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PANCHAM CHAND AND OTHERS versus STATE OF HIMACHAL PRADESH AND OTHERS

Citation: [2008] 3 S.C.R. 888 · Decided: 04-03-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Case Allowed

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Judgment (excerpt)

[2008] 3 S.C.R. 888 
A 
PANCHAM CHAND AND OTHERS 
~ 
v. 
,,. 
STATE OF HIMACHAL PRADESH AND OTHERS 
(Civil Appeal No. 1732 of 2008) 
B 
MARCH 4, 2008 
[S.B.SINHA AND V.S.SIRPURKAR, JJ.] 
' ,.. 
Motor Vehicles Act, 1988- ss.2(41), 2(47), 70 and 72 -
โ€ข 
Stage Carriage Permit - Grant of - Application for permit filed 
c directly before Chief Minister - Permit granted under the 
direction of Chief Minister - Correctness of - Held: Chief 
Minister or any authority, other than statutory authority could 
not have entertained application for grant of permit nor usurp 
the function of Regional Transport Authority - Also, Director 
D Transport erred in forwarding the same to Regional Transport 
Officer with recommendations of Chief Minister -
Such 
interference violates the constitutional scheme - It interferes 
1 r 
with the independent functioning of quasi judicial authority -
Constitution of India, 1950 - Article 162. 
E 
Appellant-bus owners applied for grant of stage 
carriage permits for different routes before the Regional 
Transport Officer. Respondent no. 4 owner of fleet of buses 
had political connection. He applied for the route permit 
directly to the Chief Minister. The Office of Chief Minister 
communicated the order indicating approval for grant of 
"' 
F 
I.. 
a route permit in favour of respondent no. 4 to respondent 
no. 2-Director Transport twice. Respondent no. 2 acted 
โ€ข 
thereupon. It advised the Regional Transport Authority to 
proceed after obtaining a proper application from 
G 
respondent no.4 in that behalf. Thereafter, stage carriage 
permit was granted in favour of respondent no.4 for the 
route. However, the appellants were not granted the permit 
though they applied prior to respondent no.4. Aggreived, 
appellants filed writ petition which were dismissed. Hence 
,.. 
the present appeal. 
H 
888 
PANCHAM CHAND AND OTHERS v. STATE OF 
889 
HIMACHAL PRADESH AND OTHERS 
~ 
The question which arose for consideration in this A 
~ 
appeal was whether the application for grant of permit of 
a Stage Carriage Permit in terms of the provisions of the 
Motor Vehicles Act, 1988 could be filed before Chief 
Minister or any other Authority other than those specified 
under the Act. 
B 
" ' 
Allowing the appeal, the Court 
.. 
HELD: 1.1 Regional Transport Authority being a 
statutory body is bound to act strictly in terms of the 
provisions thereof. It cannot act in derogation of the c 
powers conferred upon it. While acting as a statutory 
authority it must.act having regard to the procedures laid 
down in the Act. It cannot bye-pass or ignore the same. 
Nothing has been placed on record to show that the Chief 
Minister in his capacity even as a Member of the Cabinet D 
was authorized to deal with the matter of transport in his 
~ 
official capacity, he had even otherwise absolutely no 
business to interfere with the functioning of the Regional 
Transport Authority. [Para 18) [896-G; 897-A, BJ 
1.2 The facts goes to show that prior thereto no E 
proper application was filed before the Regional Transport 
Authority. Such an interference on the part of any authority 
upon whom the Act does not confer any jurisdiction, is 
' 
wholly unwarranted in law. It violates the constitutional 
.) 
scheme. It interferes with the independent functioning of F 
a quasi judicial authority. A permit, if granted, confers a 
~ 
valuable right. An applicant must earn the same. Therefore, 
the application of the respondent No.4, was to be 
entertained alongwith other similarly situated persons. 
[Para 19) [897-C, D, F] 
G 
1.3 In the matter of grant of permit to individual 
applicant, the State has no say. Therefore, the Chief 
ยทJ., 
Minister or any authority, other than the statutory authority 
could not entertain an application for grant of permit nor 
could issue any order thereupon. Even any authority H 
890 
SUPREME COURT REPORTS 
[2008] 3 S.C.R. 
A under the Act, including the appellate authority cannot 
issue any direction, except when the matter comes up 
before it under the statute. (Para 20) [897-G; 898-A] 
1.4 It is not a case where the statutory authority was 
hearing a grievance from the public that buses are not 
8 plying in a particular route as a result whereof the villagers 
were suffering. [Para 23] (899-B] 
.. 
' .. 
1.5 The political connection of respondent no. 4 โ€ข 
encouraged him to file an application for grant of permit 
c before the Chief Minister directly. The Chief Minister could 
not have entertained the 

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