High Court of KeralaSingle JudgePartly allowed

Shajil.I.C v. The State of Kerala and Others

Case / Petition Number:WP(C).No.30403 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; quashed Clause (4) of Ext.P13 scheme that makes maximum distance applicable to the saved permits; repelled challenge against Ext.P12 notification and the amendment notified thereunder; 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

  • Shaijil.I.C

Respondents

  • The State of Kerala represented by the Secretary to Government, Department of Transports, Secretariat, Thiruvananthapuram
  • The Regional Transport Authority, Malappuram District
  • The Secretary, Regional Transport Authority, Malappuram
  • The Kerala State Road Transport Corporation represented by its Managing Director

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Saju J. Vallyara

Counsels for Respondents

  • • Government Pleader for respondents 1-3
  • • Sri. P.C. Chacko, Senior Counsel for KSRTC
  • • Sri. Paul Abraham Vakkanal, Senior Government Pleader

Case Synopsis & Summary

Shajil.I.C., holder of a regular permit on the Ponnani–Kozhikode–Guruvayur route, challenges Ext.P3 Gazette notification dated 15 March 2017, which amended the State’s transport scheme and imposed a maximum distance restriction on saved permits. His regular permit expired in 2015; renewal is pending, and Ext.P2 granted a temporary permit (LSOS) for vehicle KL-54/B-6002, valid until 14 October 2017. By filing this writ petition under Article 226, he seeks quashing of Ext.P3 and a mandamus to re-issue a four-month temporary permit continuing Ext.P2 without the restriction. The court notes that the legality of the challenged notification is already resolved in related matters, citing the Division Bench decision in Saju Varkey and the Single Judge's order in W.P.(C) No.11825 of 2017 and connected cases. The court references Sections 99, 100 and 102 of the MV Act and the principle that scheme formulation must be transparent and fair, allowing objections. The judgments emphasize that there cannot be a finalization of a scheme diverging from what was proposed, and that pre-existing rights of private operators must be considered in light of the existing schemes (Exts. P5, P7, P9). However, it is held that private operators did not derive a pre-existing right to operate OLS services without distance restrictions. Ultimately, the writ petitions are partly allowed: quashing only Clause (4) of Ext.P13 (the 140 km maximum distance for saved permits) and upholding Ext.P12 elsewhere; disposal follows the Saju Varkey line.

Provisions of Law Cited

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

Legal Doctrines & Maxims

  • Principles of natural justice

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioner contends Ext.P3 Gazette notification dated 15.03.2017 is invalid, and seeks a writ of certiorari to quash it and a mandamus to re-issue a four-month temporary permit (LSOS) for vehicle KL-54/B-6002 on the route Ponnani–Kozhikode–Guruvayur, pending renewal of the regular permit. The challenge relies on the scheme-making process under MV Act sections 99-102 and on pre-existing rights claimed under Ext.P5/Ext.P9, arguing that amendments should not impair private operators’ rights without due procedure.

Contentions of Respondents

The State and KSRTC defend the challenged notification and amended scheme as valid under MV Act sections 99, 100, 102. They argue that rights are not inherent to private operators independent of statutory schemes; the modifications were part of a transparent process; the new OLS/maximum distance provisions were introduced with justifiable policy considerations and the objections were considered.

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Kerala State Road Transport Corporation v. Saju Varkey and others2018 (4) KHC 617PositiveCited as the controlling authority for the procedure of scheme formulation and the protection of pre-existing rights of private operators in MV Act-related reforms; used to support the court's approach to Ext.P13 and Ext.P5/Ext.P9.
W.P.(C) No.11825 of 2017 and connected casesW.P.(C) No.11825 of 2017PositiveThe current petition's issue is said to be covered in favour by the Single Judge's decision in this matter, which the Court relies upon.

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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.30403 of 2017** ## **PETITIONER:** **SHAJIL.I.C AGED 44 YEARS S/O.CHANDRAN,IRUDUKAVIL HOUSE, SUKAPURAM P.O., EDAPPAL, MALAPPURAM DISTRICT.** **BY ADV. SRI.SAJU J.VALLYARA** ## **RESPONDENTS:** |**1**|**THE STATE OF KERALA**| |---|---| ||**REPRESENTED BY THE SECRETARY TO GOVERNMENT,**| ||**DEPARTMENT OF TRANSPORTS,**| ||**SECRETARIAT,THIRUVANANTHAPURAM - 695 001.**| |**2**|**THE REGIONAL TRANSPORT AUTHORITY**| ||**MALAPPURAM DISTRICT, PIN - 676 505.**| |**3**|**THE SECRETARY**| ||**REGIONAL TRANSPORT AUTHORITY,**| ||**MALAPPURAM, PIN - 676 505.**| |**4**|**THE KERALA STATE ROAD TRANSPORT CORPORATION**| ||**REPRESENTED BY ITS MANAGING DIRECTOR,**| ||**THIRUVANANTHAPURAM - 695 023.**| ||**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)30403 OF 2017 ## **JUDGMENT** The petitioner is the holder of a regular permit on the route Ponnani-Kozhikode-Guruvayur, which was valid till 28.11.2015. 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-54/B-6002, which was valid till 14.10.2017. The petitioner has filed this writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash Ext.P3 notification dated 15.03.2017; and a writ of mandamus commanding the 3[rd] respondent to re-issue 4 months temporary permit to the petitioner in respect of stage carriage bearing registration No.KL-54/B-6002 to operate on the route Ponnani-Kozhikode-Guruvayur as LSOS by considering Ext.P4 application in continuation of Ext.P2, untrammeled by Ext.P3. 2. On 22.09.2017, 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 learned Standing Counsel took notice for the 4[th] respondent. 3 WP(C)30403 OF 2017 This Court granted an interim order directing the 3[rd] respondent to consider Ext.P4 application of the petitioner for tempoary permit in respect of stage carriage bearing registration No.KL-54/B-6002 to operate on the route PonnaiKozhikode-Guruvayur as LSOS, untrammeled by Ext.P3 amendment. 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., **Kerala State Road Transport Corporation v. Saju Varkey and others [2018 (4) KHC 617]** . Paragraphs 13 to 18 of the said judgment read thus: 4 WP(C)30403 OF 2017 “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 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 5 WP(C)30403 OF 2017 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., 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, 6 WP(C)30403 OF 2017 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 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 7 WP(C)30403 OF 2017 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 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 8 WP(C)30403 OF 2017 ## 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)30403 OF 2017 ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXHIBIT-P1:** **PHOTOCOPY OF THE NOTIFICATION VIDE NO.536/B2/2016/TRAN. DATED 19.02.2016 ISSUED BY THE 1ST RESPONDENT.** **EXHIBIT-P2: PHOTOCOPY OF THE TEMPORARY PERMIT VIDE NO.P.TEM.10/1403/2017 DATED 17.06.2017 ISSUED TO KL-54-B-6002.** **EXHIBIT-P3:** **PHOTOCOPY OF THE NOTIFICATION VIDE G.O.(P) NO.06/2017/TRAN.DATED 15.03.2017 (S.R.O. NO.127/2017) ISSUED BY THE 1ST RESPONDENT.** **EXHIBIT-P4: PHOTOCOPY OF THE APPLICATION FOR REISSUE OF 4 MONTHS TEMPORARY PERMIT SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT ON 18.09.2017.** ## **RESPONDENT'S EXHIBITS:NIL** ## **TRUE COPY** **P.A. TO JUDGE**