# SOCIETY LTD v. THE REGIONAL TRANSPORT AUTHORITY

- **Citation:** [1960] 3 S.C.R. 177
- **Court:** Supreme Court of India
- **Decided:** 1960
- **Bench:** B. P. Sinha, Jafer Imam, A. K. Sarkar, K. N. W Anchoo, J. 0. Shah
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/society-ltd-v-the-regional-transport-authority-1829
- **Pages:** 13

## Headnote

Motor Vehicles-Grant of stage carriage permit to Government
under Ch. IV-Constitutional validity--Motor Vehicles Act, I939
(4 of I9J9), as amended by Act IOO of I956, ch. IV. ss. 42, 47, ch,
IV A, s. 68F(I)-Constitution of India, Arts. I9(L)(g), I4.
The petitioner, a registered co-operative societ;r, carrying
on the business of plying motor buses as stage carriages, had
permits for four routes which were due to expire. The State
applied for permits for all these routes under Ch. IV of the
Motor Vehicles Act, 1939, as amended by Act roo of 1956, and
the petitioner applied for renewal of its own permits. The
Regional Transport Authority rejected the petitioner's applications and granted those of the State. The petitioner's appeal to
the State Transport Authority was rejected. But the High
Court quashed the said orders under Art. 226 and directed a
(I) [1954] 26 I.T.R. 3.~I.
(.?) (1955] 28 I.T.R. 914.
(3) [I9,57] 3I I. T.R. 250.
2J
z960
Match 7
I
•
I
178
SUPREME COURT REPORTS
[1960]
z960
reconsideration of the matter. The State published a scheme
under s. 68C, Ch. IV A, of the Act. The scheme was not however
Pat;bhani Transpo1t finalised. Thereafter the Regional Transport Authority, purporCo-op.
ting to reconsider the matter as directed by the High Court,
Society Ltd.
· rejected the petitioner's applications for rene\val and granted
v.
those of the State for permits. It was contended on behalf of
R. T. A.
the petitioner that in view of Ch. IV A of the Act, the State had
Aurangabad
no right to apply for pern1its except thereunder and the grant
of permits on applieations made under Ch. IV was, therefore,
illegal and infringed the petitioner's fundamental ri~hts under
Ans. rg(r)(g) of the Constitution. It was further contended that
the order violated Art. r4 as well.
Held, that both the contentions were without substance and
must fail.
'
The Motor Vehicles Act, r939, as amended by Act roo of
r956, Jays down two independent sets of provisions relating to
running of buses by the Government, one under Ch. IV and the
other Ch. IV A of the Act. The latter chapter by s. 68F(r)
confers a special advantage on the Government when it proceeds
under that chapter and entitles it to the necessary permits as a
matter of right.
Under Ch. IV of the Act, however, the Government cannot claim any such advantage. It has to compete with
other applicants. The powers conferred by the two chapters
being thus not one but two different powers, the principle
enunciated in Nazir Ahmad's case has no application.
Since,
therefore, the Government had a distinct right to apply for
permits under Ch. IV of the Act, no question of applying for
permits without the right to do so and thereby infringing the
petitioner's fundamental right under Art. r9(r)(g) could arise.
Nazir Ahmad v. King Emperor, (r936) L.R. 63 I.A. 372, held
inapplicable.
Taylor v, Taylor, (r876) r Ch. D. 426, distinguished.
Nor could the maxim expressio unius est exclusio alter£us be ()f
any help to the petitioner. That maxim has its utility in
ascertaining the intention of the legislature. Since s. 42(3)(a) of
the Motor Vehicles Act leaves no manner of doubt as to that
intention by its clear indication that the Government cannot run
buses as a commercial enterprise without first obtaining permits
under s. 42(r) of the Act, that maxim cannot operate so as to
imply a prohibition against applying under Ch. IV of the Act.
There was therefore, no reason for holding that Ch. IV A of
the Act contained the only provision under which the Government could be allowed to ply ·stage carriages.
Viscountess Rhondda's claim, (r922) 2 A.C. 339 and Motilal v.
