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SHIV CHAND AMOLAK CHAND versus REGIONAL TRANSPORT AUTHORITY & ANR.

Citation: [1984] 1 S.C.R. 288 · Decided: 07-10-1983 · Supreme Court of India · Bench: P.N. BHAGWATI · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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SHIV CHAND AMOLAK CHAND 
.v 
REGIONAL TRANSPORT AUTHORITY & ANR. 
October 7, 1983 
[P. N .. BHAGWATI ·AND R. B. MISRA JJ.) 
Motor Vehicles Act, 1939-Sectfon 47(3) and 57(8) sco;e of- Wh~ther 
Section 47(3) of the Act will be applicable when an application is made by a 
. holder of a permit for extension of the rouie specified in the permit. 
The appell~nts ·held stage carriage permit granted to them by the 
Regional Transport Auth_ority for the route _Dabra-Karera Via Lodi Mato-
. extended\uPto Gwalior. On 22-6-1978, this route for which. the -permit wis 
. held by the appellants wa:s modifie~ at their own request, by deleting the 
pOrtion of Jie route from Karer8. to Shivpuri. By a notification d11ted 4-8-1971 
certain routes were nationalised Under Scheme No. 11-M which came into 
effect from 25-9-1978, including deletion of the portion of the route from 
Shivpuri .to Satanwara, with the result the permit of the appellants· remained 
operative· only for the remaining portion ·of the route namely, Satanwara-
Gwalior Via ·Dabra. Effective from 19-12-1978, the State Gov('rnment issued 
another Notification making mOditications in the route schemes. Since this 
modHication perniitted plying of stage carriages by private operators even on 
a portion of a nationalised roi.ite conneCting a district headquarters and not 
more than 20 KMs in length, the appellants made an- application to the 
Regi~al Transport Atithority-for restoring the portion of the· route from 
Shivpuri to Satanwara on the.ground that Shivpuri waS a district headquarter 
a"nd the portion of the route from ·shivpuri and Satanwara was less than 20 
KMs. The Regional Transport Authority rejeCted the said application on the 
.grqund that the"Notificatio~ dated 18-12-1978 did not have any retrospectiVc 
effect and therefore, the appellants .were not entitled to ciu~omatic restoration 
of the porti9n of the route from Shivpuri to Satanwara. 
The appellants thereupon filed an application· in t.he prescribed form for 
extension of the route specified in their permit from Satanwara to Shivpuri. 
The said application Was rejected after hearing the objections on two grounds, 
namely (i) the specific· order of the State Govt. Curtailing the Satanwara-
Shivpuri pOrtion of the applicants' Permit, while approving Scheme 11-M 
cannot be tfeated as having been ainended by the General Amendment to the 
Scheme and (ii) no extCnsion of the route could be granted without ·following 
the pr~cedure laid down !n ~Section 47(3) of the ACt. This order of .the 
Regional . ifranspOrt Authority was challenged by the· appellants in a writ 
· petition filed .in the High Court of Madhya Prades~. The ~igh Court rejected 
the petition holding that by reason of the express language of Sub-Section (8) 
ofSectioD 57,.an application for extension of the i'oute specified in an existing 
permit was tantamount to an .appl~caiion for grant Of a new permit and hCnce 
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SHIV CHAND v. R.T.A. 
it was subject to the provisions of section 47(3)'and it could not be Considered 
.without following the procedure prescribed by Section 47(3). Hence the appeal 
after obtai~iog special leave of the Court. 
Allowing the appeal, the Court 
HELD : I.I The application made by the appellants 'for extension ot 
the route specified in• their pc:nnit from Satanwara to Shivpuri could be 
considered by the Regional Transport Authority without following the proce-
dure prescribed ·under Sub-Section (3) of Section 47. [297 E·H] 
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1.2. ·However, under the terms of Sub-Section (8) of Section 57. this 
application of'the appellants was liable to be treated as an application for th1 
grant of a new permit, since in .effect and substance, it was· an application for 
varying the condition of the perrnit by ~xtending the route from Shivpuri to 
Satanwara. But the question is for wh3t purpo.:e? [297 G-H] 
2.1 Having regard to the several decisions of the Supreme Court and 
particularly the decision in Mohd. Ibrahim v. ·State TranSport Appellate, 
T,Jbunal, MarJras, [1971] 1 S.C.R. 474, the law is well settled that an applicatipn 
for grant of a new permit cannot be ·entertained by the Regional Transport 
Authority under Section 48. unless the limit of the number of stage-carriages 
for which permits ·niay be granted is first deter~iried ~n,der ~cciiori 47(3). 
There are two independent steps required to be taken in connection with the 
arant of·a Permit, ihe first being the detern1

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