# 92S S. ABDUL KHADER SAHEB v. THE MYSORE REVENUE APPELLATE TRIBUNAL, BANGALORE & ORS

- **Citation:** [1973] 2 S.C.R. 925
- **Court:** Supreme Court of India
- **Decided:** 1972-11-09
- **Bench:** A. N. Grover, K. K. Mathew, A. N. Mukherjea
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/92s-s-abdul-khader-saheb-v-the-mysore-revenue-appellate-tribunal-bangalore-ors-5922
- **Pages:** 7

## Headnote

Motor Vehicles Act (4 of 1939). s.68-D-Intra-State route, what is;
Nationalisation of irttra state route-If proviso to s. 68·D(3) applicableScheme of nationalisation, ;j prevails over inter-state agreement-Scheme·
exciuding all operators except two
categories--Appellant
not
within·
exceptions-If entitled to pern1it on inter-state route, when permit made·
ineffective on over-lapping portion.
Practice and Procedure-Revocation of special leave.
In .August 1964, the States of Mysore arid Andra Pradesh entered
into a reciprocal agreement to introduce stage carriage services on
the
inter.State route from Bellary,
in Mysore, to Manthralaya in
Andhra
Pradesh, via Chintakunta, the border in Mysore State.
By the Befiary
scheme which was approved by the Mysore Government under s. 68-D
of the Motor Vehicles Act, 1939 and which came into force in May,
1964, it was provided that only the State Transport Undertakings
will
operate services on the route Bellary to Chintakunta to the
complete·
exclusion of other persons, except in regard to the portions of the inter·
district routes lying outside the limits of Bellary district. The existing
permit-holders of inter-state routes were allowed to operate such interState routes subject to the oondition that· their permit shall be rendered
ineffective by the competent authority on the overlapping
portion
in
the Bellary district.
I_n the present case, the Regional Transport Authority
called
forapphcallons for the grant of a permit on the inter-State route in 1965
and the ap~llant w_as one of the applicants.
The
Mysore
Revenue
Appellant Tnbunal, · m appeal, granted the permit to the appellant with
the condition that no passenger was to be picked up or set down on the
portion of t~ r~ad overlapping the notified route, of the scheme (that
IS Bellary to Chmtakunta). The High Cuurt in a writ
petition
did
not agree with the view of the Tribunal that even under a scheme of
total e~clusion from Bellary to Chintakunta border, a permit could
be
l~<ued m respect of the overlapping portion of the inter.State route by
malc;:ng that permit ineffective on that portion, and remanded the matter
to the State Transport Authority for reconsideration in accordance with
law,
Disn~iSM the appeal to this Court,
H
HELD : ( 1 j 'f!2ere is no scheme of nationalisation relating lo the·
inter-State route r._"m !'ellary to Manthralaya and t~ Bellary scheme is
confined only to the •nter.Sta.te .. routes, ~n~ of which i!I the BellaryChintakunta route, whose .termmu were within !he State. It could ~
926
SUPREME COURT REPORTS
(1973] 2 S.C.R.
nationalised by the State of Mysore und,er the provisions of s.68-D even
though t!iat portion overlaps the inter-State route from Bcllary to Ma.ithralaya.
[~30 E-F; 931 CJ
B. H. Aswathanarayan Singh & Ors. v. State of.Mysore & Ors., [1966)
! ·S.C.R .. 87, refmed to.
(2) Since the scheme
did not deal with an inter-State route at .a'I
no question of the applicability of the proviso
to s.68-D( 3),
which
requires the pre11.ious approval of the Central Government arises. [930 DJ
(3) A scheme of nationalisation approved under s. 68-D would prevail
over an inter-State
agreement in respect
of an inter-State
route.
[929 G-H; 930 A-Bf
T. N. Raahunatha Reddy v. Mysore State Transport A111hority, [1970]
3 ·S. C. R. 780, followed.
(4) In Thippeswamy's ca.ie (A.LR. 1972 S.C. 1674) it_ was held that
according to the scheme all operators excepting those mentioned in the
scheme a,.. excluded from the nationalised routes. The only two exceptions were with regard to inter-district operators and the existing permit-holders on inter-State routes. Since the appellant did not fall within
either of these two categories it was not possible to accede to the appellant's contention that bec~usc the scheme merely provides for partial
exclusion it was open to the authorities concerned to issue a permit
for the route overlapping the inter-state route.
