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Issues: (i) Whether, on a construction of section 58(1)(a) read with section 58(2) of the Motor Vehicles Act, 1939, renewal of a stage carriage permit had to be for a period of not less than three years and not more than five years. (ii) Whether the Court could sever the illegal part of the renewal order and direct the Transport Authority to make the renewal in conformity with that statutory period.
Issue (i): Whether, on a proper construction of section 58(1)(a) read with section 58(2) of the Motor Vehicles Act, 1939, renewal of a stage carriage permit had to be for a period of not less than three years and not more than five years.
Analysis: Section 58(1)(a) fixes the duration of a stage carriage permit at not less than three years and not more than five years. Section 58(2) directs that a renewal application be made and disposed of as if it were an application for a permit. The majority held that this imports the same statutory incidents applicable to the grant of a permit, including the prescribed duration. The words "without renewal" in section 58(1)(a) were treated as excluding renewal periods from the overall life of the permit, not as authorising any shorter period on renewal.
Conclusion: Yes. A renewal of a stage carriage permit must also be for a period of not less than three years and not more than five years.
Issue (ii): Whether the Court could sever the illegal part of the renewal order and direct the Transport Authority to make the renewal in conformity with that statutory period.
Analysis: The majority applied the principle of severability and held that the renewal itself was certain, while only the illegal restriction to a one-year term could be excised. Since the Authority had a statutory duty, once renewal was granted, to specify a period within the lawful range, the Court could issue a direction compelling compliance with that duty. The dissenting view was that judicial review could quash an illegal order but could not substitute a new order or dictate the duration to be fixed by the Authority.
Conclusion: Yes. The illegal limitation on duration could be severed and the Authority could be directed to comply with the statutory requirements in making the renewal order.
Final Conclusion: The petitions succeeded before the majority, and the impugned renewal orders were set aside only to the extent of the unlawful shortened duration, with a direction to renew in accordance with the statutory minimum and maximum term. A separate dissent would have confined relief to quashing the orders and remitting the matter to the Authority.
Ratio Decidendi: Where a statute prescribes a mandatory duration for a permit and requires renewal applications to be dealt with as applications for a permit, that duration governs renewal as well; if an authority grants renewal but fixes an unlawful shorter term, the invalid limitation may be severed and a direction issued to conform the order to the statute.
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