Supreme Court of India

Maharashtra State Road … vs Shri Balwant Regular Motor … on 22 August, 1968

Supreme Court of India
Maharashtra State Road … vs Shri Balwant Regular Motor … on 22 August, 1968
Equivalent citations: 1969 AIR 329, 1969 SCR (1) 808
Author: V Ramaswami
Bench: Ramaswami, V.
           PETITIONER:
MAHARASHTRA STATE ROAD TRANSPORTCORPORATION

	Vs.

RESPONDENT:
SHRI BALWANT REGULAR MOTOR SERVICE.AMRAVATI & ORS.

DATE OF JUDGMENT:
22/08/1968

BENCH:
RAMASWAMI, V.
BENCH:
RAMASWAMI, V.
SHAH, J.C.
GROVER, A.N.

CITATION:
 1969 AIR  329		  1969 SCR  (1) 808
 CITATOR INFO :
 E	    1970 SC 769	 (5)


ACT:
Motor  Vehicles	 Act  (4 of 1939),  ss.	 48(1),	 57(7)	 and
58(1)-Order   granting	 permit-Period	 of   validity	 not
mentioned--Effect  of.-Date of commencement  not  mentioned-
Effect of.
Practice-Filling up date in earlier order-If review.
If order granting  permit can be  oral-Obligation  to	give
reasons immediately.
Writ  under Art. 226-Conduct of party when  precludes  issue
of.



