# RASID JAVED & ORS. ETC. ETC v. STATE OF U.P. & ANR. ETC. ETC

- **Citation:** [2010] 7 S.C.R. 535
- **Court:** Supreme Court of India
- **Decided:** 2010-07-05
- **Case number:** Civil Appeal No. 5951 of 2002
- **Bench:** R.V. Raveendran, R.M. Lodha
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/rasid-javed-ors-etc-etc-v-state-of-u-p-anr-etc-etc-26926
- **Pages:** 34

## Headnote

Motor Vehicle Act, 1988:
A
B
s. 102(1) - Cancellation or modification of scheme -
c
Inter-state route - Saharanpur-Delhi route and other routes -
1993 Scheme whereby the entire Saharanpur-Delhi route
. became fully nationalized for exclusive operation by State
Transport Undertakings -
Proposal to modify the 1993
Scheme by State Government -
Issuance of Notification 0
dated 16.04.1999 uls. 102(1) - Objections invitf:3d and heard
by Hearing Authority -
Hearing Authority approving the
proposed modification that private operators be allowed to ply
their vehicles -
However, State Government issued
Notification dated 15.04.2000 u/s. 102(1) rlw s. 21 of the 1897
Act, to rescind Notification dated 16.04.1999 - Validity of -
E
Held: Notification dated 15. 04. 2000 is valid and does not
suffer from any legal flaw - There was no impediment for State
Government in exercising its power to rescind the Notification
dated 16.04.1999 since the order df Hearing Authority cannot
be treated as order of State Government u/s. 102(1)- General
F
Clauses Act, 1897 - s. 21.
s. 102 - Cancellation or modification of scheme - Extent
of authority to Hearing Authority - Held: Delegatee must
confine his activity within four corners of powers vested in him
G
and if he acts beyond that, his action cannot have any legal
sanction unless ratified by de/egator - Distinction must be
maintained where hearing authority is empowered by State
Government to hear objections and approve proposed
535
H
536
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A modification or modify the approved sc;heme and a case
where it is authorized to hear objections relating to proposed •
modification to the approved scheme - On facts, Hearing
Authority not authorized to approve the proposed modification
or modify the approved scheme - Order of Hearing Authority
s being in excess of authority given to him, cannot be construed
as final order of approval uls. 102 (1).
Permit granted to appellant relating to Saharanpur-Delhi
route - Status of appellant's permit - Held: Said permits
related to routes which overlapped Delhi-Saharanpur notified
C route - By the 1959 Scheme and 1993 Scheme, entire
Saharanpur-Delhi route became fully nationalized for
exclusive operation by State Transport Undertakings and no
private operator could operate on the said route - Regional
Transport Authority cannot either renew permit of such private
D operators or give any fresh permit in respect of route which
overlaps notified route -
Thus, appellants' permits stood
cancelled.
Motor Vehicles Act, 1939: s. 68 C and 680 - Publication
E of a scheme of road transport service by State Transport
Undertakings - Effect of - Held: No person other than STU
may operate on the notified area or notified route except as
provided in the scheme itself.
General Clauses Act, 1897: s. 21 - Invocation of.:.. Held:
F Authority which has power to issue notification has undoubted
power to rescind or modify the notification in the like manner
- On facts, there was no impediment for State Government
in exercising its power uls. 102 of the 1988 Act rlw s. 21 to
rescind the Notification dated 16. 04. 1999 - Order of Hearing
G Authority was not an order of approval uls.102(1) of the 1988
Act - Power of State Government to rescind Notification dated
16. 04. 1999 did not get exhausted - Motor Vehicles Act, 1.988
- s. 102(1).
H
The inter-State route of Saharanpur-Delhl became a
RASID JAVED & ORS. ETC. v. STATE OF U.P. & . 537
ANR. ETC.
notified route under the 1959 Scheme. It was provided in
A
the Scheme that the persons .other than the State
Transport Undertaking (STU) would not be permitted in .
plying any road transport service on the said route or
portion thereof except as stated therein. The private
operators challenged the Scheme. The H.igh Court B
directed the State G'overnment not to enforce the 1959
Scheme against the said operators. This Court in * Jeewan
Nath Wahal's case upheld the order of High Court.
Thereafter, pursuant to the decision in

## Text

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[2010] 7 S.C.R. 535
RASID JAVED & ORS. ETC. ETC.
V.
STATE OF U.P. & ANR. ETC. ETC.
(Civil Appeal No. 5951 of 2002)
JULY 5, 2010
[R.V. RAVEENDRAN AND R.M. LODHA, JJ.]
Motor Vehicle Act, 1988:
A
B
s. 102(1) - Cancellation or modification of scheme -
c
Inter-state route - Saharanpur-Delhi route and other routes -
1993 Scheme whereby the entire Saharanpur-Delhi route
. became fully nationalized for exclusive operation by State
Transport Undertakings -
Proposal to modify the 1993
Scheme by State Government -
Issuance of Notification 0
dated 16.04.1999 uls. 102(1) - Objections invitf:3d and heard
by Hearing Authority -
Hearing Authority approving the
proposed modification that private operators be allowed to ply
their vehicles -
However, State Government issued
Notification dated 15.04.2000 u/s. 102(1) rlw s. 21 of the 1897
Act, to rescind Notification dated 16.04.1999 - Validity of -
E
Held: Notification dated 15. 04. 2000 is valid and does not
suffer from any legal flaw - There was no impediment for State
Government in exercising its power to rescind the Notification
dated 16.04.1999 since the order df Hearing Authority cannot
be treated as order of State Government u/s. 102(1)- General
F
Clauses Act, 1897 - s. 21.
