High CourtDivision BenchCase remanded to STAT for de novo disposal with...

M. Naina Mohammed v. K. A. Natarajan & Others

Case / Petition Number:Civil Appeal No. 98 of 1975
Neutral Citation:[1976] 1 SCR 102

Case Details & Bench

Court
High Court
Hon'ble Judges
  • A. N. Ray
  • K. K. Mathew
  • V. R. Krishna Iyer
  • S. Fazal Ali
Judgment Date
1975-07-23
Court Decision / Holding
The Court remanded the case to the STAT for a de novo disposal, directing it to consider relevant public-interest factors under the Motor Vehicles Act (Section 4(1)) and to dispose of the appeal in accordance with law, guided by judicial precedents, while maintaining the status quo on the route pending disposal. Costs to be borne by both parties. The RTA may grant an additional permit if public interest warrants.
Final Disposition
Case remanded to STAT for de novo disposal with directions as stated above.

Parties to the Case

Appellants / Petitioners

  • M. Naina Mohammed

Respondents

  • K. A. Natarajan
  • Others

Legal Representation & Advocates

Counsels for Petitioners

  • • K. S. Ramamurthy

Counsels for Respondents

  • • M. K. Ramamurthy
  • • Vineet Kumar

Case Synopsis & Summary

This case concerns a permit for a Madurai–Paramakkudi bus route in Tamil Nadu. The Regional Transport Authority initially granted the appellant a permit, but the State Transport Appellate Tribunal (STAT) reversed that decision. The appellant challenged the STAT order in a writ petition under Article 226 of the Constitution before the Madras High Court. The High Court’s Single Judge re-examined the merits and, in effect, reversed the STAT’s award by granting the permit to the appellant. The respondent then appealed, and the Division Bench held that a full-scale re-appraisal of the merits by a writ court went beyond the jurisdiction of a single judge under Article 226, and thus set aside the Single Judge’s order, restoring the STAT decision in favor of the respondent. The Supreme Court, in a remand, held that the High Court’s Article 226 jurisdiction is supervisory in nature and cannot usurp merits-based determinations. It criticized both the Single Judge’s merits-based adjudication and the Division Bench’s brief, inadequate justification, noting that extraneous considerations and non-pertinent material had been used in the STAT’s determination. The Court ordered remand to STAT for de novo disposal, directing consideration of public-interest factors under the Motor Vehicles Act (Section 4(1)) and maintaining status quo on the route until disposal, with costs to be borne by both sides and leave to grant an additional bus if warranted by public interest.

Provisions of Law Cited

Constitution of India, Art. 226Motor Vehicles Act, Section 4(1)

Legal Doctrines & Maxims

  • Judicial review under Article 226 is supervisory in nature and should not substitute for merits-based determinations; writ jurisdiction is limited to issues of legality and procedural propriety, not re-evaluation on merits.\nOn writ review, the court’s power is limited compared to appellate review; extraneous considerations must not influence the decision.\nPublic interest under the Motor Vehicles Act can guide the disposal of permit matters but does not permit merits-based reappraisal by the writ court.

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellant contends that the High Court’s Single Judge properly evaluated the merits and that the Division Bench exceeded its jurisdiction by reappraising those merits. It is urged that the writ court should have permitted the STAT’s assessment to stand or remanded for a more limited review, rather than a full merits reconsideration. The appellant emphasizes that the Division Bench’s terse order did not justify the reversal of the Single Judge and the restoration of the STAT decision.

Contentions of Respondents

The respondents contend that the Division Bench correctly held that a writ court should not conduct a full merits reappraisal under Article 226. They argue that extraneous factors entered into the STAT’s evaluation, and that a de novo merits-based decision is more properly left to the statutory tribunal (STAT) in light of public-interest considerations under the Motor Vehicles Act.

Cited Precedents (1)

Case NameCitationTreatmentExplanation
Rama Vilas Service (P) Ltd. v. C. Chandrasekharan[1964] 5 S.C.R. 869PositiveCited as authority for the proposition that the High Court’s jurisdiction under Article 226 is supervisory in nature and should not automatically extend to merits-based reappraisal.

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Extracted Judgment Text

Exact text extracted from official judgment records.

