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GANDHARA TRANSPORT CO. LTD. versus THE STATE OF PUNJAB AND OTHERS

Citation: [1963] SUPP. 1 S.C.R. 800 · Decided: 31-10-1962 · Supreme Court of India · Bench: BHUVNESHWAR PRASAD SINHA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

1962 
Octihu1 81. 
800 SUPREME COURT REPORTS [1963] SUP11. 
GANDHARA TRANSPORT CC>. LTD., 
v. 
THE STATE OF PUNJAB. AND OTHE],lS 
(B. P. SINir.A., c. J., P. B. GAJENDRAGADKAR, 
K. N. WANCHOO, K. C. DAS GUPTA and 
J. C. SHAH, JJ.) 
Stage 
Garria{je-Temporary 
permit-Application 
for 
renewal-Grant of regular permit-Validity-Motor VeMclu 
Act, 1939 (4of1939), 1947, 57, 58, 62. 
By an order of the Minister in charge of the Transport 
Department, Punjab State, a temporary permit was granted 
to M for plying vehicles on the route indicated in the permit. 
When the period of the temporary permit expired M applied 
to the Regional Transport Authority for renewal of the permit. 
The Regional Transport Authority issued a 
notic~ inviting 
objections "regarding the further renewal of the permits for a 
period of three years on regular basis in favour of M." The 
appellants and oihers filed objections but M was granted a 
regular permit for a period of three years. On 'appeal, the 
Provincial Transport Controller quashed the 
ord~. on the 
ground that M had merely applied for renewal of the temporary 
permit, that the procedure adopted for granting a P,ermit to 
M did not conform to the provisions of the law and that, 
therefore, the order renewing a temporary perihit and making 
it a permit to ply a stage carriage for. three years was invalid. 
But the 6rder of the Transport Controller was set aside by the 
Secretary, Transport Department. The appellants then moved 
the High Conrt of Punjab by a petition under Art. 226 of 
the Constitution of India for quashing tht order of the secre-
tary, but the High Court rejected the application on the view 
that for adjudicating on the merits of the claims for and 
again8t the grant of the permit the authorities under the 
Motor Vehicles Act were the proper authorities. 
Held, that the order of the Regional Transport Authority 
granting a regular permit to M was unla,vfu] as it was vitiated 
by grave errors of procedure. The Transport 
Author~ty ( 1) had 
entertained an application for a rene\val of a terilporary permit 
which was not contemplated by any provision of the Motor 
Vehicli;s Act, 1939, (2) had invited objections t6 the application 
as one for renewal for three years on regular basis, the:rcby 
misleading parties desiring to enter into competition, and 
_J 
1 S.C.R. SUPREME COURT REPORTS 
801 
(3) had failed to apply its mind to matte1s which had to 
be considered under s. 47 of the Act. 
HeW,, further, that the order passed by the High Court 
should be set aside and the order of the Transport Authority 
declared unlawful, though the period of the regular permit had 
expired in the meantime, because otherwise when making fresh 
applications for permit, M would be getting the benefit of the 
proviso to s. 58 (2). which was available only to those having 
lawful permits. 
CIVIL APPELLATE JURISDICTION: Civil Appeal 
No. 200 of 1962. 
Appeal from the judgment and order dated 
March 15, 1960, of the Punjab High Court, Chandi-
garh, in Civil Writ No. 315of1960. 
Bishan Narain, Daya 
Swarup Nehra 
and 
Naunit Lal, for the appellant. 
K. L. Gosain, S. K. Mehta and K. L. Mehta, 
for respondent No. 3. 
1962. October 31. The Judgment of the 
Court was delivered by 
SHAH, J.-By order dated October 23, 1956, 
the Regional Transport Authority, Patiala, granted 
a permit to one Manohar Singh for plying a staie 
carriage on the Bhatinda Khera (Via Bajekhanna)-
Jaitu-Kot-Kapura route which was about 55 miles 
long. This route covered 35 miles of the Bliatinda-
Kot-Kapura-Faridkot route for which the appellants, 
M/s. Gandhara Transport Co. Ltd., held permits for 
plying their vehicles. In appeal against the order 
passed by the Regional Transport Authority, the 
appellate authority cancelled the permit in favour of 
Manohar Singh, but the order of the Appellate 
Authority was set aside by the Minister in-charge of 
the Transport Department, Punjab State, in revision, 
and it was directed that a fresh temporary permit be 
granted to Manohar Singh for plying vehicles on 
the route for which he had been given a permit. The 
appellants then preferred a petition under Art. 226 
1962 
Grmdlmr• r,..,,.,,_
Co., Ltd. 
v. 
Stall •f PllJ!iah 
Shah, J, 
1902 
•Gandhora Tronspo1 t 
Co., Ltd. 
v. 
Sl4te of Punjab 
Shah, J, 
802 SUPREME COURT REPORTS [l96g] SUPP. 
of the Constitution before the High Court of Punjab, 
challenging the validity of the order passed by the 
Minister. Before this writ petition co

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