High Court of KeralaSingle JudgePetition disposed of partly in terms of law lai...

Eldows S/O Thomas v. Government of Kerala & Others

Case / Petition Number:WP(C).No.27632 of 2017
Neutral Citation:/

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • ANIL K. NARENDRAN, J.
Judgment Date
2019-07-08
Court Decision / Holding
Writ petitions partly allowed. Clause (4) of Ext.P13 scheme quashed (the 140 km distance stipulation for saved permits). Challenge to Ext.P12 notification and the amended Rule is repelled to the extent that pre-existing rights to operate without restrictions do not exist; directions to consider renewal of the applicant’s permit if pending, with notice to KSRTC, within two months from certification of copy, and in accordance with law as laid down by the Division Bench (Saju Varkey) and the Single Judge (W.P.(C) No.11825 of 2017).
Final Disposition
Petition disposed of partly in terms of law laid down by the Division Bench in Saju Varkey’s case; directions to consider renewal of the applicant’s permit with notice to KSRTC within two months; the court quashes Clause (4) of Ext.P13; repels challenge to Ext.P12 to the extent discussed; final order subject to compliance with statutory procedure and two-month timeline.

Parties to the Case

Appellants / Petitioners

  • Eldows S/O Thomas, ChitteMalil House, Nellimattom P.O., Kavilanganad, Kothamangalam

Respondents

  • The Government of Kerala represented by the Secretary to Government, Ministry of Transport, Government Secretariat, Thiruvananthapuram
  • The Regional Transport Authority, Idukki represented by its Secretary
  • The Secretary, Regional Transport Authority, Idukki
  • The Kerala State Road Transport Corporation represented by its Chairman and Managing Director

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri G. Prabhakaran (Adv.)

Counsels for Respondents

  • • Sri P. C. Chacko, SC, KERALA STATE ROAD TRANSPORT CORPN.
  • • Sri P. Santhosh Kumar, SPL.GP

Case Synopsis & Summary

This writ petition challenges Ext.P3, a Gazette notification dated 15.03.2017 that fixed a maximum distance of 140 km for Ordinary Limited Stop Services (OLS) on the Ernakulam Kaloor Bus Stand – Devikulam route, while the petitioner’s regular permit renewal is pending and a four-month temporary permit on the same route exists under Section 87(1)(d) of the Motor Vehicles Act, 1988. The petitioner contends that Ext.P3importantly restricts the petitioner’s operating rights, seeking a writ of certiorari to quash the distance cap and a mandamus to reissue a four-month temporary permit to operate as continuation of Ext.P2 untrammeled by Ext.P3. The Court had earlier granted an interim order preserving status quo for those operating on the basis of temporary permits. The petitions invoke the statutory framework for scheme formulation under Sections 99, 100 and 102 of the MV Act, asserting that the State’s modification of schemes and rules (including the 140 km distance cap in the absorbed amendments) breached the required procedure and the pre-existing rights of private operators. The matter cites a binding Division Bench decision in Saju Varkey v. KSRTC (2018 (4) KHC 617) and a Single Judge decision in W.P.(C) No.11825 of 2017, guiding fair process and transparency in transport schemes. The court ultimately quashes the challenged clause (4) of Ext.P13, rejects a blanket challenge to Ext.P12, and disposes the writ petition partly, directing renewal consideration with notice to KSRTC within two months, while recognizing no absolute pre-existing right to operate without distance restrictions, and directing decisions strictly in accordance with the law already laid down.

Provisions of Law Cited

Motor Vehicles Act, 1988 – Section 87(1)(d)Motor Vehicles Act, 1988 – Sections 99, 100, 102Kerala Motor Vehicles Rules – Rule 2(oa)

Legal Doctrines & Maxims

  • Principles of natural justice
  • Transparency and fairness in the formulation and modification of transport schemes
  • Protection of pre-existing rights of private operators within statutory procedure

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends that Ext.P3’s 140 km maximum distance for Ordinary Limited Stop Services is an impermissible restriction on the petitioner’s private rights and on the continuation of the existing temporary permit. They rely on Ext.P5 scheme and Ext.P9 G.O. to demonstrate pre-existing rights to operate OLS and seek renewal of the permit or, in the alternative, a fresh temporary permit as a continuation of Ext.P2, arguing that due process under Sections 99-102 MV Act and the related rules should guide any modification of schemes. They urge the court to ensure transparency, and to protect the operator’s rights accrued through prior notifications and schemes.” ,

Contentions of Respondents

The respondents defend the 140 km cap and the amended rules as a valid policy measure aimed at ensuring efficient, economical, and properly guaranteed transport services. They argue that there is no pre-existing right under the MV Act and Rules to operate OLS without distance restrictions; the OLS is a new class introduced via draft rules and amendments, and the State followed the due statutory procedure, allowing objections under Sections 99 and 100 with modifications under Section 102. They contend that restricting distance does not breach natural justice because it was publicly notified, subject to objections, and the final policy is a product of the statutory process.