HEADNOTE:
On   May  10,  1965,  the  R.T.A.,  after  considering	 the
applications  by  the respondents  (private  operators)	 for
renewal	 of  their  permits  and  the  application  by	 the
appellant for a fresh grant of permits, for the same routes,
passed	orders dismissing the. applications for renewal	 and
granting  substantive permits to the appellant.	  The  order
was  challenged by the private operators in  writ  petitions
and  the High Court directed that, pending the	disposal  of
the  writ  petitions,  status quo should  be  maintained  by
:granting  temporary  permits  to  the	private	  operators.
Thereafter,  while  'the writ petitions	 were  pending,	 the
appellant   and	  the  private	operators  filed   a   joint
application  of	 compromise before the R.T.A. by  which	 the
private	 operators  agreed to withdraw the  writ  petitions.
The R.T.A.., on September 11, 19'65, upon such assurance and
after  hearing	the parties, directed  that  the  appellant,
which was granted substantive permits by order dated May 10,
1965,  would commence operation on the routes  described  in
Schedule  A  to the order from November 1,  1965,  that	 the
private	 operators  would operate on  temporary	 permits  on
routes	mentioned in Schedule B till June 30. 1967 and	that
the appellant would commence operation on those routes	from
July  1,  1967.	  With regard to  the  routes  mentioned  in
Schedule C, the private operators agreed to surrender  their
permits in favour of the appellant but, as the appellant had
not  made  any	application for	 those	routes,	 the  R.T.A.
decided	 to  call for applications as provided	for  in	 the
Motor  Vehicles Act, 1939.  On October 8, 1965	the  private
operators  withdrew  the writ petitions, and  thereupon	 the
R.T.A., on October 15, 1965, announced The decision taken on
September 11, 1965, and thereafter, invited applications for
the routes mentioned in Schedule C   The appellant made	 its
application.   The private operators also applied, but	they
applied not only for permits for C Schedule routes, but also
in  respect  of the B Schedule routes.	On  April  5,  1967,
permits	 were  issued to the appellant in respect of  the  B
Schedule  routes  as per the-orders dated May 10,  1965	 and
September 11, 1965, for a period of 5 years commencing	from
July  1, 1967;	At its meeting on June 29, 1967, the  R.T.A.
passed	resolutions in the presence of the parties  granting
substantive  permits in respect of Schedule C routes to	 the
appellant,   and  rejecting  the  applications	of   private
operators.   The  minutes  of  the  meeting  were   formally
recorded  in a letter of July 20, 1967, detailed reasons  in
support	 of  the  order	 were  given,  and  the	 letter	 was
communicated to the private operators.	The order dated June
29,
809
1967  was  challenged  by the  private	operators  in  write
petitions and the High Court allowed the petitions  quashing
the  grant  of	permits	 to  the  appellant  on	 the  routes
described in Schedules B and C.
In  appeal to this Court, on the questions: (1) whether	 the
order of the R.T.A. dated May 10, 1965, was invalid because,
(a)  the period of validity of the permit was not  expressly
mentioned,  and	 (b) the order did not mention the  date  of
commencement  of the period of the permit; (2)	whether	 the
order  of  the R.T.A. dated September 11, 1965,	 fixing	 the
date  of commencement of the service was  invalid,  because,
the  order was a review of the order dated May 10, 1965	 and
the  R.T.A.  had no power of review; (3) whether  the  order
dated September 11, 1965, was invalid because it was  passed
during	the  subsistence of the interim order  of  the	High
Court maintaining status quo; (4) whether in  view of  their
conduct,  it was not open to the private operators to  apply
for  a	writ  for quashing the order  of  the  R.T.A.  dated
September 11. 1965; and (5) whether the order of the  R.T.A.
dated  June  29, 1967, was invalid, because, the  order	 was
oral  and no reasons were given by the	R.T.,A.	 immediately
for the order.
HELD:  (1)  (a) There is no statutory requirement  that	 the
R.T.A. should expressly mention in its order granting permit
under  s.  48(1) the period for which the permit was  to  be
granted.   The order of	 the R.T.A. should be  construed  in
the language of s. 48(1 ) which empowers the R.T.A. to grant
a stage carriage permit 'in accordance with the application'
or  'with such modifications as it deems fit'.	As  required
by  r. 80 of the Bombay Motor Vehicles Rules, the  appellant
mentioned 5 years as the period for which the permit was  to
be granted.  Since the R.T.A. did not make any	modification
it  must be deemed that the grant was made for 5  years,  in
accordance with the application.  Therefore, the order dated
May  10, 1965 could not be held illegal on the	ground	that
the period was not expressly mentioned. [815 H; 816 B-E]
(b)  There is nothing in the Act or in the Rules to  suggest
that  the  R.T.A. is under an obligation to mention  in	 the
order  of  grant of permit the actual date  from  which	 the
permit was  to be  effective.  Under s. 48(3)(i) of the Act,
the  R.T.A.  may specify as a condition that  service  shall
commence   from	 a  specified  date.   But  it	 is   merely
permissible  and does nor apply to the order of grant  of  a
permit	which is dealt with in s. 48(1).  In the absence  of
any  express statutory provision it. must be taken that	 the
date  of the commencement of the period of the permit  would
be  the date from which it was actually issued.	  Therefore,
the  order of the R.T.A. was not invalid, because, the	date
of commencement was not mentioned. [816 F-H]
Shree Laxmi Bus Transport Co. v. The R.T.A. Rajkot, 62	Bom.
L.R. 958, referred to.
(2)  It is not correct to say that the order of	 the  R.T.A.
dated	September  11. 1965, was an order of review  of	 the
previous  order dated May 10, 1965.  The later order of	 the
R.T.A.,	 fixing the date of commencement of the service	 was
only supplemental and filled up an omission in the  previous
order which was left intact. [817 E-F]
(3)  The order of the R.T.A. dated September 11, 1965 was  a
conditional one which was intended to come into effect	only
after the writ petitions in the High Court were withdrawn by
the  private operators, and it was in fact  announced  after
the  petitions	were  withdrawn.   Therefore,  there  is  no
violation of the interim  order	 of the High Court. [818  B-
C]
810
(4)  The private operators were parties to the	order  dated
September 11, 1965, had accepted that order, acted upon	 it,
and  derived benefits and advantages from it for nearly	 one
year and nine months.  In those circumstances there was such
acquiescence  in  the  order on the  part  off	the  private
operators  as to disentitle them to a grant of a writ  under
Art. 226 of the Constitution. [818 D-E, G-H]
Moon  Mills  Ltd. v.M.R. Meher,	 A.I.R.	 1967	S.C.   1450,
1454, followed.
(5)  There  is no provision either in the Act or  the  Rules
which requires either expressly or by necessary implication,
that the. R.T.A. should give a written decision with  regard
to  the grant of a stage carriage permit or to give  reasons
therefor along with the written decision.  Therefore, in the
absence	 of any statutory provision, there is nothing  wrong
in principle if an administrative tribunal gives a  decision
orally	 and  subsequently reduces to  writing	the  reasons
therefor and communicates it to the parties. [823 G; 827  D-
E]
Procedure in English law referred to.
Bhagat	Raja  v. Union of India, [1967] 3  S.C.R.  302	 and
Prag   Das Umar Vaishya v. Union of India, C.A. No.  657  of
1967, dated August 17, 2967, held inapplicable.



JUDGMENT:

CIVIL APPELLATE JURISDICTION: Civil Appeals Nos. 825 851 of
1968.

Appeals from the’ judgment and order dated October 19, 20,
1967 of the Bombay High Court, Nagpur bench in Special Civil
Applications Nos. 575 to 596, 634, 540 and 570 to 572 of
1967 respectively.

C.K. Daphtary, Attorney-General, Santosh Chatterjee and
D.P. Singh, for the appellant (in all the appeals).
M.N. Phadke, C.G. Madholkar and A. G. Ratnaparkhi, for
respondent No. 1 (in C. As. Nos. 832, 840, 842, 844 and 847′
to 851 of 1968).

M.N. Phadke, M.W. Puranik and Naunit Lal, for respondent
No. 1 (in C. As. Nos. 825 to 831 and 833 to 838 of 1968).
R.V.S. Mani, for respondent No. 1 (in C.A. No. 845 of 1968).
The Judgment of the Court was delivered by
Ramaswami, J. These appeals are brought by certificate from
the judgment of the Bombay High Court dated October 20, 1967
in Special Civil Applications Nos. 540, 570 to 572, 575 to
596 and 634 of 1967 filed under Arts. 226 and 227 of the
Constitution of India.