Government of Uttar Pradesh, (r955) r I.L.R. AIL 269, considered.
It was not correct to say that the State was not intended to
compete with private citizens in obtaining permits under Ch. IV
of the Act.
Section 47 of the Act lends no support to such a
proposition and Art. r9(6) of the Constitution indicates that the
Government can enter -into such competition

## Text

-·
3 S.O.R.- SUPREME COURT REPORTS
177
.... 4 - expression 'by reason of' goes with the clause relatz96o
ing to compulsory acquisition of property and not James Anderson
with the distribution of capital assets.
The position seems to us to be so clear that it is unCommi';;ioner of
necessary to labour it or to refer to decided cases. Inc.-tax, Bombay
Such decisions of the High Courts as have been
--
brought to our notice are all one way and they take
s. K. Das J.
the same view as was taken by the High Gourt in the
decision.under appeal (see Sri Kannan Rir,e Mills Ltd.
v. Commissioner of Income-tax, Madras (1); Commissioner of Income-tax, Bombay North v. Walji Damji (2);
and Gowri Tile Works v. Commissioner of· income-tax,
Madras (3).
For the reasons given above, we see no merit in the
appeal and we dismiss it with costs.
Appea:l dismissed.
THE PARBHANI TRANSPORT CO-OPERATIVE
SOCIETY LTD.
v.
THE REGIONAL TRANSPORT AUTHORITY,
AURANGABAD AND OTHERS
(B. P. SINHA, c. J., JAFER IMAM, A. K. SARKAR,
K. N. W ANCHOO AND J. 0. SHAH, JJ.)
Motor Vehicles-Grant of stage carriage permit to Government
under Ch. IV-Constitutional validity--Motor Vehicles Act, I939
(4 of I9J9), as amended by Act IOO of I956, ch. IV. ss. 42, 47, ch,
IV A, s. 68F(I)-Constitution of India, Arts. I9(L)(g), I4.
The petitioner, a registered co-operative societ;r, carrying
on the business of plying motor buses as stage carriages, had
permits for four routes which were due to expire. The State
applied for permits for all these routes under Ch. IV of the
Motor Vehicles Act, 1939, as amended by Act roo of 1956, and
the petitioner applied for renewal of its own permits. The
Regional Transport Authority rejected the petitioner's applications and granted those of the State. The petitioner's appeal to
the State Transport Authority was rejected. But the High
Court quashed the said orders under Art. 226 and directed a
(I) [1954] 26 I.T.R. 3.~I.
(.?) (1955] 28 I.T.R. 914.
(3) [I9,57] 3I I. T.R. 250.
2J
z960
Match 7
I
•
I
178
SUPREME COURT REPORTS
[1960]
z960
reconsideration of the matter. The State published a scheme
under s. 68C, Ch. IV A, of the Act. The scheme was not however
Pat;bhani Transpo1t finalised. Thereafter the Regional Transport Authority, purporCo-op.
ting to reconsider the matter as directed by the High Court,
Society Ltd.
· rejected the petitioner's applications for rene\val and granted
v.
those of the State for permits. It was contended on behalf of
R. T. A.
the petitioner that in view of Ch. IV A of the Act, the State had
Aurangabad
no right to apply for pern1its except thereunder and the grant
of permits on applieations made under Ch. IV was, therefore,
illegal and infringed the petitioner's fundamental ri~hts under
Ans. rg(r)(g) of the Constitution. It was further contended that
the order violated Art. r4 as well.
Held, that both the contentions were without substance and
must fail.
'
The Motor Vehicles Act, r939, as amended by Act roo of
r956, Jays down two independent sets of provisions relating to
running of buses by the Government, one under Ch. IV and the
other Ch. IV A of the Act. The latter chapter by s. 68F(r)
confers a special advantage on the Government when it proceeds
under that chapter and entitles it to the necessary permits as a
matter of right.
Under Ch. IV of the Act, however, the Government cannot claim any such advantage. It has to compete with
other applicants. The powers conferred by the two chapters
being thus not one but two different powers, the principle
enunciated in Nazir Ahmad's case has no application.
