the 4[th] respondent. The learned counsel for the petitioner submitted that the petitioner is operating services on the strength of temporary permit issued to him. This Court granted an interim order to the effect that if the petitioner is operating services on the basis of temporary permit, status quo as on that day shall be maintained and Ext.P5 application, filed by the petitioner for re-issue of temporary permit shall be considered, untrammeled by Ext.P4 notification. 3. Heard the learned counsel for the petitioner, the learned Government Pleader appearing for respondents 1 to 3 and also the learned Standing Counsel for KSRTC, representing the 4[th] respondent. 4. The issue raised in this Writ Petition as to the challenge made against Ext.P3 Gazette notification dated 15.03.2017 and Ext.P4 Gazette notification dated 23.03.2017 is covered in favour of the petitioner by the judgment of the learned Single Judge in W.P.(C) No.11825 of 2017 and connected cases. The challenge made against that judgment 4 WP(C)24320 OF 2017 by KSRTC ended in dismissal by the judgment dated 20.8.2018 in W.A.No.1098 of 2018 and connected cases, i.e., **Kerala State Road Transport Corporation v. Saju Varkey and others [2018 (4) KHC 617]** . Paragraphs 13 to 18 of the said judgment read thus: “13. On a consideration of the submissions made on this issue, we find that the law governing the formulation of schemes is to be found in Sections 99 and 100 of the Motor Vehicles Act. The said provisions mandate that, if the State Government is of the opinion that, for the purpose of providing efficient, adequate, economical and properly guaranteed road transport services in relation to any area or route or operation thereto, these road transport services should be run and operated by the STU’s to the exclusion, either complete or partial, of private stage carriage operators, a proposal in the official gazette shall be published as provided under Section 99 of the Act. Objections to the said proposal will be invited before the State Government under Section 100, and after considering the objections and after affording an opportunity to the objectors or their representatives, and the representatives of the STU, the State government may approve or modify such proposals. The same procedure is followed for the purposes of modifying an existing scheme, as seen from Section 102. 14. The provisions of Sections 99, 100 and 102 indicate 5 WP(C)24320 OF 2017 that the procedure to be followed, while introducing a scheme, or modifying an existing one, is one that is designed to ensure transparency and fairness in a matter involving pre-existing rights of private transport operators. It follows, therefore, that there cannot be any finalization of a scheme, which is different from the one that was proposed, and in respect of which objections were invited. The introduction of a restrictive element (in the instant case, the stipulation that the maximum distance limit would apply to the saved permits), while finalising a draft that did not contain such a stipulation has, therefore, to be seen as breaching the aforesaid statutory safeguard. A question arises, however, as to whether, in these cases, the petitioners had a pre-existing right, relatable to Ext.P5 scheme, to operate ordinary and OLS services without any restriction as regards distance? Although the learned counsel for the respondent KSRTC would vehemently contend that the said rights accrued to the private operators, not through Ext.P5 scheme, but only through Ext.P9 G.O., we are of the view that the rights/privileges granted to the petitioners through Ext.P9 G.O. cannot be seen as divorced from Ext.P5. 15. As already noted, Ext.P9 G.O. was issued in the wake of Ext.P7 scheme, that deprived private operators of their right to operate higher class of services in the State, and the rights granted through the G.O. were with a view to ameliorate their situation. The rights that they obtained, in respect of stage carriage operation, were pursuant to Ext.P5 scheme on notified routes and Ext.P9 G.O. for 6 WP(C)24320 OF 2017 operation in the State. The modification proposed by the State, through Ext.P10 notification, was with a view to incorporate their rights, as obtained through Ext.P9 G.O., in Ext.P5 Scheme, through the modification procedure under Section 102. It is in this backdrop that we have to consider the pre-existing rights of the private transport operators, prior to the modification process. 