[929 E-GJ
Thipp'fwamy v. The Mysore Appellate Tribunal, A.I.R.
19'72 !;.C.
1

## Text

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92S
S. ABDUL KHADER SAHEB
v.
THE MYSORE REVENUE APPELLATE TRIBUNAL,
BANGALORE & ORS.
November 9, 1972
[A. N. GROVER, K. K. MATHEW AND A. N.
MUKHERJEA, JJ.]
Motor Vehicles Act (4 of 1939). s.68-D-Intra-State route, what is;
Nationalisation of irttra state route-If proviso to s. 68·D(3) applicableScheme of nationalisation, ;j prevails over inter-state agreement-Scheme·
exciuding all operators except two
categories--Appellant
not
within·
exceptions-If entitled to pern1it on inter-state route, when permit made·
ineffective on over-lapping portion.
Practice and Procedure-Revocation of special leave.
In .August 1964, the States of Mysore arid Andra Pradesh entered
into a reciprocal agreement to introduce stage carriage services on
the
inter.State route from Bellary,
in Mysore, to Manthralaya in
Andhra
Pradesh, via Chintakunta, the border in Mysore State.
By the Befiary
scheme which was approved by the Mysore Government under s. 68-D
of the Motor Vehicles Act, 1939 and which came into force in May,
1964, it was provided that only the State Transport Undertakings
will
operate services on the route Bellary to Chintakunta to the
complete·
exclusion of other persons, except in regard to the portions of the inter·
district routes lying outside the limits of Bellary district. The existing
permit-holders of inter-state routes were allowed to operate such interState routes subject to the oondition that· their permit shall be rendered
ineffective by the competent authority on the overlapping
portion
in
the Bellary district.
I_n the present case, the Regional Transport Authority
called
forapphcallons for the grant of a permit on the inter-State route in 1965
and the ap~llant w_as one of the applicants.
The
Mysore
Revenue
Appellant Tnbunal, · m appeal, granted the permit to the appellant with
the condition that no passenger was to be picked up or set down on the
portion of t~ r~ad overlapping the notified route, of the scheme (that
IS Bellary to Chmtakunta). The High Cuurt in a writ
petition
did
not agree with the view of the Tribunal that even under a scheme of
total e~clusion from Bellary to Chintakunta border, a permit could
be
l~<ued m respect of the overlapping portion of the inter.State route by
malc;:ng that permit ineffective on that portion, and remanded the matter
to the State Transport Authority for reconsideration in accordance with
law,
Disn~iSM the appeal to this Court,
H
HELD : ( 1 j 'f!2ere is no scheme of nationalisation relating lo the·
inter-State route r._"m !'ellary to Manthralaya and t~ Bellary scheme is
confined only to the •nter.Sta.te .. routes, ~n~ of which i!I the BellaryChintakunta route, whose .termmu were within !he State. It could ~
926
SUPREME COURT REPORTS
(1973] 2 S.C.R.
nationalised by the State of Mysore und,er the provisions of s.68-D even
though t!iat portion overlaps the inter-State route from Bcllary to Ma.ithralaya.
[~30 E-F; 931 CJ
B. H. Aswathanarayan Singh & Ors. v. State of.Mysore & Ors., [1966)
! ·S.C.R .. 87, refmed to.
(2) Since the scheme
did not deal with an inter-State route at .a'I
no question of the applicability of the proviso
to s.68-D( 3),
which
requires the pre11.ious approval of the Central Government arises. [930 DJ
(3) A scheme of nationalisation approved under s. 68-D would prevail
over an inter-State
agreement in respect
of an inter-State
route.
[929 G-H; 930 A-Bf
T. N. Raahunatha Reddy v. Mysore State Transport A111hority, [1970]
3 ·S. C. R. 780, followed.
(4) In Thippeswamy's ca.ie (A.LR. 1972 S.C. 1674) it_ was held that
according to the scheme all operators excepting those mentioned in the
scheme a,.. excluded from the nationalised routes. The only two exceptions were with regard to inter-district operators and the existing permit-holders on inter-State routes. Since the appellant did not fall within
either of these two categories it was not possible to accede to the appellant's contention that bec~usc the scheme merely provides for partial
exclusion it was open to the authorities concerned to issue a permit
for the route overlapping the inter-state route.
