High Court of KeralaDivision BenchAppeals dismissed; writ petitions allowed; sing...

Regional Transport Authority Ernakulam & Secretary, Regional Transport Authority, Ernakulam v. Shaju

Case / Petition Number:WA Nos. 1466 & 1470 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Navaniti Prasad Singh
  • Raja Vijayaraghavan V.
Judgment Date
2017-07-18
Court Decision / Holding
Appeals dismissed; writ petitions allowed. The Division Bench upheld the single-judge order that replacement is permissible where the vehicle is road-worthy, and held that Rule 174(2)(c) restricting replacement by an older vehicle is inconsistent with the Motor Vehicles Act and thus inoperative to the extent of such restriction.
Final Disposition
Appeals dismissed; writ petitions allowed; single-judge order upheld to permit replacement where road-worthiness is established; Rule 174(2)(c) deemed inoperative to the extent of restricting replacement by an older vehicle.

Parties to the Case

Appellants / Petitioners

  • THE REGIONAL TRANSPORT AUTHORITY ERNAKULAM
  • THE SECRETARY, REGIONAL TRANSPORT AUTHORITY, ERNAKULAM

Respondents

  • SHAJU, S/O. KURIAKOSE, MADATHIPARAMBIL HOUSE, EDATHALA P.O., ALUVA

Legal Representation & Advocates

Counsels for Petitioners

  • • P. Santhosh Kumar, SPL. Government Pleader

Counsels for Respondents

  • • P. Deepak

Case Synopsis & Summary

This is a two-appeal batch from the Kerala High Court (WA Nos. 1466 & 1470 of 2017) challenging a single-judge order in WP(C) No. 19513/2017. The respondent in WP(C), Shaju, holder of a stage carriage permit for vehicle KL-41L-1017, sought permission to replace the vehicle. The Regional Transport Authority/Secretary denied replacement on the ground that the proposed replacement vehicle was older than the vehicle to be replaced, invoking Rule 174(2)(c) of the Kerala Motor Vehicle Rules, 1989. The single judge had ruled that replacement should be judged on road-worthiness and viability rather than solely on the year of manufacture. The State contends that Section 83 of the Motor Vehicles Act, 1988 authorizes a permit-holder to replace a vehicle with another of the same nature, with the authority’s permission, and that Rule 174(2)(c) is a valid restriction for safety and regulatory consistency. The Division Bench clarified that there is no absolute discretion; rules must be consistent with the statute, not override it. It held that Section 83 contemplates replacement by a vehicle of the same nature and that Rule 174(2)(c) cannot override the Act. The appeals are dismissed, and the writ petitions are effectively allowed, preserving the single-judge order to permit replacement where road-worthiness is established, notwithstanding the older vehicle restriction.”

Provisions of Law Cited

Section 83, Motor Vehicles Act, 1988Rule 174(2) & (3), Kerala Motor Vehicle Rules, 1989Articles 14 & 19(1)(g), Constitution of India

Legal Doctrines & Maxims

  • Discretionary power is not absolute; when conditions are satisfied it becomes a duty (as per Julius v. Bishop of Oxford)
  • Rules must be consistent with the Act and cannot derogate from it; delegated rules cannot override statutory provisions

Submissions & Arguments

Contentions of Appellants / Petitioners

The appellants argued that Section 83 of the Motor Vehicles Act, 1988 contemplates replacement of a vehicle by another of the same nature with the permission of the permit-granting authority. They contended that replacement is governed by a discretionary power, but not an absolute discretion, and that Rule 174(2)(c) attempting to bar older vehicles cannot override the Act unless harmonized with it. They cited that road-worthiness and safety must be assessed, and that the rules cannot defeat the objective of replacement when conditions are met. They further argued that the Constitution requires balance of rights with public safety, and that there cannot be an unlimited discretionary power.

