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SECRETARY, QUILON DISTT., MOTOR TRANSPORT WORKERS' COOPERATIVE SOCIETY LTD. versus REGIONAL TRANSPORT AUTHORITY AND ORS.

Citation: [1994] SUPP. 2 S.C.R. 762 · Decided: 18-08-1994 · Supreme Court of India · Bench: K. RAMASWAMY, N.P. SINGH · Disposal: Dismissed

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Judgment (excerpt)

A 
SECRETARY, QUILON DISTT., MOTOR TRANSPORT 
B 
c 
WORKERS' COOPERATIVE SOCIETY LTD. 
I'. 
REGIONAL TRANSPORT AUTHORITY AND ORS. 
AUGUST 18, 1994 
[K. RAMASWAMY AND N.P. SINGH, JJ.] 
Motor Vehicles Act, 1939 : Section 58. 
Motor Vehicles Act, 1988: Sections 72, 81, 217(2){b). 
Grant of stage Carriage Pennit under 1939 Act-Expiry of per-
mit-Coming into force of 1988 Act-Repeal of 1939 Act-Renewal of per-
mit-Held with the expiry of pennit the right to renewal under the 1939 Act 
stands repeale~Operator has to make a fresh application and seek a grant 
D under section 72-IVhen such an. application was not made rejection of 
renewal application under the 1939 Act held valid. 
The appellant-society obtained a stage carriage permit under Section 
58 of the Motor Vehicles Act, 1939 for a period of three years. In the 
meanwhile, the Motor Vehicles Act 1988 came into force on July 1, 1989. 
E Thereafter, the appellant made an application to the Regional Transport 
Authority, seeking renewal of the permit which was rejected on the ground 
that there Is no power under the Act ~o grant renewal to a permit granted 
under the 1939 Act. The order of Regional Transport Authority was 
confirmed by the State Transport Appellate Authority and on appeal it was 
F 
upheld by the High Court. 
In appeal to this Court, It was contended on behalf of the appellant 
that renewal Is In continuation of the permit granted by the Regional 
Transport Authority. By operation of Section 217(2)(b), It Is a permit 
granted under the old Act and continued in Its operation and that, tbere-
G fore, by deemlug fiction the appella.nt is entitled to the renewal as a 
substantive right .. 
Dismissing the appeal, this Couirt 
HELD : 1. The High Court Is right In its conclusion. By necessary 
H Implication of section 217(2)(b) the right to renewal under the Motor 
762 
MOTOR TPT. WORKERS' CO-OP. SOCY. LTD. v. REG NL TRANSPORT AlITHORITY 763 
Vehicles Act of 1939 stands repealed with the expiry of the period of grant A 
given in the permit under the repealed Act, by necessary implication the 
operator has to make fresh application in the prescribed manner to the 
concerned Regional Transport Authority or State Transport Authority and 
seek a grant under section 72. Since the application was not made for fresh 
grant under the 1988 Act, the rejection of the renewal application under B 
1939 Act or under the 1988 Act is perfectly legal. [765-8, C, El 
2. The grant of renewal is no more than a fresh permit to operate 
the transport service for a fresh period mentioned in the renewed permit. 
Therefore, the operation of the permit issued under section 58 of the 
repealed Act of 1939 is a terminus with the expiry of the period of the grant C 
and the operation of the Act of 1939 ceases to have effect from that date. 
Any right to run the permit, therefore, must be under the permit granted 
under the Act as per its provisions. Harmonious construction of the 
relevant provisions would lead to the above couclusion lest any other 
constructiou would Dy in the face of the express provisions of the Act. The 
application for the renewal would not lie under the Act. [765-C to El 
D 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 5729 of 
1994. 
From the Judgment and Order dated 16.9.93 of the Kerala High E 
Court in W.A. No. 1169 of 1993. 
Joseph Vellapally, B. V. Deepak and G. Prakash for the Appellant. 
G. Viswanatha Iyer and M.A. Firoz for the Respondents. 
The following Order of the Court was delivered : 
F 
Leave granted. 
This appeal arises from the judgment of the Division Bench of the 
Kerala High Court made in Writ Appeal No. 1169 of 1993 dated 16.9.93. 
The appellant is a registered cooperative society consisting of workers and G 
it had obtained certain stage carriage permits. One among which was on 
the route Kundara-Chinnakkada via Anchalmood and Civil Station of 22 
Kilometers distance. The appellant had obtained the permit under s. 58 of 
the Motor Vehicles Act, Act IV of 1939 on December 23, 1987 for a period 
of three years which stood expired by December 22, 1990. In the H 
764 
SUPREME COURT REPORTS (1994] SUPP. 2 S.C.R. 
A 
meanwhile, the Motor Vehicles Act No. 59 of 1988, (for short 'the Act') 
has come into force on July I, 1989 in relation to the State of Kerala. The 
appellant made an application to the Regional Transport Authority, Kol-
lam, on January 4, 1991 seeking renewal .of the permit. The Regional 
Transport Authority rejected the applicat

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