Since,
therefore, the Government had a distinct right to apply for
permits under Ch. IV of the Act, no question of applying for
permits without the right to do so and thereby infringing the
petitioner's fundamental right under Art. r9(r)(g) could arise.
Nazir Ahmad v. King Emperor, (r936) L.R. 63 I.A. 372, held
inapplicable.
Taylor v, Taylor, (r876) r Ch. D. 426, distinguished.
Nor could the maxim expressio unius est exclusio alter£us be ()f
any help to the petitioner. That maxim has its utility in
ascertaining the intention of the legislature. Since s. 42(3)(a) of
the Motor Vehicles Act leaves no manner of doubt as to that
intention by its clear indication that the Government cannot run
buses as a commercial enterprise without first obtaining permits
under s. 42(r) of the Act, that maxim cannot operate so as to
imply a prohibition against applying under Ch. IV of the Act.
There was therefore, no reason for holding that Ch. IV A of
the Act contained the only provision under which the Government could be allowed to ply ·stage carriages.
Viscountess Rhondda's claim, (r922) 2 A.C. 339 and Motilal v.
Government of Uttar Pradesh, (r955) r I.L.R. AIL 269, considered.
It was not correct to say that the State was not intended to
compete with private citizens in obtaining permits under Ch. IV
of the Act.
Section 47 of the Act lends no support to such a
proposition and Art. r9(6) of the Constitution indicates that the
Government can enter -into such competition without infringing
any of the fundamental rights.
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3 S.C.R.
SUPREME COURT REPORTS
179
The Regional Transport Authority in granting permits acts
· r960
in a quasi-judicial capacity. If its decision was in any way
erroneous having regard to the proviso to s. 47(1) of the ·Act, Parbhani Transport
that could not amount to a violation of Art. 14 of the ConstituCo-op.
·.
tion.
The petitioner had other remedies open to him. Nor
Society Ltd.
could Ch. IV of the Act be said, in view of Art. 19(6) of the
v.
Constitution, to offend that Article by permitting open corftpetiR. T. A.
tion between the State and a private' citizen.
_Aurangabad
ORIGINAL JURISDICTION:
Petition No. 110 of 1959.
Writ Petition under Article 32 of the Constitution
of India for enforcement of Fundamental rights.
B. R. L. Iyengar and Shankar Anand, for the
petitioners.
M. 0. Setalvad, Attorney General for India, B. Sen,
R. Gopalakrishnan R. H. Dhebar and T. M. Sen, for
the respondents.
·
1960. March, 7. The Judgment of the Court was
delivered by
SARKAR, J.-The petitioner is a co-operative society
Sarkar J.
duly registered and it carries on the business of plying
motor buses as stage carriages on the public highways
in the State of Bombay. Its case in this petition is
that it has been· deprived of its right to c~rry on this
business and has also been subjected to discriminatory
treatment in the matter of the grant of permits to run
its buses. It complains of the infringement of its
fundamental rights under arts. 19(l)(g) and 14 of the
Constitution.
·
The questions raised in this matter turn on some of
the provisions of the Motor Vehicles Act, 1939, as
amended by Act 100of1956. These provisions have
to be examined before proceeding to discuss the questions that arise. We are concerned
only with
Chapters IV and IV A of the Act. Chapter IV comprises ss. 42 to 68 and Chapter IVA, which was in its
entirety introduced by the amending Act, consists of
ss. 68A to 68I.
Taking Chapter IV first, we find that s. 42(1) provides that no owner of a transport vehicle shall use or
permit t:\le use of the vehicle in any public place save
in accordance with the conditions of a permit granted
under the Act. A " transport vehicle " is defined in
's. 2(33) as a public service vehicle or a goods vehicle.
