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661
SARJOO PRASAD SINGH
_v._
THE STATE OF BIHAR & ORS.
_September_ 22, 1976
[A. N. RAY, C.J., M. H. BEG AND P. N. SHINGHAL, **JJ.]**
_Nationalisation scheme_ _of_ _Bus Routes under_ s. 68C _of_ _the Motor_ _Vehicles_
_Act,_ _1939-Form_ _A under.Rule 94A_ _of_ _the Bihar Motor Vehicles Rules read_
_with Schedule II serial No._ 4·, 5 _and_ _6-lnterpretation_ _of-Whether_ _it envisages_
_compulsory existence_ _of_ _private operators side by side with the State operation._
_Motor Vehicles Act,_ 1939, _Section_ _68D-Scope_ _of-Whether there should be_
_a finding on each and every separate objection raised._
_Monopoly_ _of_ _bus_ _routes-Whether_ _permitting the existing private operators_
_to operate till the date_ _of_ _expiry_ _of_ _their permits creates a monopoly._
_Practice and_ _procedure-Further_ _plea taken_ _in_ _the affidavit-rejoinder to_ th~
_writ petition shall not be allowed to be agitated._
Fifteen routes including the route Ranchi-DaHonganj _via_ Knru was nationalised by a scheme by the respondent State as per gazette notification dated
September 13, 1972. The scheme concerned _inter_ _a/.ia_ the area and the ronte
between Ranchi and Daltonganj including Ranchi, Kuru and Chandwa Daltonganj, being a rural service. The scheme permitted the existing private operators
to continue till the expiry of their permits. The appellants challenged the
scheme by way of an application under Art. 226 in the Patna High Court which
**was disn1issed** _**in**_ _**lin1ine.**_
Dismissing the appeal by special leave the Court,
HELD : (I) Rule 94A speaks of particulars of scheme proposing modification of an approved scheme prepare(\ by the Transport Corporation. It is
wrong to read seriaL Nos. 4, 5 and 6 in schedule II in Form A which mentions
the number of State carriages, scheduled to operate in each route by private
operators and by State Transport Undertaking and the num:Jer of daily trips
scheduled in each route by both these operators, to suggest that e·<en though
" ·the route is nationalised, there must be private operators. The J\irm is general.
There may be on the same route both private operators and State Transport or
there may be only private operators or there may be only State Transport. The
form does not su.gllest tljat ~vrn \l1m;~h the route is nationalised, there must be
private operators, ·[{)62. f-=-=Q, 663 A~BJ
(2) Section 681) of the Motor Vehicles Act stat~s .that the State G<:>vernment
may, after co.nsidering the. objections and after g1.vmg an opportunity to the
objector or his represenl!'hves and the. representativ7s of the State Transport
Undertaking to be heard m the matter, 1f they so desire, approve or mod~fy .the
scheme. No. finding of fact is necessary on each and every separate ob1ect1011.
. - [663 D-E, G]
_Capital Multi Purpose Co-operative Society Bhopal and_ _othas_ v. _State_ _of_
_Madhya Pradesh_ [1967] 3 SCR 329, followed.
(3) No monopoly is conferred on the private operators who were allowed
to continue to operate. Allowing them to operate .means they. were allowed
to continue to operate in accordance with the permits. Operat10n after the
expiry of the cm:rent permits would depend on the policy of the Government
whether there would be any renewal and if there would be any renewal, that
should be in accordance witfi Jaw. [663 H, 664 Al
( 4) Fresh plea by way of an allegation in the affidavit rejoinder to the writ
petit,ion when· the State had no opportunity to deal with such allegation cannot.
be allowed to be agitated. [664B]
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662 SUP.REME COURT REPORTS [1977] 1 S.C.R.
CIVIL APPELLATE Jurusn1cnoN : Civil Appeal No. 742 of 1974.
Appeal _by_ Special Leave from the Judgment and Order dated
15.2.1974 of the Patna High Court in C.W.J.C. No. 215/74.
_A. B. N. Sinha, K._ _K._ _Sinha, K. N. Deshav, S. K. Sinha_ and _Ugra_
_Sankar Prasad_ for the appellant.
_Pramod Swarup,_ for respondent No. 1
_L._ _N._ _Sinhg, Sol. Genl.,_ _B._ _P._ _Singh_ and _A. K._ _Srivastava,_ for
_D._ _Goburdhan,_ for respondent N_o. 2.
The Judgment of the Court was delivered l;>y .
RAY C. J.-This appeal by special leave is from the judgment
dated 15 February 1974 of the Patna High Court. The High Court
dismissed _in_ _limine_ !he application of the appellant under Article 226
of the Constitution.
