# SUPREME COtJR'l' REPORTS MALIK RAM v. STATE OF RAJASTHAN - **Citation:** [1962] 1 S.C.R. 978 - **Court:** Supreme Court of India - **Decided:** 1960-11-09 - **Case number:** Civil Appeal No. 135 of 1961 - **Bench:** P. B. Gajendragadkar, A. K. Sarkar, K. N. W Anchoo, K. C. Das Gupta, N. Rajagopala Ayyangar - **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/supreme-cotjr-l-reports-malik-ram-v-state-of-rajasthan-2114 - **Pages:** 8 ## Headnote [1962] Motor Vehicles-Objection to scheme-Power of Officer appointed to hear such objection-Recording of evidence-Cancellation of , scheme-Motor Vehicles Act, I939 (4 of r939), s. 68-D(2)--Rajasthan State Road Transport Services (Development) Rules, r960, r. 7(6). Bys. 68-D(2) of the Motor Vehicles Act, 1939, "The State Government may, after considering the objections and after giving an opportunity to the objector or his representatives and the representatives of the State Transport Undertaking to be heard in the matter, if they so desire, approve or modify the scheme". The appellant's objections to the draft scheme in question were heard by the Legal Remembrancer, appointed by the State Government to hear such objections, under r. 7(6) of the Rajasthan State Transport Services (Development) Rules, 1960, framed under s. 68-I of the Act. The appellan1 applied to the said Officer for permission to give evidence in order that he could show that the entire scheme ought to be rejected. His applications were rejected by the Officer holding that the Rules did not provide for recording of evidence and that according to a decision of the Rajasthan High Court, dated November 9, 1960, s. 68-D(2) of the Act did not empower him to cancel the draft scheme in its entirety. He, therefore, heard the arguments addressed on behalf of the appellant and approved the scheme. After moving unsuccessfully the Rajasthan High Court, the appellant appealed to this Court by special leave, Held, that the Officer was in error on both the points. Section 68-D(2) of the Act clearly implies that the authority which has to approve or modify the scheme, has also the power, if it thinks proper, to disapprove the scheme altogether. The words "may approve" in the section, properly construed, must also include "may not approve". The use of the word "shall" in r. 7(6) of the Rules instead of the word nmay'', which is otherwise similar in its terms to s. 68-D(2) of the Act, can make no difference. In hearing objections under s. 68-D(z) of the Act, the State Government or its Officers act as a quasi-judicial tribunal and regard being to the nature of the objections and the purpose of the hearing thereunder, there can be no doubt that production of evidence, both oral and documentary, is clearly contemplated by the section. ,, 1 . 1 l ' .. ' I ) 1 S.C.R. SUPREME COURT REPORTS 979 Gullapalli Nageswara Rao v. Andhra Pradesh State Road z96r Transport Corporation, [1959] Supp. l S.C.R. 319. referred to. But that does not mean that the parties can produce any Malik Ram amount of evidence merely to prolong the proceeding. It is for --. the State Government or the Officer to decide whether the evi- Stale of Ra1asthan dence sought to be adduced is necessary and relevant to the enquiry and, if so, they will have all the powers that a court has of controlling the giving and recording _of such evidence. Where a draft scheme is disapproved under s. 68-D(z) anC! thus stands rejected, any fresh scheme that may have to be framed, must be framed according to the procedure prescribed by Ch. IV A of the Act. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 135 of 1961. Appeal by special leave from the judgment and order dated January 3, 1961, of the Rajasthan High Court, Jodhpur, in Civil Writ Petition No. 1 of 1961. M. K. Nambiar, R. K. Garg, D. P. Singh, M. K. Ramamurthi and S. O. Agarwala, for the appellantpetitiouer. H. N. Sanyal, Additional Solicitor-General of India, G. 0. Kasliwal, Advocate-General of Rajasthan, Khan Singh and D. Gupta, for the respondents. 1961. April 14. The Judgment of the Court was delivered by WANCHOO, J.-These two connected matters arise wanchoo J. out of an order approving a scheme framed under Chap. IV-A of the Motor Vehicles Act, No. IV of 1939, (hereinafter referred to as the Act) and will be disposed ~ • of together. The brief facts necessary for present purposes are these. The appellant was plying a bus between Jaipur and Ajmer on a permit granted to h ## Text Apdl I4. 