Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1988 (12) TMI 331

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... public service vehicle, made an application on October 10, 1976 to the Regional Transport Authority for the grant of a special permit under sub-section (6) of section 63 of the Motor Vehicles Act for the period from November 15, 1976 to November 22, 1976. The Regional Transport Authority rejected the said application on the ground that the provisions of the Karnataka Contract Carriages (Acquisition) Act, 1976, hereinafter referred to as `the Act', prohibit the grant of such permits. The respondent No. 1 being aggrieved by the refusal by the Regional Transport Authority to grant a special permit filed a writ petition in the High Court. A learned Single Judge of the High Court allowed the writ petition and directed the Regional Transport Authority to consider the application of the respondent No. I for the grant of special permit. Against the judgment of the learned Single Judge, the appellants preferred a writ appeal to the Division Bench of the High Court. The Bench took the view that the intention of the Legislature was that only a public service vehicle in relation to which a special permit had been issued when the Act came into force and which was not operating as a stage .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... were also functioning stealthily as stage carriages. This had to be prevented. Article 39(b) and (c) enjoins upon the State to see that the ownership and control of the material resources of the community are so distributed as best to subserve the common good and that the operation of the economic system does not result in the concentration of wealth to the common detriment. In view of the aforesaid it was considered necessary to acquire the contract carriages run by private operators Accordingly the Karnataka Contract Carriages PG NO 1043 (Acquisition) Ordinance, 1976 was promulgated. The Bill seeks to replace the Ordinance. The constitutional validity of the Act was challenged before this Court and a Constitution Bench of Seven Judges in State of karnataka v. Shri Ranganatha Reddy, [1978] I SCR 641 upheld the validity of the Act. In considering the question of validity of the Act, this Court referred to the Statement of Objects and Reasons for the Act and on the basis of various affidavits filed on behalf of the State, observed that the operators were misusing their permits granted to them as contract carriage permits, and that in many cases the vehicles here used as stag .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... application of persons other than the Corporation for the grant of permit for the running of any contract carriage . It has been already noticed that the Act provides for acquisition of contract carriages. The words 'contract carriage' have been defined in section 3(R) of the Act as follows: 3(g). 'contract carriage' shall have the same meaning as in clause(3) of section 2 of the Motor Vehicles Act and includes- (i) a public service vehicle in relation to which a special permit has been issued under sub-section (6) of section 63 of the Motor Vehicles Act: (ii) a public service vehicle in relation to which a temporary permit has been issued under sub-section (l) of section 62 or sub-section (lC) of section 68F of the Motor Vehicles Act; (iii) a public service vehicle without a contract carriage permit but which is specified as contract carriage in the concerned certificate of registration; (iv) any right in or over such vehicles or moveable property, but does not include, (i) a tourist vehicle in relation to which a permit has been issued under sub-section (7) of section 63 of the Motor Vehicles Act; (ii) a vehicle operating as a stage carriag .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l come within the purview of the definition of contract carriage'. In other words, if a 'contract carriage' or a 'stage carriage' within the meaning of the Motor Vehicles Act has been issued a special permit or a temporary permit, as referred to in PG NO 1046 clauses (i) and (ii) of section 3(g). such 'contract carriage' or 'stage carriage' will be a contract carriage within the meaning of section 3(g) of the Act. Now we may refer to the latter part of the definition of 'contract carriage' under section 3(g) of the Act which excludes certain vehicles from the definition of contract carriage'. The exclusion that has been provided in clause (ii) is important for our purpose. It excludes a stage carriage in respect of which a temporary contract carriage permit under section 62(1) or a special permit under section 63(6) of the Motor Vehicles Act is in force on January 3(), 1976, that is, the date on which the Act is deemed to have come into force. Under clauses (i) and (ii) of section 3(g) of the Act, which form a part of the extended definition of 'contract carriage', a public service vehicle, that is to say, a contract carria .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... fter the enactment of the Act which is clear from the exclusion clause (ii) of section 3(g) which excludes a stage carriage from the definition of 'contract carriage', if special permits issued under section 62(1) or section h.(6) of the Motor Vehicles Act were in force on January 30, 1976. It is difficult to interpret clauses (i) and (ii) of section 3(g) as contemplating the issuance of a temporary permit or a special permit. as referred to therein before the coming into force of the Act. Merely because of the use of the words has been in clauses (i) and (ii) of section 3(g), such an interpretation is not possible to be made, particularly in view of the legislative intent apparent from the exclusion clause (ii), namely. that the Legislature only. excluded a stage carriage in respect of which a temporary contract carriage or a special permit issued under section 62(1) or 63(6) of the Motor Vehicles Act was in force on January 30, 1976. It has, however, been urged by Mr. A K. Sen learned counsel appearing on behalf of the respondent No. 1. that a stage carriage vehicle in respect of which a special permit has been granted, is excluded form the operation of the Act. counse .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... occurring in the different provisions of the Act including section 3(h) and should also be applied to the word occuring in section 14 of the Act. Section 14 provides as follows: 14 Fresh permit or renewal of the existing permit barred.--Except otherwise provided in this Act (1) no person shall on or after the commencement of this Act apply for any permit or fresh permit or for renewal of an existing permit for the running of any contract carriage in the State; and (2) every application for the grant of a permit or fresh permit Or for the renewal of the existing permit and all PG NO 1049 appeals or revisions arising therefrom relating thereto made or preferred before the commencement of this Act and pending in any court or with any officer, authority or Tribunal constituted under the Motor Vehicles Act shall abate. It is submitted that only the grant or renewal of a permit in respect of a 'contract carriage' within the meaning of the Motor Vehicles Act is prohibited under section 14 of the Act, and such prohibition does not relate to a stage carriage for the running of the same as; contract carriage. We are unable to accept the contention. If the interpretation .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates