# K. M. SHANMUGAM v. THE S. R. V. S. (P) LTD. & ORS

- **Citation:** [1964] 1 S.C.R. 809
- **Court:** Supreme Court of India
- **Decided:** 1962-03-21
- **Bench:** S. J. Imam, K. Subba Rao, RAGHUllAR DAYAL, J. R. Mudholkar
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/k-m-shanmugam-v-the-s-r-v-s-p-ltd-ors-2815
- **Pages:** 21

## Headnote

Sta{Jt carriage p.rmit-Marlcing syl!tem-Error apjJare..i
on. the facto/the record-Motor Vehicle.! Act, 1939 (4 of 1939),
u. '43A, 47---Gonstitution of India Art. 226.
On applications for permits made to it the Regional
Transport Authority, applying the marking system prescribed
by the Government order issued under s. 43A of the Motor
Vehicles Act, granted the permit to the appellant.
On appeal
by the first respondent, the State Transport Appellate Tribunal
recast the marks but in doing so did not allot any muk to the
first respondent under the head of "residence or place of business" and thereby treating the appellant and the first respondent .as equal, gave the.appellant the· further advantage of four
marks under the head "viable unit''.
The first respondent
challenged the order of the Appellate Tribunal before the High
Court under Art. 226 on the ground that the Appellate Tribunal had failed to allot him any mark in respect of his admitted
' residential qualification and had thereby committed a breach
·of s. 47 (I) (a) and (c) of the Motor Vehicles Act. This
contention was accepted by the learned single Judge of the.
High Couu...who quashed the order of the Appellate Tribunal
and directed it to proceed according to law. On appeal the
Division Bench confirmed the issue of the writ. On appeal by
special leave by the· appellant it was cont.ended in this C'.ourt
that the High Court has no jurisdiction to issue a writ of
certiorari, as the error, if any, was one of fact and that the
directions issued by the Government under s. 43A of the Motor
Vehicles Act 'being only administrative in character, order
made in breach thereof did not give ri•e to an error of law which
could be the subject matter of a writ.
Hild, that the question whether or not there was such an
error .apparent' on the face of the record as to enable the High
Court to interfere under Art. 226 of the Constitution was one to
be determined· in each .case and no particular test can or need
be laid down as a general rule.
1963
1963
11.M. Sh41f11l1Jgam
v.
Tilt S.R V.S. (P)
Lid.
810
SUPREME COURT REPORTS [1964] VOL.
Bari Vi.ihnx Kamath v. Sytd Ahmad bhaqm, [1955]
1 S. C.R. 1104, Nag•ndra Nath Bora v. Commil•ioner of Hill•
Divwion and Appeal.,, h•am [1958] S. C.R. 1240,
Satya-
,.,,,.ayan v. Mallikarjun, [19601 I S. C.R. 890, Shri Ambica
MiU• Co. v. S. B. Bhatt, [1961] 3 S. C. R. 220, l'rovincial
TranJporl Servicu v. Stale lndu.<trial Court [1963] 3 S. C. R.
650, Ratul.: l'ya. v. Surat Municipality, A. I. R. 1953 Born. 133
and M/•. Ra•nan & Raman Ltd. v. The Swt• of .Madra•, [1959]
Supp. 2 S. C. R. 227, referred to.
Htld, further, that though the ,directions issued under
1. +3A ·of the Act were administrative, they were intended to
facilitate an objective, judgment of the con•ider&tion• laid down
ins. 47 of the Motor Vehicles Act and if applyini; the directions to a given case result in the breach ofs. 47, namely,
ignoring a relevant con!idcration, it must give rise to a manifest
error of law and furnish a ground for interference under
Art. 226 of the Constitution.
M/•. lraman lk Raman Ltd. v. SI.alt of Madra. [1959]
Supp. 2 S. C. R. 227, Abdulla Rowthtr v. Stalt Tran.port
Appellate Tribunal, Madra., A. I. R. 1959 S. C. R. 896,
Ayya.mani Gounder v. M/•. Soudambigai Motor Service C. A.
No. 198 of 1962 decided on 17-9-62 and Sankara Ayyar v.
Marayana.wami Naidu, C. A. No. 213 of 1960 decided on
10-10-60, distinguished.
Crv1L APPELLATE JURISDICTION : Civil Appeal
,
No. 697 of 1962.
Appeal by special leave from the judgment
and order dated March 21, 1962, of the Madras
High Court in Writ Appeal No. 154 of 1960.
B. Sen, Ravinder Narain, 0. C. Mathur and
J. B. Dadachanji, for the appellant.
A. V.
Yiswanatha Sastri
and R. Gopalakrishnan, for respondent I.
A. Ranganadham Chetty and A. V. Rangam,
for respondent Nos. 2 and 3.
1963. February 6. The Judgment of the
Court was delivered by
1 S.C.R.
SUPREME COURT REPORTS
811
SuBBA RA.o, J.-This appeal by special leave
is directed agains

## Text

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I S.C.R..
SUPREME COURT REPORTS
809
K. M. SHANMUGAM
v.
THE S. R. V. S. (P) LTD. & ORS.
(S. J. IMAM, K. SUBBA RAO, RAGHUllAR DAYAL,
and J. R. MUDHOLKAR, JJ.)
Sta{Jt carriage p.rmit-Marlcing syl!tem-Error apjJare..i
on. the facto/the record-Motor Vehicle.! Act, 1939 (4 of 1939),
u. '43A, 47---Gonstitution of India Art. 226.
On applications for permits made to it the Regional
Transport Authority, applying the marking system prescribed
by the Government order issued under s. 43A of the Motor
Vehicles Act, granted the permit to the appellant.
On appeal
by the first respondent, the State Transport Appellate Tribunal
recast the marks but in doing so did not allot any muk to the
first respondent under the head of "residence or place of business" and thereby treating the appellant and the first respondent .as equal, gave the.appellant the· further advantage of four
marks under the head "viable unit''.
The first respondent
challenged the order of the Appellate Tribunal before the High
Court under Art. 226 on the ground that the Appellate Tribunal had failed to allot him any mark in respect of his admitted
' residential qualification and had thereby committed a breach
·of s. 47 (I) (a) and (c) of the Motor Vehicles Act. This
contention was accepted by the learned single Judge of the.
High Couu...who quashed the order of the Appellate Tribunal
and directed it to proceed according to law. On appeal the
Division Bench confirmed the issue of the writ. On appeal by
special leave by the· appellant it was cont.ended in this C'.ourt
that the High Court has no jurisdiction to issue a writ of
certiorari, as the error, if any, was one of fact and that the
directions issued by the Government under s. 43A of the Motor
Vehicles Act 'being only administrative in character, order
made in breach thereof did not give ri•e to an error of law which
could be the subject matter of a writ.
Hild, that the question whether or not there was such an
error .apparent' on the face of the record as to enable the High
Court to interfere under Art. 226 of the Constitution was one to
be determined· in each .case and no particular test can or need
be laid down as a general rule.
1963
1963
11.M. Sh41f11l1Jgam
v.
Tilt S.R V.S. (P)
Lid.
810
SUPREME COURT REPORTS [1964] VOL.
Bari Vi.ihnx Kamath v. Sytd Ahmad bhaqm, [1955]
1 S. C.R. 1104, Nag•ndra Nath Bora v. Commil•ioner of Hill•
Divwion and Appeal.,, h•am [1958] S. C.R. 1240,
Satya-
,.,,,.ayan v. Mallikarjun, [19601 I S. C.R. 890, Shri Ambica
MiU• Co. v. S. B. Bhatt, [1961] 3 S. C. R. 220, l'rovincial
TranJporl Servicu v. Stale lndu.<trial Court [1963] 3 S. C. R.
650, Ratul.: l'ya. v. Surat Municipality, A. I. R. 1953 Born. 133
and M/•. Ra•nan & Raman Ltd. v. The Swt• of .Madra•, [1959]
Supp. 2 S. C. R. 227, referred to.
Htld, further, that though the ,directions issued under
1. +3A ·of the Act were administrative, they were intended to
facilitate an objective, judgment of the con•ider&tion• laid down
ins. 47 of the Motor Vehicles Act and if applyini; the directions to a given case result in the breach ofs. 47, namely,
ignoring a relevant con!idcration, it must give rise to a manifest
error of law and furnish a ground for interference under
Art. 226 of the Constitution.
M/•. lraman lk Raman Ltd. v. SI.alt of Madra. [1959]
Supp. 2 S. C. R. 227, Abdulla Rowthtr v. Stalt Tran.port
Appellate Tribunal, Madra., A. I. R. 1959 S. C. R. 896,
Ayya.mani Gounder v. M/•. Soudambigai Motor Service C. A.
No. 198 of 1962 decided on 17-9-62 and Sankara Ayyar v.
Marayana.wami Naidu, C. A. No. 213 of 1960 decided on
10-10-60, distinguished.
Crv1L APPELLATE JURISDICTION : Civil Appeal
,
No. 697 of 1962.
Appeal by special leave from the judgment
and order dated March 21, 1962, of the Madras
High Court in Writ Appeal No. 154 of 1960.
B. Sen, Ravinder Narain, 0. C. Mathur and
J. B. Dadachanji, for the appellant.
A. V.
Yiswanatha Sastri
and R. Gopalakrishnan, for respondent I.
A. Ranganadham Chetty and A. V. Rangam,
for respondent Nos. 2 and 3.
1963. February 6. The Judgment of the
Court was delivered by
1 S.C.R.
SUPREME COURT REPORTS
811
SuBBA RA.o, J.-This appeal by special leave
is directed against the judgment of a division Bench
ofthe High Court of Judicature for Madras confirming that a single Judge of that Court allowing
the petition filed by the respondent under Art. 226
of the constitution and quashing the order made by
the State Transport Appellate Tribunal ·granting a
stage carriage permit to the appellant for the route
Tanjore-Mannargudi via Vaduvoor:
The facts relevant to the question raised may
be briefly stated. The Regional Transport Authority,
Tanjore, called for applications in respect of the
issuing of a stage carriage permit for the route
Tanjore-Mannargudi via Vaduvoor.
11 persons
applied for the permit. The Regional Trabsport
Authority, adopting the marking system prescribed in
G.O. Ms. No. 12!18 (Home) dated April 28, 1956,
awarded marks to different applicants : the appellant
ot the highest number of marks, viz., 7, and the
first respondent got only 4i marks, with the result
the appellant was preferred to the respondent and a
permit was issued to him. It is not necessary to
notice the marks secured by the other applicants
before the Regional Transport Authority, for they
are not before us.