978 SUPREME COtJR'l' REPORTS MALIK RAM v. STATE OF RAJASTHAN (P. B. GAJENDRAGADKAR, A. K. SARKAR, K. N. W ANCHOO, K. C. DAS GUPTA and N. RAJAGOPALA AYYANGAR, JJ.) [1962] Motor Vehicles-Objection to scheme-Power of Officer appointed to hear such objection-Recording of evidence-Cancellation of , scheme-Motor Vehicles Act, I939 (4 of r939), s. 68-D(2)--Rajasthan State Road Transport Services (Development) Rules, r960, r. 7(6). Bys. 68-D(2) of the Motor Vehicles Act, 1939, "The State Government may, after considering the objections and after giving an opportunity to the objector or his representatives and the representatives of the State Transport Undertaking to be heard in the matter, if they so desire, approve or modify the scheme". The appellant's objections to the draft scheme in question were heard by the Legal Remembrancer, appointed by the State Government to hear such objections, under r. 7(6) of the Rajasthan State Transport Services (Development) Rules, 1960, framed under s. 68-I of the Act. The appellan1 applied to the said Officer for permission to give evidence in order that he could show that the entire scheme ought to be rejected. His applications were rejected by the Officer holding that the Rules did not provide for recording of evidence and that according to a decision of the Rajasthan High Court, dated November 9, 1960, s. 68-D(2) of the Act did not empower him to cancel the draft scheme in its entirety. He, therefore, heard the arguments addressed on behalf of the appellant and approved the scheme. After moving unsuccessfully the Rajasthan High Court, the appellant appealed to this Court by special leave, Held, that the Officer was in error on both the points. Section 68-D(2) of the Act clearly implies that the authority which has to approve or modify the scheme, has also the power, if it thinks proper, to disapprove the scheme altogether. The words "may approve" in the section, properly construed, must also include "may not approve". The use of the word "shall" in r. 7(6) of the Rules instead of the word nmay'', which is otherwise similar in its terms to s. 68-D(2) of the Act, can make no difference. In hearing objections under s. 68-D(z) of the Act, the State Government or its Officers act as a quasi-judicial tribunal and regard being to the nature of the objections and the purpose of the hearing thereunder, there can be no doubt that production of evidence, both oral and documentary, is clearly contemplated by the section. ,, 1 . 1 l ' .. ' I ) 1 S.C.R. SUPREME COURT REPORTS 979 Gullapalli Nageswara Rao v. Andhra Pradesh State Road z96r Transport Corporation, [1959] Supp. l S.C.R. 319. referred to. But that does not mean that the parties can produce any Malik Ram amount of evidence merely to prolong the proceeding. It is for --. the State Government or the Officer to decide whether the evi- Stale of Ra1asthan dence sought to be adduced is necessary and relevant to the enquiry and, if so, they will have all the powers that a court has of controlling the giving and recording _of such evidence. Where a draft scheme is disapproved under s. 68-D(z) anC! thus stands rejected, any fresh scheme that may have to be framed, must be framed according to the procedure prescribed by Ch. IV A of the Act. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 135 of 1961. Appeal by special leave from the judgment and order dated January 3, 1961, of the Rajasthan High Court, Jodhpur, in Civil Writ Petition No. 1 of 1961. M. K. Nambiar, R. K. Garg, D. P. Singh, M. K. Ramamurthi and S. O. Agarwala, for the appellantpetitiouer. H. N. Sanyal, Additional Solicitor-General of India, G. 0. Kasliwal, Advocate-General of Rajasthan, Khan Singh and D. Gupta, for the respondents. 1961. April 14. The Judgment of the Court was delivered by WANCHOO, J.