High CourtDivision BenchAppeal dismissed

MUNICIPAL COUNCIL v SINDHI TRANSPORT SOCIETY LTD.

Case / Petition Number:Civil Appeal No. 1547 of 1967
Neutral Citation:1974 SCR 275

Case Details & Bench

Court
High Court
Hon'ble Judges
  • D. G. Palekar
  • A. Alagiriswami
Judgment Date
1974-01-01
Court Decision / Holding
Appeal dismissed with costs.
Final Disposition
Appeal dismissed

Parties to the Case

Appellants / Petitioners

  • Municipal Council, Bhopal

Respondents

  • Sindhi Transport Society Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • M. C. Chagla
  • • Rameshwar Nath
  • • Seeta Vaidialingam

Counsels for Respondents

  • • M. N. Phadke
  • • A. G. Ratnaparkhi
  • • I. N. Shroff
  • • R. P. Kapur

Case Synopsis & Summary

The Municipal Council of Bhopal enacted bye-laws under the Madhya Pradesh Municipalities Act, 1961, specifically s.358(7)(f) and (m) read with s.349(ii), creating Bye-law 2 which barred any motor-bus plying for hire from stopping or parking within municipal limits except at the Municipal Bus Stand, and Bye-laws 3–7 providing for parking fees and permits. The respondent Sindhi Transport Society Ltd. challenged these bye-laws in a writ petition; the Madhya Pradesh High Court held Bye-law 1(c) (definition of ‘Municipal Bus Stand’) and Bye-law 2 valid, but struck down Bye-laws 3–7 as invalid and restrained their enforcement, with refunds of fees. The Municipal Council appealed by certificate. The Supreme Court dismissed the appeal, holding that s.349(ii) does not empower the Council to demand permissions for establishing a bus-stand; it deals with fees for permissions under other sections and concerns temporary occupation of municipal land rather than bus-stands. Bye-law 2 cannot be validly linked to a bus-stand under s.358(7); the power to regulate halting places cannot compel use of municipal land as a bus-stand. The Court also held that authority to specify bus-stand locations lies with the State Government under the Motor Vehicles Act (not delegable to the District Magistrate), and that no notification had designated the Bhopal Bus Stand under MV Act provisions. In consequence, Bye-law 2 and the accompanying bye-laws were invalid, and the appeal was dismissed with costs to be paid by the appellant.

Provisions of Law Cited

Madhya Pradesh Municipalities Act, 1961: s.349(ii); s.358(7)(f) and (m)Motor Vehicles Act, 1939: s.68(2)(r) and (s); s.76Madhya Pradesh Motor Vehicles Taxation Act, 1947: s.6

Submissions & Arguments

Contentions of Appellants / Petitioners

The Municipal Council argued four points: (1) No obligation exists to park within municipal limits; buses may park outside for passenger pickup; (2) Parking at the municipal bus stand amounts to using municipal land; (3) Such use requires the Council’s permission; (4) A permit and fee are payable for this permission. These claims attempt to compel use of the bus stand and to monetize it through permissions and fees.

Contentions of Respondents

Sindhi Transport Society Ltd. (the respondents) defended the validity of the applicable bye-laws upheld by the High Court, contending that the bus-stand and related restrictions fell within the regulatory powers under the MP Municipalities Act and MV Act, and that the District Magistrate/State Government could designate and regulate bus-stands and halting places under MV Act and related statutes.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
T. Ibrahim v. R.T.C., Tanjore[1953] S.C.R. 290PositiveThe Court uses this case to interpret the MV Act's term 'duly notified stand' as a stand notified by the Transport Authority.
Municipal Board, Pushkar v. State Transport Authority, Rajasthan(1963) Supp. 2 S.C.R. 373PositiveCited to illustrate that a 'bus stand' has a specific meaning and relates to powers under MV Act rather than generic halting provisions; supports the view that bus-stand designation lies under MV Act authorities.

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Extracted Judgment Text

Exact text extracted from official judgment records.