Total of the said marks secured
by each of the said two parties was arrived at by
gadding the marks given under the following heads :
Viable WorkNesiExperiSpecial
ToUnit
shop dence
ence
cir cumsta!
tances.
1
2
3
4
5
.K.M.S 4
1
1
!
l
7
S.R.V.S.
1
1
1
l!
4
It would be seen from the said table of marks that
if the 4 marlcs secured by the appellant under the
1963
K./.I. S"""'"•1•
••
1 /,, S.R. V.S. (/')
ltd.
SuO• RM, /,
196$
K. M. Sliiwriutam
Y.
7711 S.R.V.S. (P)
Ltd:
SubO.Roo, J.
812
SUPREME COURT REPORTS [1964] VOL.
fint column "Viable Unit" were excluded from his
total, he would have got only a total of 3 marks under
the remaining heads and the first respondent would
have got a total of 41 marks under the said heads.
Under the said G,O., as interpreted by this Court,
the marks un,der the first column, i.e., those given
under the head "Viable Unit", would be counted
only if other things were equal; that is to say, if the
toral number of marks obtained by the said two
applicants under Cols. 2 to 5 were equal. It is,
therefore, obvious that on the marks given the
R~gional Transport Authority went wron;; in issuing
a permit in favour of the appellant, as he should not
have taken into consideration the 4 m;irks given
under the 1st Column since the total marks secured
by him under Cols. 2 to 5 were less than those
secured by the first respondent. Aggrieved by the
said order, the first respondent preferred an appeal to
the State Transport Appellate Tribunal, hereinafter
called the Appellate Tribunal. The said Appellate
Tribunal recast the marks in respect of the said two
parties in the following manner:
Viable WorkResiExperi-
~pecial ToUnit
shop dence
ence
c1rcurnstal
tances
1
2
3
4
5
K.M.S.4
2
1
"
i
8
•
S.R.V.S.
2
l
1
4
It would be seen from the marks given by the
Appellate Tribunal that the total of the marks
secured by the appellant under Cols. 2 to 5 is equal
to that secured by the first respondent under the said
column~, each of them securing 4 marks. It was
contended before the Appellate Trfounal that the first
respondent was entitled to some mark under the
column "Residence or place of business" on the ground
1 S.C.R.
SUPREME COURT REPORTS
813
that it had the places of business at Tanjore and
Mannargudi and that the Regional Transport Authority had given one mark to the first respondent under
the said column ; but the Appellate Tribunal rejected
that contention on the ground that the first respondent had a branch office .at Kumbakonam __ and,
therefore, the office at Tanjore or Mannargudi could
not be treated as a branch office.
Aggrieved by that
order,. the first respondent filed a petition before the
High Court under Art. 226 of the Constitution for
setting aside that order. Ramachandra Iyer, J.,
who heard the said application allowed it. The
main reason given by the learned Judge for allowing
the petition was that the Appellate Tribunal omitted
·to give any mark in respect of residential qualification, which amounted to refusal to take into consideration the admitted fact, namely, the existence cf
a workshop at Mannargudi and therefore, it amounted to a breach ofs. 47 (1) (a) and (c) of the Motor
Vehicles Act. The same idea was expressed by the
learned Judge in a different way thus:
" ............ in regard to residential qualification,
it (the Appellate Tribunal) declined to consider
whether the office workshop at Mannargudi are
1ufficient to entitle the petitioner to any marks
under head for the mere reason that it was a
branch of a branch office."
He held that the said refusal was an error apparent
on the face of the record; and he accordingly quashed
the order and at the same time indicated that the
result was that the State
Transport Appellate
Tribunal would have to dispose of the appeal afresh.
The Letters Patent appeal filed by the appellant wa~
heard by a division Bench consisting of Anantanarayanan and Venkatadri, JJ.
The learned Judges
dismissed the appeal and the reason of their decision
i1 found in the following remarks :
"l_n essence, the Judgment really proceeds on
the basis that with regard to the claim of the
/963
fl. M. Sltnnm111am
••
Thi S.R.V.S. (P)
ltd.
Suib•R .. J.
K M.SMtarmJ,.,.
••
1/u S.~.Y.S. (P)
w.
Subi>o Roo, J.
814 SUPREME COURT REPORTS [1964) VOL.
respondent to some valuation under Col. 3
arising from the existence of an alleged branch
office at Mannargudi there has been no judicial
disposal of the claim."
They also observed :
"The Tribunal is, of course, at liberty to adopt
its own criteria for the valuation under Col. 2,
provided they are consistently applied, and
based upon some principle."
In dismissing
the appeal
the learned Judgca
.concluded :
" ............ we desire to make it clear that we
are not in any way fettering the discretion of
the State Transport Appellate Tribunal to
arrive at its own conclusion on the clailill1 of
the two parties irrespective of any observations
that might have been incidentally made by this
Court on those claims."
The appellant has preferred the present appeal by
special leave against the said order.
It will be seen from the aforesaid narration of
facts that the High Court issued the writ as it was
satisfied that there was a clear error apparent on the
face of the record, namely, that the Appellatt:"
Tribunal refused to take into consideration the existence of the branch office at Mannargudi for awarding marks under the head "residence" on the ground
that there wa5 another office of the first respondent
at Kumbakonam. While it gave marks to the appellant for his residence, it refused to give marks to the
first respondent for its office on the aforesaid ground.