Clause (a) of sub-sec. (3) of s. 42 as it originally stood
180
SUPREME COURT REPORTS
[1960]
r960
provided that sub-sec. (1) of that section would not
--:-
apply to any transport vehicle owned by or on behalf
Parbham Transport of the Central Government or a State Government
50,7,~~o~td.
other than a vehicle used in connection with the busiv.
ness.of a railway. So under it the Government could
R. T. A.
ply stage carriages on the public highways without
Aurangabad
having to obtain permits in respect of them. The
Sarkar].
amending Act of 1956 substituted a new clause (a) in
s. 42(3) for the old clause. The new cl. (a) provides
that sub-sec. (1) shall not apply to any transport
vehicle owned by the Central Government or a State
Government and used for Government purposes unconnected with any commercial enterprise. Since the
amendment, therefore, the Government cannot run
stage carriages on the public highways without a permit, just as a private owner of stage carriages cannot
do, because such use of the vehicles will not be for a
purpose unconnected with a commercial enterprise.
Section 44 authorises a State Government to constitute a State Transport Authority aI)d Regional Transport Authorities for different areas in that State to
carry out the duties specified. Section 45 provides
that every application for a permit shall be made to
the Regional Transport Authority of the region in
which it is proposed to use the vehicle. Section 47
specifies the matters to which a Regional Transport
Authority shall have regard in considering an application for the grant of a permit.
We now come to Chapter IVA. Section 68A(b)
defines a " State transport undertaking " for the
purpose of the Chapter to mean an undertaking providing road transport service, carried on, among
others, by a State Government. Section 68B provides
that the provisions of Chapter IV A shall have effect
notwithstanding anything to the contrary contained
in Chapter IV. Section 68C is in these terms:
680.
Where any State transport undertaking is
of opinion that for the purpose of providing an
efficient, adequate, economical and properly co-ordinated road transport service, it is necessary in the
public interest that road transport services in
genPral or any particu Jar class of such service in
relation to any area or route or portion thereof
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3 S.C.R. SUPREME COURT REPORTS
181
should be run and operated by the State transport
r960
undertaking, whether to the exclusion, complete or
-
· 1
f
h
h
•
h S
Parbhani Transport
partia , o ot er persons or ot erw1se, t e tate
c _ P
transport undertaking may prepare a scheme giving
soci~; Ltd.
particulars of the nature of the services proposed to
v.
be rendered, the area or route proposed to be
R. T. A.
covered and such other particulars respecting thereAurangabad
to as may be prescribed, and shall cause every such
scheme to be published in the Official Gazette and
also in such other manner as the State Government
may direct.
·
'
Section 68D provides for°the preferring of objections
to the scheme published under s. 68C, consideration
of such objections and final approval of the so.heme
by the State Government. The terms of s. 68F(l) are
as follows :-
8. 68F. (1) Where, in pursuance of an approved
scheme, any State transport undertaking applies in
the manner specified in Chapter IV for a stage
carriage permit or a public carrier's permit or a
contract carriage permit in respect of a notified area
or notified route, the Regional Transport Authority
shall issue such permit to the State transport under.
taking, notwithstanding anything to the contrary
contained in Chapter IV.
The respondents to this petition are (1) The
Regional Transport Authority, Aurangabad, (2) The
State Transport Authority; Bombay, (3) The. Divisional Controller of State Transport, Marathwada
and (4) The State of Bombay. Aurangabad and
Marathwada are both in the State of Bombay. The
first and second respondents are the authorities set up
under s. 44 of the Act by the Government of Bombay.
It is the duty of the first respondent to consider
applications for and to grant, permits for stage
carriages to be plied in Aurangabad region and the,
second respondent hears apJleals from the decisions of
the first respondent. The third respondent is the
head of a department of the Government of the State
of Bombay and is in charge of public transport work
in Marathwada.
It appears that the petitioner had permits to run
buses on four routes in Aurangabad and that these
Sarkar].
182
SUPREME COURT REPORTS
[1960]
r96o
permits were due to expire on October 1, 1958. The
P
bh -:--T
third respondent who really represents the Governar ani ransport
f h
S
f
h
co-op.
ment o t e
tate o Bombay \lld w. o may be conSociety Ltd.
veniently referred to as the State of Bombay, had
v.
permits for two of these routes.
On J\fay 19, 1958,
R. T. A.
the State of Bombn,y applied for permits for all these
Aurangabad
four routes under Chapter IV of the Act.. On May 27,
Sarkar].