The appellant is the State Road Transport Corporation of the
State of Maharashtra constituted under the Road Transport
Corporation Act (64 of 1950). Respondent No. 1 who is a
private
811
stage carriage operator alongwith other such private
operators, had applied for renewal of stage carriage permits
which they were holding and which permits were to expire on
March 31, 1961. The Provincial Transport Services (the
predecessor of the appellant) had been also operating the
stage carriage service in the adjoining and nearby areas
and had made applications sometime in January, 1961 for
grant of substantive permits for the same routes. The
Provincial Transport Services had published a scheme
under s. 68D of the Motor Vehicles Act, 1939 (hereinafter
called the ‘Act’) under which it proposed to take over
several routes in the region including the routes in respect
of which renewal applications were made by the appellant and
the private operators. The scheme was approved by the Chief
Minister of the then Bombay State. The approval was,
however, challenged by private operators in Special Civil
Application No. 86 of 1962 in the High Court. By its order
dated 29/30th August, 1963 passed in that case, the High
Court quashed the scheme with the direction that the matter
should be reconsidered by the approving authority. The
scheme was thereafter not pursued.

By a notification dated June 10, 1961 under s. 47A of the
Road Transport Corporation Act of 1950 the Central
Government provided for the amalgamation of the Bombay Road
Transport Corporation with the Commercial Undertaking of the
State Government namely the Provincial Transport Services.
It was also provided in the notification that any
application for permit made by the Provincial Transport
Services would be deemed to. be an application made by the
Bombay Road Transport Corporation. In other words, the
Provincial Transport Services was substituted by the
State Road Transport Corporation which is now known as
Maharashtra State Road Transport Corporation (hereinafter
referred to as the ‘appellant’).

The applications for renewal of permits and applications for
substantive permits were considered by the Regional
Transport Authority, Nagpur (hereinafter called the
‘R.T.A.’) on October 9 and 10, 1964 and the R.T.A. passed a
common order by which all the applications for renewal made
by private operators were rejected and the permits were
granted to the appellant. This order of the R.T.A. was
challenged by the private operators in Special Civil
Application No. 603 of 1964. One of the grounds on which
the order was challenged was that the R.T.A. was not validly
constituted. By its order dated January 14, 1965, the High
Court quashed the order passed by the R.T.A., holding that
it was not properly constituted on October 13, 1964 when
it passed the common order. Thereafter the applications for
renewal of permits and for fresh grant of permits were again
considered by the R.T.A. at its meeting held on May 10,
1965. By its order on the same date, the R.T.A. dismissed
all the applications
812
for renewal made by the private operators and directed
that substantive permits for these routes should be granted
to the appellant. The order of the R.T.A. dated May 10,
1965 was challenged by the private operators in different
Civil Applications. One of the applications was Special
Civil Application No. 488 of 1965. In this application, one
of the prayers was to the effect that pending the decision
of the application the R.T.A. should be directed to maintain
status quo. Clause 3 of the prayer was to the following
effect:

“That pending the decision of this application
the R.T.A. Nagpur be directed to maintain
status quo viz., to grant temporary permit to
the petitioner as it has been done upto now
on the routes Chikhli-Buldana and Chikhli
Deulgaonraja on which the petitioner is
operating his vehicles.”

On June 4, 1965 Paranipe, J. ordered as
follows:

“Rule. Expedite hearing at Nagpur on 21-6-
1965. In the meantime R.T.A. Nagpur to
maintain status quo in terms of Clause 3.”

The interim order was subsequently confirmed by the High
Court and all the petitions were directed to be heard
together.

During the pendency of the Special Civil Applications in the
High Court an application was made to the R.T.A. jointly on
behalf of the appellant and the private operators. A ‘copy
of that application is included as document no. 17 in
Special Civil Application No. 575.0 1967. The joint
application stated that the appellant and the private
operators, with a view to end all litigation, had agreed to
settle the matter on certain terms. One the terms was that
the Special Civil applications filed were to. be withdrawn.
The application for compromise was considered by the R.T.A.
at its meeting held on September 10 and 11, 1965. The
private operators including respondent No. 1 assured the
R.T.A. that they would withdraw the petitions pending in
the High Court. Upon ‘such assurance the R.T.A. considered
the matter at the meeting and after hearing the parties
decided that the appellant who was granted substantive
permits by its order dated May 10, 1965, would commence
operation on the routes described in Sch. ‘A’ from November
1, 1965. In regard to the routes mentioned in Sch. ‘B’ for
which also the appellant had been granted substantive
permits by the order of the R.T.A. dated May 10, 1965, the
appellant was to be permitted to coramence operation from
July 1, 1965 and the private operators including respondent
No. 1 were to be allowed to operate on these routes on
temporary permits until June 30, 1967. This interval