Mr. Sen, learned counsel for the appellant,
raised before us the following points : ( 1) The Court
has no jurisdiction to issue a writ of cerliarari under
l S.C.R.
SUPREME COURT REPORTS
815
Art. 226 of the Constitution to quash an order of a
Tribunal on the ground that there is an apparent
error of fact on the face of the record, however gross
it may be, and that, in the instant case, if there was
an error, it was only one of fact; (2) this Court has
held that directions given under s. 43 of the Motor
Vehicles Act are only administrative in character and
that an order made by a Tribunal in breach thereof
does not confer a ·right on a party affected and, therefore, the Appellate Tribunal's order made in dero-
. gation of the said directions could not be a subjectmatter of a writ.
The argument of Mr. Viswanatha Sastri,
learned counsel for the first respondent, may be
summarized thus :
The petitioner (appellant herein) has a fundamental right to carry on business in transport. The
Motor Vehicles Act is a law imposing reasonable
restrictions in public interest on such. right. The
Appellate Tribunal can decide, on the material
placed before it, whether public interest would be
better served if the permit was given to the appellant
or the first respondent within the meaning of s. 4 7 of
the said Act. The Govern.nent, in exercise of its
powers under s. 43 of the said Act, gave administrative directions embodying some principles for enabling the Tribunal to come to a conclusion on the
said point. The Tribunal had jurisdiction to decide
the said question on the basis of the principles sa
laid down or dehors them. In either view, it only
decides the said question. The first respondent raised
before the Tribunal that public interest would be
better served if a permit was issued to it as it had a
well equipped branch office at Mannargudi. The
said question was relevant in an inquiry under s. 4 7
of the said Act, whether the Tribunal followed the
instructions given by the Government or ignored
them. In coming to a conclusion on the said
1163
Ir. M. Shanmu1am
••
Tiu S.R.V.S. (P)
Lid.
Subia Ra., J.
](. M. Slumm.iam
••
Tiii S.R.V.S. (P)
1.td.
Subk 1!4o, J.
816
SUPREME COURT REPORTS [1964] VOL.
question, the Tribunal made a clear error of law
inasmuch as it held that in the case of the first res·
pondent, as it had a branch at Kumbakonam, its
other branch at Mannargudi should be ignored.
This, the learned counsel contends, is an error apparent on the face of the record.
He further contends
that the scope of an inquiry under Art. 226 is wide
and that it enables the court to issue an appropriate
direction even in a case of an error of fact apparent
on the face of the record.
It is not necessary to express our opinion on
the wider question in regard to the scope and amplitude of Art. 226 of the Constitution, namely, whether
the jurisdiction of the High Court under the said
Article to quash the orders of Administrative tribunals
is confined only to circumstances under which the
High Court of England can issue a writ of certiorari
or is much wider than the said power, for this appeal
can satisfactorily and effectively be disposed of within
the narrow limits of the ambit of the English Court's
jurisdiction to issue a writ of certiorari as understood
by this Court. If it was necessary to tackle the
larger question, we would have referred the matter
to a Bench of 5 Judges as it involved a substantial
question of law as to the interpretation of the Constitution; and under Art. 145 thereof such a qu~tion
can be heard only by a Bench of at least 5 Judges.
In the circumstances a reference to the decisions of
this Court cited at the Bar, which are alleged to have
expressed conflicting views thereon, is not called for.
We shall therefore, confine ourselves to the narrow
question.
Adverting to the scope of a writ of certiorari in
common Jaw, this Court, in Hari V~hnu Ka=ith v.
Syed Ahmed Ishaque (1), laid down the fol!owing
propositions:
(I) Certiorari
will be issued for correcting
errors of jurisdiction, as when an inferior
(I) [!955) I 8.C.R. llM, ll21, 112!.
1 s.c.R.
SUPREME COURT REPORTS
817
Court or Tribunal acts without jurisdiction
or in excess of it, or fails to exercise it.
(2) Certiorari will also be issued when the
Court or Tribunal acts illegally in.the exer·
cise of its undoubted jurisdiction, as when
it decides without giving an opportunity
to the parties to be heard, or violates the
principles of natural justice.
(3) The Court issuing a writ ;if certiorari acts
in exercise of a su2ervisory and not appel·
late jurisdiction. One consequence of this
is that the Court will not review findings of
fact reached by the inferior Court or
Tribunal, even if they be erroneous.
(4) An error in the decision or determination
itself may also be amenable to a writ of
certiorari but it must be a manifest error
apparent on the face of the proceedings
e.g., when it is based on clear ignorance
or disregard· of the provisions of law.
This view was followed in Nagendra Nath Bora, v.
The Commissioner Hills Division and Appeals,
Assam ('), Satyanarayan v. Mallikai'jun · ('), Shri
Ambica Mills Oo. v. S. B. Bhutt (')and in Provin·
cial Transport Services v. State Industrial Court,
Nagpur ('). But the more difficult question is, what
is the precise meaning of the expression "manifest
error Apparent on the face of the proceedings ?"
Venkatarama Ayyar, J., attempted to define the said
expression in Hari Vishnu Kamath's case(') thus:
"Mr. Pathak for the first respondent contended
on the strength of certain observations of
Chagla, ·c. J., in Botuk K. Vyas v. Surat
Municipality (e), that no error could be said to
be apparent on the face of the record if it was
(!' [lq\81s,r..R.1240.
