TaxTMI 
TaxTMI 
2004 (11) TMI 585
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....PSRTC') prepared a draft scheme to nationalize Saharanpur-Shahdara- Delhi route and the same was published on 29.9.1959 in accordance with Section 68-C of the Motor Vehicles Act, 1939 (hereinafter referred to as the 'old Act'). The scheme was challenged by a number of operators and the High Court by its judgments dated 31.10.1961 and 7.2.1962 upheld the scheme as against 50 operators, but quashed the same as against 32 and 18 operators who had filed two groups of writ petitions on the ground that they should be afforded an opportunity of hearing. In appeal, the judgment of the High Court was upheld by this Court in Civil Appeal No. 1616 of 1968 decided on 3.4.1968 (Jeewan Nath Wahal vs. STAT). The hearing of the objections could not take place on account of interim orders passed in various suits, which were filed by some of these operators, and as a result, the scheme remained pending for over 20 years. Finally, the matter again came up to this Court and a two-Judge Bench quashed the scheme by the judgment dated 23.8.1985 on the ground that the delay of 26 years in disposing of the objections had resulted in violation of Articles 14 and 19(1)(g) of the Constitution. It ....
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....me were dismissed on 19.11.1999 on the ground that the scheme stood approved by the decisions of the Supreme Court in the case of Ram Krishna Verma (supra) and also Nisar Ahmad vs. State of U.P. 1994 Supp (3) SCC 460. The appeals preferred against the judgment of the High Court were allowed by this Court on 1.5.2001 and the judgment is reported in 2001 (5) SCC 762 (Gajraj Singh & Ors. vs. State of U.P. & Ors). It was held that the decision in Ram Krishna Verma's case (supra) was confined only to one route namely, Shahranpur-Shahdara-Delhi route, and as a result of the said decision the draft scheme stood approved only with regard to the said route. The notification published on 13.2.1986 included not only the Shahranpur- Shahdara-Delhi route, but also 38 other routes and consequently the scheme had not been approved with regard to these 38 routes and objections filed thereto required to be considered on merits. The operative portion of the judgment is being reproduced below: "12. The appeals are allowed. The impugned judgment of the High Court dated 19.11.1999 is set aside. The writ petitions are partly allowed. It is directed that the objections filed against the draft sche....
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....d 3.11.2001, passed by the competent authority, were quashed. 5. The learned Solicitor General, who was assisted by Shri Pramod Swarup, appearing for UPSRTC, has submitted that the view taken by the High Court that the draft scheme dated 13.2.1986 had lapsed by virtue of sub-section (4) of Section 100 of 1988 Act, is patently erroneous as the said provision would apply only to a scheme which had been published under sub-section (1)of Section 100 of the Act and can have no application to a scheme which was published under Section 68-C of the old Act, as is the case here. Learned Solicitor General has further submitted that a clear finding had been recorded in Ram Krishna Verma's case that the draft scheme dated 13.2.1986 had not lapsed under sub-section (4) of Section 100 of 1988 Act, and further in view of the direction issued by this Court in the case of Gajraj Singh, only certain objections were required to be heard by the competent authority and the already approved scheme published on 29.5.1993 was to stand modified consistent with the decision on the objections. It has thus been submitted that the scope of the writ petitions which had been filed in the High Court challe....
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....he hearing authority, therefore, wrongly concluded that the draft scheme stood lapsed. The High Court also equally committed illegality following its earlier view, which now stood overruled by this court in Krishan Kumar case. Accordingly it must be held that the view of the High Court and the hearing authority is clearly illegal. In paragraph 15 of the reports, it was reiterated that the fresh draft scheme dated February 13, 1986 had not lapsed and would continue to be in operation and further that it would be confined only to 50 operators. The relevant part of operative portion of the order (paragraph 17 of the report) is being reproduced below: "17. The appeals are accordingly allowed. The grant of permits to all the respondents/private operators and respondents 7 to 285 in C.A. No. 1198 of 1992 (SLP No. 9701 of 1990) under Section 80 of the Act or any others on the respective routes, parts or portions of the nationalized routes of February 13, 1986 draft scheme are quashed. The hearing authority shall lodge the objections of the 50 operators including the appellants herein. The competent authority shall approve the draft scheme of 1986 within a period of 30 da....
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..... State of U.P. & others AIR 1960 SC 1457, a Constitution Bench considered the application of rule of res judicata in writ petitions. It was held that if a writ petition filed by a party under Article 226 is considered on the merits as a contested matter and is dismissed, the decision thus pronounced would continue to bind the parties unless it is otherwise modified or reversed by appeal or other appropriate proceedings permissible under the Constitution. Similarly, in Devilal Modi vs. Sales Tax Officer AIR 1965 SC 1150, which is also a decision by a Constitution Bench, it was held that it would not be right to ignore the principle of res judicata altogether in dealing with writ petitions filed by citizens alleging the contravention of their fundamental rights. It was further held that considerations of public policy cannot be ignored in such cases, and the basic doctrine that judgments pronounced by the Supreme Court are binding and must be regarded as final between the parties in respect of matters covered by them must receive due consideration. In Direct Recruit Class II Engineering Officers' Association vs. State of Maharashtra and others 1990 (2) SCC 715, the Constitution ....
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....tent authority. Therefore, the scope of the writ petition was very narrow and the High Court could only examine whether the competent authority had considered the objections in accordance with the directions issued by this Court. In such a writ petition, the High Court could not have gone into the question as to whether the scheme had lapsed under sub- section (4) of Section 100 of the Act. The view taken by the High Court that the scheme had lapsed is, therefore, wholly uncalled for and beyond the scope of the writ petition. 14. Krishan Kumar's case (supra) which has been strongly relied upon by Shri Singhvi for urging that the draft scheme dated 13.2.1986 had lapsed by virtue of sub-section (4) of Section 100 of the Act can be of no assistance to him. In the said case, it was observed that if the period of one year from the date of publication of the proposed scheme is applied to the pending schemes under Section 68-C of the old Act, the purpose and object of saving the old schemes under clause (e) of Section 217(2) of the 1988 Act would be frustrated. It was also observed that the scheme published under Section 68- C of the old Act pending on the date of commencement of t....
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....9;s case (supra), wherein a direction was issued to publish the approved scheme, and also the fact that in Gajraj Singh's case (supra), the matter was remitted to the competent authority for a very limited purpose. 16. Shri A. Singhvi has also submitted that the UPSRTC cannot provide transport facility to the people in the area and, therefore, the nationalization of the routes is not in public interest. During the course of hearing an additional affidavit has been filed by Shri Arvind Dikshit, one of the respondents in Civil Appeal Nos. 6350-51/2002 wherein it is averred that though the population in the area has greatly increased in the last about 15 years resulting in proportionate increase in traveling public, the number of buses being operated by UPSRTC has considerably gone down and many of such buses are over-age and in extremely bad condition. The UPSRTC has suffered a loss of Rs. 282.75 crores during the period 1996-97 to 2000-01. It has thus been urged that the UPSRTC is not at all in a position to cater to the needs of the people in the area by providing an efficient transport service. Learned counsel has further submitted that nearly 500 operators who have been gr....