s. 102 - Cancellation or modification of scheme - Extent
of authority to Hearing Authority - Held: Delegatee must
confine his activity within four corners of powers vested in him
G
and if he acts beyond that, his action cannot have any legal
sanction unless ratified by de/egator - Distinction must be
maintained where hearing authority is empowered by State
Government to hear objections and approve proposed
535
H
536
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A modification or modify the approved sc;heme and a case
where it is authorized to hear objections relating to proposed •
modification to the approved scheme - On facts, Hearing
Authority not authorized to approve the proposed modification
or modify the approved scheme - Order of Hearing Authority
s being in excess of authority given to him, cannot be construed
as final order of approval uls. 102 (1).
Permit granted to appellant relating to Saharanpur-Delhi
route - Status of appellant's permit - Held: Said permits
related to routes which overlapped Delhi-Saharanpur notified
C route - By the 1959 Scheme and 1993 Scheme, entire
Saharanpur-Delhi route became fully nationalized for
exclusive operation by State Transport Undertakings and no
private operator could operate on the said route - Regional
Transport Authority cannot either renew permit of such private
D operators or give any fresh permit in respect of route which
overlaps notified route -
Thus, appellants' permits stood
cancelled.
Motor Vehicles Act, 1939: s. 68 C and 680 - Publication
E of a scheme of road transport service by State Transport
Undertakings - Effect of - Held: No person other than STU
may operate on the notified area or notified route except as
provided in the scheme itself.
General Clauses Act, 1897: s. 21 - Invocation of.:.. Held:
F Authority which has power to issue notification has undoubted
power to rescind or modify the notification in the like manner
- On facts, there was no impediment for State Government
in exercising its power uls. 102 of the 1988 Act rlw s. 21 to
rescind the Notification dated 16. 04. 1999 - Order of Hearing
G Authority was not an order of approval uls.102(1) of the 1988
Act - Power of State Government to rescind Notification dated
16. 04. 1999 did not get exhausted - Motor Vehicles Act, 1.988
- s. 102(1).
H
The inter-State route of Saharanpur-Delhl became a
RASID JAVED & ORS. ETC. v. STATE OF U.P. & . 537
ANR. ETC.
notified route under the 1959 Scheme. It was provided in
A
the Scheme that the persons .other than the State
Transport Undertaking (STU) would not be permitted in .
plying any road transport service on the said route or
portion thereof except as stated therein. The private
operators challenged the Scheme. The H.igh Court B
directed the State G'overnment not to enforce the 1959
Scheme against the said operators. This Court in * Jeewan
Nath Wahal's case upheld the order of High Court.
Thereafter, pursuant to the decision in **Shri Chand's
case, the UPSRTC published a draft scheme on February c
· 13, 1986 for 39 routes: Saharanpur-Delhi and others.
While the said draft scheme was pending, the Motor
Vehicles Act, 1939 was repealed and the Motor Vehicles
Act, 1988 came into force. Subsequently, some operators
were granted permits for Saharanpur to Ghaziabad via 0
Shahdara routes. The said grant of permits wa~
challenged in ***Ram Krishna Verma's case and it was held
that the nationalization of Saharanpur - Delhi route by the
1959 Scheme is operative to the total exclusion of every
operator except UPSRTC and 50 operators whose
objections were upheld by the High Court. The permits
E
granted to the private operators were quashed.
Thereafter, the competent authority approved the 1986
draft Scheme and directed the same to be published. On
May 29, 1993, the approved scheme-1993 Scheme was
published in the Gazette.
F
In the Notification published on April 1~, 1999 under
section 102(1) of the Motor Vehicles Act, 1988 the State
Government proposed to modify the scheme notified on
May 29, 1993 by providing that permit holders shall be
G
allowed to operate their buses along with the Uttar
Pradesh State Road Transport Corporation (UPSRTC) on
the said route provided they got their permits countersigned by State of Haryana for plying their buses in that
State. Objections were invited. The Hearing Authority•Z,
.H
~
538
SUPREME COURT REPORTS
[201 O] 7 S.C.R.
A Special Secretary and Additional Legal Remembrancer
heard the affected parties. It passed the Order dated
October 11, 1999 that proposed modification be
approved-private operators be allowed to ply their
vehicle. However, the State Government by a Notification
B dated April 15, 2000 in exercise of the powers under
section 102 of 1988 Act read with section 21 of General
Clauses Act, 1897 rescinded the Notification dated April
16, 1999. The private operators filed writ petition
questioning the Notification dated April 15, 2000 issued
c by the State of U.P. rescinding the earlier Notification
dated April 16, 1999. The writ petitions were dismissed.
Hence these appeals.