274 MUNICIPAL COUNCIL, BHOPAL _v_ SINDHI SAHJTI MULTIPURPOSE TRANSPORT CO-OP. SOCIETY LID. & ANR. _July_ 24, 1973 (D. G. PALEKAR AND A. ALAGIRISWAMI, JJ.J _Madhya Pradesh Municipalities Act, 1961-Bye-laws made under provisions_ _of_ _s._ 358(7) (/) _and_ (m) _read_ _withs._ 349(;;) _'Of_ _Act-Bye-law_ 2 _providing_ _for_ _motor-buses plying for hire to be compulsorily parked at Municipal bus_ _stand-_ _Bye-laws_ 3 _to.?_ _providing for_ _fee_ _payable for_ _parking-Bye-law_ 2 _does not_ _fall_ _under_ _s._ 349(11) _or_ _s._ _358(1)_ (/) _or_ (m) _of_ _Act and_ _is_ _inva/id-Conseque111/y_ _bye-laws_ 3 _to_ 7 _providing for levy_ _of_ _fee_ _also invalid._ _Motor Vehicles_ _Act 4_ _of_ 1939 _s._ _68(2)-Power_ _to specify place_ _of Bus-stand_ _under section rests with_ _Stare_ _Government and not with Dist. Magistrate-Cannot_ _be_ _delegated to District Magistrate._ A B ### c The Municipal Cotincil of Bhopal made bye-laws under the provisions of •· 358(7) (f) and (m) read with section 349(ii) of the Madhya Pradesh Municipalities Act, 1961. Bye-law 2 provided that no person incharge of a motor-bus plying for hire shall for the purpose of taking up or setting down D of passengers, park or stop his bus anywhere within the li.ilits of the municipality except at the municipal Bus Stand. The other bye-laws prOvided for a levy of a fee of Re. l /- for every 8 hours or part thereof in respect _o(_ the use of the bus stand by such buses and for the issue of a permit on such payment. The respondent fjled a writ in the High Court of Ma<;Jhya Pradesh challenging the.said bye-laws .. The High Court held that bye-law I (c). which defined the expression 'Municipal Bus Stand' and bye-law 2 were valid but held bye-Jaws 3 to 7. which provided for the payment of fee and the giving of Permit !tc., E as invalid and restrained the Municipal Council from giving effect to those bye-laws in any manner. Dismissing the appeal by certificate filed by the Municipal Council. HELD: (i) Section 349(ii) was not applicable to the case. The section itself does not _enable the Municipal Council to require that permis~ion should be obtained for any purpose. It deals with levy of fees for permissions which are required to be taken for various purposes under other sections of the Act F such as sections 187(3), 194 and 223(4). The relevant words in the section deal with permissions granted to indivi-!llals to temporarily occupy municipal land. _It_ would be doing violence to that section to hold that it deals with the provision of a bus-stand. In the context of that sectioll it was difficult to hold that when people were compelled to use the bus stand constructed b-y the. Municipal Council- _it_ was a permission for temporary occupation of land belonging to the Council. [276F] _(ii)_ It was not possible to relate the provision of clause (f) of sub-section 7 G of section 358 as having anything to do with the provision of a bus-stand. As regards clause (m) of sub-section 7, "the regulating and prohibiting the stationing of carts . . . . . on any ground under the control of the Council or the using of such ground as halting place of vehicles cannot be said to relate to the provision Of Municipal bus stand. The power to regulate or prohibit the use of Mu;iicipal land as halting place of vehicles cannot be used to compel people use such land as halting places. Such a power must be specifically given. The power to compel persons in charge of motor buses to stop only H at certain places for. the purpose of taking up or setting down of passengers Is a matter whicl) relates to motor traffic and there is a specific provision in oection 68(2) (4) and (s) of the Motor Vehicles Act for this specific purpose. [277H] A **B** ## c MUNICIPAL COUNCIL _v._ SJNDH! TRANSPORT SOCIETY LTD. 275 _(A/agiriswami,_ /.) _T._ _B. Ibrahim_ v. _S.T.C._ _Tcm;ore,_ [19531 S.C.R. 290 and _Mu11icipnl_ _**Board, Pushkar**_ **v.** _**State Transport Authority, Rajasthan,**_ **(1963]** **Supp.** **2 S.C.R.** 373, referred to. **(iii) The bye-laws compel persons in charge** **of** **motor buses** **to** **use the** **Municipal** **bus** **stand,** **which** **the** **Municipality** **had** **no** **t?OWer** **to** **do.** **Consequently** **it** **must** **be** **held** **that** **bye-law 2** **is** **not valid** **and** **with** **it** **must** **go** **the other** bye-laws. (iv) **Further,** **in** **the present case the District Magistrate** **had** **admittedly** **declared** **the** **Bhopal** **MuniciJ!al** **Bus** **Stand** **as** **bus** **stand.** **Power** **to** **specify** **the** **p1ace** **under** **section 68(2) (r)** **and** **(s) vests** **in** **the** **State Government.** **It** **has** **not been shown that the State Government** **had** **any power to delegate their** **po\\'Cr** **under** **this** **section** **to** **the** **District** **Magistrate.** **It** **has** **also** **not** **shown** **that** **the** **District** **Magistrate** **issued** **any** **notification specifying** **the- Bhopal** **Bus-** Stand as one under the provisions of section 68(2) (r) and (s) of the Motor **Vehicles** _**:\ct.**_ **If** **at** **all** **the** **District** **Magistrate** **had** **taken** **any** **actiOn** **it** **could** **onlx** ~ **under** **s.