A SEDDIQUE Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE petitioner is engaged in the business of transport of goods by public carriers on obtaining permits under the provisions of the Motor Vehicles Act, 1939 (hereinafter to be referred to as the Act) from the concerned transport authorities. He filed this application under Article 226 of the Constitution to quash the Notification issued by the State of Orissa (Opposite Party No. 1) in S. R. O. No. 633/70 at Annexure 1 by which every applicant for grant of a new permit is required to deposit the security amount in the shape of National Savings Certificate instead of depositing the same in cash. It is alleged that such a direction is beyond the competence of Opposite Party No. 1 and if security is furnished by way of 'National Savings Certificate, the petitioner is adversely affected, inasmuch as, he will be deprived of a portion of the amount given as security, because National Savings Certificates which are issued either for a term of 7 or 10 years will be subject to deduction of certain amount of discount in case they are encashed prematurely where the applicant becomes entitled to refund.

(2.) OPPOSITE Parties resist the application on the ground that Section 45 (3) of the Act authorises the State Government to direct by notification the manner in which the security deposit is to be made, and as such, the present direction is within their competence. Secondly, it is stated that if security deposit is taken in cash, it will necessitate opening of a different Head in the Treasury and will entail risk of misappropriation or delay in making the refund.