Dismissing the appeals, the Court
o
HELD: 1. The Notification dated April 15, 2000 is valid
and does not suffer from any legal flaw. [Para 44] [568C-D]
2. The permit granted to the appellants related to
routes which overlapped the Delhi-Saharanpur notified
E route. [Para 28] [559-B]
The effect of publication of a scheme under Section 68D:
3. Chapter IV-A of the Motor Vehicles Act, 1939
makes special provisions relating to the State Transport
F Undertakings (STUs). Section 68-C provides for
preparation and publication of scheme of road transport
service by an STU. The objections to the draft scheme
·published under section 68-C may be filed under section
68-D. Sub-section (2) of section 68-D provides that the
· G State Government after considering the objections and
hearing the objectors and the STU may approve or
modify the scheme. Sub-section (3) of section 68-D
provides that the scheme as approved or modified under
sub-section (2) shall be published in the Official Gazette
H. by the State Government and the same shall th~n
RASID JAVED & ORS.· ETC. v. STATE OF U.P. &
539
ANR. ETC.
become final and called 'approved scheme'. Once the
A
scheme has been published under sub-section (3) of
section 68-D, section 68-FF imposes restriction on grant
of permits in respect of notified area or notified route.
From these provisions, it is apparent that once a scheme
is published under section 68-D in relation to any area or B
route or portion thereof, whether to the exclusion,
complete or partial of other persons or otherwise, no
person other than the STU may operate on the notified
area or notified route except as provided in the scheme
itself. [Para 30] [559-F-H; 500-A-B]
c
Adarsh Travels Bus Service and Anr. v. State of U.P. and
·Ors. (1985) 4 SCC 557; Mysore State Road Transport
Corporation v. Mysore State Transport Appellate Tribunal
(1974) 2 SCC 750; H.C. Narayanappa and Ors. v. State of
Mysore and Ors. (1960) 3 SCR 742; Ram Krishna Verma and D
Ors. v. State of U.P. and Ors. (1992) 2 sec 620, relied on.
The status of appellants' permits
4.1. The Saharanpur-Delhi route became a notified
route under the 1959 Scheme. The Saharanpur-Delhi
E
route on its nationalization stood frozen under the 1959
Scheme against everyone except 50 operators. The draft
scheme published on February 13, 1986 was confined to
those 50 operators alone and not to other pri~ate
operators. By the 1993 Scheme, Saharanpur-Delhi route
F
stood frozen against 50 operators as well. The effect of
these two schemes (1959 Scheme and 1993 Scheme)~
thus, has been that the. entire Saharanpur-Delhi route\
became fully nationalized for the exclusive operation by
the STU i.e., UPSRTC and no private operator could G
operate on the said route. Thus, the Regional Transport
Authority cannot either renew the permit of such private
operators or give any fresh permit in respect of a route
which overlaps the notified route, the appellants' permits
stood cancelled and in any case these permits lost their
H
540
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A legal significance and sanctity. [Para 33] [561-A-G; 562A]
4.2. The whole exercise undertaken by the State
Government under sub-section (1) of section 102 of 1988
Act proposing to modify the 1993 Scheme relating to
8 Saharanpur-Delhi notified route was misconceived as the
permits specified in that Notification did not exist in law.
The finding of the High Court that the modification
proposal dated April 16, 1999 proceeded on the
misconception that the appellants were holding permits
C on the concerned route cannot be said to be unjustified.
Moreover, in the absence of any proposal to modify the
1959 Scheme, the modification proposed in the 1993
Scheme vide Notification dated April 16, 1999 was
meaningless. The submission that the 1959 Scheme
D merged in the. 1993 Scheme has no merit. The 1959
Scheme was approved under 1939 Act and even after
repeal of 1939 Act by 1988 Act, the State Government was
competent to prepare fresh scheme by following the
procedure contemplated In sections 99 and 100 or modify
E that scheme under section 102 of the 1988 Act but the
proposed modification published in the Notification on
Aprll 16, 1999 does not seek to modify the 1959 scheme
at all. Since the Notification dated April 16, 1999 Is, ex
facie, misconceived and meaningless as regards
F Saharanpur-Delhi route, the proceedings taken pursuant
thereto by the Hearing Authority and his decision dated
October 11, 1999 also have no legal effect. [Para 33] [562A-F]
* Jeewan Nath Wahal v. State Transport Appellate
G Tribunal (C.A. No.1616 of 1968) decided by S.C. on
03.04.1968; **Shri Chand v. Govt. of U.P. Lucknow and Ors.
Citizen Council for Public Service v. Govt. of U. P. and Anr.
(1985) 4 SCC169; ***Ram Krishna Verma and Ors. v. State
of U.P. and Ors. (1992) 2 sec 620; Nisar Ahmad and Ors .
. H v. State of U.P. and Ors. 1994 Suppl. (3) SCC 460; Gajraj
.
. .
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
541
ANR. ETC.
Singh and Ors. v. State of U.P. and Ors. (2001) 5 SCC 762,
A
referred to.
Section 102 of the 1988 Act and the extent of authority
to the Hearing Authority
5.1. A close look at section 102 of the Motor Vehicles
B
Act, 1988 would make it manifestly clear that modification
of the approved scheme may be done by the State
Government in the public interest after giving opportunity
of being heard in respect of proposed modification to the
STU and the persons likely to be affected by the C
proposed modification. The modification proposed is
required to be published in the Official ~azette and in one
of the newspapers in the regional languages circulating
in the concerned area under section 102(2). It was
submitted that in the proposed modification published in
D
the Official Gazette on April 16, 1999, the authority to hear
the objections/representations was given to Z-Special
Secretary and Additional Legal Remembrancer and the
said Hearing Authority after hearing the objections of the
affected persons and· the UPSRTC approved the
E
proposed modification and rejected the objections
received in this regard and the approval by the Hearing
Authority of the proposed modification by his order dated
October 11, 1999 is the approval of the State Government.