** **76.** **But** **that** **section** **does** **not** **enable** **him** **to** **specify** **places** **for** **setting** **down** **or** **picking** **up** **of** **passengers.** CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1547 of 1967. Appeal by certificate from the judgment and order dated October 18, 1966 of the Madhya Pradesh High Court at J abalpur in Misc. ### o Petition Nu. 557 of 1960. _M._ C. _Chagla, Rameshwar Nath_ and _Seeta Vaidialingam,_ for the appellant. _M. N. Phadke_ and _A._ _G._ _Ratnaparkhi,_ for resp0ndent No. 1. E F G **H** _I._ _N. Shroff_ and _R._ _P._ _Kapur,_ for respondent No. 2. The Judgment of the Court was delivered by ALAGIRISWAMI, J.-On 6-11-1964 the Municipal Council of Bhopal made bye-laws under the provisions of s. 356(7) (f) & (x) read withs. 349(iij of the Madhya Pradesh Municipalities Act, 1961 after previous publication in the M. P. Rajpatra as required under s. 357 ( 4) and confirmation by the State Government under s. 357(3) in respect of a l\1unicipal bus stand. Bye-law 2 of the bye-laws provided that no per3oa incharge of a motor-bus plying for hire shall for the purpose of taki~g up ~r setting down of passen~~s, ~ark or stop his bus an~here w1thm the lmuts of the Bhopal Mumc1pahty except at the Mumcipal Bus Stand. The other bye-laws provided for a levy of a fee of Re. I/for every eight hours or part thereof in respect of the use of the bus stand by such ~uses and for the issue of a permit on such payment. On 13-11 .. 1964 the respondents filed a writ petition in the High Court of Madhya Pradesh challenging the said bye-laws. The High Court held that bye-law 1 ( c), which defined the expression 'Municipal Bus Stand' and bye-law 2, which has been set out earlier, were valid, but held bye-laws 3 to 7, which provided for the payment of fee and the giving of a permit etc., as invalid, and restrained the Municipal Council from giving effect tq those bye-laws in any manner. The Muni-. cipal Council was also directed to refund the fee collected from the respondents. This appeal has been filed by the Municipal Council by certificate granted by the High Court. #### 276 SUPREME COURT REPORTS . [ 1974 I 1 S.C.R. Section 349 (ii) of the Madhya Pradesh Municipalities Act reads : A 'The Council may charge such fee as may be prescribed by bye-la"s for##### (i) ........................... . (ii) any permission granted under this Act for making any temporary erection or for putting up any projec tion or for the temporary occupation of any public street or any land or building belonging to the Council; and (iii) Section 358 in so far as it is relevant for the purpose of this case reads: "In addition to any power specially conferred by this Act, the Council may, and if so required by the State Government shall, make bye-laws for##### (1) ........................... . (7) Public, Health, Safety, Nuisance and Sanitation(f) prohibiting or regulating with a view to sanitation or the prevention of disease, any act which occasions or which is likely to occasion a public nuisance and for the prohibition or regulation of which no provision is made under this heading; (n) regulating and prohibiting the statbning of carts or picketing of animals on any ground under the control of the Council or the using of such ground as halting place of vehicles or animals or as a place for encampment or the causing or permitting of any animal to stray. It appears to us that s. 349 (ii) does not apply to this case. The relevant portion of that section reads : "The Council may charge such fee as may be prescribed . . . . . . . . for any permission granted under this Act . . . . . . for the temporary occupation of . . . . . . . . any land ##### ...... belonging to the Council." The section itself does not enable the Municipal Council to. require that permission should be obtained for any purpose. It deals with levy of fees for permissions which are required to be taken for various purposes under _ot.her sections of the _Act. . Section 187(3) . w.hich deals with perm1ss10n to erect, alter, aud to or reconstruct bmldmgs, and section 194 which deals with permission to the owners or occupiers of bnildings in public street to pnt up verandahs, balconies or rooms, to project from any upper storey thereof are instances in point. The permission mentioned in section 194 is one of the matters for which fees can be prescribed under section 349(ii). Section 223 _(_ 4) deals with allowing any temporary occupation or erection in any public street on occasions of festivals and ceremonies, or allowing the occupation <'f, or temporary erection of structures for any other purpose. B # c D E F G H A 8 ## c D E F G MUNICIPAL COUNCIL _V,_ SINDHI TRANSPORT SQC!ETY LTD. 277 (A _/agiriswami,_ _J.)