@JUDGMENTTAG-ORDER
T.N. Singh, J.@mdashTwo private bus-operators have locked horns in this legal battle but we also heard Shri D.V. Nigudkar, Standing Counsel for the M.P. Suite Road Transport Corporation, because of the general importance of the question mooted for our decision in this matter. Shri R.D. Jain consented to act as amicus curiae and we also heard him and Petitioner''s counsel, Shri Arvind Dudawat. Oral hearing was concluded on 15.2.1993 but Shri J.P. Gupta, learned Counsel appearing for the main contestant Respondent No. 3, also filed written argument on 18.2.1993.
2. On facts there is little dispute and indeed only few facts are to be stated to decide the important question of law on which counsel addressed us extensively. The Petitioner is owner of only one vehicle of 1992 model for which he holds stage carriage permit No. 237/92 for the route Pichore to Rajgarh valid upto 19.11.1997. While the Petitioner is a new-comer in the trade and his permit is a fresh grant, Respondent No. 3 is holding stage- carriage permit No. P. St.S.147/70 for the same route which was a permit "renewed" under Motor Vehicle Act, 1939, for short, ''Old Act, and was valid upto 17.11.1991. He made an application u/s 81 of the Motor Vehicles Act, 1988, for short ''New Act,'' for renewal of the said permit. Admittedly, the said Respondent holds Anr. nine stage-carriage permits and it is also averred that in the names of his sons he holds 15 other stage-carriage permits. In the meeting held on 16.9.1992 the Regional Transport Authority, Bhopal, for short ''R.T.A.'', heard all applications for fresh permits and for renewals for the route in question and by its order passed on 17.11.1992 the said Authority rejected the renewal application of Respondent No. 3 and granted to the Petitioner a fresh stage-carriage permit for the said route for the period from 20.11.1992 to 19.11.1997.
3. An appeal was taken by Respondent No. 3 to the State Transport Appellate Tribunal, Madhya Pradesh, Gwalior, wherein the Petitioner was impleaded as Respondent No. 2, challenging the R.T.A.''s decision aforesaid. The appeal was allowed by the said Tribunal vide its order dated 10.12.1992 renewing the permit of Respondent No. 3 and also confirming at the same time grant of the fresh permit to the Petitioner on the condition that the R.T.A. shall refix timing for the Petitioner. Reliance was pleaced on a decision of the Apex Court in
4. Before we examine rival contentions based on Gurucharan Singh''s case (supra) we propose to extract first relevant portions on the provisions of the New Act, and also of the old Act, which is repealed:
New Act:
71. Procedure of Regional Transport Authority in considering application for stage carriage permit. - (1) A Regional Transport Authority shall, while considering an application for a stage carriage permit, have regard to the objects of this Act:
(2) ...
(3)(a) ...
(b) ...
(c) ...
(d) After reserving such number of permits as it referred to in Clause (c), the Regional Transport Authority shall in considering an application have regard to the following matters, namely:
(i) ...
(ii) ...
(iii) ...
Provided that, other conditions being equal, preference shall be given to applications for perm its from-
(i) State Transport undertakings:
(ii) Co-operative societies registered or deemed to have been registered under any enactment for the time being in force; or
(iii) Ex-Serviceman.
(4) A Regional Transport Authority shall not grant more than five stage carriage permits to any individual or more than ten stage carriage permits to any company (not being a Stale Transport undertakings.
(5) In computing the number of permits to be granted under Sub-section (4), the permits held by an applicant in the name of any other person and the permits held by any company of which such applicant is a director shall also be taken into account
81. Duration and renewal of permits.-
(1) A permit other than a temporary permit issued u/s 87 or a special permit issued under Sub-section (8) of Section 88 shall be effective without renewal for a period of five years:
...
(2) A permit may be renewed on an application made not less than fifteen days before the date of its expiry.
(3) ...
(4) The Regional Transport Authority or the State Transport Authority, as the case may be, may reject an application for the renewal of a permit on one or more of the following grounds, namely:
(a) ...
(b) ...