[929 E-GJ
Thipp'fwamy v. The Mysore Appellate Tribunal, A.I.R.
19'72 !;.C.
1674, followed.
(5) In the application for stay filed along with the
application for
special leave it was
stated that ~pecial leave
had been granted
in
Thippeswamy-., case, but, by the -lime the petitioo for special leave came
up for hearing the appeal in Tbippeswamy's case had
been
dismissed.
But thjs fact was not ment.ioned to the Court. Ho\.\·cver, it was not
a
case for re\'ocation of special leave, because, there w~s. nothing to show
that a reft:rcr,ce was made· tc · Thippeswaniv's casr in ."trgu1ncnt~.
...., ht'n
special leave was grantee!. 1928 B-EJ
C1v1L APPELLATE JuR1so1crroN : Civil Appeals Nos. 1400
and 1401 of 1972.
Appeals by special leave fI:om the judgment and order dated
February 29, 1972 of the Mysore High Court at Bangalore in
Writ Petitions Nos. 2561 of 1968 and 272 of 1969.
M. C. Setalvad, S. S . .Tava/i and G. N. Rao for the appellants.
K. N. Bhatt for respondent No. 7.
L. N. Sinha, Solicitor-General of India, Shyama/a Pappu and
J. Ramamurthi for respondent No. 8.
The Judgment of the Court was delivered by
GR.OYER, J. These appeals have been brought by special leave
from a judgment of the Mysore High Court.
The facts briefly are that in August 1964 the States of Mysore
and Andhra Pradesh entered into a reciprocal agreement to introduce stage carriage services on the inter-State route from Bel!ary
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ABDUL KHADER v. MYSORE REVENUE TRIBUNAL (Grover, J.) 927
in Mysore State to Manthralaya in Andhra Pradesh via Chinta--
kun\a. In August 1965 the Regional Transport Authority, Bellary,
called for applications for the grant of stage carriage permit for
the aforesaid route. The appellant. respondents 7 and 8 and several others filed applications for the grant of a permit. After complyin;; with the necessary formalities required under the relevant
provisions of the Motor Vehicles Aot, 1939, hereinafter called the
'Act', the Regional Transport Authority granted pem1its to
the
appellant and respondent No. 7 for one trip each day at its meeting held in August 1966. By the time the Regional Transport
Authority had issued the notification calling for the applications
the scheme had been approved by the Government of Mysore
u1~der s. 6_8-D of the Act. Under this scheme which was popularly known as the 'Bellary Scheme' and which came into force
with effect frm}l May 7, 1964 a portion of the road in question,
via, from Bellary to the district border
(Chintakunta border)
operators other than those mentioned in the scheme were totally
excluded and only State Transport Undertaking could operate the
services. The Mysor State R.oad Transport Corporation which
was the State Transport Undertaking in Mysore, hereinafter called
the 'State Corporation', B. Su_bba Rao, the appellant and certain
other persons filed appeals before the Mysore State Transport
Appellate Tribunal. After hearing the appeals the Tribunal remitted the case to the Regional Transport Authority for a fresh disposal.
Aggrieved by the remand order the appellant, the State
Corporation and others filed appeals before the Mysore Revenne
Appellate Tribunal. This Tribunal allowed the appeal of the
<~ppellant in its entirety and granted him a permit for the interState route with the condition that no passenger was to be picked
up or set down on the portion of the road overlapping the notified
route of the Bcllary scheme. The appeals of others were dismissed.
Two writ petitions were filed before the High Court, one by the
State Corporation and ihe other by B. Subba Rao challenging the
order of the Revenue Appellate Tribunal.
The High Court disposed of the writ petition on the ground
"When once on a route or a portion of the route
there has been total exclusion of operation of stage carriage services by operators other than the State Transport Undertaking by virtue of a clause in an approved
Scheme, the authorities granting permit under Chapter
IV of the Motor Vehicles Act, should refrain from
grantiilg a permit contrary to the Scheme".
