LexSTATE OF TAMIL NADU, ETC. ETC. versus L. ABU KAVUR BAI AND ORS. ETC.
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
)
{
..
STATE OF'tAMIL NAi>U, ETC. ETC.
•
v.
'
L. ABU KAVUR BAI.AND ORS. ETC.
O~tober 31, 1983 ·
lY:v._CHANDARcHuD, c.J., s •. MmtTAZA FAzAL Au,.
V.D. TULZAPURKAR, 0. CHINNAPPA REDDY AND
A. VARADARA1AN, JJ.]
Constitution of India, 1950,.Articles 14, 19, 31, 39(b)and (c):
,.
Tamllnadu Stage ·Carriages and Contract -Carriages (Acquisition)
Act
1973-Nationalisation of stage car;iages Ond ·contract carriages- Vesting of
vehicles, workshop etc. In the government on·nationalisatfon-Whether. confiscatory
Jezis/atlon-Constitutionally Valid and permissible-Scope of Articles 39(b) an4
(c)-Whdt is, interpretarion of Statu_tes. ·
Words and Phrases : 11distribution"-" Material resourCt$'~-Mel,ning of-
Constitution of fndla 1950, Article ·39(b).·
The transport industry can be nationalised by two methods : (i) where
the Government acts under Chapter IV-A, (section 68 (b) and (c) of the Motor
-VehicICs Act 1939), after formulating the scheme fof taking o"ver a· route Or
routes, 1and (ii) the more effective method, to taktp ·over the running of the
entire transport· services by nat.iODalising them, along with their units,
A
B
G
D·
E
(Vehicles,. workshops .etc.) either by ·one stroke of by stages spread over a ·
F
short time.
·
The Karnataka State adopled' the second method and the legislation vi_z.,
the Karnataka Contract Carriages (Acqui~ition) _Act, 1976 was upheld by this
Court in .State of Karnataka and .Anr. v. Ranganatha Reddy. and Anr:, [1978]
I S.C.R~ 641.
The Tamilnadu State passed, the Tamil Nadu Stage Carriages and Con~
tract Garriages (Acquisition) Ordinance, 1973 which later toOk the shape of the
Tamil Nadu Stage Carriages and Con~ract Carriage (Acquisition) Act, 1973 •
..
The intention of the Act was to start the nationalisation schen1e in one
district of the State first and then extend it to other districts .. Secti.on 1 provided
..
G
H
•
A
B
c
.o
;726
SUPREME COuR t REPORTS·
[ 1984) 1 S.C.)l.
tha! the policy of nationalisation shall come into force off the 14th January,
1973. Clause (iii) of sub-section (4) (b) of section J laid down that wit~ respect
to stage carriages in any other
dist~ct -in the State,~ the Act will come into
fore:e on_ such dates as the GOvernmCnt may by notification_ appoint. Section 2
codified one of the clauses of the preamble by enacting a declaration· that the
Act was meant for giving e!Iect to the policy of the State towards securing the
principles specified in clauses (b) and (c)- of. Ariicle 39 of the Constifution and
the acquisitiOn in respect of the_ stage carriages and contract carriages and
other properties i:C_ferred to in seCtion 4.
SectiOn 4, the pivot~!· section provided that on and from the date as
may be specified by the Government in respect of a·ny stage carriage Or contract
cartiage operator, the perinit issued to the operator shall vest in the Govern-
ment absolutely free from all encuinbrances and stage carriages or contract
carriages whiCh vest in the Government, shall by fore~ of such ves.ting be freed
and discharged fi'om any trust, obligation and encumbrances etc. ,It was
further provided that any person interested shall have no clahn in relation to
such carriageS or contract carriages taken over by. the State in pur~qance of
the riationalisation Policy and the. clain1, if any, would be limited to the
- amount payable under the Act. Sub-section (3) of section·· 4 contained a decla-
ration that the veSting of the stage carriage·s and other properiies ·shall be
de~med to have _been acquired for a public pu~pose and in pllblic interest.
'
SeCtiOn 6 provided for,a reasonable_ -amount or" cOmpensation to be paid 1
to the operators· on their properiies vesting in the Government. Where the
amount can be fixed by agreement, the same shall be detern1i11ed in accordance
· wi'th the agreement and in other cases .by an arbitrator appointed by the
E
Government. · Se.ftion 1-2 ·provided for "an appeal to the High Court against
the award of the.arbitrator .
F
G
H
.,
The schedule to the Act fixed the sc3.le of compensation enunciated the
piil?-ciples ori , \Vhis;h it wks to be awarded and contained the guidelines for .
its payment.
The· operat6rs whose stage carfiages were taken' over by the State
Government.assailed the constitutional_ validitY"of the Act in their writ Petitions
in the ~ligh Court.
...
·The High Court held that the·Act was ultra vires Articles 14 and 19 of
the Constitution asExcerpt shown. Read the full judgment & AI analysis in Lexace.