High Court of KeralaSingle JudgePartly allowed

Shaji Kuruvilla v. Government of Kerala and Others

Case / Petition Number:WP(C).No.25028 of 2017

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • Anil K. Narendran
Judgment Date
2019-07-01
Court Decision / Holding
Writ petitions partly allowed; quashing Clause (4) of Ext.P13 scheme that imposes maximum distance for saved permits; repelling challenge to Ext.P12 notification and amendment; disposed of in terms of the law laid down by the Division Bench in Saju Varkey’s case.
Final Disposition
Partly allowed

Parties to the Case

Appellants / Petitioners

  • Shaji Kuruvilla, aged 52 years, holder of a regular permit on the route Kottayam-Perikkalloor (address as in petition)

Respondents

  • The Government of Kerala represented by its Secretary to Government, Ministry of Transport, Government Secretariat, Thiruvananthapuram
  • The Regional Transport Authority, Ernakulam represented by its Secretary-682 030
  • The Secretary, Regional Transport Authority, ErnaKULAM-682 030
  • The Kerala State Road Transport Corporation represented by its Chairman and Managing Director, Transport Bhavan, Pattom, Thiruvananthapuram-695001

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri K.T. Raveendran

Counsels for Respondents

  • • Sri P.C.Chacko, SC, KSRTC
  • • Sri Paul Abraham Vakkanal, Sr GP

Case Synopsis & Summary

The petitioner, Shaji Kuruvilla, holds a regular permit on the Kottayam-Perikkalloor route, which has expired, with renewal pending. He operates on the strength of a temporary permit (Ext.P2) and seeks to quash Ext.P3 Gazette notification dated 15.03.2017 and to mandamus-ically compel the re-issue of a four-month temporary permit for the stage carriage KL-05/AP-3738 on the Kottayam-Perikkalloor route as a limited-stop ordinary service, continuing Ext.P2. The petition was admitted with status-quo interim relief permitting operations under the temporary permit, and Ext.P4 application for renewal was to be considered. The court relies on prior jurisprudence, notably W.P.(C) No.11825 of 2017 and connected cases, which dealt with the formalities of scheme formulation under the Motor Vehicles Act, and the Kerala State Road Transport Corporation v. Saju Varkey case (2018 (4) KHC 617), which analyzes Sections 99, 100 and 102 of the MV Act and the necessity for transparency and fairness in altering schemes affecting private operators. The Division Bench held that the state cannot finalize a scheme with new restrictive elements not present in the notified draft, and quashed a clause enforcing maximum distance on saved permits. The present judgment follows that reasoning, holding that certain amendments to schemes and rules cannot infringe on pre-existing rights without proper procedure. The writ petitions are partly allowed, with guidance from the Saju Varkey decision, and disposed accordingly.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Principles of natural justice (audi alteram partem)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner submitted that Ext.P3 Gazette notification was illegal and sought quashing of Ext.P3 and a mandamus to re-issue four months temporary permit for KL-05/AP-3738 on the Kottayam-Perikkalloor route as limited-stop ordinary service, pending renewal of Ext.P2. He argued that his pre-existing rights under Ext.P5/P9 structures and related G.O.s entitle him to operate with fewer restrictions, and that the State’s proposed modification via Ext.P13 Ext.P10 was not in line with statutory procedure under MV Act and Rules.

Contentions of Respondents

Respondents contended that the Gazette notification and amendments followed the statutory scheme under the MV Act, that the State may regulate the services and impose conditions in the modified scheme, and that private operators do not possess unfettered rights; they emphasized the need for transparency in publishing schemes and the State’s policy to regulate transport services.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Kerala State Road Transport Corporation v. Saju Varkey and Others2018 (4) KHC 617PositiveCited as the controlling authority on scheme formulation under MV Act (Sections 99-102); the present court adopts and applies the reasoning from this decision.
W.P.(C) No.11825 of 2017 and connected casesW.P.(C) No.11825 of 2017PositiveThe issue is stated to be covered in favor of the petitioner by that Single Judge’s judgment; used as supporting authority for the present decision.