1958, the petitioner applied for renewal of its existing
permits. The first respondent rejected the application
of the petitioner and granted those of the State of
Bombay. The petitioner appealed to the second
respondent but its !\ppeal was rejected. In the meantime on some date which does not n,ppear on the
record, the petitioner had been granted temporary
permits up to December 31, 1958.
On the expiry of
its temporary permits on December 31, 1958, the
petitioner would have been unable to run any of its
buses and it therefore moved the High Court at
Bombay under art. 226 of the Constitution and the
High Court quashed the o~ders of respondents Nos. 1
and 2 and directed the applications of the petitioner
and the State of Bombay for the permits to be reconsidered. With the reasons of this order of the High
Court we are not concerned. Respondent No. l, however, without re-considering the applications as directed by the High Court, granted temporary permits to
the Stn,te of Bombay. The petitioner again moved
the High Court which thereupon quashed the order
of respondent No. 1 granting temporary permits to
the State of Bombay. Thereafter, on March 20, 1959,
the respondent No. 1 granted temporary permits to
the petitioner which were later extended to July 20,
1959.
On June l, 1959, the State of Bombay published a scheme under s. 680 in Chapter IV A of the Act.
Various objections were filed against the scheme and
nothing further appears to have been done to make
"the scheme final.
On July 18, 1959, respondent No. 1
purporting to carry out the directions of the High
Court, recfmsidered the petitioner's applications for
renewal and the applications of the State of Bombay
for permits and rejected the petitioner's applications
while allowing those ·of the State of Bombay. On
July, 20, 1959, t.he petitioner's temporary permits
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3 S.C.R. SUPREME COURT REPORTS
183
having expired, it ceased to operate its buses. On
1960
August 27, 1959, the petitioner filed the present peti- P lh -:--T
·1
•
.
h' C
d
32 f h C
. t'
i."
ar' ani ranspor
t10n m t is ourt un er art,
o t e onst1tu 10n .LOr
Co-op.
appropriate writs quashing the order of respondent
Society Ltd.
No. 1 dated July 18, 1959, restraining the S~ate of
v.
Bombay from applying for permits· save under the
R. TA.
provisions of Chapter IVA 'and respondent No. 1 from
A1t.angabad
entertaining any ·application by the State of Bombay
Sarkar J.
under Chapter IV and directing respondent N:o. 1 to
hear the petitioner's applications for permits according to law. Various grounds have been advanced in
support of the petition and these will now be discussed.
The petitioner first contends that in view of Chapter.IV-A the State of Bombay had no right to apply
for permits under Chapter IV of the Act as it had
done. It says that the order of the first respondent
granting permits to the State of Bombay under Chapter IV was therefore illegal and affected its fundamental rights under art. 19(1) (g).
The first question then is whether the State of
Bombay was entitled to apply for permits under
Chapter IV. The petitioner says that special provisions ·having been made in Chapter 1 VA to enable the
Government to run its buses the Government's right
to run buses was restdcted to those provisions and
the Government was not entitled to resort to the
other provisions of the Act .. In support of this contention reference was made to the case of Nazir
Ahmad v. King Emperor(1) where it was observed that
"where a power is given to do a certain thing in a
certain way the thing must be done i~ that way or not
at all." But this principle can apply only where one
power is given and has no application where more
powers than one are conferred. If a statute contains
. provisions giving more than one power, then the rule
cannot be applied so as to take away the powers
conferred by anyone of these provisions. As pointed
out in Taylor v. Taylor( 2 ) referred to by the Judicial
Committee in Nazir Ahmad's case (1) "When a statutory power is conferred for the first time upon a Court,
and the mode of exercising it is pointed out, it means
that no other mode is to be adopted."
z. ( 1936) L,R, 63 I.A. 372. 381,
(2) ((1876) 1'Ch. D. 426, 431.
184
SUPREME COURT REPORTS
(1960)
'960
Now the position here is different.