217. Repeal and savings .--(1)
(2) Notwithstanding the repeal by Sub-section (1) of the repealed enactments. --
(a) any notification, rule, regulation, order or notice issued or any appointment or declaration made or exemption granted, or any confiscation made, or any penalty or fine imposed, any forfeiture cancellation or any other thing done, or any other action taken under the repealed enactments, and in force immediately before such commencement shall, so far as it is not inconsistent with the provisions of this Act, be deemed to have been issued, made, granted, done or taken under the corresponding provision of this Act;
(b) any certificate of fitness of registration or licence or permit issued or granted under the repealed enactments shall continue to have effect after such commencement under the same conditions and for the same period as if this Act had not been passed;
(c) ...
(d) ...
(e) ...
(f) ...
(3) ...
(4) The mention of particular matters, in this section shall not be held to prejudice or affect the general application of Section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeals.
Old Act
58. Duration and renewal of permits
(1) (a) A stage carriage permit or a contract carriage permit other than a temporary permit issued u/s 62 shall be effective without renewal for such period, not less than three years and not more than five years, as the Regional Transport Authority may specify in the permit.
(b) ...
(2) A permit may be renewed on an application made and disposed of as if it were an application for a permit:
...
Provide...(further) that, other conditions being equal, an application for renewal shall be given preference over new application for permits.
5. Obviously, the controversy surfacing in this matter has two nodal points relating precisely to interpretation of Section 71(4) and Section 217(2)(b) of the New Act. On behalf of the contesting Respondent, Shri Gupta has contended that Sub-Section 2 (b) read with Sub-section (4) of Section 217 saves the right of renewal of the permit of Respondent No. 3 granted under the Old Act and his further contention is that Section 71(4) does not impair that right because the provision thereof are applicable to case of grant of a fresh permit and not renewal of a permit, old or new. He has urged strenuously that under the Old Act and also New Act, a distinction is made between two rights, to obtain a fresh permit and renewal of a permit and that distinction is to be kept in view in construing Section 71(4). He further contended that in terms of Section 217 of the new Act, read with Section 6 of the General Clauses Act, the right of renewal attached to the old permit is kept alive under the New Act because that is an ''accrued'' right and is expressly saved. He accordingly, submitted that the Tribunal had validly renewed the permit and also that it had no other option except to direct, consequently, the R.T.A. to change the timing of the permit granted to the Petitioner because the timing of the Respondent in virtue of renewal of his permit had to prevail. Indeed Shri, Gupta placed implicit reliance on Gurucharan Singh''s case (supra) to submit that Petitioner''s entitlement is fully established on the basis of that decision and on that ground also there is no scope for interference with the impugned order of the Tribunal.
6. Sarvashri Nigudkar and R.D. Jain, on the other hand contended, and indeed, Petitioner''s counsel Shri Arvind Dudawat joined them in the chorus, to the effect that Gurucharan Singh''s decision does not avail the contesting Respondent. It is an authority for the proposition which it decided and its ratio cannot be extended to the instant case inasmuch as the scope of the embargo contemplated u/s 71(4) was neither agitated nor decided in that case. It is next contended that the Legislature did not predicate a contra-constitutional as also an anomalous position by contemplating under the new Act two classes of operators, one class operating in virtue of fresh permits upto 5 only in number issued under the New Act and Anr. class operating in virtue of old permits (unlimited in number) renewed under the new Act with right of renewal perennially surviving with respect thereto. It is also contended that the object of the Legislature in formulating the new policy of liberalisation of transport business must be kept in view and that the implications and ramifications of the new policy are to be properly comprehended as reflected in the various provisions of the new Act. It is submitted indeed relying on Apex Court''s recent decision in
7. It is necessary to expose the basic fallacy of Shri Gupta''s contention. The right to apply for grant of a fresh permit or renewal of an existing permit, issued whether under the old or new Act, is a statutory right, it is not a contractual right. The right of renewal of a permit cannot be equated to a right in the nature of renewal clause in lease because there is no property in a permit issued under the Act (old or new) as held by this Court''s Full Bench in
8. Article 19(6) of the Constitution permits additionally, reasonable restriction to be imposed in the interest of general public on the freedom of a citizen to carry on any occupation, trade or business and undoubtedly the provisions of the old and new Act contemplating the requirement of a "permit" (whether fresh or renewed) are relatable to that Constitutional authority. To curb monopolistic activity of such private operators who try to act as the big shark, in the interest of general public for ordaining an egalitarian society fulfilling the mandate of Directive Principles of the Constitution the new Act has legitimately made a deliberate effort of which notice is taken in Mithilesh Garg (supra). Indeed, the position which emerges from a casual comparison of the relevant provisions of the new and old Acts is that the so-called "right" of renewal has undergone a distinctive qualitative change in the new Act. The old right contemplated under the old Act of renewal, except to the extent saved by new Section 217(2), is hit and killed by new Section 71(4) using Constitutional force and authority derived from Articles 19(6) and 14 to prevent monopolistic tendency and establish, on the basis of equality, a single class of operators of equal entitlement.
