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Issues: (i) Whether regular stage carriage permits could be granted to private operators on routes covered by an approved scheme merely because State Transport Undertakings had not used, had surrendered, or had not applied for the permits. (ii) Whether the High Court, in exercise of writ jurisdiction, could direct grant of regular permits to private operators on such notified routes.
Issue (i): Whether regular stage carriage permits could be granted to private operators on routes covered by an approved scheme merely because State Transport Undertakings had not used, had surrendered, or had not applied for the permits.
Analysis: A scheme published under Chapter VI has statutory force and overrides the general permit regime. Once a route is notified under an approved scheme, the transport authority cannot disturb the quota and ratio fixed by the scheme. If the State Transport Undertaking has not applied, has surrendered a permit, or has failed to operate after grant, the statutory position is not altered so as to permit regular allocation of that share to private operators. The only permissible course, where the statutory conditions are met, is the grant of temporary permits under the proviso to section 104, and even then only until the State Transport Undertaking is able to operate under the scheme. The power to alter the scheme or revise the ratio lies with the State Government, not with the transport authority.
Conclusion: Regular permits could not be granted to private operators against the quota reserved under the notified scheme. The direction granting such regular permits was unsustainable.
Issue (ii): Whether the High Court, in exercise of writ jurisdiction, could direct grant of regular permits to private operators on such notified routes.
Analysis: Grant of stage carriage permits is a statutory function of the Regional Transport Authority. The High Court's jurisdiction under Article 226 is supervisory and not appellate, and it cannot reallocate permit quota or substitute its own assessment for that of the statutory authority. In the absence of a demonstrated jurisdictional error or grave procedural illegality, a writ court cannot compel grant of regular permits in a manner that overrides the approved scheme. At most, the authorities could consider temporary permits where the statute permits.
Conclusion: The High Court had no authority to direct grant of regular permits to the private operators.
Final Conclusion: The appeals succeeded, the High Court orders were set aside, the Tribunal's and Commissioner's decision upholding the regular permit framework under the scheme was restored, and only temporary permits, if otherwise warranted by temporary need, could be considered within the statutory scheme.
Ratio Decidendi: An approved route scheme under Chapter VI of the Motor Vehicles Act has overriding statutory force, and neither the transport authority nor the writ court can grant regular permits in derogation of the quota and ratio fixed by that scheme; at most, temporary permits may be issued where the statute so permits.
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