The GovernParbha;;;y;ansport ment has of course the power to do any business it
Co-op.
likes and therefore the business of running stage
socfrty Ltd.
carriages. We have earlier dmwn attention to the
v.
change made in cl. (a) of s. 42(3) by the amendment
R. T. A.
of 1956. Previously, it was not necessary for the
Au1angabad
Government to obtain permits under s. 42(1) for buses
Sarkar J.
that it intended to run as stage carriages. Since the
amendment the Government can no longer run transport vehicles for commercial purposes without obtaining permits under s. 42(1).
Now the plying of buses as
stage carriages is a commercial enterprise and for
such buses, therefore, under the sections as they
stand, the Government would require permits as any
one else. That being so, the sections clearly contemplate that the Government may apply for and
obtain permits for its buses run as stage carriages.
The rule applied in Nazir Ahrnad' s case (') does not
permit the ordinary meaning of s. 42, sub-s. (1) and
sub-s. (3), cl. (a) to be cut down because of the provisions of Chapter IV A.
The Act lays down tw" independent sets of provisions in regard to the running
of buses by the Government, one nnder Chapter IV
and the other under Chapter IVA. Chapter IVA was
intended to give the Government, a special advantage.
When the Government chooses to proceed under that
chapter, it becomes entitled as a matter of right under
s. 681<' (1) to the necessary permits. Under Chapter IV
the Government does not have any_ such advantage;
it has to compete with other applicants, to secure
permits to be able to run its buses. The powers under
the two Chapters are therefore _different.
To such a
case the principle of Nazir Ahrnad's case(') cannot be
applied.
•
The learned counsel for the petitioner also referred
to the maxim expressio unius est exclusio alterius and
contended that since the Act by Chapter IVA provided that the Government would be entitled to run
buses under a scheme it impliedly prohibited the
running of buses by the Government otherwise. It
does not seem to us that this maxim carries the
mat t<>r further. It is a maxim for ascert(l,ining the
(1) [1936J L.R. 63 I.A. 37z, ~81
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3 S.C.R. SUPREME COURT REPORTS
185
intention of .the · legislature. Where the statutory
z960
language is plain and· the meaning clear, there is no
.-. -
scope for applying the rule. Section 42(3) (a) appears Parbh~'- ~ansport
to us to be perfectly plain in its terms. It contemSoci:,; Ltd.
plates that the Government has to apply for permits
· v.
under s. 42(1) to run buses as a commercial enterprise.
R. T. A.
That being so, the maxim cannot, be resorted to for /
Aurangabad
ascertaining the intention of the legislature and
.Sarkar .f,
implying a prohibition against the Government apply-
~
ing for permits under Chapter IV.
The learned counsel then referred to the case of
Viscountess Rhondda's claim (1), where it was observed
at p. 365 that "The words of the statute are to be
construed so as to ascertain the mind of the Legislature from the natural and grammatical meaning of
the words which it has used,· and in so construing
them the existing state of the law, the mischiefs to be
remedied, and the defects to be amended, may legitimately be looked at together with the· general scheme
of the Act." His point is that Chapter IV A was
introduced by the amendment of 1956 to meet the
observations made in Moti Lal v. Government of Uttar
Pradesh (2) and some other cases that s. 42(3)(a) was
discriminatory in that it exempted the Government
from the requirement of a permit and was hence void
as offending art. 14 of the Constitution. It is said
that Chapter IV A must, therefore, be construed as
containing the only provisions enabling the Government to run a stage carriage. It is difficult to appreciate this contention. The observations in the cases
referred to, had been made in regard to cl. (a) of
s. 42(3) as it stood before its amendment in 1956.
That section has been amended and as it now stands
it is not discriminatory. The evil pointed out no
more exists and no question of reading the Act keeping in view that evil of discrimination, arises. We
find nothing in Moti Lal's rose (2) or any other case
which points to an evil nor ha~ the learned counsel
drawn our attention to any, which the Act can be
said to have intended to remedy. We, therefore, find
no justification for reading Chapter IVA as containing
(I) (1922) 2 A.C. 339,
~ ..
•
,
186
SUPREME COURT REPORTS
[1960]
1960
the only provisions under which the Government can
bh --:-T
ply stage carriages.