It cannot be said that the order dated October 11, 1999
of the Hearing Auth;>rity approving the proposed
modification published in the Official Gazette dated April
16, 1999 is an order of the State Government modifying
F
the approved scheme of 1993 under section 102(1) of the
1988 Act because Z was given authority to hear the
representations received by the State Government to the .G
proposeq modification but no authority was given to him
to approve the proposed modification or modify the
approved scheme. The Notification dated April 16, 1999
does not empower the Hearing Authority to approve or
modify the scheme; he has only been empowered to heu · H
542
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A the objections. That a person who hears must decide and
that divided responsibility is destructive of the concept
of judicial hearing is too fundamental a proposition to be
doubted. But based on such principle the limited authority
of hearing given to the Hearing Authority by the State
B Government cannot be treated as enlarged in its scope.
A delegatee must confine his activity within four corners
of the powers in vested in him and if he has acted beyond
that, his action cannot have any legal sanction unless
ratified by the delegator. [Para 35) [563-H; 564-A-H; 565C A]
Gullapalli Nageswara Rao and Ors. v. Andhra Pradesh
State Road Transport Corporation and Anr. AIR 1959 SC 308,
referred to.
0
5.2. A distinction must be maintained where the
hearing authority is empowered by the State Government
to hear objections and approve the proposed
modification or modify the approved scheme and a case
where the hearing authority is authorized to hear the
E objections/representations relating to the proposed
modification to the approved scheme. In the latter case,
the authority delegated to the Hearing Authority is limited
and he is not authorized to approve the proposed
modification or modify the approved scheme. The instant
case falls in the latter category and accordingly the order
F of the Hearing Authority dated October 11, 1999 is in
excess of the authority given to him and cannot be
construed as a final order of approval under section 102
(1) of the 1988 Act. Whether such limited authority of
hearing to the Hearing Authority makes any legal sense
G is an aspect for consideration by the State Government.
H
Suffice, however, to say that it was not open for the
Hearing Authority to approve the proposed modification
or modify the proposed scheme. [Para 36) [565-B-E]
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
543
ANR. ETC.
Invocation of Section 21 of General Clauses Act : whether A
valid
6.1. Having held that the order of the Hearing
Authority dated October 11, 1999 is in excess of the
authority given to him and that the said order has no legal
8
effect, there was no impediment for the State Government
in exercising its power under section 102 of the 1988 Act
read with section 21 of the General Clauses Act, 1897 to
rescind the Notification dated April 16, 1999. [Para 37]
[565-F-G]
Kam/a Prasad Khetan and Anr. v. Union or India AIR
1957 SC 676, referred to.
c
6.2. Under section 21 of the General Clauses Act, an
authority which has the power to issue a notification has
the undoubted power to rescind or modify the notification
D
in the like manner. In the instant case, there is no doubt
that the Notification dated April 15, 2000 has been made
in the same manner as the earlier Notification dated April
16, 1999. Since the order of the Hearing Authority dated
October 11, 1999 is not an order of approval under E
section 102(1) of the 1988 Act and cannot be treated as
· such, the power of the State Government to rescind the
Notification datea April 16, 1999 did not get exhausted.
The submission that the draft Notification dated April 16,
1999 merged in the order dated October 11, 1999 is
F
fallacious and devoid of any substance. [Para 40] [566E-G]
6.3. It cannot be said that even otherwise the
material on record demonstrated that the order of the
modificatio·n dated October 11, 1999 was approved by the
G
Principal Secretary of the Department and, thus, there
was an approval by the State Government. Except the
decision of the Hearing Authority dated October 11, 1999
there is nothing on record to conclude that the State
~overnment had approved the proposed modification as
H
544
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A notified on April 16, 1999. Even if it is assumed that an
executive action not expressed to be made in the name
of the Governor as contemplated under Article 166(1) of
the Constitution may not vitiate such action as nullity.
[Para 41] [566-H; 567-A-C]
B
G.4. The non-compliance with the provisions of either
of clauses of Article 166 would lead to the result that order
in question would lose the protection which it would
otherwise enjoy had the proper mode for expression and
authentication been adopted, but then there has to be
C some formal order by the State Government under
section 102(1) of the 1988 Act. Moreover, there is nothing
on record even to indicate that the order dated October
11, 1999 of the Hearing Authority was communicated to
the appellants or any of the affected parties. The order
D dated October 11, 1999 is not an order as contemplated
under Section 102 (1) of the 1988 Act by the State
Government approving the modification proposed in the
Notification dated April 16, 1999. [Para 41] [567-C-E]
E
Dattatraya Moreshwar Pangarkar v. The State of Bombay
and Ors, (1952) 1 SCR 612, relied on.
6.5. The order of the Hearing Authority dated October
11, 1999 cannot be treated as an order of the State
- Government under section 102(1) of the 1988 Act. [Para
F 42] [567-F-G]
6.6. The submission that the opportunity of hearing
was required to be given to the appellants before
issuance of Notification dated April 15, 2000 has no merit
G since this submission is founded on the premise that the
order of-the Hearing Authority dated October 11, 1999 is
the order of the State Government. What section 21 of the
General Clauses Act requtres is that the authority
empowered to issue notification must exercise its power
to rescind such notification in the like manner. The
H Notification dated April 15, 2000 has been made in the
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
545
ANR. ETC.