The High Court Hid not agree with the view of the Revenue Appelfate Tribunal that even under a Scheme of total exclusion from
Bellary to Chintakunta border a permit could be issued in respect
of the overlapping portion of the inter-State route by making that
928
SUPREME COURT REPORTS
[1973] 2 S.C.R
:permit ineffective. The High Court consequently directed a re-
.mand to the State Transport Authority to reconsider the matter
and dispose of the same in accordance with law.
Although in the special leave petition there was no mention of
.a connected appeal which was pending in this Court, ~n the apph;
cation for stay, it was stated by the appellant-that special leave had
'been granted in the case D. M. Thippeswamy. v.
The. Mysore
Appellate Tribunal Bangalore & Others(\) agaitist tile 3udgment
of the Mysore High Court in which a similar view had been taken
with regard to the scope and ambit of the Bellary scheme. It is
.common ground ithat by the time the petition for special leave came
up for hearing before this Court that appeal had been dismissed.
This led to the State Corporation filing a petition for revocation of
special leave (C.M.P. No. 7383/72) on the ground that the fact
of the dismissal of Thippeswamy's appeal by this Court on May 4,
1972 had been suppressed at the time when the petition for special leave was argued. An affidavit has been filed by Mr.
S. S.
J avali advocate who had appeared at the special leave stage. He
has stated that according to him Thippeswamy's case was not relevant as the facts there were different and no reference was called
for or made to it in the arguments. It has also been pointed out
that in that very case by a subsequent order dated September 29,
1970 certain clarifications have been made. This· it has been contended, now shows that the decision in that case was not apposite
for the purpose of the present appeals. We do not consider that
any case for revocation of the special leave has been made out and
the prayer in that behalf is hereby deciined.
'Bellary Scheme' was approved under s. 68-D of the Act subject to certain modifications by the Mysore Government by a notification dated April 18, 1964. It was provided in the scheme
that the State Transport Undertaking will operate services on all
the routes to the complete exclusion of other persons except in re·
gard to the portions of inter-district routes lying outside the limits
of Bellary district. The existing permit-holders on inter-State
routes could be allowed to operate such inter-State routes subject
to the condition that their permits shall be rendered ineffective by
the competent authority for the overlapping portion in the district
of Bellary. In Thippeswamy's case (supra) this very scheme came
up for consideration. The question, however,. which arose was
whether the appellant there was not an existing permit-holder when
the State Corporation applied for a permit for the route in question. The following oJ:?servations were made on this point :
"The question whether the 'Bellary Scheme' provides
for the total exclusion of all operators on the nationalised
(I) A.I.R. 1972 S.C. 1674.
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ABDUL KHADER v. MYSORE REVENUE TRIB.UNAL (Grover, I.) 929
routes or it merely provides for partial exclusion is, in
our opinion, wholly irrelevant. All that we have to see
is what the~cheme says ? \\'horn does it exclude? It
is quite plain from the language of the clause referred to
earlier that all operators excepting thOSe mentioned therein are excluded from the nationalised routes. To the
general exclusion made therein, there are two exceptions.
The first one relates to inter-district operators and the
second to existing permit holders on the inter-state routes.
The appellant does not claim to come under the first exception. For the reasons already mentioned his case is
not covered by the second exception".
The argument of Mr. M. C. Setalvad for the appellant is that
no decision was given in Trippeswamy's case (supra) that the Bellary scheme provides for a total exclusion of all operators on the
n«tionalised routes. He has also sought to distinguish that case
by pointing out that the controversy there was confined to the
question whether the appellant was an existing permit holder on
the inter-state route. It has further been stated that in the present
case no permit has so far been issued to the State Corporation bec<.use it has failed to comply with certain provisions and in particular with the requirement of s. 20 of the Road Transport Corporations Act 1950. It may be that the facts are somewhat different
here. The view which the High Court in the present case took
was that after the Bellary Scheme had come into force the operators other than the State Transport Undertaking were totally excluded. In Thippeswamy's case (supra)
also it is clear from
the portion already extracted from the judgment of this Court that
according to the scheme all operators excepting those mentioned
in the scheme are excluded from the nationalised routes.