# / 102 M. NAINA MOHAMMED _v._ K. A. NATARAJAN & OTHERS _July_ 23, 1975 [A. N. RAY, C.J., K. K. MATHEW, V. R. KRISHNA IYER AND S. M. FAzAL ALI, JJ.] B _Constitution of lndia, Art. 226--Jurisdiction_ _of_ _High_ _Court-Scope_ _of._ The Regiona·l Transport Authority gran·ed a permit to the appellant but thi-; decision was reversed by the State Transport Appellate Tribunal. In a petition under Art. 226 of the Cons itution a single Judge of the .High Court, on an examination of the merits of the case, reversed the view of the State 1"ransport Appellate Tribunal. On appeal, a Division Bench of the High Court held that a full scale reappraisal of the points was in excess of the jurisdiction C of the single Judge under Art. 226. The Divis:on Bench restored the order of the State Transport Appellate Tribunal. On appeal to this Court, remitting the case to the State Transport Appella'e Tribunal, HELD·. The boundaries of the High Cou.rt's jurisdiction under 1\rt. 226 of the ConstLution are clearly and strongly built and :::annot be biea<:hed without risking jurisprudential confusion. The power of the High Court under Art. 226 D be supervisory in nature. [103E] _5ti_ _Rania Vik1s Sen•ice_ _(P)_ _Ltd,_ v. _C._ _Chandrasekharan,_ [1964_1 _5_ S.C.R. 869, referred to. The single judge had undertaken an evaluation of the merits on his o•.-vn: which was beyond his jurisdiction. The Division Bench disposed of the case in a shon paragraph Ylhich hardly did justice to the order appealed against. But while reversing the order appealed against valid reasons had to be adduced. E \\'hiii;: the Division Bench was justified in observing that, sitting on the \Vrit side, judicial review should h~ve been more restricted than while sitting on the appellate side, its own judgment was vulnerable because of the plain finding,. that \1ihat was not pertinent was taken into :::onsideration by the A()pellate Tribunal. [1030. H; 104A-B] CIVIL APPELLATE JURISDICTION '. Civil Appeal No. 98 of 1975. From the Judgment and Order dated 25-7-1974 of the Madras High Court of Judicature at Madms in Writ Appeal No. 519 of 196&. _K._ _S._ _Ramamurthi_ and _A._ _T._ _M._ _Sampath,_ for the appellant. _M._ _K. Ramamurthi_ and _Vineet Kumar,_ for respondent no. 1. The Judgment of the Court was delivered by KRISHNA IYER, J.-A spiral of reversals is the fate of this litigative battle between the appellant and the first respondent over a permit to ply a bus on the route between Madurai and Paramakkudi, m Tamil N adu. While its admission into this Court was by special leav~, the first round of the contest was fought before the RTA (Regional Tran_sport Authority) which, on an evalU'ation of the relative merits and demerits of the rivals. granted the permit to the present appellant, but this victory was short-lived because, at the second stage of the legal bout, the STAT (State Transport Appellate Tribunal) held that the G H A **B** ### c **D** E F G H M. NAINA _V._ K. A. NATARAJAN _(Krishna_ _lyer,_ /.) 1()3 rcsponde;1t before us had better claims. The worsted appdlant invoked the writ jurisdiction of the High Court under Art. 226 aad the learned Single Judge, who heard the petition, re-judged the relevance and weight of the points, pro and con, and as a result of this adjudicatory exercise of facts, demolished the order of the STAT. Tc1c learned Judg" disagreed with the conclusion of the STAT instead ot sending the case back for a fresh look at the meri,s of the matter. set aside the permit granted to the respondC'at and affirmed the award in favour of the appellant. Thereupon, the respondent moved a Division Bench of that Court which felt that a full-scale re-appraisal of the points lor and against such cJoaimant was in excess of the jurisdiction of the Single Judge Jnder Art. 226, although it noticed that certain factors not rcleva.it to the adjudication had been taken into consideration by the STAT. Consequently, the order of the learned Judge was ;ct aside, the result being that the respondent's permit was restored. The appellant urged that the decision of the Division Bench of the High Court was utterly wrong and somewhat casual, while that of the learned Single Judge was careful, elaborate and correct. Of course, this view of the matter was hotly controverted by counsel for the 1st respondenl but, niter haviag heard both Shri K. S. R>amamurthy, for the appellant, and Shri M. K Ramamurthy, for the respondent, we are satisfied that the reluctant course of remitting