-These two connected matters arise wanchoo J. out of an order approving a scheme framed under Chap. IV-A of the Motor Vehicles Act, No. IV of 1939, (hereinafter referred to as the Act) and will be disposed ~ • of together. The brief facts necessary for present purposes are these. The appellant was plying a bus between Jaipur and Ajmer on a permit granted to him for three years by resolution of the Regional Transport Authority, Jaipur, dated December 16/17, 1958. In August, 1960, the State Government promulgated rules under s. 68-I of the Act, called the Rajasthan State Road Transport Services (Development) Rules, 1960 (hereinafter called the Rules). The Rules were framed for carrying out the purposes of Chap. IV-A of the A ct and provided inter alia for framing of schemes, hearing of objections,. determination and payment of 980 SUPREME COURT REPORTS [1962] r96r compensation, a.nd other incidental matters. A draft Malih Ram scheme was published on September 7, 1960, for taking v. over the Jaipur-Ajmer route. The appellant made State of llajasthan objections to the draft scheme within the time allowed by the notification thereof. The State Government Wanchoo f. appointed the Legal Remembrancer to hear and decide the objections under r. 7 of the R.ules. It appears that in the meantime an application was made under Art. 226 by some bus operators before the R.ajasthan High Court challenging the constitutionality of s. 68-D of the Act and the legality of the R.u les framed by the State Government. This. application was dismissed and the High Court inter alia decided while considering r. 7(6) that it was not open to the officer hearing the objections to cancel the draft scheme and seems to have held that there was no such power even under s. 68-D(2) of the Act. This decision was given on November 9, 1960. The draft scheme came up for consideration before the officer appointed to hear objections on November 21, 1960. An application was made before him that the app~llant should be permitted to give evidence on points of fact which were narrated in the application in order that the officer may be in a position to decide the objections justly. This application was rejected by the officer on the ground that there was no provision in the R.ules for recording of evidence of witnesses. The matter then came up for consideration on November 23, 1960. On that date another application was made in which it was said that the appellant wanted to lead evidence to show that the draft scheme must be rejected in its entirety, and it was contended that the view taken by the R.ajasthan High Court to the effect that it was not open to the officer to cancel a draft scheme was incorrect. This application was also rejected by the officer with the observation that he was bound hand and foot by the decision of the R.ajasthan High Court and if there was anything wrong in the interpretation given by the High Court the remedy lay elsewhere. Thereafter the officer gave a hearing to the appellant in the sense that he heard arguments on behalf of the appellant and approved the draft scheme I I ' 1 S.C.R. SUPREME COURT REPORTS 981 by his order dated December 7, 1960. The approved 196z scheme was then published on December 12, 1960. On h R . l T A h . Malik Ram January 9, 1961, t e eg10na ransport ut onty informed the appellant that his permit was cancelleds1aie oJ ~ajasthan as from January 26, 1961, or such later date from which the buses of Rajasthan State Roadways begin Wanchoo J. to operate on the above-mentioned route. In the meantime, the appellant unsuccessfully moved the Hajasthan High Court, and his prayer for leave· to appeal to this Court was also rejected. The appellant then applied for special leave to appeal to this Court which was granted; and that is how the matter has come up before us. Two main points have been urged before us on behalf of the appellant, namely, (i) the officer was wrong in the view he took that it was not open to him to reject the draft scheme in its entirety, and (ii) the officer was wrong in holding that he could not take evidence, whether oral or documentary, and all that he had to do under s. 68-D of the Act was to hear arguments on either side., It is contended that in view of these two wrong decisions of the officer his approach to what he had to do in dealing with objections under s. 68-D was quite incorrect., with the result that there was no effective hearing of the objections and any approval given to the scheme in these circumstances ·is liable to be set aside and the appellant is entitled "to be heard" in the real sense in which those words were used in s. 68-D (2). · Re. (i). Section 68-D (2) with which we are concerned is in these words:- "The State Goverpment ma.y, after considering the objections and after giving an opportunity to the objector