Cited Precedents (3)

Case NameCitationTreatmentExplanation
Kerala State Road Transport Corporation v. Saju Varkey and others2018 (4) KHC 617Positive relied upon to justify the need for transparent scheme formulation and to quash the 140 km maximum distance clause; the Division Bench’s decision is cited as controlling authority on pre-existing rights and procedure.
W.P.(C) No.11825 of 2017 and connected cases(no formal neutral citation provided)Positive cited as the Single Judge’s decision that covered the issue in favour of the petitioner, guiding the approach to the scheme and natural justice under MV Act sections 99-102.
Saju Varkey v. KSRTC2018 (4) KHC 617Positive referenced as the controlling Division Bench decision that informs the court’s approach to scheme alterations and private-right protection in this context.

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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 08TH DAY OF JULY 2019 / 17TH ASHADHA, 1941** ## **WP(C).No.27632 OF 2017(D)** ## **PETITIONER:** **ELDOWS, S/O.THOMAS, CHITTEMALIL HOUSE, NELLIMATTOM P.O., KAVALANGAD, KOTHAMANGALAM. BY ADV. SRI.G.PRABHAKARAN** ## **RESPONDENTS:** - **1 THE GOVERNMENT OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, MINISTRY OF TRANSPORT, GOVERNMENT SECRETARIAT, THIRUVANANTHAPURAM-695001.** - **2 THE REGIONAL TRANSPORT AUTHORITY, IDUKKI, REPRESENTED BY ITS SECRETARY-685602.** - **3 THE SECRETARY, REGIONAL TRANSPORT AUTHORITY, IDUKKI-685602.** - **4 THE KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR, TRANSPORT BHAVAN, PATTOM, THIRUVANANTHAPURAM-695001.** **R1, R4 BY ADV. SRI.P.C.CHACKO, SC, KERALA STATE ROAD TRANSPORT CORPN. SRI.P.SANTHOSH KUMAR, SPL.GP** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 08.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 WP(C)27632 OF 2017 ## **JUDGMENT** The petitioner is the holder of a regular permit on the route Ernakulam Kaloor Bus Stand - Devikulam, which had expired. The application for renewal of that permit is pending consideration. Ext.P2 is the temporary permit granted to the petitioner under under Section 87(1)(d) of the Motor Vehicles Act, 1988, in respect of stage carriage bearing registration No.KL-07/BU-2399, which was valid till 10.09.2017. The petitioner has filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P3 to the extent it prescribes a maximum distance of 140 kilometers for 'Ordinary Limited Stop Service'. The further relief sought for is a writ of mandamus commanding the 3[rd] respondent to re-issue four months temporary permit to the petitioner in respect of the stage carriage bearing registration No.KL-07/BU-2399 on the route Ernakulam Kaloor Bus Stand - Devikulam as limited stop ordinary service by considering Ext.P4 application to operate in continuation of Ext.P2 permit, untrammeled by Ext.P3. 2. On 22.08.2017, when this writ petition came up for 3 WP(C)27632 OF 2017 admission, this Court admitted the matter on file. The learned 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 reissue of temporary permit shall be considered, untrammeled by Ext.P3 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 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 by KSRTC ended in dismissal by the judgment dated 4 WP(C)27632 OF 2017 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 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 5 WP(C)27632 OF 2017 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 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 6 WP(C)27632 OF 2017 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, 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 7 WP(C)27632 OF 2017 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. 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 8 WP(C)27632 OF 2017 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) 5. 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)** and by directing consideration of the application for renewal of the regular permit, if pending consideration, with notice to Kerala State Road Transport Corporation, taking note of the law laid down by the Division Bench of this Court in the decision referred to supra. A decision in this regard shall be taken, strictly in accordance with law, as expeditiously as possible, at any rate within a period of two months from the date of receipt of a certified copy of this judgment. Sd/- **ANIL K. NARENDRAN JUDGE** **yd** 9 WP(C)27632 OF 2017 ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT P1 TRUE COPY OF THE NOTIFICATION VIDE NO.536/B2/2016/TRAN DATED 19/02/2016 ISSUED BY 1ST RESPONDENT.** **EXHIBIT P2 TRUE COPY OF THE TEMPORARY PERMIT WITH ITS NO.P.TEM.6/347/2017 DATED 18/04/2017. EXHIBIT P3 TRUE COPY OF THE NOTIFICATION VIDE G.O.(P)NO.06/2017/TRAN DATED 15/03/2017 (SRO NO.127/2017) ISSUED BY THE 1ST RESPONDENT.** **EXHIBIT P4 TRUE COPY OF THE APPLICATION FOR REISSUE OF FOUR MONTHS TEMPORARY PERMIT SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT DATED 14/08/2017.** **EXHIBIT P5 TRUE COPY OF THE CHELAN RECEIPT DATED 14/08/2017. EXHIBIT P6 TRUE COPY OF THE ORDER DATED 31/07/2017 IN WP(C)NO.25318/2017.** **RESPONDENT'S EXHIBITS:NIL** **TRUE COPY** **P.A. TO JUDGE**