~,
same manner as the earlier Notification dated April 16,
A
1999. [Para 43] [567-G-H; 568-A-B]
Samsher Singh v. State of Punjab and Anr. (197 4) 2
SCC 831; Capital Multi-purpose Co-operative Society Bhopal
and Ors. v. State of M.P. and Ors. (1967) 3 SCR 329; A.
8
Sanjeevi Naidu, Etc. v. State of Madras and Anr. (1970) 1
. SCC 443; Mis. Nehru Motor Transport Co-operative Society
'Ltd. and Ors. v. State of Rajasthan and Ors. AIR 1963 SC
1098; Afsar /ahan Begum (Smt) and Ors. 11. State Of M.P.
and Ors. (1996) 8 SCC 38; C.P.C. Motor Service, Mysore v. c
State of Mysore and Anr. AIR 1966 SC 1661; Karnataka State
Road Transport Corporation v. Ashrafulla Khan and Ors.
(2002) 2 sec 560, referred to.
Case Law Reference:
(1985) 4 SCC169
Referred to.
D
Para 11,12, 33,
(1992) 2 sec 620
Referred to.
~ara 14, 15, 16,
23, 32,33
(1974) 2 sec 831
Referred to.
Para 21
E
(1967) 3 SCR 329
Referred to.
Para 21
(1970) 1 sec 443
Referred to.
Para 21
AIR 1959 SC 308
Referred to.
Para 21, 35
F
AIR 1963 SC 1098 Referred to.
Para 21
(1996) 8 sec 38
Referred to.
Para 26
/
AIR 1966 SC 1661
Referred to.
Para 26
(2002) 2 sec 560 . Referred to.
Para 26
G
(1985) 4 sec 557
Relied on.
Para 30
(1974) 2 sec 150
Relied on.
Para 31
(1960) 3 SCR 742
Relied on.
Para 32
H
546
SUPREME COURT REPORTS
[2010] 7 S.C.R
A
1994 Suppl.(3)
B
SCC 460
Referred to.
(2001) 5 SCC 762
Referred to.
AIR 1957 SC 676
Referred to.
(1952) 1 SCR 612
Relied on.
Para 33
Para 33
Para 39
Para 41
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
5951 of 2002.
From the Judgment & Order dated 23.4.2002 of the High
C Court of Judicature at Allahabad in Civil Misc. Writ Petition No.
24070 of 2000.
WITH
D C.A. Nos. 4894, 4895 of 2010.
Dinesh Dwivedi, Nagendra Rai, P.N. Gupta for the
Appellants.
Ratnakar Dash, Shail Kr. Dwivedi, Addi. A.G., Raj Kumar
E Gupta, Rajeev Kr. Dubey, Kamlendra Mishra, Vandana Mishra,
Pramod Swarup, Rani Chhabra, Garima Prashad, Neha Goyal
for the Respondents.
The Judgment of the Court was delivered by
R.M. LODHA, J. 1. Delay condoned and leave granted in
F SLP(C) No.820 of 2003. Leave also granted in SLP (C) No.
21707 of 2002. The applicants in the I.As. for impleadment are
allowed to intervene.
G
H
Introduction
2. Five writ petitions by various operators came to be filed
before High Court of Judicature at Allahabad questioning the
Notification dated April 15, 2000 issued by the State of U.P.
rescinding the earlier Notification dated April 16, 1999 and for
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
547
ANR. ETC. [R.M. LODHA, J.]
consequential reliefs. The Division Bench of Allahabad High
A
Court heard these writ petitions together and by a common
judgment dated April 23, 2002 dismissed all the writ petitions.
It is from this common judgment that these three appeals by
special leave arise.
Facts
3. The brief facts in relation to these appeals may be set
out first.
A. Appeal by Rasid Javed and others
B
c
4. The appellants in this appeal claim that they have been
operators on Saharanpur-Karnal route (inter-State route) via
Jandhera - Rampur - Gangoh - New Yamuna Bridge. In the
Notification published on April 16, 1999 under Section 102(1)
0
of the Motor Vehicles Act, 1988 (for short, 'the 1988 Act'), the
State Government proposed to modify the scheme notified on
May 29, 1993 by providing that permit holders bearing Nos.
168/94, 169/94. 170/94, 171/94, 172/94, 173/94, 222/94, 233/
94, 23/95, 24/95, 25/95, 739/89, 242/94, 764/90, 787/90, 772/
90, 800/90 and 784/90 shall be allowed to operate their buses
E
along with the Uttar Pradesh State Road Transport Corporation
(UPSRTC) on Saharanpur-Karnal route (via Jandhera-RampurGangoh-New Yamuna Bridge) provided that they get their
permits counter-signed by State of Haryana for plying their
buses in that State. By the said Notification, objections were
F
invited from the UPSRTC and the persons likely to be affected
by the proposed modification and Shri Zamirruddin, Special
Secretary and Additional Legal Remembrancer, Uttar Pradesh
was appointed Hearing Authority to hear and decide the
objections that may be received. Pursuant to the said
G
Notification, objections were received and the Hearing Authority
after hearing the affected parties held in its Order dated
October 11, 1999 that proposed modification be approved, i.e.
private operators be allowed to ply their vehicles. According to
H
548
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A the appellants, they are covered by the permits mentioned at
SI. No. 1 [column 4 - (c)(iii)] of the Schedule to the Notification
dated April 16, 1999.