_ Fees can be prescribed under section 349(ii) in respect of these matters. The words above mentioned in tha( section deal with permission granted to individuals to temporarily occupy municipal land. It would be doing violence to that section to hold that it deals. with the provision of a bus-stand. In the context of that section it is difficult to hold that when people are compelled to use a bus stand constructed by the Municipal Council it is a permission for temporary occupation of land belonging to the Council. Let us now consider if under the provisions of section 358, already extracted, the Municipal Council can validly make the present byelaws. It is not possible to relate the provision of clause (f) of subsection (7) as having anything to do with the provision of a bus stand. As regards clause (m) of sub-section (7) "the regulating and prohibiting the stationing of carts . . . . . . on any ground under the control of the Council or the using of such ground as halting place of vehicles" cannot be said to relate to the provision of a Municipal bus stand. The power to regulate or prohibit the use of municipal land as halting place of vehicles cannot be used to compel people use such land as halting. places. Such a power must be specifically given. Compare this section with sections 270-B and 270-C of the Madras District Municipalities Act, 1920, which read as follows : "270-B. (1) The municipal council may construct or provide and maintain public landing places, halting places and cart stands and may levy fees for the use of the same. #### (1-A) .......................... .. (2) A statement in English and a vernacular language of the district of the fees fixed by the council for the use of such place shall be put up in a conspicuous part thereof. _Explandtion_ : A cart stand shall be for the purposes of this Act includes a stand for carriages including motor vehicles within the meaning of the Indian Motor Vehicles Act, 1914 and animals." "270-C. Where a municipa( council has provided a public landing place, halting place or cart-stand, the executive authority may prohibit the use for the same purpose by any person. within such distance thereof, as may be determined by the municipal council, of any public place or the sides of any public street." . Even these sections deal with use of landing places, halting places and cart-stands but do not deal with places for setting down or taking up of passengers. It is well to keep clear in one's mind the distinction be~ween halting places which would be the equivalents· of garages of pnvate persons and places where passengers may be set down and taken up which can properly be called bus stands. The power to compel persons incharge of motor buses to stop only at certain places for the purpose of taking up or setting down of passengers is a matter whiah relates to motor traffic and there is a specific provision in sec· 278 SUPREME COURT REPORTS [ 1974 J 1 s.c.R. tion 68(2)\r) & (s) of the Motor Vehicles Act for this specific pur- **A** pose. They read as· follows : "68. (2) Without prejudice to the generality of the foregoing power, rules under this section may be made with ##### respect to all or any of the following matters, namely :-· (r) prohibiting the picking up or setting down of passengers by stage or contract carriages at specified places or in specified areas or at places other than duly notified stands or halting places and requiring the driver of a stage carriage to stop and remain stationary for a reasonable time when so required by a passenger desiring to board or alight from the vehicle at a notified halting place; ( s) the req"irements which shall be- complied with in the construction or use of any duly notified stands or halting place, including the provi.sion of adequate equipment and facilities for the convenience of all users thereof, the fees, if any, which may be charged for the use of such facilities, the records which shall be maintained at such stands or places, the staff to be employed thereat, and the duties and conduct of such staff, and generally for maintaining such stands and places in a serviceable and clean condition." This Court in _T._ _B. Ibrahim_ v. _R.T.C., Tanjore(_ _[1]_ _)_ held that the expression 'duly notified stand' in the Motor Vehicles Act means 'a stand duly notified by the Transport Authority'. It was contended before this Court that section 68(2) (r) of the Motor Vehicles Act did not confer the power upon the transport authority to direct the fixing or the alteration of a bus-stand. This Court rejected that contention. It pointed out that the section gives power to the Government to prohibit a specified place from being used for picking up or setting down passengers. This Court held that section 270-B, 270-C and 270-E of the Madras District Municipalities Act do not affect the power of the Transport Authority to regulate traffic control or impose restrictions upon the licence of any such cart-stand. Tn _Municipal_ _Board,_ _Pushkar_ v. _State Transport Authority, Rajasthan(_ _[2 ]_ _)_ this Court pointed out that a 'bus stand' meant a place where bus service commenced or terminated and that section 86 dealt with _parking places referred to **in** section 91 (2)(c) of the Motor Vehicles Act. The fixation of bus stands was held to be within section 68(2) (r) of the Act and the power to issue the necessary notification was held to be implied in that clausS'· Under section 76 of the Motor Vehicles Act the State Government or any authority authorized in this behalf by the State Government may in consultation with the local authority having jurisdiction in the **area** concerned, determine places at which motor vehicles may stand either indefinitely or for a specified period of time, and may determine the places at which public service vehicles may stop for a longer time than is necessary for the taking up and setting down of passengers. U~­ like section. 