SECRETARY QUILON DISTRICT MOTOR TRANSPORT WORKERS CO OPERATIVE SOCIETY LTD Vs. REGIONAL TRANSPORT AUTHORITY

JUDGEMENT

(1.) Leave granted.

(2.) This appeal arises from the judgment of the Division Bench of the kerala High Court made in Writ Appeal No. 1169 of 1993 dated 16.9.1993. The appellant is a registered co-operative society consisting of workers and it had obtained certaih stage carriage permits. One among which was on the route Kundara-Chinnakkada via Anchalmood and Civil Station of 22 kilometers distance. The appellant had obtained the permit under Section 58 of the Motor Vehicles Act, Act IV of 1939 on December 23, 1987 for a period of three years which stood expired by December 22, 1990. In the meanwhile, the Motor Vehicles Act No. 59 of 1988, (for short 'the Act') has come into force on July 1, 1989 in relation to the State of kerala. The appellant made an application to the Regional Transport authority, Kollam, on January 4, 1991 seeking renewal of the permit. The Regional transport Authority rejected the application on the ground that there is no power under the Act to grant renewal to a permit granted under Act IV of 1939. When the appellant carried the matter in appeal, State Transport appellate Authority confirmed the same and the High Court by the learned single Judge and the Division Bench upheld the order of the State Transport authority. Thus this appeal by special leave.

(3.) It is contended for the appellant that renewal is in continuation of ' the permit granted by the Regional Transport Authority on December 23, 1987. By operation of Section 217 (2) (b) , it is a permit granted under the old Act and continued in its operation and that, therefore, by deeming fiction the appellant is entitled to the renewal as a substantive right and it cannot be : rejected on the ground that after the Act has come into force the appellant cannot seek the renewal under the Act by operation of the statutory deeming fiction granted by Clause (b) of sub-section (2) of Section 217. We find no force in the contention. Clause (31) of Section 3 defines permit issued by a state or Regional Transport Authority or an Authority prescribed in this behalf under this Act authorising the use of Motor Vehicle as a transport vehicle. Section 72 gives substantive right to grant the permit and Section 81 deals with duration and renewal of the permit. Sub-section (1) provides that a permit other than a temporary permit issued under Section 87 or a special permit issued under sub-section (8). Section 88 shall be effective without renewal for a period of five years. The proviso is not necessary. Therefore, it is omittted. Sub-section (2) provides that a permit may be renewed on an application made not less than fifteen days before the date of expiry. Permit granted under sub-section (1) of Section 72 of the Act shall have, therefore, the duration of five years by operation of sub-section (1) of Section 81 and renewal shall under sub-section (2) in the prescribed manner. In other words, the permit granted under section 72 may be renewed for a furthe period of five years and in an appropriate it case may be refused. The condition precedent is that the initial grant of permit must be under the Act.