Th~
two exceptions which have been made are only with regard to the
inter-district operators and the existing permit holders on inter·
st~te. ro~tes. Mr. Setalvad d~s not __ claim that the appellant falls
withm e1the; of these. categones. It 1s, therefore, not possible to
accede !o his co~ten!10.n that because the scheme merely provides
for partial exclus10n 1t 1s open to the authorities concerned to issue
a permit for the route overlapping the inter-state route.
·
. The next point on which a great deal of emphasis has been
!aid on. behalf of 0e appellant ·is that an inter-state route comes
mto ex1sten~e by virtue of an agreement between the States
thrc>ugh which the route passes. The main provisions in that respe:t are to be found in s. 63 of the Act. Any scheme of nationalisat10~ of a r?ute by a State. as approved under s.
68-D, cannot
twernde the mter-state agreements in respect of the inter-state
routes. This Court has in T: N. Raghunatha Reddy v.
Mysore
930
SUPREME COURT REPORTS
[1973] 2 s.c.R.
State Transport Authority ( 1) answered this question in the negative. It has been held that the inter-state agre.ement is not law and·
to hold that an inter-state agreement overrides Chapter IV-A would
be to completely disregard the provisions of s. 68:B of the Act. In
other words a scheme of nationalisation approved under s. 68-D
would prevail over an inter-state agreement 'in respect of an interstate route.
Sub-section ( 3) of s. 68-D of the Act has also been relied
upon by Mr. Setalvad. According to that provision the scheme as
apprpved or modified shall be published in the official gazette and
the same shall thereupon become final. The proviso, however,
says that no such scheme which relates to any inter-State route
shall be deemed to be an approved scheme unless it has been published in the official gazette with the previous approval of the
Central Government. No scheme in the present case has been
approved under the proviso relating to the inter-State route in
question.
We are unable to see how the proviso to s.
68-D(3)
can be of any avail to the appellant. The aforesaid provision becomes material only when a scheme covers an inter-State rout.e.
The Bellary scheme provides for nationalisation of an intra-State
rot:te and not an inter-State route and the aforesaid.provision can
ha,·e no applicability.
Although respondent No. 7 has not appealed, counsel appearing for hi!Il has called attention to the observation~ of this Court
in B. H. Aswathanarayan Singh & Orlzei's v. State of My.sore &
Others(') that an inter-State route is one in which one of the
terminii is in one State and the other in another State; Where both
the terminii are in one State the question· of an inter-State route
does not arise. If part of the scheme covers routes which continue
beyond the State and connect various points in the State of Mysore with those in the other State it does not make the scheme one
connected with inter-State route.
It is sought to be argued from
this that even if Bellary-Chintakunta route which is shown as item
34 in the Bellary Scheme has been nationalised it does not make
the scheme one connected with inter-State route. Stress has been
laid on the example given that the Grand Trunk Road runs from
Calcutta to Amritsar and passes through many States and any portion of it within a State can be a route for purposes of stage carriage but that would not make such a route a part of an inter-State
route even though .it lies O!l the road which runs through many
St;;tes.
The above nrgument can possibly have no validity so far as
the present case is concerned. The scheme which was under consideration in the decision relied upon was in respect of an intra-
(IJ [1970] 3 S.C.R. 780.
(2) [1966]
1 S.C.R. 87.
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ABDUL KHADER V, MYSORE REVENUE TRIBUNAL (Grover, J.) 931
str.te route.
It appears to have been argued that as the scheme
was concerned with an inter-state route the approval of_ the Central
Government was necessary as required under the proviso to
s. 680(3) of the Act. This Court held that since the terminii were
within the State of Mysore the scheme did not deal with an interstate route at all and no question arose of the applicability of the
proviso to s. 680(3). In the present case there is no sr.heme of
nationalisation relating to tl;!e inter-state route from Bellary to
Manthralaya. The Bellary Scheme is confined to the intra-state
routes, one of those being the Bellary-Chintakunta route. It may
be that that portion overlaps the inter-state route from Bellary to
Manthralaya but so !orig as it is an intra-state route it could. be
nationalised by the State of Mysore under the provisions of s. 680.
That having been done the decision in
Thi11pes11·amy's
case ( 1)
(supra) will appositely apply.
In the result the appeals fail and they are dismissed with costs
to respondent No. 8.
V.P.S.
Appeals dismissed.
8 --L521Sup.C.J./73