68 which confers power on the State Government alone this (1)[!953] S.C.R. 290. (2) [1963] Supp. (2) S.C.R. 373. **B** ### **c** **D** **E** **F** **G** **H** A B ## c D E MUNICIPAL COUNCIL _V,_ SINDHI TRANSPORT SOCIETY LTD. 279 _(Alogiriswami,_ J.) section enables the State Government to authorize any authority to take action under it. As is clear from a reading of section 76, it does not deal with a bus stand in the sense of a place for taking up and setting down of p1ssengers, which is dealt with under section o8(2)(r). While section 258(7)(n) may enable th& Municipal Council to regu~ late or prohibit the use of any ground under its control it does not enable it to compel any body to use it as halting place etc. much Jess to prescribe that no place other than the one provided by the Municipal Council shall be used for setting down and taking up of passengers. That can be done only under a provision like the one contained in section 68(2) (r) & (s) of the Motor Vehicles Act. It is interesting to note that in this case the respondents as well as the Municipal Council had stated that the District Magistrate had declared the Bhopal Municipal Bus Stand as a bus stand. Power to specify t,he place under section 68(2) (r) & (s) vests. in the State Government. Neither party has been able to show us that there is any power in the State Government to delegate their power under this section to the District Magistrate nor have we been shown any notification by the District Magistrate specifying the Bhopal Municipal Bus Stand as one under the provisions of section 68(2) (r) & (s) of the Motor Vehicles Act. Apparently both the parties proceeded on a misapprehension. If at aU the District Magis•rate had taken any action it could only be under section 76. But that section does ·not enable him to specify places for setting down or picking up of passenge" as we pointed out earlier. Therefore, we must hold that the Madhya Pradesh High Court was in error in holding bye-law 2 valid. Mr. M. C. Chagla, appearing for the Municipal Council, made those four points : 1. There is no compulsion on any body to park his bns within the municipal limits and that he can park it outside the municipal limits for the purpose of picking up F and setting down passe~gers. G 2. That if he parks the bus in the municipal bus stand he is using municipal land. 3. Tl\at this is with the permission of the Municipality. 4. ·That for this permission a permit is issued and a fee Is charged. The first proposition has only to be stated to be rejected. The persoa plying a motor bus for hire cannot exercise his trade or profession effectively if he is not allowed to set down or take up passengers within the limits of a town. The Municipal Council cannot do indirectly what it cannot do direct!~·. It cannot compel buses to go outside the municl· H pal limits in order to set down or pick up passengers. This argument is as fallacious as the one put forward by Mr. Phadke on behalf of the respondent that he had a fundament":i right to use the Municipal bus stand. Nobody has a fundamental nght to use a land belonging to ~L373SupCI74 280 SUPREME COURT REPORTS ( 1974] 1 S.C.R. another without that persop.'s permisiion or paying for it if p.ecessary. While the Municipal Council has no power to compef persons plym.a motor buses tor hrre to us.e only the Municipal bus stano for the purpose ol takmg up and settmg down passengers, there can be no oojection to its providmg a bus stand for anybouy who chooses to use it voluntanJy and to such person being requrred to pay for such use. In that sense proposittons 2 and 3 put forward by Mr. Chagla are unexceptionable. It for this permission the formality of the issue of a permit is followed and a fee is charged it caunot be said to be objectionable. In that case the charges may be such as may be agreed upon between the parties, i.e. if the Municipality charges a certain rate only people who are prepared to pay at that rate would resort to that place. Nobody can be compelled to go to that place. Such a provision is permissible not under any provisions of the Madhya Pradesh Municipalities Act but arises out of the rigbt which the Municipal Council, like the owner of any other property has, to permit people to use any property belonging to it only on certain conditions. The byeIaws compel persons in charge of motor buses to use the Municipal bus stand, which the Municipality has no power to do. Consequently we hold bye-law 2 as not valid and with it go the other bye-laws. As we have held bye-laws not valid we do not consider it necessary to deal with the argument advanced by Mr. Phadke based on section 6 of the Madhya Pradesh Motor Vehicles Taxation Act, 1947. In the re~ult the appeal is dismissed; the appellant will pay the respondents' costs. G.C. _Appeal dismissed._ A B ### c D