S M ISLAM Vs. STATE OF BIHAR

JUDGEMENT

(1.) These twenty miscellaneous Judicial cases, namely, Miscellaneous Judicial Cases Nos. 698 to 713 of 1954 and 164 of 1954, were heard together for the sake of convenience and also because the same points are involved in these cases: this judgment governs all these miscellaneous judicial cases. These applications were filed under Arts. 226 and 227 of the Constitution of India. The case of these petitioners is that they have been carrying on business of stage carriage service in the districts of Gaya and Patna for a long time that the petitioners had been granted permits in the past for this business, and the permits had been renewed from time to time by the authorities; that when the permits were about to expire, the petitioners had filed applications for renewal of their permits and had complied with all the requirements of law, but in spite of this, the Regional Transport Authority concerned, by its order passed in its meeting, rejected the applications for renewal of their permits on the ground that the Government of Bihar proposed to run the services in certain areas of Gaya and Patna districts. These petitioners, however, were granted temporary permits so that they might ply their stage carriages up to the 31-3-1954. It is alleged by these petitioners that the stage carriage services are carried on as a result of the permits granted, by the Regional Transport Authority which, according to them, is a quasi-judicial body constituted by the State Government by virtue of the provisions of the Motor Vehicles Act, 1939.

(2.) It is alleged that the Motor Vehicles Act, 1939, had been amended by the Bihar State Legislature by Act 27 of 1950, and under that Act a new section, viz., Section 66A, was inserted authorising the State Government to declare by notification that a joint Stock Company in which the Central Government or the State Government or both having controlling interest would engage in the business of road transport either throughout the State or portion thereof as may be specified in the notification, and the State Government was empowered to direct the appropriate Transport Authority to grant permits in respect of such area or such routes or portion thereof to such Joint Stock Company and cancel any existing permit or reduce the number of vehicles or routes covered by any permit granted under the Act subject to certain conditions. It is also alleged that in the same Act, Section 61A was inserted authorising the holder of a permit to transfer his permit to the joint stock company contemplated under Section 66A (1) even without the permission of the Transport Authority. It is said that no such joint stock company has been formed and the State Government started an unauthorised scheme of the so-called nationalisation of Road Transport, and in pursuance thereof the South Bihar Regional Transport Authority issued a letter (Memo No. 3766-845 R, T. A. dated the 30-10-1952) to different permit holders operating stage carriage services under the South Bihar Regional Transport Authority in the zone sought to be partially nationalised asking them to apply for permits on alternative routes or extension of their permits to diverted routes outside the proposed zone of so-called nationalisation, and further asked them to give an undertaking not to claim compensation for the routes taken over as they were being given permits for other routes to operate their buses. It is also alleged that a notice also was sent to them asking them to apply for permits for the routes mentioned in annexure 'D' (M. J. C. 698/54). The South Regional Transport Authority issued another letter (Memo No. 4102-197 dated the 13-12-1952) to all the permit holders who were likely to be affected in the so-called nationalisation Eche:ne contemplated under the letter mentioned above, informing them that the Government proposed to give permits for alternative routes to permit holders likely to be affected thereby, and as some time was likely to take in observing legal formalities in granting permanent permits on alternative routes outside the zone of so-called nationalisation to be affected in January 1953, they were to take temporary permits. A similar letter was also issued by the State Transport Authority, Bihar, Patna. It is further alleged that the State Government 'through its agents and employees, namely, the Regional Transport Authority and the State Transport Authority compelled the operators of stage carriage services on such routes sought to be partially nationalised in January 1953, by various methods to apply for permits for other routes outside the proposed so-called nationalised zones, and consequently such operators, who were likely to be affected and displaced by the so-called nationalisation, filed applications for permits with challans showing deposit of Rs. 50/- being the prescribed fee for permanent permits, as required by the South Bihar Regional Transport Authority, and they were granted temporary permits by the South Bihar Regional Transport Authority on routes outside the so-called nationalised zone. It is further alleged that permanent permits have not been granted by the Transport Authorities up till now and some permits mentioned in annexure 'C' (M. J. C. 698/54) and meant for the displaced persons have been granted to the Rajya Transport subsequently.

(3.) It is also alleged that the State Government started operating its buses, in the name of Rajya Transport from 26-1-1953, in the district of Patna and a portion in the district of Gaya up to Nawadah on certain routes. Further it is said that the operators who were displaced as a result of, the so-called nationalisation have not been granted permanent permits, though they complied with all the requirements. Temporary permits, however, were issued to them, and the temporary permits were extended from time to time after every three months till December 1953, and thereafter in some cases they were extended up to 31-3-1954, when these temporary permits expired. It is further the case of the petitioners that the State Transport Authority as also the South. Bihar Regional Transport Authority had previously passed a series of resolutions not to entertain any fresh application for new stage carriage permits, unless a prior vacancy was declared therefor and duly notified inviting applications therefor, and in pursuance of the said resolutions the South Bihar Regional Transport Authority and the State Transport Authority had been rejecting all applications for new stage carriage permits on any route summarily.