B
8. Appeal by Masood Ahmad and others
5. The appellants in this appeal claim to be permit holders
in respect of Saharanpur-Loni route via Shamli-BaghpatMarginal Bandh Road - ISBT Delhi. According to them, they
are covered by SI. No.1 [column 4 - (c)(i)] of the Schedule to
the Notification dated April 16, 1999. By the said Notification,
C the approved scheme dated May 29, 1993 was sought to be
modified and it was proposed to allow these operators to
operate their buses along with the UPSRTC on SaharanpurLoni via Shamli-Baraut-Baghpat-Marginal Bandh Road - ISBT
Delhi route.
D
C. Appeal by Raghunandan Goyal and Others
6. The appellants claim to have been granted inter-State
permits by the State Transport Authority (STA), Uttar Pradesh
for an inter-State route known as Meerut-Chandigarh via BarautE Shamli-Gangoh-Saharanpur-Sarsawa-Yamuna Nagar-Ambala.
Their case is that in the draft modification published in the
Notification dated April 16, 1999, their permits are mentioned
at SI. No. 1 [column 4 - (c)(ii)] of the Schedule thereof. By the
said modification, it was proposed to allow these operators to
F operate their buses along with the UPSRTC on MeerutChandigarh via Baraut-Shamli-Gangoh-Saharanpur-SarsawaYamuna Nagar-Ambala route provided that the permit holders
get their permits counter-signed by the State Government of
Haryana for plying their buses in that State.
G
H
f>aharanpur-Delhi route (the 1959 Scheme) and previous
litigation
7. On February 26, 1959, a draft scheme was published
under Section 68-C of the Motor Vehicles Act, 1939 ('the 1939
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
549
ANR. ETC. [R.M. LODHA, J.]
Act' for short) in respect of the inter-State route viz; Saharanpur
A
- Delhi proposing to authorize the State Transport Undertaking
(STU) of Uttar Pradesh to operate stage carriages on the said
route to the exclusion of all other operators.
8. On September 29, 1959 the State Government
8
<lpproved the said draft scheme and published it under subsection (3) of Section 68-D of 1939 Act (hereinafter referred
to as 'the 1959 Scheme'). The 1959 Scheme provided 50 (25
each way) State Road Transport Services or more as may
appear necessary from time to time on that route or portion
C
thereof from November 1, 1959 or thereafter. It was provided
in the approved scheme that the persons other than the STU
will not be permitted in plying any road transport service on the
said route or portion thereof except as rnentioned therein.
9. A group of writ petitions, one by 32 operators and the
D
other by 18 operators was filed before the High Court of
Allahabad questioning the validity of the 1959 Scheme. The
High Court vide its judgment dated October 30, 1961 directed
the State Government not to enforce the 1959 Scheme against
32 operators who had filed the first batch of writ petitions and
it was directed that the State Government should hold a fresh
enquiry into the question whether the scheme should be
approved or not. Similar judgment was passed in the other
batch of writ petitions relating to 18 operators on February 7,
1962.
10. The aforesaid judgments of Allahabad, High Court
were affirmed by this Court in Jeewan Nath Wahal v. State
Transport Appellate Tribunal (C.A. No.1616 of 1968) decided
E
F
1 on 03.04.1968. In Jeewan Nath Wahal, it was held that the
1959 Scheme was operative and not affected and its
G
· enforcement was prohibited against 50 operators only who
approached the High Court. It was further held that the STU has
the exclusive right to ply its vehicles on the notified route
(Saharanpur - Delhi route).
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SUPREME COURT REPORTS
[2010] 7 S.C.R.
A
11. Two writ petitions, one by Shri Chand1 and the other
by Citizen Council for Public Service were directly filed before
this Court under Article 32 of the Constitution in the year 1985
challenging the validity of proceedings which were pending
before the State Government pursuant to a draft scheme
B
pub~ished on February 26, 1959. This Court allowed these writ
c
D
E
F
petitions on August 23, 1985 by the following order :
" ............ In the instant case the delay is in the order of 26
years. In view of the above decisions we allow these writ
petitions and quash the impugned scheme published on
February 26, 1959 and the proceedings which have taken
place till now pursuant thereto and direct the State
Government not to proceed with the hearing of the matter.
It is now open to the State Transport Undertaking of Uttar
Pradesh to publish a fresh draft scheme under Section 68C of the Act if it is of opinion that it is necessary to do so.
We, however, permit the State Transport Undertaking to
run the stage carriage vehicles which it is now running on
the route in question under permits issued pursuant to the
scheme which is now quashed, till February 28, 1986 or
till they are replaced by temporary permits to be issued
under sub-section (1-A) of Section 68-F of the Act after
the publication of a fresh draft scheme or by permits issued
under Chapter IV of the Act, whichever is earlier."
12. Pursuant to the aforesaid decision in Shri Chand's
case1, the UPSRTC published a draft scheme on February 13,
1986 for 39 routes; Saharanpur - Delhi (Saharanpur-NanautaThanabhawan-Shamlikandhla - Baraut - Baghpat - Loni-Delhi)
being the 1st Item in the draft scheme.
G The 1988 Act and matters before this Court in respect of
Saharanpur-Delhi route
1
Shri Chand v. Govt. of U.P., Lucknow & Ors.
Citizen Council for Public Service v. Govt. of U.P. & Anr. [
H
(1985) 4 sec 1691
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
551
ANR. ETC. [R.M. LODHA, J.]