Contentions of Respondents

Shaju contended that replacement must align with road-worthiness and viability, not merely age; Rule 174(2)(c) provides a permissible restraint by age to ensure safety and standardization. The authority should exercise its power consistently with the Act, and the restriction on older vehicles should not preclude replacement where the new vehicle remains safe and suitable. They argued that the year of manufacture should not be a sole bar where the vehicle meets road-worthiness standards.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Julius v. Bishop of Oxford5 AC 214PositiveCited to support that discretionary power is not absolute and can become a duty when conditions are satisfied.
Hirday Narain v. Income Tax Officer, BareillyAIR 1971 SC 33PositiveUsed to reinforce the principle that discretionary power is bound by legal duties and constitutional principles.

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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 THE CHIEF JUSTICE MR.NAVANITI PRASAD SINGH** **& THE HONOURABLE MR. JUSTICE RAJA VIJAYARAGHAVAN V** **TUESDAY, THE 18TH DAY OF JULY 2017/27TH ASHADHA, 1939** **WA.No. 1466 of 2017 () IN WP(C).19513/2017 --------------------------------------------** **AGAINST THE JUDGMENT IN WP(C) 19513/2017 DATED 13-06-2017** **APPELLANT(S)/RESPONDENTS IN W.P.(C): -----------------------------------** **1. THE REGIONAL TRANSPORT AUTHORITY ERNAKULAM - 682 030.** **2. THE SECRETARY** **REGIONAL TRANSPORT AUTHORITY, ERNAKULAM - 682 030.** **BY SPL. GOVERNMENT PLEADER SRI. P. SANTHOSH KUMAR** **RESPONDENT(S)/PETITIONER IN W.P.(C):** **------------------------------------** **SHAJU, S/O. KURIAKOSE, MADATHIPARAMBIL HOUSE, EDATHALA P.O., ALUVA.** **R BY SRI.P.DEEPAK** **THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 18-07-2017, ALONG WITH W.A.1470/17, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **sou.** ## **C.R.** ## **Navaniti Prasad Singh, C.J. & Raja Vijayaraghavan V., J.** - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - W.A. Nos. 1466 & 1470 of 2017 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 18[th] day of July, 2017 ## **JUDGMENT** ## **Navaniti Prasad Singh, C.J.** The State has preferred these appeals challenging the judgment and order of the learned single Judge passed in two writ petitions. Since the question involved and the issues raised are identical, with the consent of learned Government Pleader, these two matters are taken up together for final disposal at this stage itself. For convenience, we refer to the facts narrated in W.P.(C) No. 19513 of 2017 against which W.A. No.1466 of 2017 is filed. 2. The writ petitioner who is the sole respondent was granted a stage carriage operator permit in respect of vehicle No.KL-41L-1017. Due to certain reasons, he submitted an application to the Secretary, Regional Transport Authority for permission to replace the vehicle. The permission was virtually rejected on the ground that the vehicle that is being sought to be WA Nos.1466 & 1470 of 2017 -:2:- brought in for replacement of the permitted vehicle was manufactured 10 years prior to the vehicle for which permit was granted. Being aggrieved by this non-action on part of the respondent, the writ petition was filed. The learned single Judge allowed the writ petition clearly holding that it was road worthiness and viability of the vehicle which has to be considered and not the model of the vehicle, meaning thereby, the year of manufacture of the vehicle. 3. We have heard learned counsel for the appellant-State at length and we see no reason to interfere. 4. However, as the matter has been argued at length with much persuasion, we would like to record our findings in that regard. Right to replace the vehicle has been dealt with in Section 83 of the Motor Vehicles Act, 1988 which is quoted hereunder : “ **83. Replacement of vehicles** .