(2) [1960] 1 s.C.R. 8<>0
(3) [19Rl 1 3 S.C.R. ?20.
(41 [1963) 3 S.C.R. b50,
(5J (1955] I S.C.R. 1104, 1121, 1123.
\6) A.l,R. 1953 Bom. 131.
1963
K. M. Shanmuga"
v.
Tiii S.R.V.S. (P)
Ltd.
Subba Rao, J
196J
IC. M. s,,_,,.,.,,.
••
7M S.R.V .S (P)
U<
s.u,&o, J.
'
818 3UPREME COURT REPORTS (1964] VOL.
not self.evident, and if it re~uired an exarnin•·
tion or argument to establish it. This test
might afford a satisfactory basis for decision in
the majority of cases. But there must be cases
in which even this test might break down,
because judicial opinions also differ, and an
error that might be considered by one Judge as
self.evident might not be so considered by
another.
The fact is that what is an error
apparent on the face of the record cannot be
defined precisely or exhaustively, there being
an element of indefiniteness inherent in its
very nature, and it must be left to be determi·
ned judicially on the facts of each case."
It would
be seen from the said remarks that the
learned Judge could not lay down an objective ~est,
for the concept necessarily involves a subjective
element. Sinha, J., as he then was speaking for the
Court in Nagendra Nath Bora's Ca.se ('), attempted
to elucidate the point further and pror.eeded to
observe at p. i 2ti9-70 thus :
"It is clear from an examination of the authorities of this Court as aho of the courts in
England, that one of the grounds on which the
jurisdiction of the High Court on certi01ari
may be invoked
is an error of law apparent
on the face of the record and every error either
of law or fact, which can be corrected bv a
superior court, in exercise of its statutory powen
as a court of appeal or revision."
This
decision ao;sumes that the scope of a writ in
the nature of certiorari or an order or direction to
set a,ide the order of an inferior tribunal under
Art. 226 of the Constitution is the same as that of a
common law writ of certiorari in England ~we do not
express any opinion on this in this case.
This
decision practically accepu the opinion expressed
(t1 [19~] S.C.R, 1240.
1 s.c~R. SUPREME COURT REPORTS
819
by this Court in Hari Vishnu Kamath's Case(').
The only addition it introduces is the anti-thesis it
made between "error of law and error of fact" and
"error of law apparent on the face of the record."
But the question still remains in each case whether
an error is one of law or of fact and that falls to be
decided on the facts of each case. Das Gupta, J.,
makes yet another attempt to define the expression
when he says in Satyanarayan v. Mallikarjun ('), at
p. 141 thus:
"An error which has to be established by a long
drawn process of reasoning on points where
there may conceivably be two ·Opinions can
hardly be said to be an error apparent on the
face of record.
As the above discussion of the
rival contentfons show the alleged error in the
present case is far from self,evident and if it
can be established, it has to be established,
by lengthy and complicated arguments."
The learned Judge here lays down the complex
nature of the arguments as a test of apparent error
of law. This test also may break, for . what is
complex to one judicial mind may be clear and
obvious to another : it depends upon the equipment
of a particular Judge. In the ultim~te analysis the
said concept is comprised of many imponderables :
it is not capable of precise definition, as no objective
criterion can be laid down, the apparent nature of
the error, to a large extent, being dependent upon the
subjective element. So too, in some cases the boundary
between error of law and error of fact is rather thin.
A tribunal may hold that 500 multiplied by 10,000 is
5 lakhs (instead of 50 lakhs); another tribunal may
hold that a particular claim is barred by limitation
by-calculating the period of time from 1956 instead
of 1961 ; and a third tribunal may make an obvious
error deciding a mixed question of fact and law.
The question whether th\! said errors are errors of
(11 [1955) 1 8.C.R. l104, 1121, I •~s.
(2) [19fi0] l s.C.R. 89CI.
1969
K. M. Shanmuzum
••
TM S.R.V. S. (Pl
lid.
S•bb• Raa, J.
1963
K./J. s11a .... , ...
v.
Tlw S.R.V S. (I')
Lid.
~/Wo, J.
820 SUPREME COURT REPORTS [1964] VOL.
law or fact cannot be posited on a priori reasoning,
but falls to be decided in each case. We do not,
therefore, propose to define with any precision the
concept of "error of law apparent on the face of the
record"; but it should be left, as it has always been
done, to be decided in each case.
The only question therefore, is whether the
State Transport Appellate Tribunal committed an
error of
law
apparent on
the
face of
the
record.
A look
at the provisions of s. 4 7 and
s. 43 of the Motor Vehicles Act, 19:!9, as amended
by the Madras
Legislature, will facilitate the
appreciation of the problem. Under s. 4 7, a Regional Transport Authority in considering an application for a stage carriage permit is enjoined to have
regard, int,er alia, to the interests of the public generally.
Section 43-A,
introduced by the Madras
Legislature by th Motor Vehicles (Madras Amendment) Act, l 9t8, says that the State Government may
issue such orders and dirl'ctions of a general character as it may consider necessary in respect of any
matter relevant to road transport to the State Trans·
port Authority or to a Rrgional Transport Authority
and such Transport Authority shall give effect to
all such orders and directions.