,Par am ransport
I ·
"d
42
1 t
h
,.
c _ P
t is next sa1
s.
contemp a es t e owner Oi a
Soci:t; i.td.
transport vehicle obtaining a permit and a "State
v.
transport undertaking" cannot apply for a permit
R. T. A.
under Chapter IV as it cannot be such owner. But
Aurangabad
here we are not concerned with a State transport
undertaking for that comes into existence for the
Sarka• J.
purposes of Chapter IV A and that Chapter has not
been resorted to by the Government yet. Here the
Government applied for the permits under Chapter IV.
The Government can of course be the owner of tra.nsport vehicles. We have earlier said that in view of
cl. (a) of s. 42(3) the Government has to apply for
permits under s. 42(1) as any other owner.
Therefore
the Act contemplates the Government as owner of
transport vehicles. Further, under s. 68A a "State
transport undertaking" has. been defined as an undertaking providing road transport service carried on by
a state Government. Such an undertaking is really a
department of a Government and in order to be able
to provide transport service, it must be able to own
transport vehicles. In fact s. 68F(l) requires the
State transport undertaking to apply for permit.s
under Chapter IV and therefore contemplates it as an
owner of a transport vehicle for the purposes of s. 42
which is contained in that Chapter.
•
The learned counsel then referred to the concluding
portion of s. 47(1) which makes it incumbent on the
authority considering applications for permits to take
into consideration the representations made by the
persons therein mentioned. He said that the persons
there mentioned did not include the Government and
therefore the intention is clear that applications for
permits by the Government were not intended to be
considered under s. 47 and if Government could not
come under s 47, it could not come under Chapter IV
a't
all. But assume that representations by the
Goverment are not contemplated bys. 47. That does
not show that applications for permits by the Government are also not contemplated by that section.
It is also said that the matters to which the authority
granting the permits is required to have regard in
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3 S.C.R. SUPREME COURT REPORTS
187
considering applications for permits under s. 47 are
r960
such that if the State enters into competition with
--
• ·
·
c
h
·
f
·
h S
Parbkani Transport
01t1~ens ior t e grant o perm~ts .t e
~ate mu~t necesCo-op.
sarily get them. Therefore, it is said that it could
society Ud.
not have been intended that the State would compete
v.
with the citizens in the matter of obtaining permits .
R. T. A.
under Chapter IV. We are unable to assent to this
A1trangabad
contention. There is nothing.in s. 47 which leads to
the conclusion that whenever the Government applies
along with private citizens for permits, the Government must get. them. Indeed, if that were · so,
then it would not hav<:i been necessary to provide by s. 68F (1) that when the Government,
that is, its State transport undertaking, applied in .
pursuance of an approved scheme for a permit, the
authority concerned would be bound to grant such
permit. Section 68F (1) clearly contemplates that .
without the provision made therein it may so happen
that the authority acting under s. 47 may think it fit
to grant the· permit to a private operator in preference
to the Go.vernment. It also seems to us that there is
nothing in our law to prevent the Government from
(;!ntering a business in competition with private citizens.
Indeed, Art. 19(6) by providing that nothing in art.
19(l}(g) shall affect the application of any existing law
in so far as it relates to, or prevent· the State from
making any law relating to the carrying on by the
State of any trade, business, industry or service whether
to the exclusion, complete or partial, of citizens or
, otherwise, would seem to indicate that the State may
carry on any business either as a monopoly, complete
or partial, or in competition with any citizen and that
would not have the effect of infringing any fundamental rights of such citizen.
·
Our attention was then drawn to the proviso to
s. 47(1) under which other things being equal a cooperative society is entitled to preference over individual owners in the matter of grants of permits. It is
said that the Government is not an individual owner
and therefore it is not contemplated as an applicant
for a permit under s. 47. It seems to us that if the
Government is not an individual owner-as to which
we are not called upon to say anything--,it does not
Sarkar].
188
SUPI'tEME COURT REPORTS
[1960]
r960
follow that that section does not contemplate the
-
.