or his representatives and the representatives of the State transport undertaking to be heard in the matter, if they so desire, approve or modify the scheme." The view taken by the Rajasthan High Court in its decision of November 9, 1960, seems to be that this section does not justify what it called the cancellation of the scheme. We are of the opinion that this view is 982 SUPREME COURT REPORTS [1962] '96' not correct. What s. 68-D(2) provides is that after Malik Ram hearing the _Parties, the State Gover~~ent mn,J'. apv. prove or modify the draft scheme. This m our opmion State of Rajasthan clearly implies that the authority which has to approve or modify the scheme has the power also, if it Wanchoo J. so thinks fit, not to approve the scheme at all. What is before the State Government under s. 68-D (2) is a draft scheme. That sub-section provides that the State Government may approve or modify the scheme; that does not mean that the State Government is bound to approve the scheme with or without modifications. An authority to which power has been given to approvie or modify some proposal has certainly in our opinion the power to say that it ·will not approve the proposal at all, for the words "may approve" on a reasonable interpretation include "may not approve''. If a person may approve he is not bound to approve. Up to the stage when the hearing takes place under sub-s. (2) the draft scheme is merely a proposal before the State Government and it will only become effective if it approves of it with or without modifications. But this power clearly implies the power to say that it does not approve the draft scheme at all; and if it says that, the draft scheme will stand rejected and the State Transport Undertaking may have to submit another scheme for approval. When s. 68-E speaks of cancellation it refers to a scheme - already approved under s. 68-D(3), and in that context the word "cancellation" is properly used. But the fact that s. 68-E provides for the cancellation of a scheme which has already been approved, does not mean that it is not open to the State Government under s. 68-D(2) to say, after hearing the objections, that it does not approve the scheme at all which is put up before it as a draft for approval. We are therefore of the opinion that under s. 68-D(2) it is open to the State Government to say after hearing objections th11t it does not approve of the draft scheme at all, in which case the draft scheme will stand rejected and the State Transport Undertaking may have to frame a fresh scheme in n,ccordance with the procedure provided in Chap. IV -A. The officer therefore was wrong '- ' .. '- ' ' 1 j ii I " • I ' f • I ) 1 S.C.R. SUPREME COURT REPORTS 983 in holding that he had no power to reject the scheme '96' in the sense that he could withhold approval of it Malik Ram altogether, though we may add that he came to that v. conclusion because of the earlier decision of the Rajas- Stale of 11ajasthan than High Court. As for r. 7(6) of the Rules it is in similar terms as Wanchoo J. s. 68-D(2) and must therefore mean what we have said above with respect to s. 68-D(2). If, however, by the use of the word "shall" in r. 7(6) in place of the word "may" which appears in s. 68-D(2) the intention is to curtail the power of the officer hearing the objections, the rule would be bad as going beyond what is provided ins. 68-D(2). But we do not think . that the use of the word "shall" in r. 7(6) makes any difference, for the word "shall" had to be used there according to the rules of English Grammar and has no greater force than the word "may" used in s. 68-D(2). The learned Additional Solicitor-General who appeared for the State of Rajasthan did not.contest that what we have said above was the true position in s. 68-D(2) and r. 7(6). Re. (ii) . . The next question is the scope of the hearing under s. 68-D(2). The officer has held that the scope of the hearing is confined only to hearing of arguments and no more, and that is why he rejected the prayer of the appellant for leading evidence, whether oral or documentary. Now it has been held by this Court in Gullapalli Nageswara Rao v. Andhra Pradesh State Road Transport Corporation(') that a State Govern. ment acts as a quasi-judicial tribunal when giving a hearing under s. 68-D. The purpose of the hearing is that the State Government has to