It has been held by
this Court in M /... Rmnan &. Raman Ltd. v. The
State of Madras('), that s. 43A conferred a power
on the State Government to issue administrative directions, and that any direction issued thereunder was
not a law regulating rights of parties. It was also
pointed out that the order made and the directions
issued under s. 43. A of the Act cannot obviously add
to, or subtract from, the consideration prescribed
under s. 4 7 thereof on the basis of which the
tribunal is empowered to issue or refuse to issue a
permit, as the case may be.
It is. therefore clear
that any direction given under s. 43A for the purpose
of considrring conflicting claims for a permit by applicants can only be to enable the Regional Transport
(I) [1959] ~upp. 2 S.C.R. 227.
1 S.C.R.
SUPREME COURT REPORTS
821
\
Authority to discharge its duties, under s. 4 7 of the
Act more satisfactorily, efficie11tly and impartially. To
put it differently ,the directions so given cannot enlarge
or restrict the jurisdiction of the said tribunal or authority but only afford a reasonable guide for exercising
the said jurisdiction. Concretely stated, an applicant
in advancing his claim for a permit may place before
the Authority an important circumstance in his
favour, namely, that he has a branch office on the
route in respect whereof he seeks for a -permit.
He
.may contend that he has an ofi'ice on the route, and
that the interests of the public will be better served,
as the necessary amenities or help to meet any eventuality in the course of a trip will .be within his easy
reach. The Government also under s. 43A may
issue instructions to the Regional Transport Authority
tha~ the existence of an office of a particular apph·
cant on the route. would· be in the interests of tbe
public and, therefore, the said applicant should be
given a preferential treatment if other things are
equal. The issue of such an instr.iction only empha·
sizes a relevant fact which an authority has to take
into consideration even if such an instruction was not
given. But if the Authority under a manifest error
of Jaw ignores the said relevant consideration, it not
only disobeys the administrative directions given by
the Government, but also transgresses the provisions
of s. 4 7 of the Act. The disobedience of the instructions which are administrative in nature may not
afford a cause of action to au aggrieved party, but the
transgression of the statutory law certainly does.
What is the position in the present case ?
The Government issued G. 0.
No.
1298
(Home), dated April 28,
1956, introducing a marking system for assessing the merits of applicants for
stage carriage permits. Column 3 reads thus :
"Location of residence or place of business of
the applicant on the route or at the te~minal :
1969
Ii. M, Shanmugam
v.
Tiu S.R.V.S. (P)
Ltd.
Subba Roo, J.
19~3
I\. M. S"-•t""'
..
TA1 S.R.V. •. (P)
w.
S.U.R•. J.
822 SUPREME COURT REPORTS [1964] VOL.
This qualification not only is in favour of local
enterprise but also secures that the owner will
pay prompt and frequent attention to the service entrusted to him. One mark may be
assigned to this qualification."
Under this instruction the location of the
residence or the place of busine~s is considered to be in
the interests of the public, for whose benefit thr ser·
vice is entrusted to a permit·holder. The first respondent contended before· the Regional Transport Authority that he had branch offices at Tanjore and mannargudi and therefore that fact should be taken into
consideration and a mark should be given to him
thereunder. The Regional Transport Authority gave
one mark to the appellant and also one mark to the
first respondent under that column. But the Appellate Tribunal refused to give any mark under that
column to the first
respondent for the following
reasons :
"On behalf of the other appellants and the
Respondent it is contended that appellant No. 1
(1st respondent before the Supreme Court) is
a Private Ltd. Company having its registered
office at Madras, that their offices at Kumbakonam is only a branch office, that the offices
if any at Tanjore or at Mannargudi cannot be
treated as branch offices, and that, as such they
are not entitled to any mark in column 3 of
the mark list.
This contention is a valid one."
In regard to the Tanjore office the said appellate Tribunal has given an additional reason by
holding on the facts that it was not an office at all.
We can, therefore, ignore the Tanjore office for the
purpose of this appeal.
So far as the mannargudi
office is concerned, the decision of the
Appellate
Tribunal was based upon an obvious rrror.
It took
the view that if a company had a branch office at
I S.C.R.
SUPREME COURT REPORTS
823
one particular place, it could not have in law any
other branch office though it had one in fact. What·
ever conflict there may be, on which we do not
express any opinion, in a tax law or the company
law, in the context of the marking system and the
evaluation of an amenity in the interest of the public,
it i1 obviously an untepable proposition to hold that
even if a company has a well equipped office on a
route in respect of which a permit is applied for, it
shall be ignored if the company has some other
branch somewhere unconnected with that route. ,That
was what the Appellate Tribunal held and in our
view it is an error apparent on the face of the record.
On that erroneous view, the Appellate Tribunal did
not decide the relevant question raised, namely, whether the respondent has any such office at mannargudi. Both Ramachandra Iyer, J., at the first instance, and Anantanarayanan and Venkatadri,JJ., in
appeal, rightly pointed out this error.
As this is an
error apparent on the face of the record, they quashed
the order of the Appellate Tribunal and left the
question open for decision by it.
In our view, the
conclusion arrived at by the High Court is correct.
It remains only to notice the decisions on which
strong reliance is placed by learned counsel for the
appellant in support of his conten~ion.
In M/~. Raman and Raman Ltd. v. The State
of Madras ('), the relevant facts were : the appel·
lant and the 4th respondent therein, along with
others, were applicants for a stage carriage permit.