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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 01ST DAY OF JULY 2019 / 10TH ASHADHA, 1941** ## **WP(C).No.25028 of 2017** ## **PETITIONER:** **SHAJI KURUVILLA, AGED 52 YEARS, 14/129, MONUVILLA, VADAVATHOOR PO, KOTTAYAM-686 010.** **BY ADV. SRI.K.T.RAVEENDRAN** ## **RESPONDENTS:** |**1**|**THE GOVERNMENT OF KERALA,**| |---|---| ||**REPRESENTED BY SECRETARY TO GOVERNMENT,**| ||**MINISTRY OF TRANSPORT, GOVERNMENT SECRETARIAT,**| ||**THIRUVANANTHAPURAM-695 001.**| |**2**|**THE REGIONAL TRANSPORT AUTHORITY,**| ||**ERNAKULAM, REPRESENTED BY ITS SECRETARY-682**| ||**030.**| |**3**|**THE SECRETARY,**| ||**REGIONAL TRANSPORT AUTHORITY,**| ||**ERNAKULAM-682 030.**| |**4**|**THE KERALA STATE ROAD TRANSPORT CORPORATION,**| ||**REPRESENTED BY ITS CHAIRMAN AND MANAGING**| ||**DIRECTOR, TRANSPORT BHAVAN, PATTOM,**| ||**THIRUVANANTHAPURAM-695 001.**| ||**BY ADVS. SRI.P.C.CHACKO, SC,**| ||**KERALA STATE ROAD TRANSPORT CORPN.**| ||**SRI.PAUL ABRAHAM VAKKANAL, SR GP.**| **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01.07.2019, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** 2 WP(C)25028 OF 2017 ## **JUDGMENT** The petitioner is the holder of a regular permit on the route Kottayam-Perikkalloor, which has already expired. The application for renewal of that permit is pending consideration. Ext.P2 is the temporary permit granted to the petitioner under Section 87(1)(d) of the Motor Vehicles Act, 1988 in respect of stage carriage bearing registration No.KL-05/AP-3738. The petitioner has filed this writ petition under Article 226 of the Constitution of India, a writ of ceriorari to quash Ext.P3 notification dated 15.03.2017; and 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-05/AP-3738 on the route Kottayam-Perikkalloor as limited stop ordinary service by considering Ext.P4 application in continuation of Ext.P2, untrammeled by Ext.P3. 2. On 28.07.2017, when this writ petition came up for admission, this Court admitted the matter on file. The learned Government Pleader took notice for respondents 1 to 3. The 3 WP(C)25028 OF 2017 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.P4 application, filed by the petitioner for re-issue 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 20.8.2018 in W.A.No.1098 of 2018 and connected cases, i.e., 4 WP(C)25028 OF 2017 ## **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)25028 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., 6 WP(C)25028 OF 2017 in Ext.P5 Scheme, through the modification procedure 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 7 WP(C)25028 OF 2017 blush, it appeared to us that the same reasons that led to the quashing of the impugned clause in the modified 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 8 WP(C)25028 OF 2017 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 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) 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)** _._ Sd/- **ANIL K. NARENDRAN JUDGE** **yd** 9 WP(C)25028 OF 2017 ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT P1 : TRUE COPY OF THE NOTIFICATION VIDE NO.536/B2/2016/TRAN DATED 19-2-2016 ISSUED BY 1ST RESPONDENT. EXHIBIT P2 : TRUE COPY OF THE TEMPORARY PERMIT WITH ITS NO.P.TEM.7/274/2017 DATED 27-32017. EXHIBIT P3 : TRUE COPY OF THE NOTIFICATION VIDE G.O(P) NO.06/2017/TRAN DATED 15-3-2017 (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 9-6-2017. EXHIBIT P5 : TRUE COPY OF THE CHELAN RECEIPT DATED 9-6-2017. EXHIBIT P6 : TRUE COPY OF THE ORDER DATED 16-5-2017 IN WPC.NO.16198/2017.** ## **RESPONDENT'S EXHIBITS:NIL** ## **TRUE COPY** **P.A. TO JUDGE**