13. While the said draft scheme was pending, the 1939
A
Act was repealed and the 1988 Act came into force with effect
from July 1, 1989.
14. It appears that immediately after the 1988 Act came
into force, two things happened viz; (one) some operators were
8
granted permits for Saharanpur to Ghaziabad via Shahdara
routes and (two) the Hearing Authority held that the draft scheme
published on February 13, 1986 by the UPSRTC under the
1939 Act had lapsed by operation of Section 100 ( 4) of the
1988 Act. Ram Krishna Verma and few others filed writ
petitions in the High Court of Allahabad challenging the grant
C
of permits for Saharanpur to Ghaziabad via shahdara route
while the UPSRTC challenged the order of the Hearing
Authority by a separate writ petition. The writ petition filed by
the UPSRTC was dismissed by Allahabad High Court on
March 16, 1990. The writ petitions filed by Ram Krishna Verma
D
and others were also dismissed by the Allahabad High Court
on July 23, 1990. Special leave petitions were filed against the
aforesaid judgments before this Court in which leave was
granted. These appeals (Ram Krishna Verma and Ors. v.
State of UP. & Ors.2) were allowed vide judgment dated March
E
31, 1992. This Court held that the nationalization of Saharanpur
- Delhi route by the 1959 Scheme is operative to the total
exclusion of every operator except UPSRTC and 50 operators
whose objections were upheld by the High Court. In the
operative order, this Court quashed the permits granted to the
F
private operators under Section 80 of the 1988 Act on the
respective routes, parts or portions of the nationalized routes
or February 13, 1986 draft scheme.
15. After decision of this Court in Ram Krishna Verma2,
G
the competent authority approved the Scheme and dir~cted the
same to be published. On May 29, 1993, the approved scheme
( for short, 'the 1993 Scheme') was published in the Gazette.
At Serial No. 1 of the 1993 Scheme is Saharanpur-Delhi route.
2.
(1992) 2 sec 620.
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SUPREME COURT REPORTS
[2010] 7 S.C.R.
A
16. The controversy with regard to the extent and effect of
the draft scheme dated February 13, 1986 and the 1993
Scheme vis-a-vis the 1959 Scheme relating to SaharanpurDelhi notified route reached this Court on more than one
occasion. We have noticed some of these decisions in earlier
s part of the judgment and shall consider this aspect further a little
later. Suffice it to state here that the 1993 Scheme came to be
published pursuant to decision of this Court in Ram Krishna
Verma2•
Present controversy
c
17. By a Notification published on April 16, 1999, the State
Government, in exercise of the powers under sub-section (1)
of Section 102 of the 1988 Act proposed to make modification
in the 1993 Scheme to the extent mentioned in column 4 of the
D Schedule appended thereto. In respect of Saharanpur-Delhi
route modification proposed was as follows :
"SI.
No.
E
1.
1.
F
G
H
Notification
No. and date
By which the
Routes were
Notified.
2.
No. 1635/30.2.93
565'85 dated
May 29, 1993
Name of the
Modification proposed
notified route
in which the
modification
Is proposed.
3.
4.
Saharanpur-Delhi & 38 In the said scheme after
Delhi & 38
Clauses (b) of the
other routes
following clause shall be
inserted, namely :
(c) Notwithstanding
anything contained in
clauses (a) and {b) the
private bus operator;
(i)
holding permit
numbers P.S.T.P./
MPMV 1/89, 2/89, 3/
89, 4/89, 5/89, 6/89, 71
89, 8/89, 9/89, 10/89,
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
553
ANR. ETC. [R.M. LODHA, J.]
11/89, 12/89, 13/89,
A
14/89, 16/89, 17/89,
18/89, 19/89, Shall be
allowed to operate
their buses alongwith
U.P.S.R.T.C. on the
route
namely,
B
Saharanpur-Loni ViaS ham a 1 i- Bar au tBagh pat-Marg in al
Bandh Road-ISBT
Delhi.
(ii) holding
permit
numbers P.S.R.T.P.
303/89, P.S.T.P. 304/
89 and, P.S.T.P. 305/
89, shall be allowed to
c
operate their buses
D
alongwith U.P.S.R.
T.C. on the Route
namely
MeerutChandigarh via BarautS ham Ii - Gang oh -
Saharanpur-SarsawaE
Yamuna-Ambala; and
(iii) holding
permit
numbers 168/94, 169/
94, 170/94, 171/94,
172194, 173/94, 2221
F
94, 233/94, 23/95, 24/
95, 25/95, 739/89, 242/
94, 764/90, 787/90,
772/90, 800/90, 784/
90, shall be allowed to
operate their buses
G
alongwith U.P.S.R.
T.C. on the route
namely:- SaharanpurKarnal via JandheraR amp u r-G an go h -
Nea Yamuna Bridge :
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A
B
SUPREME COURT REPORTS
[2010) 7 S.C.R.
Provided that the
permit Holders subclauses (ii) and (iii)
above shall get their
permits
countersigned by the State
Government
of
Haryana for plying
their buses in the
State of Haryana. "
18. The Notification provided that the UPSRTC and any
C other person likely to be affected by the proposed modification
may make representations within 30 days from the date of
publication of the Notification in the Gazette and that the
representations so received will be heard by the Hearing
Authority Shri Zamiruddin, Special Secretary and Additional
D Legal Rememberancer, Uttar Pradesh.