The Regional Transport Authority granted the
permit to the appellan't ·on the basis of instructions
issued by the State Government under s. 43A of the
Motor Vehicles Act; on appeal, the Central Road
Traffic Board set aside that order on the footing of
fresh instructions issued by the Government; and a
division Bench of the Madras High Court dismissed
the writ petition filed by the
appellant~ It was,
111 (1959) supp. 2 s.o.a. 221.
1968
Ir. M. S!ianmu1""'
••
Thi S.R.V. I". (P)
Lt;
SuhhRu. J.
1963
K.M.si..--
v.
Tiu S.R.V .S. (P)
LIL
824 SUPREME COURT REPORTS [1964] VOL.
inter alia, contended btfore this Court that the ins.
tructions givl'n under s. 43A being law regulating
rights of parties, the appellate authority could not
ignore that law and set aside . the order of the
Regional Transport Authority on the basis of subsequent instructions. The contention was rejected
on the ground that instructions under s. 43A were
not law, but were only administrative directions and
that the fact that the appellate tribunal ignored them
would not affect
it~ jurisdiction if it had come to a
decision having regard to the considerations laid
down in s. 4 7 of the Act. The question before the
tribunal was whether a small unit or a large one
would be viable N would be in the interest of the
public. There was scope for taking different views
on the question, and the appellate tribunal, contrary
to the earlier directions, came to the conclusion that
smaller units would be more in the interest of the
public than larger ones.
This judgment, therefore,
is an authority only for the position that a tribunal
in issuing or refusing to issue a permit to an applicant would be acting within its jurisdiction not with·
standing the fact that it ignored the administrative
directions given by the Government under s. 43A of
the Act, provided it had come to a decision on
the relevant considerations laid down in s. 4 7 of the
Act.
In Abdulla Rowther v. The State Tr11nsport
Appellate Tribunal, .Madras('), the Regional Transport Authority issued a permit
each
to .the
appellant therein and to one Gopalan Nair.
On
appeal, the Appellate Tribunal set aside that order
and gave the permits to respondents, 3 and 4. Both
the Regional Transport Authority and the Appellate
Tribunal considered the applications on the basis of
G.O. No. 1298 issued by the Government of MadraJ
on April 28, 1956. The Regional Transport Authority gave 4 marks each to the appellant and Gopalan
Nair under Col. I, which dealt with the building
(I) A,J,R. 19!>9 S.C. 896.
1 S.C.R.
.SUPREME COURT REPORTS
825
strength to viable units, and refused to give any
marks to respondents 3 and 4 under the said column
on the ground that they were fleet owners; with the
result that the appellant and Gopalan Nair secured
more marks than respondents 3 and 4 and were,
ther~fore, given the permits.
But the Appellate
Tribunal held that the appellant and Gopalan Nair
were not entitled to claim the benefit of the m;,uks
under Col. 1, as they had secured less marks than
respondents 3 and 4 under Cols. 3 to 5, for they held,
on a fair obstruction of the said G.O., that it was
only when the marks obtained by applicants under
Cols. 2 to fi were equal, recourse could be had ·to
Col. 1. On that basis, the Appellate Tribunal
quashed the order of the Regional Transport Autho·
rity and gave. the permits to respondents 3 and 4.
The appellant challeng~d the said order by an application under Art. 22(i of the Constitution for a writ
of certiorari
in the
High Court of Madras.
Itajagopalan, J., dismissed the application on two
grounds, namely, (l) that the construction of the
G. 0. was not shown to be wrong, and (2) that even
if the G. 0. was misconstrued, it would not justify
the issue of a writ of certiorari, as the said G. 0.
embodied only administrative directions. The Letters
Patent Appeal filed agaimt the said order was dismissed.
The appeal filed to this Court was also
dismissed.
This Court followed the
decision in
M/8. Raman and Raman LtJ. v. The State of
Madra8 ('),. and held that the instructions given
under s. 43-A of the Motor Vehicles Act were only
administrative directions and that, therefore, even
if the rule as to the assignment of marks was infringed, it was not an error of law at all. This decision
only follows the earlier decision and lays down that
instructions given under s. 43A of the Motor Vehicles
Act are only administrative directions and that a wrong
construction of the said instructions would not enable
the party affected to apply for a writ of certiorari.
The instructions laid down a method of evaluation
(lJ [19~9] Supp. 2 S.C.R. 227.
1963
E. M. Shanmugam
v.
1ha S.R.V.S. (P)
Ltd.
Subha Ra., J.
1963
IC M. Slummu1.,,.
'·
Thi S.R.V.S, (P)
Ltd.
826
SUPREME COURT REPORTS (1964] VOL.
of the respective claims vis-a-vis the considerations
laid down in s. 4 7 of the Act. The Regional Transport Authority and the Appellate Tribunal have
borne in mind the said considerations, in deciding
upon the rival claims, though they may have wrongly
interpreted one of the instructions. lt may be pointed
out that in that case the interpretation put upon the
instructions was a correct one, though this Court proceeded on the assumption also that they might have
been wrongly interpreted. But the decision cannot
obviously be an authority for the position that on a
wrong interpretation of the administrative directions
or de/ms the said directions, a tribunal can ignore
the relevant considerations laid down in s. 4 7 of the
Act or on the basis of an error of Jaw apparent on
the record wrong I y refuse to decide on any of such
considerations.