The appellant challenged the scheme framed under section 68C
of the Motor Vehicles Act, 1939 published in the Bihar Gazette on
13 September 1972. The Bihar State Road Transport Corporation
published a scheme for nationalisation of fifteen routes including the
route Ranchi-Daltonganj _via_ Kuru. The scheme concerned _inter_
_alia_ the area and the route between Ranchi and Daltonganj. The
area included Ranchi, Kuru, Chandwa Daltonganj. This is a rural
service. The scheme stated that private operators would be ·able
to run their buses till the expiry of their current permits and no private
bus would be operated by the private operators after the expiry of
their permits. The scheme further provided that the Government bus
operators would operate in the area as shown in the Schedule.
Counsel for the appellant contends first that the number of buses
operated by private operators on part of the route were to be maintained in spit~ of the scheme of nationalisation. Reliance was placed
on Form A under Rule 94A of the Bihar Motor Vehicles Rules in
support of the contention. Rule 94A speaks of particulars of scheme
proposing modification of an approved scheme prepared by the Transport Corporation. In Schedule II at serial Nos. 4, 5 and 6 in Form
A are mentioned the number of state carriages scheduled to operate
in each route (a) by private operators and (b) by State Transport
Undertaking; the number of daily trips scheduled in each route (a)
by private operators and (b) by State Transport Undertaking; and the
maximui:n and minimum number of stage carriages proposed to be
operated in each route by the State Transport Undertaking to the
exclusion of private operators. The contention of the !lppellant was
that serial Nos. 4, 5 and 6 indicated that in spite of nationalization of
route, private operators would be allowed to operate on part of the
route. It was said that in the scheme no details about private operators had been given. It was also said that in the scheme the numbers of services run by the private operators and by the Corporatioi1
were wrongly given. It was said that 21 services were shown as run
##### •
SARJOO PD. SINGH _v._ STATE Q.F BIHAR _(Ray, C.J.)_ 663
by the Corporation **and** that the Corporation was providing 42 trips. **A**
The appellant contended that private operators ran 41 buses and
the route needed more buses aggregating 51. .
It is wrong to read serial Nos. 4, _5_ and 6 in Form A _ta_ suggest
that even though the route is nationalised there must be private opera~
tors. The Form is general. There may be on the same route both
private operators and State Transport, or there· may be only private **S**
operators or there may be only State Transport.
In the scheme the existence of private operators is specifically mentioned and it is further mentioned that they would continue to ply
till the expiry of their current permits. We are unable to hold that
even though the route is nationalised there must be private operators.
The private operators under the scheme in the present case were allow- **C:**
ed to continue during the currency of their permits. Whether they
will be allowed to operate after the expiry of their permits, will depend
upon the policy of the Government. After the expiry of the current
permits if the policy will allow for renewal of permits of the private
operators, such renewal will have to be in accordance with law.
The scheme as modified and approved was published on 14 Jan- **D**
nary 1974. All the details are there.
The second objection of the appellant was that the Minister did
. not give any reason in dealing with the objections of the appellant.
Section 68-D of the Motor Vehicles Act states that the State Government may, after considering the objections and after giving an opportunity to the objector or his representatives and the representatives
of the State Transport Undertaking to be heard in the matter, if they
so d1~sire, approve or modify the scheme. The provisions of the section speak about the approval or modification of the scheme. The
Minister heard the objections for 2 days. The order of the Minister
dated 24 September 1973 states that the scheme covering Ranchi-Bero
Gumla was modified and approved as follows :
"The existing ~ervices operate<l by the private operators shall not
be affected and they would continue to operate. No fresh permit
shall be granted t? private ?perators and the Corporation shall ply
only Express services on this route. The other schemes coverin"'
Ranchi-Kuru-Chandwa-Daltonganj _via_ Benibad, (ii) Muzaffarpu~ .
Motihari and (iii) Muzaffarpur-Darbhanga _via_ Benibad are approved."
Approval and modification of the scheme indicates that the scheme
is efficient and adequate. No finding of fact is necessary on each
and every separate objection. See _Capital Multi Purpose Co-operative_
_Society Bhopal and Others_ v. _State_ _of,_ _Madhya Pradesh(')._
The third contention was that on the route Ranchi-Bero Gumla
private operators were allowed to operate and thereby monopoly was
conferred on them. The contention is wrong. No monoply is
conferred on the private operators who were allowed to continue to
**[!Iii..** (!) [1967] :; S.C.R. 329.
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664 SUPREME COURT REPORTS (1977] 1 S.C.R.
operate. It means they were allowed to continue to operate in
accordance with the permits. Operation, after the expiry of current
permits, would depend on the policy of the Government whether there
would be any renewal and if there would be any renewal, that should
be in accordance with law.
The fourth contention was that the hearing concluded on 18
August, 1973 but the Government took into consideration letter dated
23 August 1973 written by the State Transport Corporation. This
allegation was mentioned in the affidavit-rejoinder. The State had
no opportunity to deal with the allegation. This allegation is not
made in the writ petition. The appellant, therefore, cannot be allowed to agitate on that ground.
All the contentions fail. The appeal is dismissed. Parties will
pay and bear their own costs.
##### s. R. Appeal dismissed.
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