19. In pursuance thereof various representations were
received. The Hearing Authority after hearing the concerned
parties who made the representations passed an order on
E October 11, 1999 approving the notified proposed modification
and the objections presented by the UPSRTC and other
objectors were dismissed.
20. The State Government, however, by a Notification
dated April 15, 2000 in exercise of the powers under Section
F 102of1988 Act read with Section 21 of General Clauses Act,
1897 rescinded the Notification dated April 16, 1999.
Main submissions of the parties
G
21. Mr. Dinesh Dwivedi, learned senior counsel led the
arguments on behalf of the appellants. He argued that it was
not open to the State Government to withdraw the Notification
dated April 16, 1999 after it had been approved by the Hearing
Authority by his order dated October 11, 1999. According to
H him, the order passed by the Hearing Authority on October 11,
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
555
ANR. ETC. [R.M. LODHA, J.]
1999 is the order of the State Government under Section
A
102(1) and (2) of the 1988 Act. It is so because in the draft
Notification dated April 16, 1999, Shri Zamirudeen, Special
Secretary and Additional Legal Remembrancer was appointed
as the Authority to hear the objections and he was acting as
the State Government under the U.P. Rules of allocation of 8
business. In this regard, learned senior counsel placed reliance
on three decisions of this Court, viz., Samsher Singh v. State
of Punjab and another3; Capital Multi-purpose Co-operative
Society Bhopal and others v. State of M.P. and others4 and
A. Sanjeevi Naidu, Etc. v. State of Madras and anothef'. Mr.
C
Dinesh Dwivedi also submitted that decision under Section
102(1) of the 1988 Act has to be by the same Authority who
heard the objections and there could not be divided
responsibility of a quasi judicial act. He sought support from a
decision of this Court in Gul/apal/i Nageswara Rao and others
v. Andhra Pradesh State Road Transport Corporation and
D
another). He further argued that once the decision has been
taken by the Competent Authority then the State Government
cannot modify that decision because it is a quasi judicial
decision. He placed reliance on M/s. Nehru Motor Transport
Co-operative Society Ltd. & Ors. v. State of Rajasthan &
E
Others7. In the alternative, learned Senior Counsel submitted
that even otherwise the material on record demonstrated that
the order of modification dated October 11, 1999 was approved
by the Principal Secretary of the Department.
22. Mr. Dinesh Dwivedi, learned senior counsel would also
contend that approval order passed under Section 102(1) and
(2) was not required to be published in the Official Gazette. He
invited our attention to Section 68-E of 1939 Act and Sections
3.
(1974) 2 sec 831.
4.
(1967) 3 SCR 329.
5.
(1970) 1 sec 443.
6.
AIR 1959 SC 308.
7.
AIR 1963 SC 1098.
F
G
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556
SUPREME COURT REPORTS
[2010] 7 S.C.R.
A 100(3) and 102 of 1988 Act to indicate the difference in the
two provisions. He further submitted that Section 21 of the
General Clauses Act, 1897 is not at all attracted as the power
that was sought to be exercised has been expressly provided
in Section 102 of the 1988 Act.
B
23. While dealing with the effect of the draft proposal dated
April 16, 1999 and whether the 1993 Scheme superseded the
1959 Scheme, Mr. Dinesh Dwivedi submitted that there could
not be operation of two notified schemes in respect of
Saharanpur-Delhi route and consequently the judgment of this
C Court in Ram Krishna Verma2 has to be read in the light of
the provisions of law and not in contravention of the provfsions
of law. Learned senior counsel submitted that the 1959
Scheme has been superseded by the 1993 Scheme and that
is what the State Government also understood. He also
D assailed the judgment of the High Court and submitted that writ
petitions have been dismissed on the grounds contrary to law.
Learned senior counsel submitted that the appellants have
been granted permits validly in the year 1989 which have been
renewed in the year 1994 and the High Court overlooked the
E fact that revocation of permits by virtue of the decision of this
Court in Ram Krishna Verma2 implied only revocation to the
extent of only overlapping portion of Delhi-Saharanpur route.
He, thus, submitted that appellants' permits are valid as far as
non-notified portion is concerned.
F
24. Mr. Nagendra Rai, learned senior counsel appearing
for the appellants in Civil Appeal No. 5951 of 2002 adopted
the arguments of Mr. Dinesh Dwivedi and submitted that the
1959 Scheme stood modified by the 1993 Scheme published
on May 29, 1993 and that for the same route, there could not
G be two approved schemes. He submitted that the approval
order dated October 11, 1 Ws by the Hearing Authority is not
passed by virtue of any delegation of power nor any right of
appeal is available against the said order and as such the order
dated October 11, 1999 is a final order of the State
H
RASID JAVED & ORS. ETC. v. STATE OF U.P. &
557
ANR. ETC. [R.M. LODHA, J.]
Government in terms of Section 102 of 1988 Act and required
A
no publication in the Official Gazette.
25. Mr. P.N. Gupta, learned counsel while adopting the
arguments of Mr. Dinesh Dwivedi and Mr. Nagendra Rai
contended that once the final order of approval was passed on
8
October 11, 1999, the proposal for modification as provided
in Notification dated April 16, 1999 could not have been
cancelled or rescinded as the draft Notification dated April 16,
1999 merged in the final order dated October 11, 1999.
According to him, the proposal for modification of the approved
C
scheme under Section 102 of the 1988 Act and its approval
by the State Government are not legislative in nature and
consequently Section 21 of the General Clauses Act, 1897 has
no application.