the whole case to the ST AT for a _de_ _nova_ disposal is called for as a matter of Jaw and in the interests of **justice** The boundaries of the High Court's jurisdiction under Art. 226 arc clearly and strongly built and carraot be breached without risking jmi,prudcntial confusion (Sn' _Rama_ _Vilas Service_ (P) _Ltd._ v. C. _Chandrasekharan(')._ The power is supervisory in nature, although tbe Judges at both the tiers, in the instant case, have unwittingly slipped into the subtle, but fatal, error of exercising a ki'ad of appeliak review. Shri M. K. Ramamurthy, for the respondent, was right in pointing out that the learned Single Judge went into the factmn 'and weight of the claims which could be put in the scales in choosing the better of the two applicants for the permit. However, the Court rightly poiated out that some relevant factors had be~a ignored by the STAT _(for_ example. 'that the first respondent's history sheet was not clean') and included in the judicial verdict factors which were extraneous, such as "that the bus of the petitioner did not, in fact, ply from 2-9-65 to 4-12-65', this being attributable to non-payment of surcharge rather than operational inefficiency. A reading of the learned Single Jud~e's iudoment leaves us in no doubt that he had undertaken an evaluallon #### br the merits on his own. This, undoubtedly, was beyond the jurisdic tion of the High Court. Nor is it possible to support the direction that if there were errors of law vitiating the STAT's finding, the case aeed f'Ol go back for fresh consideration but could be finally decided by the High Court itself. In Writ Appeal, the leaned Chief Justice, sp~aking for the Division Bench of the High Court, disposed of the case m a. short paragraph which hardl.y did justice to the order appealed agamst. May be that (i)-(i964)-S C.-S R-:-869. 104 SUPREME COURT REPORT [1976] 1 s.c.R. order was wrong and unsustainable, but while reversing it valid reasons had to be adduced. All that we find in the appellate judgment is a partial admission that extraneous cmsiderations were inputs of the order of tile ST AT and a brief \disposal of the whole matter in a single •cete~ce, as it were-"Even so, there is nothing in the order of the Tnbunal to support it." While the Division! Bench was perh-aps justifiec in observing that while sitting on the writ side, judicial r~view should have bee.1 more restricted that while sitting on the appellate side, its own judgment was vulnerable because of the plain finding that what was not pertinent was taken into consideration by the STAT. For instance, the learned Chief Justice observed : 'It is no doubt true that the no,1-pcrformancc of service after the grant was made, cannot go into the computation and the reference relating to night-halt might we11 have been avoided in its discussion.' 'The non performance of service', which is slightly obscure, but we read it in the context as meaning the failure to ply the bus on the route la question subsequent to the gr<Lnt of the permit. We express no opinion on the soundness of the observation but it is clear that the Division Bench itself has plainly accepted the position that what was not, according to it, relevant had gone into the reckoning wheµ the STAT awarded the permit to the -appellant. In this view, this judgment cannot also be sust~ined. The fair course would, therefore, be to set aside the judgment under appeal and send the whole case back to the ST AT to hear the case afresh, consider relevant factors bearing upon 'public interest' as highlighted in s.4'i of the Motor Vehicles Act and dispose of the appeal before it in accordance with law, guided by the decisions of this Court and untrammelled 'by any observations made either by the Single Judge or by the Division Bench. Currently, the respondent is plying his bus O'.l the route and we direct that the status quo be maintained and he will continue to operate on the route until the appeal is disposed of by the STAT. Of course, the RTA passed its orders as early as 1966 November and if it thinks that public interest demands the need for an extra bus to ply on the route to cope with the traffic, it will be open to the RTA to gmnt a permit, pending disposal of the appeal, to the present appellant. The fluctuating fortunes of the combatants for the permit have been such that it is appropriate to direct both parties to bear their costs throughout. **P.B.R.** _Case remanded._ **A** **B** ### **c** **D** E **F** ## _I_