To the same effect is the decision of this Court
in Ayyaswami Gounder v. !Jf/s. SouMmbigai !Jfotor
Service ('). There, the Regional Transport Authority
followed the marking system as laid down by the
Government of Madras and gave to the appellant
(therein) 5 marks and to the respondent 6 marks.
Though the respondent got 6 marks, he was not
given the permit, as in the view of the said Authority
he was guilty of misconduct. As between the other
applicants, the appellant having secured the highest
number of marks, he was given a permit. But on
appeal the Appellate Tribunal reallotted the marks
and under the reallotment the appellant got the
highest number of marks; and because of that fact
and also for the reason that he was a small operator
of two buses, who should be given an opportunity to
build up a '\liable unit as quickly as possible, he was
given the permit by the Appellate Tribunal upholding the order of the Regional Transport Authority.
One of the question raised there was whether the
appellant was entitled to marks under Col. 2 for repair
and maintenance facilities
at Dharapuram-the
(I) Ci•il Appeal Xo. 198of1962 (decided oa 17-9-1962),
;
.r<
1 S.C.R.
SUPREME COURT REPORTS
827
Appellate Tribunal found that he had such facilities.
The appellant filed a writ in the High Court and the
learned single Judge thought that some mistakes had
been committed by the Appellate Tribunal in the
allotment of marks and that it acted in contravention
of the directions given by the Government under the
said G. 0., but dismiss the petition on the ground
that,
as the said instructions are only executive
directions, their contravention did not confer any
right on the parties before the tribunal. On
Letters Patent Appeal a Division Bench of that
Court set aside
that order on the
ground that
the Appellate
Tribunal
had taken into
consideration the following
two irrelevant considerations: {i) the appellant's claim should suffer because of the punishment for his past misconduct, and
{~i) the third respondent being a small operator, he ,
would be entitled to better i;onsideration than the
appellant who was a monopolist.
On appeal, this
court followed the decision in M/s. Raman and
Raman Ltd. v. 'l'he State of ,"lfadras {')and Abdullah
Rowther v. The State Transport Appellate Tribunal{'),
and held that under the said G. 0. the Government
issued only administrative directions and that the
failure of the tramport authorities to follow them
would not entitle the respondent> to a writ. As regards
the two reasons given by the High Court, this Court
came to the conclusion that they were not irrelevant
considerations, but
were considerations germane
in the matter of issue of permits. In the result
this Court allowed the appeal. This decision accepts
two propositions, <1amely, (1) misconstruction or
even disregard of the instructions, given by the
Government does not confer a right upon an aggrieved party ta file a writ, for the said instructions are
only administrative directions, and (2) the decision
implies that if the Tribunal decides on irrelevant
considerations, the Court can issue a writ. But in that
case it came to the conclusion that no such irrelevant
considerations weighed with the Tribunal.
(ll [1959) ! upp. 2 S.C.R. 227
(2) A.l.R. 1959 S.C. 89ti.
1963
Ir. M. Shanmugam
••
Th• S.R.V.S. (P)
ltd.
Subia RtJo, J.
/HJ
X.M Si....rv1•
••
Tlw S.R.V.S (P)
Lid.
s~•o. Rao I J.
828 SUPREME COURT REPORTS[l964) VOL.
The last of the cases relied upon is that in
Sankara Ayyer v. Narayanasu:ami Naidu('). There
too,
the Regional Transport Authority and the
State Transport Appellate Tribunal considered the
applications for the grant of a permit for a new
route on the basis of the administrative directions
given by the State Government. The regional Transport Authority gave the appellant 3 marks on the
basis that he was a small operator, but the Appellate
Tribunal came to the conclusion that he was not
entitled to any marks as a small operator. A single
Judge of the High Court set aside the order of the
Appellate Tribunal on the ground that it . misconstrued the directions contained in the Government
Order relating to small operators. But a division
Bench of that Court in Letters Patent appeal held,
relying upon the earlier decision of this Court, that
ihe said directions were only administrative in nature
and that they did not confer any legal rights and in
that view allowed the appeal. This Court again
following the earlier decisions dismissed the appeal
holding that by construing the
administrative
directions the Tribunal did not take irrelevant considerations or refosed to take relevant considerations in
the matter of issue of permits. It is always a controversial question whether the issue of a permit to a
small operator or to a big operator would be in the
interest of the public and a Tribunal is certainly
entitled to take either view.
It will be seen from the aforesaid decisions that
this Court only laid ·down that the instructions given
under s. 43A of the Motor Vehicles Act were only
administrative directions and that the infringement
of those instructions by the Tribunal did not confer
any right on a party to apply to a High Court for a
writ under Art. 226 of the Constitution. In all those
cases the Tribunal either ignored the instructions or
misconstrued them, but nonetheless decided the question of issue of permits on considerations relevant
(I) Civil Appeal No. 21S or 1960 (docided OD IO.t0-1960).
1 S.C.R.
SUPREME COURT REPORTS
829
under s. 47 of the Act. They are not authorities
on the question whether a writ of certiarari would lie,
where a Tribunal had on an obviously wrong view
of law refused to decide or wrongly decided on a
consideration relevant under s. 4 7 of the Act, whether
or not it was covered by the instructions given
under s.