ASHUTOSH SWAIN ETC. ETC. versus STATE TRANSPORT AUTHORITY & ORS.

Citation: [1985] 3 S.C.R. 1 · Decided: 01-03-1985 · Supreme Court of India · Bench: D.A. DESAI · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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ASHUTOSH SWAIN ETC. ETC. 
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STATE TRANSPORT AUTHORITY & ORS. 
March J, 1985 
(D. A. DESAI AND AMARENDRA NATH SEN, 11.J 
All-India. Ptrmlt.J, concept of-Whether the holder of an existing 
contract carrlilge permit alone Is eligible to mllke an appfl1at/on for entlorse-
ment of his existing permit enabling the permit holder to p/7 a tourist rehlcle 
on all-India operation and not new applicants for the co11trtUl·c•rriare 1ermlt.J 
-Orlssa Tourist Vdi</<1 Ru/•, 1967, Rule 3 (2), (3) and (-t) appllcabillty •f 
-Motor Vehlcle.1 A61, 19J9 section 63 (7) as Introduced b7 amendlnz Act S6 
af 1969 with effect from 1st October, 1970 read with sections 1 (2$), 2 (29-A), 
2 (33), 49, 50, 51, 57, 58, S9, 60, 61 and 63 (7), scope of 
In response to an advertisement Oated 25th June, 1914 issued by the 
State Transport Aotbority, Orissa inviting as:iptications in the prescribed 
forms, from the operators for all-India Tourist Permit. a number of inten-
ding operators including the appellants submitted their applications and at 
the meeting held on February 2, 191S, the State Transport Authority 
granted to the appellants all-India Tourist Permits for omnibus with passen-
ger capacity not exceeding 29. 
Some of the applicants who failed to obtain 
a permit filed three appeals being M. V. Appeals Nos. 15, 16 and 17 a11 
or. 1975 to the State Transport Appellate Tribunal under !ICC. 64 (2) of the 
Motor Vehicles Act, 1939. 
The Appellate Tribunal di!!!mi!!ISC(I 
a11 the 
appeals and confirmed the order made by the State Tran!port Authority 
granting all-India tourist permits to the appellants. 
Three uosuccessful 
appHcants for permit filed three writ petitions styled as C.J.C. No. 381, 182 
and 881, al1 of 1976 questionina- the correctness of the order a:ranting the 
permit and dismissal of their appeals in the High Court of Orissa. 
A Divi-
sion Bench of the High Court, by a common judgment, a II owed all the three 
writ petition• quashing and setting aside the order of the State Transport 
Authority. Cor.scquentJy, these appellants surrendered their permits. Hence 
these three appeala by special leave. 
During the pendcncy of the11e appeals, 
the appellants were granted 
temporary 
all·India 
tourist permits 
in 
compliance with tha interim orders ma,'e by the Court, 
Allowing tho appeals, the Covrt 
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SUPRBMJ! COURT REPORTS 
(1985) 3 S.C.R. 
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HELD : 1.1 It was not necessary that the applicants for an all-India 
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tourist permit must have a pre-existing contract carriage permit which could 
could be endorsed so as to convert it into all·lndia tourist permit. [1 IB-C] 
1.2 By introducing sub.section 7 in section 63 of the Motor Vehicles 
Act the concept of all-India permit to be granted by a State Transport 
Authority of a State within tbC limits of the qaota prescribed by the Central 
Government which would enable the holder of the permit to operate in the 
whole of India, was introduced, for the first time with effect from Ist 
October, 1970. 
The underlying object for creating this new class of permit 
was to promote tourism and to remove the barrier caused by the earlier 
f.ystem under which if a tourist vehicle is hired by a tourist party for 
n1oving from State to State, the vehicle cannot be taken to another State 
from the place of commencement of journey unless a valid contract carriage 
permit of that State is obtained or the existing permit is counter-signed. 
(60°H, 7A·B] 
1.3 An application for an all-India tourist permit bas to be processed 
in accordance with the provisions of sections 49, SO, $1; 57, 38, 59, 60, 
61 and 63 (7). 
An all-India tourist permit is primarily a contract carriage 
permit but while the ordinary contract carriage permit can be granted by 
the Regional Transport Authority, for operation within local jurisdiction, or 
when counter-signed by Regional Transport Authority of adjacent area in 
more than one such jurisdiction but not at any rate outside the State and 
not in any case on an all-India basis. 
To this e'liteot, an ordinary contract 
carriage permit differs from an all-India tourist permit but an all-India 
tourist permit is none-the-less a contract carriage permit. 
Sub~section (7) 
of section 63 on the other hand confers power on the State Transport 
Authority to grant an all· India tourist permit which in effect is a contract 
carriage permit but which permits plying of tourist vehicle throughout India. 
Even for obtain
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