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1992 (3) TMI 359

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..... held that the State Govt. was at liberty to give fresh hearing to the 50 objectors on the basis of the original proposal which was upheld by this court in Jeewan Nath Bahl & Ors. v. State of U.P., (C.A. No 1616 of 1968 dated April 3, 1968), observing thus : "The effect of the order passed by the High Court in the two groups of writ petitions was clearly that the scheme in its essence was not affected, but it was directed that it was not liable to be enforced against the 32 petitioners who applied to the High Court in the first round of petitions and against 18 petitioners in the second group of petitions. If that be the true effect of the order there is in our judgment, a scheme in existence which must have the statutory operation contemplated by Section 68-F on the Motor Vehicles Act." The record discloses that out of 50 operators some of them filed successive suits and obtined injuction from different courts scuttling the hearing and kept pending for well over 25 years. Shri Chand and Others filed Writ Petition No. 11744 of 1985, etc. in this court assailing that the delay in approving the scheme amounts to abuse of process of law and public interest thereby suffere .....

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..... f the orders sanctioning the scheme". The result is that the scheme would operate as against every other person other than the fifty operators and the S.T.U. has the exclusive right to ply its vehicles on the notified route. 50 operators not only continuted to ply there vehicles till expiry of their permits but managed to ply till date. In Mysore State Road Transport Corporation v. Mysore State Transport Appellate Tribunal, [1975] 1 SCR 615, this court held thus: "Any route or area either wholly or partly can be taken over by a State Undertaking under any scheme published, approved and notified under the provisions of Ch. IV-A of the Act inserted by Sec. 62 of Act 100 of 1956. If, therefore, the scheme prohibits private transport owners to operate on the notified area or route or any portion therefore, the Regional Transport Authority cannot either renew the permit of such private owners or give any fresh permit in respect of a route which overlaps the notified route. In considering the question whether when one party has monopoly over a route, a licence can be granted to any other party over any part of that route, the distinction between 'route" and "hi .....

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..... notified route unless authorised so to do by the terms of the scheme itself. He may not operate on any part or portion of the notified route or area on the mere ground that the permit as originally granted to him covered the notified route or area. The private operator cannot take the plea of inconvenience of the public. If indeed there is any need for protecting the travelling public from inconvenience the State Transport Undertaking and the Government will make a sufficient provision in the scheme itself to avoid inconvenience being caused to the travelling public." The contention of Shri Harish Salve, the learned Senior counsel for contesting respondents, is that the scheme of nationalisation relates to "any area, route or portion thereof". In Shri Chand's case this court quashed the draft scheme dated February 26, 1959 taking over the Saharanpur-Shahdara-Delhi route. The fresh draft scheme dated February 13, 1986 to nationalise Saharanpur-Shahdara- Delhi route stood lapsed by operation of s. 100(4) read with s.217(2)(e) of the Act. Therefore, the grant of permits to the respondents is valid in law. In Shri Chand's case this court quashed the draft scheme .....

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..... s court per majority held that where a part of the Highway to be used by private Transport owners traverse on a line on the same highway on the notified route, then that application has to be considered only in the light of scheme as notiofied. If any conditions are placed then those conditions have to be fulfilled and if there is a total prohibition then the application must be rejected. If there is a total prohibition then the application must be rejected. If there is a prohibition to operate on any notified route or routes, no licence can be granted to any private operators, whose route traversed or overlapped in part or whole of that notified route. The inter-section of the notified routes must amount to traverse or overlapping the routes because the prohibition must apply to the whole or part of the route on the highway on the same line or the route and inter-section cannot be said to be traversing the same line. In S. Abdul Khader Saheb v. Mysore Revenue Appellate Tribunal & Ors., [1973] 1 SCC 357, this court approved the view of the Karnataka High Court that, when once on a route or a portion of the route there has been total exclusion of the operation of the stage carraige .....

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..... Chapter IV of the repealed Act (Chapter V of the Act) has been frozen and prohibited. The result that emerges therefrom it that the nationalisation of Saharanpur - Shahdara - Delhi route approved and published on September 29, 1959 became final and to that extent it cannot be said to have been quashed by this court in Sri Chand's case. The approved scheme is law operating against everyone except 50 objectors/operators and the writ issued by this court cannot have the effect of annuling the law. What was quashed and issue of fresh draft scheme pursuant thereto, relate to only of original draft scheme operative against 50 objectors/operators and no more. Even on principle, the decision of a Bench of two Judges cannot have the effect of overruling the decision of a Bench of three Judges. The fresh draft scheme under s.68-C dated February 13,1986 must, therefore, be construed to be only in relation to 50 existing operators as per the directions ultimately emerged in Jeevan Nath Bahl's case. The next question is whether the draft scheme dated Feb. 13, 1986 stood lapsed under S. 100(4) of the Act. The High Court relied on its earlier judgment and held that by operation of sub-s .....

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..... rruption and favouritism in the process of granting permits, eliminate monopoly of few persons and making operation on a particular route economically viable and encourage healthy competition to bring about efficiency in the trade. But the free ply is confined to grant of permits under Chapter V of the Act. By operation of s.98 of the Act, Chapter VI overrides Chapter V and other law and shall have effect notwithstanding anything inconsistent therewith contained in Chapter V or any other law for the time result is that even under the Act the existing scheme under the repealed Act or made under Chapter VI of the Act shall have over-riding effect on Chapter V notwithstanding any right given to private operators in Chapter V of the Act. No corridor protection to private operators is permissible. Accordingly we hold that the approved scheme dated September 29, 1959 on Saharanpur - Shahdara - Delhi route shall continue to be valid scheme under the Act. The U.P. State Road Transport Corporation alone shall have the exclusive right to ply their stage carriages on the said route and Bulandshahr - Delhi route/areas or portions thereof. By operation of the orders passed by the Allahabad Hig .....

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..... on Feb. 13, 1986 draft scheme ar quashed. The hearing authority shall lodge the objections of the 50 operators including the appellants herein. The competent authority shall approve the draft scheme of 1986 within a period of 30 days from the date of receipt of the judgment; and publish the approved scheme in the gazette. The permits granted to the 50 operators or any other shall stand cancelled from that date, if not having expired in the meanwhile. No permits shall be renewed. Appropriate action should be taken by respondents 3 to 4 in CA No. 1198/92 (S.L.P. No. 9701/90) to see that all the permits, granted to the 50 operators including the appellants are seized and cancelled. The U.P. State Transport Corporation shall obtain required additional permits, if need be, and put the stage carriages on the routes to provide transport service to the travelling public immediately on publication of the approved draft scheme in the State Gazette. The Appeal arising out of S.L.P. No. 2083/91 is allowed with costs throughout against respondents Nos. 4 to 13. The appeals arising out S.L.P. Nos. 6300/91, 9701/90 and 9702/90 are allowed without costs.
Case laws, Decisions, Judgements, Orde .....

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