16. Thus viewed, the conclusion is inescapable that, Ext.P10 draft scheme proposed to retain the rights obtained by the private operators through Ext.P9 G.O, while modifying Ext.P5 Scheme, and while finalising the said draft scheme, the State Government could not have made the stipulation with regard to maximum distance applicable to the permits saved by Ext.P5 scheme. We therefore find in favour of the petitioners on the said issue and quash Clause (4) of Ext.P13 scheme that makes the maximum distance in Rule 2 (oa) of the KMV Rules applicable to the saved permits. _Re: Challenge to the amendment of the Rule_ 17. As regards the challenge in the writ petitions to the validity of the amendments brought about to the Kerala Motor Vehicle Rules through Ext.P12 notification, it needs to be noted that the contentions raised are more or less identical to those raised in respect of the challenge to the modified scheme. It is contended that, insofar as Rule 2 (oa), as amended, contained a stipulation of maximum distance of 140 km, in the definition of Ordinary Limited Stop Services, but this stipulation was not there in the draft Rule that was notified through Ext.P11 notification, 7 WP(C)24320 OF 2017 the principles of natural justice, as envisaged in the statutory procedure, had been breached, thereby vitiating the amendment and rendering it invalid. Although, at first blush, it appeared to us that the same reasons that led to the quashing of the impugned clause in the modified scheme would lead us to hold the amended Rule also as invalid, we find on a closer scrutiny, that the right to operate ordinary and OLS services, without distance restrictions, was one that accrued to private operators affected by Exts.P5 and P7 schemes, in terms of the said schemes, read with Ext.P9 G.O. In other words, there was no pre-existing right in the private operators, conferred under the MV Act and Rules, to operate an OLS service. 18. Such being the case, the draft amendment introduced, for the first time, a definition of Ordinary Limited Stop Service in the Rules. Although the definition contained in the draft notification did not stipulate a maximum distance, it is difficult to conceive of any objection that a private operator could have raised against the introduction of a new class of service for the first time. Similarly, the private operators could not have insisted that, the OLS service that was being introduced, had to be one without any stipulation as to maximum distance, for that would tantamount to dictating a policy to the State Government. Under the circumstances, we cannot accept the contention urged on behalf of the petitioners that, in introducing a stipulation as regards maximum distance, while finalising the draft Rules, the State Government had breached the statutory procedure. 8 WP(C)24320 OF 2017 We also note that, as a matter of fact the State Government did consider the objections raised with regard to the stipulation, in the draft Rule, that the vehicle used for the OLS service could not be older than ten years from the date of registration, and removed the said stipulation from the definition of OLS service while notifying the amended Rule. We therefore reject the challenge to the validity of the amendment, and to Ext.P12 notification that notified the same. The writ petitions are thus partly allowed, quashing clause (4) of Ext.P13 scheme, and repelling the challenge against Ext.P12 notification and the amendment notified thereunder.” (Underline supplied) In the result, this writ petition is disposed of in terms of the law laid down by the Division Bench of this Court in **Saju** ## **Varkey's case (supra)** _._ Sd/- **ANIL K. NARENDRAN JUDGE** **yd** 9 WP(C)24320 OF 2017 ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT P1 A TRUE COPY OF THE TEMPORARY PERMIT VALID TILL 28.07.2017. EXHIBIT P2 A TRUE COPY OF THE APPLICATION FOR REISSUE OF TEMPORARY PERMIT FILED ON 04.07.2017. EXHIBIT P3 A TRUE COPY OF THE NOTIFICATION NO: G.O(P) NO:6/2017/TRAN DATED 15.03.2017. EXHIBIT P4 TRUE COPY OF THE G.O(P) NO:8/2017/TRAN DATED 23.03.2017. EXHIBIT P5 A TRUE COPY OF THE INTERIM ORDER IN WPC NO.11825 OF 2017.** ## **RESPONDENT'S EXHIBITS:NIL** ## **TRUE COPY** **P.A. TO JUDGE**