- The holder of a permit may, with the permission of the authority by which the permit was granted, replace any vehicle covered by the permit by any other vehicle of the **same nature** .” (emphasis supplied) WA Nos.1466 & 1470 of 2017 -:3:- ## 5. Corresponding to the above quoted Section we have Rule 174 of the Kerala Motor Vehicle Rules, 1989 and the material portion thereof is sub-rule (2) and (3) which are quoted hereunder : “ **174. Permit-Replacement of vehicles** - xxx xxx xxx (2) Upon receipt of the application, the Transport Authority may in his discretion, reject the application- (a) if it has previous to the date of receipt of the application given reasonable notice of its intention to reduce the number of Transport Vehicles of that class generally or in respect of the route or area to which the permit applies; or (b) if the new vehicle proposed differs in material respects from the old; or (c) if the new vehicle proposed is older than the one sought to be replaced; or (d) if the holder of the permit has contravened the provisions thereof or has been deprived of possession of the old vehicle under the provisions of any agreement of hire purchase, hypothecation or lease. (3) If the new vehicle proposed does not differ in material respects from the old, the application for replacement of the vehicle may be allowed. If there is material difference WA Nos.1466 & 1470 of 2017 ## -:4:- between the two vehicles, the application shall be treated as if it were for a fresh permit. [Provided that this is applicable for the first replacement only.]” 6. It is submitted on behalf of the State that Rule 174(2)(c) clearly stipulates that the new vehicle proposed should not be older than the vehicle sought to be replaced and this being so, the Secretary, Regional Transport Authority was within his discretion not to grant permission for replacement. Discretion being there, no one can complain, is the submission. 7. We do not find the word discretion used either in the Section or Rule, but we would accept the submission of the learned Government Pleader that when Section 83 talks of permission, it would be a discretion. Learned Government Pleader further submits that it being a matter of discretion and/or permission bestowed on a statutory authority, it was within his right to allow or to disallow, as if the discretion was an absolute discretion of the authority. We cannot agree, for we must remember that we are living in times when Constitution of India reigns supreme. Article 19(1)(G) and Article 14 of the WA Nos.1466 & 1470 of 2017 **==> picture [24 x 10] intentionally omitted <==** Constitution have not been abrogated. There cannot be a concept of absolute discretion. 8. To the contrary, as held in the case of **Julius v. Bishop of Oxford** [(1880) 5 AC 214] as followed by Courts in India repeatedly, including the Apex Court, in **Hirday Narain v. - Income Tax Officer, Bareilly** [AIR 1971 SC 33] where discretionary power is conferred on a statutory authority and if conditions are satisfied for exercise of the discretion, then the discretion becomes a duty. An officer cannot be heard to say that it was my discretion and it is my decision whether to exercise it or not. Thus seen there is no absolute discretion. 9. We may now come to the Act. Section 83 clearly predicates replacement of the vehicle by vehicle of the “same nature”. The Legislature have used the expression purposely. They could have used various other expressions. To us, the expression is clear. Same nature would mean; a bus by a bus, a mini bus by a mini bus, an air-conditioned bus by an airconditioned bus, a truck by a truck and not a bus by a mini bus WA Nos.1466 & 1470 of 2017 -:6:- and an air-conditioned bus by a non air-conditioned bus or mini bus by a regular bus; that is the only restriction. When in exercise of delegated authority the subordinate authority i.e. the State, makes the rules, the rules have to be consistent with the Act. The Rules cannot override the Act or restrict the ambit of the Act. When the expression is vehicle of same nature, then if Rule, 174(2)(c) restricts that an older vehicle cannot be brought in, it would be restricting the right conferred to a person by the provisions of the Act. Surely such an exercise by a delegatee cannot be permitted. Rules have to be consistent with the Act and not restricting or in derogation thereto. The Rules to that extent cannot thus be held to be consistent with the Act and would have to be held to be inoperative. 10. Learned Government Pleader then submitted that this restriction has been placed for safety of the passengers. We fail to understand how safety of passengers would be jeopardised, if the vehicle is replaced by an older vehicle, subject of course to the vehicle being certified as road worthy. If the vehicle is road WA Nos.1466 & 1470 of 2017 -:7:- worthy, then it cannot be said that by replacing a vehicle with an older road worthy vehicle the safety of passengers would in any manner be jeopardised. Nothing has been brought on record to even substantiate such a submission. Thus, we find no merit in these appeals. They are accordingly dismissed. **Navaniti Prasad Singh, Chief Justice** **Raja Vijayaraghavan V., Judge** ttb/18/07