9. Power is not denied to Legislature to fix ceiling on permits in those two decisions. Judicial support for statutory measure of such a type is readily available. See, in this connection,
10. We find, however, difficult to accept the proposition canvassed by Shri R.D. Jain on the interpretation of Sub-sections (31) and (32) of Section 2 of the New Act, that the Act totally snuffs out life of a permit issued under the new Act ("under this Act") can only have legal tender. Renewal of a permit issued under the old Act is saved, by Section 217(2)(b) to the extent that is not barred by Section 71(4) of the new Act because power in that regard can be exercised only in terms of Section 71(1) of the said Act. Section 70 and 80 have clearly done away with the requirement of Section 57(3) and 58 (2) of the Old Act of application of stage carriage permits, for fresh permit and also for renewal, to be ''published'' and for submission of "representations" and hearing thereon. But, importantly, Section 71(1) expressly mandates that in considering any application for stage carriage permit the Authority shall "have regard to the object of this Act" (emphasis added) and some of the specified objects are enumerated in Sub-sections (3) and (4). Preferences contemplated under the proviso to Section 71(3) apply equally to applications for fresh permits and for renewals under the new Act instead of the old preference in respect of renewal contemplated under old Section 58(2) proviso. On the one hand, monopolistic tendency of private operators in checked by contemplating u/s 71(4) the maximum entitlement separately with deleberate care for an individual and company, on the other hand renewals made under the new Act of existing permits (used under old or new Act) are established by envisaging specific circumstances when renewal can be refused, thereby circumscribing Authority''s discretionary power ("may reject") contemplated u/s 81(4). It is clear that right of renewal under the new Act is of a different content, character and complexion; it supplants the existing right. Such being the statutorily contemplated position Shri Gupta''s contention that under the both, new and old, Acts a distinction is maintained between a fresh and renewed permit loose all significance. His reliance, in support of his contention, on the decision cited is obviously of no relevance. To wit; Shivchand, AIR 1984 ibid at page 9, Shersingh, ibid at page 200; and K.S.RTC ibid at page 79.
11. We are unable to accept Shri Gupta''s contention that Section 81 (new) is a complete Code in so far as entitlement of renewal and power of the Authority in that regard is concerned. Merely because Sub-section (4) cotemplated cases in which the Authority "may reject an application for renewal" on the grounds enumerated thereunder, it is not to be assumed that the provision deals with entitlement for renewal. That provision concerns merely power of the Authority to reject the application for renewal. The source of power to grant renewal is to be traced to Section 71 because it is only thereunder that "applications" are "considered" for a stage carriage permit for reaching a decision on the applicant''s entitlement to be granted the permit prayed, whether fresh or renewed. Sub-sections (2) and (3) of Section 81 contemplates merely period of limitation for application for renewal and they have nothing to do with the question of entitlement. That is to be decided in terms of the provisions of Section 71 because only such permits (whether fresh or renewed) issued by the Authority which do not defeat, the "objects" of the new Act can have legal tender as contemplated u/s 71(1). Indeed, there is no other provision dealing with either expressly or exclusively with grant of a renewed permit. Even if Sub-section (4) of Section 71 does not refer expressly to a permit which is "renewed", they will not make any difference. Section 81 does not prescribe the procedure for consideration of the " application" for renewal of the existing permit; such an application, if it is to be allowed, must not defeat the "objects" enumerated in Section 71 because thereunder only is contemplated consideration of all types of applications for a stage carriage permit. Neither Sub-sections (1), (4) and (5) of Section 71, nor indeed, the provisions of Sub-sections (2),(3) and (4) of Section 81 are to be construed in a narrow or pedantic sense as will defeat the object and purpose of the Act and the new policy it promotes. They are to be harmonised and subjected equally to the norms of purposive interpretation of universal application. See, in this connection