Government as an applicant for permit. If GovernPorbh";iT;onsport ment is not an individual owner, then all that will
50,;:,; Ltd.
happen in view of the proviso to s. 47(1) will be that a
v.
co-operative society will not be able to claim any preR. T. A.
ference over the Government.
All that the proviso
Au.angobad
does is to give a co-operative society a preference over
individual owners. It is not concerned with stating
Sarllar ].
who can apply for permits.
It seems to us therefore that the petitioner's contention that the Government cannot apply for a permit
under Chapter IV of the Act is unsustainable. The
petitioner cannot complain of the GovernIL1nt having
applied under that Chapter. We are not Cb!led upon,
therefore, to discuss the further question, whether any
fundamental right of the petitioner under art.19(l)(g)
would have been affected by the Government having
appliedfor and obtained permits under Chapter IV
without having the right to do so. This disposes of
the contentions concerning the infringement of the petitioner's fundamental rights under art. 19(l)(g) of the
Constitution.
We will now consider the question of the violation
of art. 14 of the Constitution. The first contention
in this regard was based on the proviso to s. 47(1). It
is said that in the circumstances of this case, as a cooperative society the petitioner was entitled to preference over the Government, considered as an individual
owner, and had not been given that preference. It is
contended that respondent No. I relying on various
promises made by the State of Bombay to repair roads
and to give other facilities to the travelling iJUblic
had held that the other conditions were not equal
while under the proviso, it was entitled to rely only on
the existing conditions. It is contended that thereby
the provisions of Art. 14 had been infringed. This
contention is in our view clearly untenable. The decision of respondent No. 1 may have been right or wrong
and as to that we say nothing, but we are unable to
see that that decision offends Art. 14 or any other fundamental right of the petitioner. The respondent
No. 1 was acting as a quasi judicial body and ifit has
made any mistake in its decision there are appropriate
-
•
3 S.C.R. SUPREME COURT REPORTS
189
remedies available to the petitioner for obtaining
i96o
relief.· It cannot complain of a breach of Art 14.
P b'·- ·r
Th
h
.
f th
. .
. th
if ar '~ni rampo•l
e ot er contention o
e peht10ner IS
at.
C<HJp.
Chapter IY permits the State to compete with a private
Society Ltd.
citizen, it offends Art. 14 because in view of the vast
v.
resources of th. e State a private citizen is bound to lose
R. T. A.
1
£
d
Aurangabad
in such competition. --This point is clear y un ounde •
Article 19(6) as it now stands, contemplates such a
Sarkar J.
competition as we have earlier pointed out. The petitioner can base no grievance on such competition.
,
For these reasons we think that this petition must
fail' and hence it is dismissed with· costs.
· ·
Petition dismi;~ed. ···
M/s. U. P. ELECTRIC SUPPLY CO., LTD.
v.
THE WORKMEN OF M/s. S. N. CHOUDHARY,
CONTRACTORS AND ANOTHER
(P. B. GAJENDBAGADKAR AND K. N. \VANCHOO, JJ).
·· · · Industri~lDispute-Tribunal deciding issue not rejerred to it~
Jurisdiction-U.P. Industrial Dispute Act, r947 (XXV III of r947),
&~~~0~&
..
The appellant company used to employ J\Iessrs. S. 11: Choudhary as its contractors for doing certain work for it and the
contractors in their turn used to employ some workmen to carry
out the work _w)lich they took on contract. A dispute having
arisen between the contractors and their workmen an application
was made before the conciliation board by the workmen in which
both the company and the contractors were parties and four
· matters were referred, namely, non-grant of bonus for two years,
non-grant of festival holidays, non-fixation of minimum wages ·
of those workmen at par with the workmen of the company and
non-abolition of the contract system. As conciliation failed the
Government referred the dispute to the Industrial Tribunal under
the U.P. Industrial Disputes Act in which only three points out
of the four mentioned above were referred and the question of
non-abolition of the contract system was· not referred. The
parties to this reference were the contractors and their workmen .
and not the appellant company. By a subsequent notification,
ho;vever, the Government impleaded the Company asa party to
. the dispute but did not amend the previous referring order by
Ma1eh8