12. We turn now to the interpretation of Section 217(2) and impact of that on Sub-section (4). Expressly and categorically, in terms of Clause (b) of Sub-section (2) of Section 217, the "permit" (whether freshly granted or renewed) issued under the repealed Act of 1939, is kept alive for the remaining period of its validity contemplated under the said permit. Beyond that, no right with respect to the said permit is saved and we do not think if the expression "as if this Act had not been passed" can have any other meaning. The two expressions preceding it, "same conditions" and "same period" clearly manifast that with regard to the "period" and the "conditions" specified in the permit the having is contemplated. However, there may be cases such as of Gurcharan Singh (supra), when the "Notification" referred to in Sub-section (2)(a) of Section 217 is published before the new Act came into force when there will be saving also with respect to the right of the "application" duly notified to be considered after that was processed in accordance with the law under which the application was made. Gurucharan Singh is an authority only for that proposition as will appear clear from the following passage from para 3 of the decision at p. 183 of the Report:
This right accured to Appellant as he had already applied for renewal and his application had been notified. The legal machinery was set in motion by him. He, therefore, had a right to get his application for renewal processed and considered in accordance with 1939 Act. It would be too artificial to say that it was not a right or it had not accured under 1939 Act. Therefore, in our opinion, by virtue of Section 6(c) of the General Clauses Act the right of the Appellant to get his application considered and decided in accordance with law was saved by Sub-section (4) of Section 217 of Motor Vehicles Act.
(Emphasis added).
At para 5 of the Report their Lordships also observed: "Does the new Act indicate any intention to the contrary? No express provision debarring renewal of permits, applied for, under Old Act could be pointed out." Whether to such an application also the provisions of Section 71(4) would apply and consideration thereof must enter the decision-making process of the Authority dealing with the application was neither posed nor decided.
13. It is, therefore, rightly contended, relying on
14. The conclusion reached supports the view we have taken hereinbefore on the scope of the so-called "right to renewal" under the old and new Acts. On the term "right accured", used in Section 6(c), General Clauses Act, there is illuminating discussion in their Lordships'' decision in
15. On the interpretation of Section 58 old and new Section 71(4) nd 217 in the context of provisions of Section 6 of the General Clauses Act, the same view on similar facts is expressed in
16. In the instant case, the period of the old permit issued under the old Act in 1970 expired after the new Act came into force when power to renew the permit under the old Act was not available to be exercised. Indeed, Section 6, General Clauses Act itself allows the new power under the new Act to be exercised because the so-called old right of renewal is supplanted by a new right as discussed above and the "contrary intention" of the Legislature in creating the new right and creating also new power in respect to that right is therefore to be allowed to operate in terms of the said provision. It is to be noted also that the application was made under the new Act and thereby power for renewal of the permit was invoked under the new Act. On the date of application for renewal filed by Respondent No. 3, R.T.A. Bhopal found its power to grant renewal impaired by Section 71(4) on account of prohibition contemplated thereunder. Admittedly, the Petitioner was found holding 10 stage-carriage permits (including the one expired) and R.T.A. could not therefore renewed the expired permit because of the statutory embargo.
17. In the result, the petition succeeds and is allowed. The order passed in appeal by Respondent No. l, State Transport Appellate Tribunal, Gwalior on 30.12.1992 renewing the permit No. P. St.S. 147/70 of Respondent No. 3 for the route Pichore to Rajgarh is quashed and the order of R.T.A. dated 17.11.1992 is restored. However, we leave the parties to bear their own costs in this Court.
18. Before parting with the records we would like to observe that counsel who had addressed us did a commendable task, but we would like to put on records our deep appreciation of the assistance rendered by Corporation''s counsel, Shri Nigudkar and also Shri R.D. Jain, who acted as amicus curiae at our request.